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Virgin Media Limited[2] is a British telecommunications company which provides telephone, television and internet services in the United Kingdom. Its headquarters are at Green Park in Reading, England. It is owned by Virgin Media O2, a 50:50 joint venture between Liberty Global and Telefónica. Since its foundation in 2007, the company has used the Virgin branding under license from Richard Branson.[3][4]

Key Information

Virgin Media owns and operates its own Hybrid fibre-coaxial (HFC) and Fibre to the Premises (FTTP) networks in the United Kingdom. Although most of the network is urban focused, the new joint venture, Nexfibre (a 50:50 joint venture between Virgin Media O2 and Infravia Capital Partners) is expanding the network to more areas which never had access to the Virgin Media network before. As of Q2 2023, it had a total of approximately 5.8 million customers. Since the acquisition of Smallworld Cable in 2014, Virgin Media is the main cable provider in the UK, with the exception of WightFibre on the Isle of Wight,[5] and covers 51% of UK households.[6] Virgin Media is one of the "big four" internet service providers in the UK along with BT (EE), Sky and TalkTalk.[7] In the past, Virgin Media also operated a mobile virtual network operator (Virgin Mobile) and operated TV channels and produced television content (Virgin Media Television).

History

[edit]

Origins

[edit]
Main articles: Telewest and NTL Incorporated
Further information: Timeline of cable television in the United Kingdom

The company's origins lie in both Telewest and NTL, which merged in March 2006.

Telewest began in 1984 in Croydon under the name "Croydon Cable",[8] and was acquired by United Cable of Denver in 1988. The company expanded during the 1990s and adopted the Telewest name in 1992 following the merger of its then-parent TCI and US West. It expanded into cable television access in 1999 by purchasing the remaining 50% stake in Cable London, one of the first cable TV companies in the UK, from NTL, adding 400,000 homes in north London.[9] In April 2000 Telewest merged with Flextech,[10] and in November extended its cable network with the acquisition of Eurobell, taking the total number of homes past 4.9 million.[11]

NTL was established by Barclay Knapp and George Blumenthal in 1993 as "International CableTel", taking advantage of the deregulation of the UK cable market.[8] Initially, Cabletel acquired local cable franchises covering Guildford, Northern Ireland and parts of Central Scotland and South Wales. In 1996, CableTel acquired National Transcommunications Limited (NTL), the privatised UK Independent Broadcasting Authority transmission network.[12] In 1998 CableTel adopted "NTL" as its new name.

NTL purchased the ISP Virgin.net in 2004, having originally operated it as a joint venture with Virgin Group since it launched in November 1996.[13] It sold ADSL broadband services through BT landlines to those living outside areas served by NTL's cable network and also offered subscription-based and subscription-free dial-up Internet access. Prior to acquiring Virgin.net, NTL offered a similar package called NTL Freedom.

Merger and Virgin Mobile acquisition

[edit]

Telewest and NTL began discussions about a merger in late 2003. Thanks to their geographically distinct areas, NTL and Telewest had co-operated previously, as in redirecting potential customers living outside their respective areas. On 3 October 2005, NTL announced a US$16 billion purchase of Telewest, to form one of the largest media companies in the UK. The merger agreement as structured would have required NTL to negotiate with BBC Worldwide (the BBC's commercial arm) due to a change-of-ownership clause written into the agreement for UKTV, a joint venture with Telewest's Flextech content division. To prevent this, Telewest instead acquired NTL.

In December 2005 NTL:Telewest and mobile virtual network operator (MVNO) Virgin Mobile UK announced that talks had taken place regarding a merger.[14] Virgin Mobile's independent directors rejected the original bid of £817 million ($1.4 billion), taking the view that NTL's bid "undervalued the business". Sir Richard Branson reportedly expressed confidence that a restructured deal could go ahead, and in January 2006 NTL increased its offer to £961 million (372p per share). On 4 April 2006, NTL announced a £962.4 million recommended offer for Virgin Mobile.[15] According to reports, Branson accepted a mix of shares and cash, making him a 10.7% shareholder of the combined company.

NTL and Telewest formally completed their merger on 3 March 2006, making the merged company the UK's largest cable provider, with more than 90% of the market. The combined company renamed itself NTL Incorporated, with ex-NTL shareholders controlling 75% of the stock and ex-Telewest shareholders 25%. Nine of the 11 directors of the new board came from NTL, with two from Telewest.[16]

NTL:Telewest's takeover of Virgin Mobile completed on 4 July 2006, creating the UK's first 'quadruple play' media company, offering television, internet, mobile phone and fixed-line telephone services. The deal included a 30-year exclusive branding agreement [17] that saw NTL adopt the "Virgin" name after it completed its merger with Telewest. NTL:Telewest announced on 8 November 2006 it would change its name to "Virgin Media Inc".[18]

On 9 November 2006, NTL announced it had approached the commercial television broadcaster ITV plc about a proposed merger,[19] after a similar announcement by ITV.[20] BSkyB effectively blocked the merger on 17 November 2006 by controversially buying a 17.9% stake in ITV plc,[21] a move that attracted anger from NTL shareholder Richard Branson,[22] and an investigation from media and telecoms regulator Ofcom.[23] On 6 December 2006 NTL announced that it had complained to the Office of Fair Trading about BSkyB's move, and would withdraw its attempt to buy ITV plc, stating it did not believe it could make a deal on favourable terms.[24]

Rebrand as Virgin Media

[edit]
Virgin Media's offices in Nottingham

In November 2006, the company signed a deal with Sir Richard Branson to license the Virgin brand for the combined business. NTL Group's services – previously marketed under the NTL, Telewest and Virgin.net brands were merged with Virgin Mobile under the "Virgin Media" brand on 8 February 2007,[25] referred to by Virgin as V Day.[26] Virgin.net was integrated into the new brand as Virgin Media Beyond Cable (later Virgin Media National).

