Virgin Media disconnections improving as it looks to take 50Mbps to the high street
Broadband is continuing to be the lead growth area for Virgin Media according to its second quarter figures which were released this morning with a reminder that the brand is gearing up to launch 50mb broadband later in the year.
The company added 54,600 net new broadband customers in the quarter, up from 45,800 for the corresponding quarter the year before. However, the most impressive figure would appear to be its reduction in broadband disconnections from 70,300 in Q2 last year to 19,500 for Q2 2008.
Chief Executive Officer, Neil Berkett, responded to the figures with a reminder that the group is going to be underlining its fibre network to deliver the country’s fastest broadband service later in the year.
“We will continue to exploit our competitive advantages in leading next generation broadband in the UK and redefining the on-demand TV experience. The second half of this year will mark a major milestone as we roll out our unrivalled 50Mbps broadband service. We believe this superfast service, combined with our leading video-on-demand product, will prove extremely attractive to existing and new customers.”
There was no mention yet of Virgin Media’s move to the high street which was confirmed by Rob Shardlow, the group’s Sales Director, this week. The new tactic will see Virgin Media follow in the footsteps of Carphone Warehouse and sell broadband direct to shoppers rather than expect them to buy online or over the phone.
Shardlow has not revealed if the new channel will extend beyond its own stores but has predicted there will be enough margin for a free laptop offer to be included in packages. This entry level notebook will then be the focus of ‘upselling’ by staff for people taking up the 20Mbps, and later top tier 50Mbps packages.
The company will be leaving it up to individual dealers to pick the final offer but Shardlow has made clear the fast headline speeds offered by Virgin will be the key sales tactic in getting subscribers to upgrade to the best possible laptop or desktop PC to “do justice” to the fast connection.
No date has been given but the new sales channel is expected to be opened before the end of the year. The launch will make the high street a broadband battle ground this Autumn in the run up to Christmas with likely price-cutting and mobile and fixed line co-promotions from the mobile networks, who all have a high street presence, as well as Carphone Warehouse and Virgin Media stores, plus any retail chain Virgin may partner with.
Tags: Carphone Warehouse, Virgin Media
August 25th, 2008 at 2:31 am
Before offering higher light speeds to the few, the cable companies should be required to complete the cable network to all subscribers on a part-cabled exchange, then to complete the UK network! If they advertise in a locality it should be available to all.
September 2nd, 2008 at 4:12 pm
Well well well I dont know how they are going to roll 50meg when they cant even provide 20 meg even when the speeds are avaialble in certain areas. I had virgin broadband 20 meg connection which was fine for the frist 2 weeks of taking out contract and sooin as 2 weeks were over speeds went down to 1.0 meg and stayed very low. I will be very surprised if many people are actually happy with this company.