O2 Daisy reshapes UK business telecoms market

O2 Daisy reshapes UK business telecoms market is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• O2 Daisy begins life with 70 % ownership held by Virgin Media O2 and 30 % by Daisy founder Matthew Riley

• It targets ambitious cross‑sell and cost‑synergy gains while positioning itself to compete with incumbents such as BT and Vodafone

What happened：The launch of O2 Daisy

As of 4 August 2025, O2 Daisy begins operating as a standalone company combining the enterprise arm of Virgin Media O2 (a joint venture between Liberty Global and Telefónica) with Daisy Group, a seasoned UK B2B IT and telecoms provider.

Ownership is structured at 70 % for Virgin Media O2 and 30 % for Daisy Group, with founder Matthew Riley becoming Chairman and Jo Bertram (formerly MD of VMO2 Business) stepping into the CEO role. The combined organisation starts with approximately £1.4 billion in annual pro‑forma revenues and consensus analyst expectations of around £150 million in adjusted core earnings based on 2024 performance.

Operationally, O2 Daisy brings together VMO2’s fixed and mobile infrastructure with Daisy’s flexible service platforms and client-focused approach. It has established hubs in Nelson, Sheffield, Manchester, London, Reading and Bournemouth, deploying technology such as 5G private networks, cloud-based solutions, Teams Phone mobile services, cybersecurity tools and AI-powered insights via O2 Motion.

Also read: VMO2, Daisy in $1.75B B2B deal
Also read: VMO2 claims customer service is improving amid mixed results

Why it’s important

The launch of O2 Daisy is arguably one of the most significant shifts in the UK enterprise telecoms sector in recent years. With combined scale and ambition, it immediately becomes the country’s second‑largest SME-focused telecoms provider, signalling a formidable challenge to market leaders like BT and Vodafone.Also,The timing is notable: Virgin Media O2 reported a €414 million loss in H1 2025 and is under pressure from aggressive alternative fibre networks (“altnets”) that have been poaching customers through deep-discount offers. The consolidation into O2 Daisy is designed to streamline these B2B operations, unlocking anticipated annual cost savings as high as £70 million by 2030.Beyond financial rationale, O2 Daisy is being framed as a digital transformation enabler for UK businesses—extending beyond connectivity to include managed IT services, cloud, cybersecurity and analytics. In an era of post-pandemic hybrid work, these capabilities aim to meet growing demand for integrated, agile business technology solutions.

Moreover, the venture arrives amidst broader industry shake-ups. Telefonica recently confirmed scrapping a spinoff plan for VMO2’s fixed network into a subsidiary called NetCo, while competition regulators have green-lit other sector consolidation moves, such as Vodafone’s merger with Three UK. O2 Daisy may thus serve as a strategic anchor in VMO2’s evolving role amid increasing network consolidation and transformation strategies.