In February 2007, Virgin Central, an on-demand service, gained the rights to begin showing episodes of the television show Lost (already shown on Sky 1), and other shows including Alias and The OC. This service extended the on-demand service previously known as Teleport TV. Teleport TV was renamed TV Choice offering recently broadcast shows and other shows and series.[27]

Dispute with Sky

[edit]

A channel agreement for Virgin Media to keep non-premium Sky channels ended on 1 March 2007. As this date approached, Sky ran an advertising campaign promoting popular shows Virgin Media customers would lose and urged impacted customers to contact Virgin Media to get them to return to the negotiating table or switch to Sky. Virgin Media responded via a press campaign, that included a letter signed by Richard Branson and chief executive Steve Burch, with the headline "Sky don't want you to see the whole picture (strange for a TV company)".[28]

The companies failed to resolve their differences, and subsequently Virgin Media replaced the Sky1, Sky2, Sky Travel, Sky Travel Extra, Sky Sports News and Sky News channel content, so these could no longer be viewed by their customers. Sky said the deal would have cost Virgin Media 3p per customer per day (roughly £35,000,000 per year), but Virgin Media said that a minimum payment guarantee in the contract meant that the actual amount due would exceed twice the payment.[29] Sky attributed part of the rate rise to the new deal including Sky3, Sky Arts and undisclosed high definition and video on demand content. The name for the removed Sky News channel was initially changed to "Sky Snooze try BBC", however on 2nd March 2007, Richard Branson requested that to be removed.[30]

Threatened legal action

On 2 March 2007, the National Consumer Council accused Sky and Virgin of "behaving like children" and stated that it would consider whether or not to raise a super-complaint against them "that will help to knock heads together" by the end of that month.[31] On 5 March 2007, Virgin Media threatened to take legal action against BSkyB if the matter remained unresolved in 30 days.[32] On 12 April 2007, Virgin Media filed a legal case in the High Court against BSkyB under the UK Competition Act 1998 and Article 82 of the EC Treaty. BSkyB claimed that Virgin Media made little effort to arbitrate.[33] On 9 May 2008, it was reported that Virgin Media and Sky had held talks to resolve the dispute.[34]

Resolution

On 4 November 2008, it was announced that an agreement had been struck for Sky's Basic channels – including Sky1, Sky2, Sky3, Sky News, Sky Sports News, Sky Arts 1, Sky Arts 2, Sky Real Lives and Sky Real Lives 2 to return to Virgin Media from 13 November 2008 until 12 June 2011. In exchange, Sky would provide continued carriage of Virgin Media Television's channels – Living, Livingit, Bravo, Bravo +1, Challenge, Challenge Jackpot and Virgin1 for the same period.[35] The agreements included fixed annual carriage fees of £30 million for the channels, with both suppliers able to secure additional capped payments if their channels met performance-related targets. As part of the agreements, Sky and Virgin Media agreed to end all legal proceedings against each other relating to the carriage of their respective basic channels.[36] In August 2009, the Advertising Standards Authority upheld claims made by Virgin Media in its marketing, in response to a complaint from Sky.[37]

Liberty Global ownership

[edit]

Until 2013, the company was listed on the U.S.-based NASDAQ Stock Market and the London Stock Exchange.[1] On 5 February 2013, Liberty Global announced that they had agreed to buy Virgin Media for approximately US$23.3 billion (£15 billion) in a stock and cash merger.[38] On 15 April, EU regulatory approval for the deal was granted, the final hurdle in the acquisition.[39] On 4 June, shareholders approved the acquisition[40] and the deal was completed on 7 June.[41]

On 3 February 2014, Virgin Media acquired Smallworld Fibre, a cable provider based in North West England and Western Scotland, for an undisclosed fee.[42] Smallworld's network was merged into Virgin Media's during 2014.[43]

In November 2014, Virgin Media reached an agreement to sell its ADSL business to TalkTalk Group, allowing Virgin to focus on its cable broadband offering.[44] Virgin began transferring customers to TalkTalk in February 2015.[45]

On 20 July 2018, it was announced that Virgin Media would stop broadcasting all of the UKTV channels from 22 July 2018 over fees[46] and an issue with Virgin's on-demand broadcasting rights.[47] The companies were not able to agree terms to allow the ten channels and their +1 and HD offshoots to continue to be available on the platform[48] and the channels stopped being available at just after midnight on 22 July 2018[49] with Virgin replacing the UKTV channels on their service with other networks.[50] This led to a backlash by customers with some threatening to leave.[51] The dispute finally ended after three weeks on 11 August 2018 after Virgin Media and UKTV reached an agreement. Virgin Media gradually restored all 10 UKTV channels with their +1 and HD Simulcast channels along with simulcast GOLD HD and the reinstalled UKTV Play app. The app then featured five times the amount of on-demand content. UKTV Channels and the UKTV app were restored to Virgin Media platforms by 15 August 2018.[52]

Merger with O2

[edit]
Main article: Virgin Media O2

On 7 May 2020, Liberty Global reached an agreement with Telefónica to merge their UK businesses, Virgin Media and O2, in a deal worth £31bn, subject to regulatory approval by the Competition and Markets Authority. The CMA approved the merger on 19 May 2021,[53] and the merger was completed on 1 June 2021.[54] This created one of the UK's largest entertainment and telecommunications companies, to rival BT Group.[55] The resulting company is called VMED O2 UK Limited, operating as Virgin Media O2.[56][57]

