MADRID, July 30 (Reuters) - The plan to spin off joint

venture Virgin Media O2's fixed network in Britain had been

scrapped, Telefonica's Chief Executive Marc Murtra told

Reuters on Wednesday.

"The project is stopped," Murtra said, clarifying his

comment made during a call with analysts that the "plan is not

on pause".

Virgin Media O2, which is jointly owned by Liberty Global ( LBTYA )

and Telefonica, had said last year it wanted to spin

off its fixed network into a subsidiary called NetCo.

Virgin Media said at the time the change would underpin its

plan to upgrade all of its customers to fibre. The move would

create a platform for wholesale opportunities, it said.

Reports last year said the companies were planning to sell a

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