Virgin Media is planning to expand its UK WiFi network in a bid to challenge BT’s leadership in the space, according to the Daily Telegraph.  

The cable operator, owned by Europe’s Liberty Global, is reportedly planning to invest in its network by installing WiFi hotspots in its street-side cabinets and provide subscribers with free internet access outside the home.

According to the publication, Virgin will also update its home routers to allow customers to use each other’s wireless networks when they are in range.

Consumers will be encouraged to share capacity by receiving a free speed boost, and the public network is expected to be kept completely separate from secure and private connections.

Virgin will hope better WiFi capability will also reduce its mobile costs, with its mobile network presently based on renting wholesale capacity from mobile operator EE, which is set to be acquired by BT.

The plans, which are reportedly expected to be announced in the next few weeks, will see Virgin shift more calls and internet traffic on to WiFi as a result of the enhanced network, thus reducing its reliance on EE capacity.

Virgin did not comment when requested for a statement on the report.

The company, which was acquired by Liberty Global two years ago, is seen as a pioneer for bundling in the UK through its wholesale deal with EE.

It began to sharply cut costs in the broadband space by offering high download speeds via its cable network.

Market leader BT
BT presently leads the WiFi market in the UK with more than five million hotspots provided by shared capacity on home routers.

The company, which is hoping to acquire EE and tailor its services towards offering a bundled fixed, mobile and TV offering, received a welcome boost from Ofcom last week after the regulator backed the merger.

The deal is presently being scrutinised by the UK’s Capital and Markets Authority, and could be approved by next year.

Liberty Global also recently beefed up its bundled offering across Europe through acquisition. The company acquired KPN’s mobile unit Base in Belgium and entered into informal talks with Vodafone over a possible exchange of assets in Europe.