Products

[edit]

Virgin Broadband

[edit]

The broadband division combined NTL's cable-broadband operations (broadband Internet access connections through cable), Blueyonder (Telewest's cable-broadband operations) and Virgin.net (ADSL, broadband Internet access through a non-cable telephone line). Virgin Broadband in cabled areas is marketed as "fibre optic broadband". It included a Hybrid fibre-coaxial network, where fibre optic trunk lines are used to connect the area's headend to cabinets on the street.[58]

In July 2009 and 2010, Virgin Media Broadband came first in an Ofcom broadband speed test in the UK.[59][60] Ofcom tested typical speeds provided by most ISPs in the UK, including BSkyB, BT, Tiscali, AOL, TalkTalk, Plusnet, O2 and Orange. Since most broadband connections in the UK are provided by ADSL, and the quality of phone lines varies according to distance from exchange,[61] most landline broadband services are marketed as being the maximum speed that the individual's phone line will support, "up to 8 mb". As a result, actual speeds obtained vary greatly. Cable broadband has no such speed variability, as the network is fully owned and controlled by the cable company providing the broadband – any slowdowns are wholly as a result of traffic shaping, or local capacity. For this reason, the results showed that Virgin Media's broadband speed was closer to (although still not 100% of) the "up to" figures it advertised, compared to other providers. While landline broadband providers offered rates of "up to" 24 Mbit/s, the launch of a Virgin's 50 Mbit/s service on 15 December 2008 was advertised as "the UK's Fastest Broadband."[62]

On 8 October 2009, Virgin Media began trials to deliver its TV and broadband services at up to 50 Mbit/s downstream via a VDSL2 line to a roadside cabinet. The cabinets were linked to Virgin Media backhaul via new fibre laid by Vtesse Networks through BT's local exchange, 5 km away.[63] As well as broadband, Virgin Media offered its full range of TV services, including high definition and on demand, over the new infrastructure.[64]

On 11 March 2010, Virgin Media announced a six-month trial using telephone poles to deliver 50 Mbit/s broadband and TV services to the Berkshire village of Woolhampton.[65] Virgin Media identified more than one million homes in parts of the UK that could benefit from deployment over telephone poles, without the need for government subsidy. During July the trial was extended to existing commercial infrastructure in the Welsh village of Crumlin, Caerphilly.[66]

On 7 October 2010, Ofcom ordered BT to open up its fibre-optic network to competing broadband providers to help drive forward the rollout of high-speed internet services in the UK.[67] Ofcom also ordered BT to free up access to network infrastructure – including all telephone poles and underground ducts – for the rollout of broadband to areas BT does not plan to reach. Virgin Media confirmed plans to expand its broadband network in the UK by using the infrastructure owned by BT.[68]

On 27 October 2010, Virgin Media announced its 100 Mbit/s downstream broadband service, featuring 10 Mbit/s upstream rates, which went on sale on 8 December 2010.[69] Early service areas were parts of London, the South East and Yorkshire.[70] With the faster upstream rates specifically, it expects the uptake in cloud computing services will also see an increase. The roll-out was expected to be complete by mid-2012.[71]

On 11 January 2012, Virgin Media announced plans to double the speeds of selected broadband packages; its 10 Mbit/s package increased to 20 Mbit/s, 20 Mbit/s and 30Mbit/s to 60 Mbit/s, 50 Mbit/s to 100 Mbit/s, and its 100 Mbit/s package to 120 Mbit/s.[72] The roll-out is expected to begin in February 2012 and be completed by mid-2013, at a cost of £110m. Since the announcement, Virgin Media has confirmed that it now plans to also upgrade 50 Mbit/s customers to 120 Mbit/s at no extra cost, in effect cutting the monthly fee for existing 100 Mbit/s customers.[73]

On 11 November 2013, Virgin Media announced its 152 Mbit/s downstream broadband service, featuring 12 Mbit/s upstream rates, which started rolling out to customers from 28 February 2014.[74] The company also upgraded existing customers, from 30 Mbit/s to 50 Mbit/s, 60 Mbit/s to 100 Mbit/s, and 120 Mbit/s to the new 152 Mbit/s service.[75]

In February 2015, Virgin Media announced its biggest investment in broadband infrastructure in over a decade, a £3bn investment to improve its fibre optic broadband network, increasing the network's reach from 13 million to 17 million homes.[76]

On 29 September 2015, Virgin Media announced its broadband packages would be rebranded as Vivid. The company upgraded existing customers from 50 Mbit/s to 70 Mbit/s, 100 Mbit/s to 150 Mbit/s and 152 Mbit/s to 200 Mbit/s. The speed upgrade was rolled out to 90% of customers by the end of 2015.[77]

On 22 March 2017, Virgin Media made ultrafast speeds standard with new bundles.[78] 100 Mbit/s entry level rising to top speed of 300 Mbit/s. On 29 April 2019, Virgin Media unveiled a new bundle with a download speed of 500 Mbit/s.[79]

On 30 September 2019, Virgin Media announced their new Gig1 rollout, providing download speeds up to 1,140 Mbit/s (over 1 Gbit/s) and upload speeds up to 52 Mbit/s, starting in Southampton, which has subsequently rolled out to selected major cities and their surrounding areas including Manchester, Leeds, Edinburgh and Glasgow. They aimed to roll this out across the entire Virgin Media network by the end of 2021.[80]

