Virgin Media O2 petitions Ofcom to repeal UK net neutrality rules
Virgin Media O2 has petitioned UK regulator Ofcom to relax net neutrality rules, citing the need for greater flexibility to support 5G network slicing and the deployment of agentic AI. The operator argues that current regulations hinder infrastructure investment, with a commissioned report estimating a potential revenue gain of up to £871 million annually if restrictions are eased.
Key Takeaways
- Virgin Media O2 estimates a repeal could generate up to £871 million in incremental annual revenue and £384 million in network efficiency gains.
- CEO Lutz Schüler cited specific limitations preventing the prioritization of critical navigation, taxi, and small-business payment applications during peak congestion.
- The operator identifies 'Agentic AI' as a primary driver for reform, claiming current rules hinder the traffic prioritization required for automated AI operations.
- Ofcom previously softened guidelines in 2023 to allow premium low-latency packages and limited specialized services for 5G network slicing.
Why It Matters
The petition threatens the 'open internet' status quo by moving toward a two-tier connectivity model where ISPs can charge content providers for delivery speed. For streaming platforms, this could mean higher transit costs and fragmented quality of service across mobile networks. The proposal signals a shift in the ISP strategy from passive transport to active traffic orchestration, potentially forcing video services to negotiate individual carriage and priority agreements. Watch for Ofcom’s response to the UK Government’s Mobile Market Review in late 2026, which will likely serve as the vehicle for any statutory changes to neutral traffic management.
Additional Context
The push for deregulation follows the launch of the UK Government’s Mobile Market Review in February 2026, which aims to determine if current frameworks can support nationwide standalone 5G by 2030. According to the Department for Science, Innovation and Technology (DSIT) in May 2026, operators face up to £34 billion in deployment costs through the end of the decade, leading to increased pressure on regulators to allow new monetization models like traffic prioritization. Industry body Mobile UK characterized this period as a watershed moment, noting that the UK’s infrastructure quality currently ranks 36th globally due to falling revenues per Digital Watch in April 2026.
Simultaneously, the European Union is navigating similar tensions through its proposed Digital Networks Act (DNA), unveiled in January 2026. Per Inside Privacy, the DNA Proposal seeks to replace the 2015 Open Internet Regulation with a framework that, while maintaining net neutrality principles, introduces broader exceptions for 'specialized services' optimized for applications like remote surgery and autonomous vehicles. The EU’s telecoms regulator, BEREC, opened a public consultation in June 2026 specifically on 5G network slicing to clarify these boundaries, highlighting a coordinated regional effort by telcos to reclassify network management as an essential innovation rather than a neutral utility.
In October 2025, Virgin Media O2 demonstrated its commitment to high-capacity infrastructure by securing 1.8 GHz of mmWave spectrum in 26 GHz and 40 GHz bands during Ofcom's principal auction. Per Liberty Global, these high-frequency airwaves are specifically intended for dense urban environments like stadiums and transport hubs where traffic management is most critical. The acquisition reinforces the operator's argument that its £700 million annual mobile transformation plan requires a more permissive regulatory environment to utilize 5G Standalone and small-cell densities effectively.
Read full article at ispreview.co.uk
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