Virgin and TalkTalk discuss deal over broadband sharing

Virgin Media and TalkTalk are working on a deal to share the cost of new ultrafast broadband networks and dial up the pressure on BT.

The two operators are understood to be discussing sharing so-called passive infrastructure. It would mean TalkTalk could lay fibre optics in Virgin Media’s underground ducts and vice versa.

TalkTalk is trying to transform itself from a reseller of BT broadband lines to a network owner in its own right via a £1.5bn deal with M&G.

They aim to connect three million homes with faster, more reliable lines but have not yet finalised their terms.

Piggybacking on the Virgin Media network could bring costs down sharply by reducing the need to dig up pavements.

In return the cable operator, owned by Liberty Global, could accelerate its ongoing Project Lightning expansion by following TalkTalk into new territory, industry sources said.

The talks are at an early stage and may not lead to a deal, however. Liberty Global has opposed infrastructure sharing in other countries to protect its cable investments.

Virgin Media and TalkTalk declined to comment.