On 29 June 2020, Virgin Media announced that customers on their "Ultimate Oomph" broadband, TV and phone package would receive a free speed boost from their M500 package to their new M600 package,[81] replacing 516 Mbit/s download and 36 Mbit/s upload with 636 Mbit/s download and 41 Mbit/s upload. The free upgrades were completed for all customers by 31 March 2021. M600 is only available through the Ultimate Oomph package bundle.[82][83]

Advertised Broadband Packages (Mbit/s)[84]
Name Average download speed Min. guaranteed download speed Average upload speed
M50 54 27 5
M125 132 66 20
M250 264 132 25
M350 362 181 36
M500 516 258 52
M600^ 636 315 41
Gig1 Fibre 1130 565 104

Bandwidth throttling

[edit]

Virgin Media maintain on their consumer website that they do not throttle users' download or upload bandwidth.[85] In 2013, Virgin Media changed their traffic management policy.[86][87] The policy stated a maximum throttling amount of 40% on most services, however users reported being throttled by as much as 54%.[88] Virgin Media's advertisements regarding their "unlimited" broadband services, and their controversial traffic management were investigated by the Advertising Standards Authority, after having previous advertisements banned.[89]

From 28 February 2014, Virgin Media announced that they were scrapping traffic management for downstream traffic on 30 Mbit/s or higher packages. As a result of this, 30 Mbit/s or higher packages were only throttled on the upstream, where as 20 Mbit/s or below packages were throttled on both the upstream and the downstream.[90] Sometime after this Virgin Media changed their policy again stating on their website that no matter what broadband package users have taken, they will not be subject to any bandwidth throttling.[91]

London Underground

[edit]

In March 2012, Virgin Media won an exclusive contract to provide Wi-Fi access to London Underground platforms until 2017.[92] The company announced mobile internet at 80 stations by July 2012 and a further 40 stations by the end of 2012.[93] The service, which gave access to mobile internet via a TfL portal offering travel, news and entertainment bulletins, remained free for Virgin Media customers, along with customers of partnered companies, such as Vodafone and EE, after the 2012 Summer Olympics. Other users were only be able to access a limited amount of free content on the TfL portal, with full mobile internet services offered on a pay-as-you-go basis.

Virgin Media Business

[edit]
Main article: Virgin Media Business

On 11 February 2010, ntl:Telewest Business was rebranded as Virgin Media Business, marking the end of the NTL and Telewest brand being used by the company.[94] The company provides dedicated internet and telecommunications services to businesses.

Virgin Phone

[edit]

Virgin Phone offers landline telephone services; it ranks as the number two service behind the former UK state monopoly, BT Group.[95]

On 1 April 2010, Virgin Media began to offer free home phone to mobile calls. Virgin Phone customers are able to call Virgin Mobile customers at no charge, within the Talk Plan specified periods.[96]

Virgin TV

[edit]
Main article: Virgin TV

Virgin TV, the digital cable television service from Virgin Media, ranked as the UK's second largest pay TV service, having 3.6m subscribers, compared to BSkyB's 8.2m in Q3 2007.[97] 55% of UK households potentially had access to Virgin's network in 2007.[98] Virgin TV ranked as the UK's largest provider of on-demand content, with over 3 million Video on Demand (VoD) customers as of October 2011 with over 6,500 hours of programming.[99]

Former operations

[edit]

Virgin Mobile (1999–2023)

[edit]
The former headquarters of Virgin Mobile in Trowbridge, Wiltshire.
Main article: Virgin Mobile (UK)

Virgin Media ran Virgin Mobile Telecoms Limited, a UK-based Mobile Virtual Network Operator (MVNO) from November 1999 using the one2one (later T-Mobile and EE) network. After the merger between Virgin Media and Telefónica it was announced that Virgin Mobile would close and customers would be moved to the O2 network. This was completed in August 2023 and Virgin Mobile ceased operations on 31 August 2023.

Virgin Media Television

[edit]
Main article: Living TV Group

Virgin Media Television (formerly Flextech) was the content subsidiary of Virgin Media, and operated a number of wholly owned channels including Bravo, LIVING, Trouble and Challenge. It launched Virgin1 on Freeview and cable on 1 October 2007, replacing Ftn on Freeview.[100]

On 4 June 2010, Virgin Media announced that they had reached an agreement to sell Virgin Media Television to BSkyB, subject to regulatory approval.[101][102] The acquisition expanded Sky's portfolio of basic pay TV channels and eliminated the carriage fees it previously paid for distributing VMtv channels on its TV services. The companies reached a number of agreements providing for the carriage of certain Sky standard and high-definition (HD) channels, including securing new carriage agreements for wholesale distribution of Sky's basic channel line-up, including Sky 1 and Sky Arts, and the newly acquired VMtv channels, on Virgin Media's cable TV service.

On 29 June 2010, the Irish Competition Authority cleared the proposed transaction.[103] BSkyB and Virgin Media announced the completion of the acquisition on 13 July 2010, following Irish regulatory approval.[104] VMtv was renamed the Living TV Group. Sky paid Virgin Media an initial £105 million for the acquisition, with up to an additional £55 million to be paid upon UK regulatory clearance.

On 20 July 2010, the Office of Fair Trading (OFT) announced they would review BSkyB's acquisition of Virgin Media Television to judge whether it posed any competition concerns in the UK.[105] On 14 September 2010, the OFT decided not to refer BSkyB's takeover of Virgin Media's TV channels to the Competition Commission.[106] Virgin1 was also a part of the deal but was rebranded as Channel One on 3 September 2010, as the Virgin name was not licensed to Sky.[107][108] The new carriage deals were for up to nine years.[109] Previously the carriage deals tended to be struck every three years.

