* Huge investment to triple the capacity of the original cable network * Next-generation broadband nearly nine times the average UK speed * Premium launch offering includes unlimited downloads, no traffic management, plus the UK's fastest wireless offer
LONDON, Dec. 15, 2008 (GLOBE NEWSWIRE) -- Virgin Media (Nasdaq:VMED), the UK's leading broadband provider, today launched its much anticipated ultrafast 50Mb broadband service. Giving customers nearly nine times(1) the average headline broadband speed in the UK, the launch of the 50Mb service is a seismic leap forward for broadband access in the UK and the coming of age of Virgin Media's unique fibre optic cable network.
Neil Berkett, Virgin Media's CEO, said, "Today marks a historic moment, for both Virgin Media and the UK. As the first ISP to roll out next-generation broadband access, our 50Mb service represents the dawning of a new era of high-speed services in the UK and is just the beginning of what we hope to offer our customers over the coming years. This service will transform the way people interact and entertain themselves online and will provide a broadband experience that is truly world class."
With the massive take-up of video-rich entertainment and social networking websites, the new 50Mb service is expected to meet the rapidly growing consumer demand for faster broadband speeds and greater bandwidth. Research conducted by YouGov(2) for Virgin Media found that in the last year more than half (53 per cent) of Brits had started watching TV programmes or clips online. The research also found internet use is at an all-time high with 88 per cent of Brits going online every day. The average amount of data consumed by Virgin Media customers has nearly doubled in the last 18 months and is predicted to quadruple by 2011(3).
The 50Mb service will allow users to download(4) an entire music album in as little as 11 seconds, a TV show in around one minute, a high quality movie in as little as 3 1/2 minutes and a high definition movie in around 15 minutes. The increased bandwidth also means that multiple users can be on the internet at the same time without it affecting the quality or speed of their service. This makes 50Mb ideal for families, people in shared households, such as students and couples, or anyone needing to share a broadband connection. YouGov's research found 71 per cent of UK homes now have two or more computers/laptops or games consoles connecting to the internet. In addition 78 per cent of homes share broadband access as there are two or more people within the home.
The launch of 50Mb is part of a massive investment in Virgin Media's network and more than doubles the capacity of the original build of the UK cable network, creating the potential for speeds of 200Mb. The upgraded network means significant improvements to the service received by all of Virgin Media's broadband customers, with current 10Mb and 20Mb users being moved onto the new "DOCSIS3" network(5), freeing up capacity for increased traffic on the existing DOCSIS 1.0 network. In time, the upgrade to DOCSIS 3.0 means Virgin Media will be able to handle more than three times the data currently handled by the cable network.
Using the latest state of the art hardware, the 50Mb package comes with a new DOCSIS3.0 modem, a wireless 'N' router offering the UK's fastest wireless connection, plus free anti-virus and anti-spyware software as well as unlimited downloads(6). A typical family will be able to get the new ultrafast service for as little as GBP35 a month(7).
By the end of 2008, Virgin Media will have completed deployment of its next generation infrastructure to 40% of the network. This will include areas in Scotland, the Midlands and South London. Roll-out to the rest of the 12.6 million homes covered by Virgin Media's fibre optic network is expected to be complete during the Summer of 2009.
To find out more about Virgin Media's 50Mb service, visit www.virginmedia.com/50
Notes to editors
* (1) Ofcom Communications Market Report (August 2008) reports
average UK headline broadband speeds at 5.9Mb as at Q1 2008.
* (2) YouGov surveyed 1,128 people across the UK between 13-15
October, 2008. Please see separate document for more research
findings.
* (3) Virgin Media's average customer data consumption is up 81%
from 4.7 GB to 8.6 GB per month over the last 18 months.
