Virgin Media Could Expand Its Reach By Four Million Homes

Virgin Media could have access to an extra four million homes not currently served by its cable network, after the company signed a four-year agreement with Cable & Wireless to extend its services beyond its cable network over broadband telephone lines.

The move could double the company’s potential market in the United Kingdom as Cable & Wireless becomes the exclusive wholesale provider of unbundled local loop services to Virgin Media until 2011.

Through its footprint of telephone exchanges in which it has equipment installed, Cable & Wireless will supply wholesale broadband services to support both new and existing customers of Virgin Media beyond its cable network.

Neil Berkett, chief operating officer for Virgin Media, said it is an important step towards making Virgin Media a national brand. He said it lays the foundation to provide its services to the 50% of households in the UK outside its cable network.

The company is planning to launch an IPTV or internet protocol television service in 2008, including pay broadcast channels and video-on-demand services to customers on unbundled exchanges outside its cable areas.

Recently it was revealed that Virgin Media’s customer base dropped to 4.81 million in the first quarter of 2007, with a net loss of 46,900 subscribers.

Gross customer additions were down from 215,500 in the fourth quarter of 2006 to 184,300 in the first quarter of the year (see Virgin Media Subscriptions Decline).

The company has been involved in a long-running battle with its rival BSkyB, with the removal of Sky’s basic channels from Virgin reported by the cable company to be a contributing factor to the fall in subscribers (see Virgin/Sky Channel Dispute Continues).

Virgin Media: www.virginmedia.com