Sit-up

[edit]
Main article: Bid Shopping

Virgin Media owned Sit-up Ltd, a UK-based broadcaster of home shopping television channels, as a joint venture from its launch in 2000 and in full from May 2005. It operated the channels Bid TV, Price Drop TV and Speed Auction TV, shown on digital satellite, cable, and terrestrial television and the internet. On 1 April 2009, Virgin Media confirmed it had sold Sit-up to Aurelius AG for an unspecified amount.[110]

Virgin Media Pioneers

[edit]

Virgin Media Pioneers was an online community for British entrepreneurs, providing tips, advice and networking. Founded in 2010, the company was an initiative of Virgin Media. In 2011 Virgin Media Pioneers launched the Control Shift Campaign[111] which polled over 1,600 young aspiring entrepreneurs on changes the government could make to help them create new businesses. The campaign resulted in the introduction of a £10 million Youth Enterprise Loan.[112]

UKTV

[edit]
Main article: UKTV

UKTV is a digital cable and satellite television network, formed through a joint venture between BBC Worldwide, a commercial subsidiary of the BBC, and Virgin Media. It is one of the United Kingdom's largest television companies.[113] On 15 August 2011, Virgin Media agreed to sell its 50% stake in UKTV to Scripps Networks Interactive in a deal worth £339m. Scripps paid £239m in cash, and about £100m to acquire the outstanding preferred stock and debt owed by UKTV to Virgin Media.[114] Completion of the transaction was contingent on regulatory approvals in Ireland and Jersey, which was received on 3 October 2011.[115]

Corporate affairs

[edit]

Ownership

[edit]

Following the completion of the merger between NTL and Telewest, and the acquisition of Virgin Mobile, the company agreed a 30-year licensing agreement with Sir Richard Branson's Virgin Group to use the Virgin brand, with a ten-year opt-out clause. Branson accepted a mix of shares and cash, making him a 10.7% shareholder of the combined company at the time.[116]

In July 2007, Virgin Group hedged 37% of its stake in Virgin Media for $224m through a collared loan agreement with Credit Suisse, a transaction which enabled it to retain the voting and dividend rights. Virgin Group had the option of buying back the 12.8m Virgin Media shares it had mortgaged after two years, but in May 2009 decided against this. The funds were used at the time by Virgin Group to invest in other areas of its business, such as Virgin Green Fund, which was launched in September 2007, Virgin America and Virgin Mobile India.[117] By December 2009, Sir Richard Branson's Virgin Entertainment Investment Holdings Limited held a minority holding of 21,413,099 Virgin Media common stock,[118] making him the third largest shareholder.

Liberty Global announced on 5 February 2013 that they had agreed to buy the company for approximately US$23.3 billion (£15 billion) in a stock and cash merger.[38] Shareholders approved the acquisition on 4 June,[40] and the deal was completed on 7 June.[41]

In 2020, it was announced that Virgin Media would merge with O2, creating a 50:50 joint venture, Virgin Media O2. It was reported the new company would be overseen by an eight person board of directors, split equally between Liberty Global and Telefónica, with the chairman rotating every few years, between the two companies.[119]

Market share

[edit]

Ofcom’s 2024 Communications Market Report, stated that Virgin Media had a 22% market share in the UK broadband sector.[120] It was reported that they had 3.4 million TV subscribers in 2021, with streaming services disrupting the market considerably.[121]

Advertising

[edit]

Virgin Media launched in February 2007, with a public relations event and expensive advertising campaign covering major UK television channels, newspapers and billboards. Television advertising has featured actress Uma Thurman,[122] comedian Ruby Wax,[123] and actors Samuel L. Jackson,[124] Marc Warren, and David Tennant.[125]

Virgin Media also sponsored the Channel 4 reality TV show Big Brother in its eighth series in 2007 and its Celebrity Hijack and ninth series in 2008.[126]

In October 2010, Virgin Media aired another campaign with a Looney Tunes character, Speedy Gonzales. He also served as a mascot for the company and was plastered everywhere throughout the UK, the London Underground station, and adverts that features him on the TV during advert breaks of The X Factor on ITV, appearing in-game, and throughout the web.[127]

In 2012, Virgin Media launched a multimillion-pound ad campaign starring Usain Bolt and Virgin founder Sir Richard Branson to promote Virgin's superfast broadband service. The TV adverts were directed by Seth Gordon and involved Bolt impersonating Branson.[128]

On 8 June 2016, Southampton F.C. announced that Virgin Media would become the club's shirt sponsor on a three-year deal.[129]

Controversies

[edit]

Net neutrality

[edit]

In April 2008, acting Virgin CEO Neil Berkett sparked controversy when he told Television, a magazine published by the Royal Television Society, "this net neutrality thing is a load of bollocks." According to the journalist, he claimed that any video content provider that refused to pay Virgin Media a premium for faster access would have to get stuck in "bus lanes," having their content delivered to end users at much slower speeds than that of paying content providers.[130] Criticism was expressed on the internet, with calls for Virgin customers end their subscriptions and initiate a mass boycott.[131]

According to Virgin Media, the comments were taken out of context and misinterpreted.[132] A statement released by the company stated: "With Virgin Media rolling out a 50 Mb service later this year, we are uniquely equipped to cope with the demand for new bandwidth-hungry services. We strongly support the principle that the internet should remain a space that is open to all and we have not called for content providers to pay for distribution. However, we recognise that as more customers turn to the web for content, different providers will have different needs and priorities and in the long term, it's legitimate to question how this demand will be managed. We welcome an informed debate on this issue."