Consumer IP traffic will quadruple in four years driven by
video (Cisco; 2008)
* (4) Download times are calculated based on full-rate downloads on
a wired connection, with 10% allowance for Internet Protocol
transfer and connection overheads. The sizes used for
calculation are a music album at 60Mb, a TV show at 350Mb, a
high quality movie at 1.1 GB (e.g. from LOVEFiLM) and an HD
movie at 5 GB (e.g. HD movies from Xbox Live marketplace).
* (5) Network: The new 50Mb service runs over a new next-generation
core network based on the EuroDOCSIS3 standard which gives
Virgin Media a significant increase in capacity to cope with
higher speeds (in excess of 200Mb) as well as more data. In
parallel with our existing core network (based on EuroDOCSIS1)
Virgin Media's new network will have over three times the
data-carrying capacity, and is the UK's first next generation
network.
* (6) Package: The 50Mb service includes a new EuroDOCSIS3-
compatible modem, an unlimited service with no traffic
management at launch (acceptable use policy still applies),
and a complete wireless kit to make the most of 50Mb speeds
(including 802.11n router and 802.11n USB dongle), PCguard
Total anti-virus and anti-spyware protection. Virgin Media
uses traffic management on its network to ensure the vast
majority of customers receive the high quality of service they
expect. Virgin Media will be trialling a variety of different
approaches to traffic management and upstream speeds, to
improve the unique performance of this service.
* (7) Pricing: Virgin Media's 50Mb broadband service will cost GBP51
per month as a stand-alone service or just GBP35 when taken
with a phone line (GBP11). Customers with additional Virgin
Media services will benefit from bundle discounts, meaning a
typical family can get a complete home entertainment package
including phone, digital TV with over 165 channels including
HD, our V+ HD Box including Virgin Media's pioneering TV on
demand service, as well as 50Mb broadband from just GBP66 a
month. Prices include e-billing discount. Activation and
installation charges apply.
* Customer take-up and consumption: More than one million Virgin
Media customers subscribe to a 10Mb or 20Mb broadband service.
There has been a 78% year-on-year increase in customers taking
higher tier packages.
* Availability: The 50Mb service is available up and down the
country from this month. Customers can check availability at
www.viriginmedia.com/50
* Broadband: Virgin Media has a complete range of broadband
solutions for every user -- The 'Mother of all Broadband'
using fibre optic technology for ultrafast speeds up to 50Mb,
Virgin Media National broadband using ADSL technology up to
16Mb, and Virgin Media Mobile Broadband using the Virgin
Mobile 3G/HSPA network at speeds up to 3.6Mbps.
* Marketing: The launch of the 50Mb service will be supported by
a multi-million pound campaign comprising of TV, outdoor,
print and online.
About Virgin Media
Virgin Media is an innovative and pioneering UK entertainment and communications business. For the first time consumers can get everything they need from one company -- the UK's only quad-play of TV, broadband, phone and mobile, plus the most advanced TV on demand service, all delivered through its unique fibre-optic cable network. Virgin Media launched the UK's first high definition TV service, is the only TV platform to carry BBC iPlayer, and offers a high-specification, HD-ready V+ personal video recorder. Virgin Media is the UK's largest residential broadband provider, the largest virtual mobile network operator and the second-largest provider of pay TV and home phone.
Virgin Media owns two content businesses -- Virgin Media Television (VMTV) and sit-up. VMTV owns eight entertainment channels -- Virgin1, Living, Living 2, Bravo, Bravo 2, Challenge, Challenge Jackpot and Trouble -- and is a 50% partner in UKTV which consists of ten channels including Dave, G.O.L.D, Watch and Alibi. sit-up runs retail TV channels bid tv, price-drop tv and speed auction tv.
Virgin Media has been voted the sixth Most Loved Brand in Britain in a Marketing magazine poll, as well as having been voted the Most Trusted ISP Brand 2008 by Reader's Digest magazine. The Sunday Times also awarded Virgin Media its 2008 Best Buy awards for broadband and movies on demand.
Virgin Media is the largest Virgin company in the world and has almost 10 million customers. To find out more visit www.virginmedia.com/presscentre.