Virgin unveils plans for 100Mb broadband as sales surge 15%

Published on Thursday 25 February 2010 20:58

VIRGIN Media is to roll out an ultra-fast broadband service by the end of next year as it also revealed strong earnings growth for the fourth quarter of 2009.

The company – 4 per cent-owned by Sir Richard Branson – said its underlying earnings climbed 15.3 per cent to 366 million in the period, with the group putting the rise down to its existing high-speed offering.

Virgin claimed the new, speedier broadband service would allow internet-users to download a music album in as little as five seconds, an hour-long TV show in 31 seconds, and a high-definition movie in less than eight minutes.

It said that by the final quarter of last year more than 55 per cent of its broadband customers had 20Mb speeds and above – up 45 per cent on a year ago.

Britons will have access to ultra-fast broadband speeds by the end of next year, with the launch of the UK's first 100Mb service beginning at the end of 2010. Virgin also said it was expanding its 200Mb pilot as part of the push to become a "broadband nation".

It came as the group announced that in the quarter it had connected a net 28,600 households – those joining the group, less those leaving.

That gives it 4.8 million cable customers. Analysts said the new 100Mb service would help the UK catch up with other markets that are pushing ahead with broadband.

These include the likes of Japan and Korea, which are rolling out 1Gb broadband.

Neil Berkett, chief executive of Virgin Media, said: "The launch of the 100Mb service will be a historic moment and will mean the UK will be comparable to other leading broadband nations."

Meanwhile, Virgin also said it had chosen online video publisher Brightcove to provide and support short videos for its 11 million monthly website visitors.

The two firms said in a statement that the media group would use the Brightcove platform to carry its online news, music and entertainment content alongside adverts.

Virgin, which is listed on Nasdaq with a secondary listing in London, is currently reducing its workforce by 2,200 between 2008 – when a sweeping restructuring programme was launched – and 2012, about 15 per cent of the total payroll.