Virgin Media O2 (VMO2) is calling on the UK Government to reform net neutrality rules, arguing they are restricting innovation, investment and the development of agentic AI.
This comes as the telecoms giant released a new report from Stephen Howard of Communications Chambers, revealed the decade-old rules, which require internet providers to treat all traffic equally, are no longer suited to modern networks.
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According to the report, reform could unlock hundreds of millions of pounds for the UK economy, encourage greater investment in 5G and allow operators to develop new services.
This includes prioritising payment apps for small businesses, navigation and taxi apps during busy periods, or important video calls when networks are congested.
Meanwhile, the report warned without changes, customers could see fewer innovative services and potentially poorer network performance amid growing mobile data demand.
It also added that agentic AI will rely on fast, reliable mobile networks to deliver its full potential.
As a result, it urged the UK Government to update the rules, giving operators more flexibility to create new services, giving customers greater control over their connections, and supporting further 5G investment.
Lutz Schüler, CEO of Virgin Media O2 said “Outdated net neutrality rules limit innovation and hold back the full benefits of the infrastructure we’re building. We’re not able to help customers by prioritising taxi and map apps when travelling home at night and can’t prioritise payment apps for sole traders in crowded markets. No one is winning.
“New technologies like Agentic AI will improve the online experience and we’re investing £700m this year in our mobile network to boost connectivity across the UK, but with network traffic growing relentlessly we won’t get the most out of it without much-needed reform.
“To unleash private sector investment, improve consumer and business services, and deliver the UK’s 5G ambition, government should use its mobile market review to remove these antiquated roadblocks to innovation so we can bring about better connectivity and services for all.”
Stephen Howard of Communications Chambers continued: “The UK will get the telecoms industry it regulates for – the question is whether that’s one embracing innovation, technological advances and new opportunities, or one that’s stymied by out-of-date rules.
“If we want a mobile sector pushing the boundaries with the latest technologies and services like 5G and agentic AI, then we need modern regulation that’s fit for purpose, with rules that preserve the open internet, but which give operators the freedom to get creative and experiment.”
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