I suspect the ops friend is referring to the old Tiscali service which offers an adsl2 enabled service including ip based tv.
Link to list of channels Tiscali UK was bought out by Talk Talk and joins the old UK arm of AOL in the group.
Because the service is unbundled from the local loop, the phone service would be provided by Tiscali/Talk Talk from equipment connected in the exchange. The line from the exchange is BT's but the customer pays nothing to BT.
Unbundled loop services often offer much higher speeds than normally available, I know BE/O2 customers that can enjoy around 12meg if not too far from the exchange but no where near the 50meg offered by VM on its highest tarriff.
Hope this informs your debate a little bit
Mark