i can see it from both sides.
Virgin clearly want to expand the network but it's for their own benefit as a company that they are doing this, to get more customers and increase their profit.
on the other side the councils are often left with shoddy work on the pavements, roads, grass areas. this is something i've seen recently when virgin came and expanded their network in my area. the quality of the digging and refilling was poor to say the least.
digging trenches across roads and leaving them unfilled for days/weeks on end. then when they do come back and fill it in it's shoddy and will be lucky to last a couple of months before it deteriorates again, leaving the council with the problem no doubt (good look getting virgin or their third party digging crew back out to sort it).
if virgin have a valid legal case to sue then they should go for it, but i would also encourage every other council that has been left with pavements falling apart due to their expansion to also sue Virgin.