- Mobile virtual network operator Giffgaff begins testing full fibre broadband services on nexfibre’s wholesale network.
- The move signals Giffgaff’s potential expansion into fixed broadband, adding competition to the UK fibre market.
What happened: New pilot marks Giffgaff’s first foray into fixed broadband, powered by Virgin Media O2’s open-access fibre platform
Giffgaff, the UK-based mobile virtual network operator (MVNO) owned by Telefónica, has launched a trial of complete fibre broadband services using the infrastructure of nexfibre, a wholesale fibre network operator co-owned by Telefónica, Liberty Global, and InfraVia Capital Partners. The initial test takes place in a limited number of locations, though neither company has disclosed where or how many customers are involved.
The trial is being delivered through a wholesale agreement with Virgin Media O2, which markets services over the nexfibre network and already operates broadband services across the UK. Giffgaff’s broadband is not yet available to the public and is currently being tested internally to see if it could work as a future product. If the trial goes well, it could mark Giffgaff’s return to the home broadband market, following its earlier ADSL service, which was discontinued in 2018.
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Why it is important
This move could significantly reshape the UK’s competitive broadband landscape. Giffgaff is famous for its low-cost, flexible mobile offerings. Its potential entry into the whole fibre space could bring similar disruption to home internet pricing and service models. The decision to trial services over nexfibre’s infrastructure aligns with broader industry shifts towards open-access wholesale networks, which aim to break the near-duopoly of BT Open reach and Virgin Media O2.
Nexfibre plans to cover 5 million premises by 2026, focusing mainly on underserved areas—a goal that matches Giffgaff’s mission of affordability and accessibility. Lutz Schüler, CEO of Virgin Media O2, stated that the nexfibre rollout is focused on increasing choice and competition in the market by allowing more providers to offer services. For Giffgaff, using this infrastructure lowers the barriers to entry and provides an opportunity to expand its business by offering new services.
Although this low-profile trial reflects growing progress in making fibre broadband more widely available, this could benefit cost-conscious consumers by providing more affordable alternatives in a market that a few major providers have traditionally controlled.
