Virgin Media O2 boss urges government to reconsider BT's TalkTalk takeover

Updated: 04:24 EDT, 7 October 2026 The boss of Virgin Media O2 has urged the government to reconsider allowing BT's takeover of collapsed telecoms group TalkTalk, claiming it could reduce competition in the broadband market.In a letter to culture secretary Lisa Nandy, Lutz Schüler said BT's takeover of TalkTalk was 'uncomfortable' and raised 'fundamental questions' around competition, customers and investment.Schüler, who has led Virgin Media O2 since 2021, said: 'Protecting customers does not, in our view, require Government to predetermine who should ultimately own TalkTalk's consumer and wholesale businesses; credible alternative arrangements should be fully explored.'BT agreed to buy TalkTalk out of administration in a £400million rescue deal on Monday – saving 900 jobs and handing it 2.5million new customers.TalkTalk had been seeking a buyer as it struggled under the weight of a £1.5billion debt pile and stiff competition. BT chief executive Allison Kirkby described it as 'a genuinely unprecedented situation where millions of citizens and businesses were at risk if TalkTalk had collapsed'. 'Uncomfortable': The Virgin Media O2 boss has said the deal threatens competition But critics say it risks choking off competition and speaks to a broader fragility in the broadband market.Schüler has claimed that BT's takeover required 'careful scrutiny' and an 'immediate continuity solution must not become, by default, a permanent restructuring of the UK broadband market in favour of the incumbent'.It came after Nandy stepped in to speed up the regulatory process – arguing that the wider public interest must be taken into account.'It is important to remember that BT is not simply another prospective purchaser,' Schüler said. 'Through Openreach, it is the dominant fixed-network operator, a major supplier to TalkTalk and a significant creditor, while BT, EE and Plusnet compete directly with TalkTalk for retail customers.'He added that Openreach had sought repayment for 'substantial sums… adding to the financial pressures preceding its administration. BT has now acquired the resulting business, and through that transaction, further secured its incumbent position.'The Competition and Markets Authority has until 19 October to report back to the government before Nandy makes a final decision on the deal.Schüler said a failure to give the watchdog 'sufficient time to do its job' threatened a reduction in choice for customers and weakened investment incentives.'Relaxing safeguards for an incumbent acquiring a distressed competitor could weaken investor confidence in a stable and predictable UK framework, making it harder to attract the long-term capital needed for competition, deployment and the Government's connectivity ambitions.'Finally, Schüler said the timing of the deal 'raises a fundamental question of consistency' after the Competition and Markets Authority found competition concerns with its shareholders' proposed acquisition of Britain's largest broadband operator.The regulator said Netfibre's proposed acquisition of Netomnia could 'result in a substantial lessening of competition'. Netfibre is a joint venture by Virgin Media O2 shareholders Liberty Global and Telefonica alongside InfraVia Capital.Nandy issued a Public Interest Intervention Notice to speed up the regulatory process for the BT deal, citing risks to public services and 250,000 vulnerable customers if the broadband provider's services were disrupted.It draws on laws introduced during the pandemic that allow the Government to intervene in mergers and acquisitions to maintain public health and ensure the supply of telecoms services.TalkTalk was founded by Sir Charles Dunstone in 2003 as a subsidiary of mobile phone retailer Carphone Warehouse before it was spun off.The firm has struggled amid an increasingly competitive market in recent years, with new challengers undercutting many of the established providers.With attempts to find a buyer stalling, TalkTalk crashed into administration before being rescued by BT 'on a debt-free basis'.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you