Virgin Media Could Take On BT With Wholesale Broadband Plans

Virgin Media is apparently exploring the possibility of bringing in substantially more revenues by emulating BT's business of wholesaling broadband to its competitors.

A report in the Guardian hints at the idea that Virgin Media could well open its fiber optic cable broadband network in a bid to bring in much needed revenue, which could in turn, bring down prices for its own customers.

BT provides the network for much of UK's copper based ADSL broadband and the future of the country's digital future hinges in no small part on the company's ability to deliver its 21CN network on time.

Opening its network to competitors not only makes commercial sense right now but would also bring Virgin Media in the good books of the government while giving it more financial resources to roll out its fiber optic cables in non-cabled areas.

Just like BT with its Openreach subsidiary, Virgin Media could use NTL Telewest Business to bring those plans to life, through a cleverly thought spin off which would not attract the ire of the competition commission or the OfCom

Virgin Media is already miles ahead of the competition as it announced yesterday that it was starting the trial of 200Mbps broadband in Ashford, Kent, at a time when most of its ADSL-based competitors are barely reaching 24Mbps.

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Our Comments

Virgin media could apparently launch its Openreach competitor as early as 2011. Doing this would ensure the long term survival of the company and allow it compete more effectively with both BT and Sky. The company currently has 5.5 million customers, which puts it behind Sky and BT.

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