Crackdown on illegal filesharing of copyrighted material

[edit]

On 2 April 2008, The Daily Telegraph reported that Virgin Media would conduct a trial to take action against subscribers who are illegally downloading copyrighted material from internet Peer-to-peer (P2P) services. Data of offenders would be provided by the British Phonographic Industry, and Virgin Media and the BPI would send a letter to the customer.[133][134] Virgin Media and the BPI denied these reports and said they were only in talks on the matter.[135] However, at least one person claimed to have received a letter threatening disconnection.[136] At the time, the UK government was attempting to ban p2p users from the internet. This was condemned by the European Parliament on the grounds of privacy issues and the importance of internet access.[137] In July 2008, the BBC reported that 800 Virgin Media customers were sent letters in envelopes that said "If you don't read this, your broadband connection could be disconnected". At least one recipient of the letter denied any wrongdoing.[138]

On 26 November 2009, it was revealed that Virgin Media would trial deep packet inspection technology to measure the level of illegal file sharing on its network.[139] On 22 January 2010, the European Commission confirmed that although it had not discussed the matter with Virgin Media, it would "closely monitor" the trial.[140] Privacy International announced that it would make a criminal report to the Metropolitan Police, because it argued that the trial would breach laws requiring explicit informed consent or a warrant.

On 3 May 2012, it was reported that Virgin Media had become the first ISP in the UK to implement a web filter to block access to The Pirate Bay, in compliance with a UK High Court order in April,[141] although there continued to be a number of mirrors, proxies, or VPNs.[142]

Billing dead customers

[edit]

In 2009, Virgin Media received criticism when it emerged that they were cutting off service to relatives of deceased customers for non-payment of bills. The story was publicised on BBC's Watchdog and musician Mitch Benn created a song called "Virgin Bills Dead People" about it.[143] A similar incident occurred in 2013, where the bill also included an automated bank message stating the account holder was deceased.[144]

Charging exit fees

[edit]

Virgin Media formerly charged customers exit fees if they moved to a location where they would be unable to receive Virgin Media services. From 2017 to 2018, Ofcom investigated Virgin Media's early termination charges and found that Virgin had contravened Ofcom's General Conditions between 2016 and 2017 by failing to publish clear and up-to-date information about the charges, as well as setting them higher than the contractually agreed payments, and fined Virgin Media £7 million. As part of the investigation Virgin Media also agreed to make clearer to customers that early termination charges may apply when moving out of Virgin's network area, as well as allowing customers who move home within the network area to continue on their existing contract rather than start a new fixed term.[145] In 2022 Virgin Media announced it would end the practice of charging customers an exit fee when moving to a home where its services are not available.[146][147]

Data pimping

[edit]

In early 2008, it was announced that the ISP arm of Virgin Media had entered into a contract (along with BT and TalkTalk) with the former spyware company Phorm (responsible under their 121Media guise for the Apropos rootkit)[148][149] to intercept and analyse users' click-stream data, and sell the anonymised aggregate information as part of Phorm's OIX advertising service.[150][151] The practice, which has become known as "data pimping", came under intense fire from various internet communities and other interested parties who believed that the interception of data is illegal under UK law (RIPA).[152][153]

Though Phorm initially claimed Virgin Media had signed an exclusive contract and were committed to implementing Phorm's Webwise tracking system, Virgin Media subsequently distanced themselves and stated that they only signed a preliminary contract with Phorm to better understand the tracking technology, and were under no obligation to implement it.[154] Reports on the Guardian website in May 2008 suggested Virgin Media were distancing themselves from the controversial system.[155]

Wikipedia censorship

[edit]
Main article: Internet Watch Foundation and Wikipedia

In December 2008, Virgin Media was one of several ISPs in the UK to attempt to censor its users' access to the Wikipedia article about the 1976 album Virgin Killer by stadium rock band Scorpions.[156] The album cover generated controversy, as it featured the partially obscured image of a naked, underage girl. The article was blacklisted by the Internet Watch Foundation after a user complaint. The blacklisting was since rescinded.

10-month exposure to data theft

[edit]

In March 2020, it became known that the Virgin Media marketing database that included the personal details (phone numbers, home and email addresses) of 900,000 users was left unsecured for 10 months. The company admitted that a member of their staff hadn't followed the correct security procedures, which resulted in the system's vulnerability. At least one occasion of unauthorised access took place. After resolving, a forensic investigation was launched to gauge the extent of the data breach.[157]

See also

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Virgin Media

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Virgin Media is a United Kingdom-based telecommunications company that delivers broadband internet, pay television, fixed-line telephony, and mobile services to millions of residential and business customers, operating the country's largest hybrid fibre-coaxial cable network. As the primary consumer brand of Virgin Media O2—a 50:50 joint venture between Liberty Global and Telefónica formed in June 2021 via the merger of standalone Virgin Media and O2 UK operations—the entity combines fixed broadband and TV infrastructure with extensive mobile coverage, serving over 40 million connectivity connections nationwide. The £31 billion merger positioned Virgin Media O2 as a formidable challenger to dominant players like BT, enabling accelerated investments in 5G mobile and full-fibre broadband rollout to enhance national digital infrastructure. However, empirical customer satisfaction metrics reveal persistent challenges, with Ofcom reporting Virgin Media as the most complained-about provider for broadband, landline, and pay-TV services, registering 32 complaints per 100,000 subscribers between July and September 2023—nearly double the industry average—stemming from issues like service reliability, billing disputes, and contract exit barriers. Regulatory actions have included Advertising Standards Authority bans on misleading Wi-Fi speed claims and ongoing probes into potentially unfair contract terms, underscoring tensions between network expansion ambitions and service delivery execution.

