(Bloomberg) — Italian network operator Open Fiber SpA is in talks on a broadband deal with a group that holds rights to billionaire Richard Branson’s Virgin brand, people familiar with the matter said.
If the accord goes ahead, Open Fiber could begin offering Virgin-branded broadband service in Italy as soon as this summer, the people said. The deal could also include TV programming, they said.
Tom Mockridge, the former chief executive officer of Virgin Media in the UK, may have negotiated the license deal with London-based Virgin Group, one of the people said. The new brand could be dubbed Virgin Fibra, the people said.
The Virgin brand is already licensed to London-based cable group Liberty Global Plc for the UK and Ireland, and to Spanish telecoms company Euskaltel, in a deal set up by acquisition firm Zegona Communications Plc, which is run by former Virgin Media UK executives. The Italian venture is not related to Liberty Global, a company spokesman said.
Mockridge, a one-time lieutenant of media mogul Rupert Murdoch, played a key role in setting up Italy’s first pay-TV service, Sky Italia, and he’s based in the country, according to his LinkedIn profile. In 2020 he founded Milan-based telecoms company Fulmine in Mano, where he serves as chairman.
Representatives for Open Fiber and Virgin Group declined to comment for this story. Representatives for Euskaltel and Zegona didn’t immediately respond to a request for comment. Mockridge declined to comment.
Italy already has one of the world’s most competitive telecoms markets, so the arrival of a new player could pose a serious threat to existing carriers. France’s Iliad SA moved into the Italian mobile sector in 2018, and its positioning as a cutthroat, no-frills specialist sparked a price war that led to three profit warnings from ex-monopolist Telecom Italia SpA last year.
Recent developments, however, may favor Open Fiber as it looks to sell Virgin-branded services. Telecom Italia earlier this week signed a preliminary deal to combine its grid with Open Fiber’s, in a bid to create a single national network and fulfill a plan sponsored by Prime Minister Mario Draghi.
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