Virgin Media (VMED) Aims to Double Broadband Speed for 4M+ Customers
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Virgin Media Inc. (Nasdaq: VMED) announced a major program to double the speeds of over four million of its broadband customers and boost its top speed to 120Mb. The company will shortly be launching a major advertising campaign to back this initiative.
With the mass roll-out starting in February 2012, the upgrade program will continue over 18 months and is expected to be complete by mid 2013. Subscribers to Virgin Media’s current 10Mb, 20Mb, 30Mb and 50Mb services will see their speeds at least doubled, with 100Mb customers seeing a significant increase to 120Mb. This ground-breaking initiative will enhance the company’s position as the fastest broadband provider in the UK2 and help meet the growing demand for next generation broadband.
Excluding the incremental £110m investment, Virgin Media’s cash capital expenditure will remain within current guidance of 15 to 17% of revenue for 2012 and for future years. In addition, it is expected that the cost of assets acquired under leases6 will continue to be no greater than 2 to 3% of revenue per annum, in line with recent years. All other strategic growth opportunities will be met within this guidance.
With the mass roll-out starting in February 2012, the upgrade program will continue over 18 months and is expected to be complete by mid 2013. Subscribers to Virgin Media’s current 10Mb, 20Mb, 30Mb and 50Mb services will see their speeds at least doubled, with 100Mb customers seeing a significant increase to 120Mb. This ground-breaking initiative will enhance the company’s position as the fastest broadband provider in the UK2 and help meet the growing demand for next generation broadband.
Excluding the incremental £110m investment, Virgin Media’s cash capital expenditure will remain within current guidance of 15 to 17% of revenue for 2012 and for future years. In addition, it is expected that the cost of assets acquired under leases6 will continue to be no greater than 2 to 3% of revenue per annum, in line with recent years. All other strategic growth opportunities will be met within this guidance.
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