LONDON: Richard Branson's Virgin Group has announced several packages for the television and telephone subscribers of its Virgin Media, which formally got the name Thursday last after the successful merger of Virgin Mobile and satellite broadcaster NTL Telewest. The obvious intention is to take on rival BSkyB.
The company offers digital TV, broadband internet, fixed-line and mobile phone services.
The new company announced it plans to shake up the industry and offer consumers quality, value, innovative products and outstanding customer service.
It has now introduced quad-play packages at prices of 20, 30 and 40 pounds depending on features. Customers will be able to buy a single package providing digital television, broadband internet and mobile and home telephone services. A premium package, priced 85 pounds a month, offers 10 Mbps broadband, a free TV, an HD-ready PVR, mobile phone and unlimited landline calls. It will also offer Virgin Central, an on-demand TV channel with a library of 500 films and many of the most acclaimed television shows of recent years.
Virgin Media also announced it is launching its own on-demand television channel, Virgin Central, 20 February at cable channel 119, offering shows like The West Wing, Little Britain, The OC, Nip/Tuck, Grey's Anatomy and CSI. It will have a library of 500 films.
The company's chairman Jim Mooney said Virgin Media will be the consumer's company of choice to bring together all of the products, services and great content under a totally dedicated and national customer service banner.
The company's target is to cover as much as 97 per cent of the U.K. households in 2007, including non-cable subscribers. It is now in the process of setting up 15 high street Virgin Mobile stores in 2007 to sell its quad-play packages, in addition to the current promotional sites in over 100 shopping centers. With an estimated 10 million customers, Virgin Media is expected to be the group's largest business.
Analysts say Branson is taking a big risk by allowing the Virgin brand to be used in the venture in a big manner, for its rivals are formidable players. They point to British Sky Broadcasting, which will continue to dominate the satellite broadcasting scenario and will be a major rival for the Virgin venture. Branson himself acknowledges this fact. He is the largest individual investor in the company.
NTL shares are now trading under a new ticker, VMED. The shares were down 26 cents, or 0.9 per cent, at $27.64 on the Nasdaq.