History

Origins and early development

The origins of what became Virgin Media lie in the UK's nascent cable television and telecommunications sector, which emerged from early television relay systems in the 1950s but accelerated after the Cable and Broadcasting Act of 1984 deregulated the industry, enabling private franchises to deliver multi-channel TV, telephony, and data services over coaxial networks. By the early 1990s, following the 1990 Broadcasting Act's award of 15-year franchises to cover about 15 million homes, operators began substantial infrastructure builds, though subscriber uptake remained low at around 149,000 by 1990 due to competition from satellite TV and limited content. These efforts laid the foundation for broadband-capable hybrid fiber-optic coaxial (HFC) networks that predecessors NTL and Telewest developed into national-scale systems. NTL Incorporated originated in 1993 when and J. Barclay Knapp established International CableTel to bid for cable franchises, capitalizing on the telephony rights granted to cable firms in 1991 that allowed competition with British Telecom. That year, the company acquired the assets of Insight Communications, reaching nearly 1 million homes, and went public on , raising over $400 million to fund network rollout, including over 1,500 km of fiber-optic lines by 1994. In 1995, NTL secured licenses for , , and , and pioneered the 's first cable internet service; by 1996, it acquired National Transcommunications Ltd. for transmission infrastructure and rebranded as NTL, investing in a £4 billion HFC network by the late 1990s to support TV, phone, and emerging data services. Telewest's roots trace to 1984 with the launch of Croydon Cable, one of the earliest post-deregulation franchises, which was acquired in 1988 by United Cable of Denver, marking US investment in UK cable. The company coalesced in 1992 through mergers of regional operators, backed by US West Media and Tele-Communications Inc. (TCI), becoming the UK's second-largest cable provider with a focus on integrated TV, telephony, and broadband. Early expansions included broadband launches in the late 1990s, such as the UK's first 4 Mb home cable internet in 2000, amid aggressive network builds that positioned Telewest to serve millions of homes despite initial financial strains from high capital costs. Both NTL and faced challenges in the , including debt from infrastructure investments exceeding £10 billion industry-wide and slow adoption rates under 10% in franchised areas, but their HFC deployments—upgrading analog systems to digital by the early 2000s—enabled competitive advantages in speed over BT's lines, setting the stage for later consolidation.

Formation through mergers and rebrands

NTL Incorporated, a cable telecommunications provider, and Telewest Global Inc., another major UK cable operator, announced their merger on October 3, 2005, in a deal valued at £6.5 billion. The merger was completed on March 3, 2006, forming NTL:Telewest, which became the United Kingdom's largest cable company, serving over 5 million customers with broadband, television, and fixed-line telephony services across approximately 90% of the cable market. In April 2006, NTL:Telewest agreed to acquire Virgin Mobile UK, a mobile virtual network operator owned by the Virgin Group, for £962.4 million, with the deal finalized on July 4, 2006. This acquisition integrated mobile services into NTL:Telewest's offerings, creating the UK's first quadruple-play provider combining fixed-line telephony, broadband internet, pay television, and mobile communications, and included a long-term licensing agreement with Virgin Enterprises Limited for use of the Virgin brand. The move also encompassed Virgin.net, an internet service provider, further expanding the bundled services portfolio. On February 8, 2007, NTL:Telewest completed its rebranding to Virgin Media, unifying all operations under the Virgin name to leverage brand recognition and emphasize integrated consumer services. The rebrand, supported by a £20 million launched in early February, replaced NTL and identities entirely, positioning the company as a direct competitor to BSkyB in television and markets. This consolidation marked the formation of Virgin Media as a cohesive entity focused on converged media and telecommunications.

Liberty Global acquisition and expansion

In February 2013, Liberty Global announced its agreement to acquire Virgin Media for approximately $23.3 billion (£15 billion) in a combination of cash and stock, with Virgin Media shareholders receiving $17.50 per share in cash plus 0.2582 shares of Liberty Global Class A . The deal, led by Liberty Global's chairman John Malone, aimed to combine Virgin Media's cable infrastructure with Liberty Global's European operations to strengthen competition against incumbents like BT. The acquisition faced regulatory scrutiny from the but was cleared in April 2013, with the transaction completing on June 7, 2013, making Virgin Media a wholly owned of . Following the acquisition, prioritized network upgrades to enhance speeds and service quality, leveraging its expertise in cable technology across , though initial plans emphasized improving existing coverage rather than vast geographic expansion. In February 2015, Virgin Media launched Project Lightning, a £3 billion investment program—the largest private commitment to internet infrastructure in over a decade—targeting an additional 4 million homes and businesses for ultrafast connectivity by 2020. This initiative involved deploying 3.1 technology to deliver speeds up to 152 Mbps initially, with later upgrades enabling gigabit capabilities, and included extending (HFC) cable networks to underserved areas while creating approximately 6,000 jobs in construction and engineering. By mid-2016, Project Lightning had connected over 250,000 new premises and generated 2,100 jobs, with ongoing rollouts focusing on urban and suburban regions. Progress accelerated, reaching 1.8 million premises passed by August 2019, enabling Virgin Media to expand its footprint beyond its legacy 55% coverage of UK homes and intensify competition in high-speed broadband markets. These efforts supported subscriber growth, with Virgin Media's fixed broadband base increasing amid investments in network resilience and capacity to handle rising data demands.

