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Virgin Media third quarter results published
Thursday 06 November 2008 10:51:36 by Andrew Ferguson

Virgin Media has today published its third quarter results which can read in full over at their press office.

The broadband highlights were that Virgin Media has 3,625,700 cable broadband customers, and 260,100 on its off-net ADSL service. They gained 68,700 cable customers and lost 12,600 ADSL customers in the quarter and over the last 12 months the cable broadband service added 318,000 customer, but the ADSL service lost 22,200 customers.

The decrease in the number of ADSL (off-net) users is probably due to the increased competition in the areas where Virgin Media does not have its own cable network from suppliers like TalkTalk, Sky and O2. The cable broadband network seems to be holding its ground, helped greatly by the free upgrade from 4Mbps to 10Mbps, the roll-out of which is now complete.

The big change to try and make itself king of the consumer broadband market is the launch of the 50Mbps cable broadband product in the next quarter. To roll-out the 50Mbps requires investment from Virgin Media and with something like 71% of customers opting for their 2Mbps (M) cheapest product it may prove hard to get people to sign up to a premium priced product, even if it is many times faster than their current service. The financial results reveal that 19% of customers are on the 10Mbps product, and 10% on the 20Mbps product.

If Virgin Media can launch the 50Mbps product for just a pound or two more than the current XL (20Mbps) product and not have the current traffic management applied to it, then there is a good chance that many on the XL product will regrade, which means the product may pay off. Of course being the only provider with a 50Mbps consumer product, will make for ever more enticing adverts, which may help sign-ups to their cheaper products.

While the broadband market is slowing down in terms of new sign-ups, this is to be expected as the majority who probably want broadband are already signed up. What has happened in the last six months is that people are looking around for cheaper deals, and people are looking at how they use their broadband and curtailing some activities if it can save them money. Getting people to spend more on faster broadband with a market in that state will be interesting to watch.

Comments

Posted by jrawle over 8 years ago
If Virgin Media can launch the 50Mbps product for just a pound or two more than the current XL (20Mbps) product and not have the current traffic management applied to it, and pigs could fly...
Posted by adslmax over 8 years ago
If Virgin Media can launch the 50Mbps product for just a pound or two more than the current XL (20Mbps) product and not have the current traffic management applied to it, then there is a good chance that many on the XL product will regrade.................

That's make me laughing out loud, I wouldn't believe it. There will be a traffic management on 50Mbps (down to 10Mbps probably) and will costy at around £10 or more extra than XL price and will be renewal as a 12 months contract, probably a new 18 months contract to strike for XXL.
Posted by rogan8 over 8 years ago
The recent agreement with Sky will help gain extra TV and probably broadband customers too .
Posted by comnut over 8 years ago
:) did anyone see the gadget show on 5??? SKY officialy said there that their MAX product has NO FUP - has anyone proof of this???
Posted by comnut over 8 years ago
http://packages.sky.com/surf/max.aspx to check :)
Posted by Pigmaster over 8 years ago
Virgin will stagnat or grow slowly on their cable products and will see a drastic falloff in their ADSL products to it will be unjust to keep it alive.
Virgin need to expand it cable network out into the small UK towns to make their products market leaders, until then nothing will happen to make them a bigger ISP
Posted by Dawn_Falcon over 8 years ago
"not have the current traffic management applied to it"

Won't. Happen. Even DOCIS3 can't help, the frequencies avaliable are too restricted.
Posted by CARPETBURN over 8 years ago
quote"If Virgin Media can launch the 50Mbps product for just a pound or two more than the current XL (20Mbps) product and not have the current traffic management applied to it, then there is a good chance that many on the XL product will regrade, which means the product may pay off."

Bwahaha best bit of wishful thinking ive read all week.
Posted by c_j_ over 8 years ago
If DOCSIS 3 doesn't help for fast broadband over legacy cable, surely Virgin could in principle resurrect NTL's "VDSL2 from the street corner cab" technology for the bandwidth-intensive stuff (~50Mbit per punter down, and ~20Mbit per punter up), as allegedly trialled back in 2006 ? No issues with DOCSIS3 or with ADSL/VDSL coexistence there.

Are Virgin a futureproof content acquisition and delivery company with no particular preferred technology, or are they a doomed legacy cable network maintenance organisation?

http://www.thinkbroadband.com/news/2557-ntl-tinkering-with-vdsl2.html
Posted by Dawn_Falcon over 8 years ago
c_j_ - But that'd mean actual investment in the future!

They're #3. Basically you have to remember they pushed out 20MBit with zero infrastructure upgrade because they were frightened of ADSL2+, and in the process made absolutely sure they were badly congested everywhere.
Posted by therealgiblet over 8 years ago
I like many others will never use a company that implements traffic management (caveat... unless I have no choice - luckily the UK still has Be).

If Virgin cannot already provide an unmanaged service at present then I cannot imagine they'll be able to provide 50mb connections without traffic management.

You'll get about 1 mins use on NNTP and then be rate limited for 5 hours - brilliant...
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