LONDON, Aug 1 (Reuters) - Liberty Global ( LBTYA ) said

Britain's Virgin Media O2 - its joint venture with Telefonica

- would still play a role in fibre consolidation after

the Spanish company said a plan to spin off the network had been

scrapped.

"I do see us playing a role in altnet (alternative fibre

networks) consolidation, which was one of the main benefits of

the Netco project that we were exploring together," Chief

Executive Mike Fries told analysts after the group reported

second-quarter results on Friday.

"I think there are many things about the Netco strategy that

Telefonica would agree with and other aspects they don't.

"And so as good partners we will work to find the areas of

agreement and head forward."

Telefonica's Chief Executive Marc Murtra told Reuters on

Wednesday the plan to spin off Virgin Media O2's fixed network

had been scrapped.

Reports last year said the companies were planning to sell a

20-40% stake in the network as part of the spinoff.