Merger with O2 and Virgin Media O2 formation

On 7 May 2020, Liberty Global and Telefónica announced plans to combine their UK businesses, Virgin Media and O2, into a 50/50 joint venture valued at approximately £31 billion. The merger aimed to form a leading fixed-mobile converged operator with over 46 million connections across broadband, video, and mobile services, enabling enhanced competition against rivals like BT and Vodafone by leveraging Virgin Media's cable network and O2's mobile infrastructure. The transaction faced scrutiny from UK regulators, including the (CMA) and . The CMA provisionally cleared the merger on 14 April 2021, finding no substantial lessening of competition in relevant markets, and granted final unconditional approval on 20 May 2021 without requiring remedies. Ofcom's involvement ensured alignment with spectrum and wholesale obligations, with the process concluding in line with original terms. The joint venture, named , officially launched on 1 June 2021, with and each retaining equal ownership stakes. Lutz Schüler, previously CEO of Virgin Media, assumed the role of chief executive for the new entity, overseeing integration efforts to combine operations while maintaining separate consumer brands initially. The formation positioned as the UK's largest mobile provider by customer base and a key player in full-fiber rollout ambitions.

Post-merger developments and network investments

Following the merger's completion on 7 June 2021, Virgin Media O2 pursued operational integration, including the migration of Virgin Mobile customers to O2's network plans, which commenced in March 2023 and continued through subsequent phases to unify mobile services. The company achieved its joint venture synergy targets 18 months ahead of schedule by the end of 2024, enabling a focus on foundational strengthening amid subscriber pressures, with forecasts for revenue growth resuming in 2025. Post-merger digital transformations addressed legacy system silos through initiatives like a five-year Google Cloud migration for data unification and AI-optimized content workflows, yielding millions in cost savings. Plans to spin off the fixed network infrastructure into a NetCo entity were abandoned in July 2025, preserving integrated control over core assets. Network investments emphasized both fixed and mobile infrastructure upgrades. In fixed broadband, Virgin Media O2 advanced gigabit-capable services via its coaxial-to-fibre hybrid network enhancements and the 2022-launched Nexfibre joint venture with Liberty Global, Telefónica, and InfraVia Capital Partners, committing £4.5 billion to deploy full fibre-to-the-home (FTTH) to up to 5 million premises initially, expanding the total addressable footprint toward 23 million homes using XGS-PON architecture. Nexfibre positioned Virgin Media O2 as anchor tenant and build services provider, enabling wholesale access for third parties like giffgaff, with deployments achieving 2 Gbps speeds in areas such as Sleaford by September 2025. Full FTTP upgrades on the core network target completion by 2028, complementing Nexfibre's greenfield builds in underserved regions. On the mobile side, a £700 million transformation plan for 2025—equivalent to £2 million daily —upgraded site reliability, backhaul capacity, and coverage, including expansions in and where over 50% of the population accesses across 100 locations. In October 2025, the company acquired £13 million in millimetre-wave spectrum (800 MHz at 26 GHz and 1,000 MHz at 40 GHz) to enhance high-capacity in dense venues like stadiums and stations, supporting surging data demands. These efforts integrated with a renewed network-sharing agreement, prioritizing standalone rollout while maintaining hybrid fibre-coaxial fixed investments.

Operations

Broadband and internet services

Virgin Media delivers broadband services primarily through its (HFC) network, utilizing 3.1 technology to provide download speeds ranging from 125 Mbps (M125 package) to 1,104 Mbps advertised for its Gig1 tier, with real-world averages reaching 1,130 Mbps download and 104 Mbps upload. The network covers approximately 15 million premises, concentrated in urban and suburban areas where infrastructure was originally deployed by predecessors like and NTL, excluding full-fiber alternatives like FTTP in most regions unless via recent regional open-reach fiber-to-the-premises (RoFG) pilots. Service tiers include entry-level options like M250 (averaging 264 Mbps download, suitable for multi-device households) and higher-speed plans such as M350, M500, and Volt upgrades bundling with O2 mobile for boosted performance up to 2 Gbps in select 3.1-enabled areas. Customers receive WiFi hubs (e.g., Hub 5 with Intelligent WiFi pods for extended coverage), promising at least 30 Mbps per room or bill credits, though actual performance depends on and home wiring. Upload speeds remain asymmetric, typically 20-52 Mbps on standard plans, lagging behind full-fiber competitors despite upgrades enabling theoretical multi-gigabit potential. Performance metrics highlight Virgin Media's strengths in peak speeds, with reporting median 24-hour downloads of 1,137.5 Mbps on its 1.1 Gbps package in 2022 testing, outperforming the average of 223 Mbps as of 2025. Independent analysis by in December 2024 awarded it top scores for reliability experience (763/1000 points), download speed, and consistent quality, attributing this to low-latency cable architecture versus DSL alternatives. However, 's 2025 customer service report indicated 80% satisfaction with service reliability, below the industry average, citing occasional outages linked to HFC maintenance and peak-hour throttling. The company claims 99.9% network uptime to the home, supported by ongoing £2 million daily investments in HFC hardening post-2022 merger with O2.

Mobile services

Virgin Media initially entered the mobile market in September 2013 by launching services as a mobile virtual network operator (MVNO) on EE's network, targeting bundled offerings with its fixed-line broadband for business and later consumer customers. Prior to the full consumer rollout, Virgin Mobile UK—established in 1999 as an early MVNO—operated separately but aligned with Virgin Group's branding, initially on the One2One network before shifting providers over time. By the early 2020s, Virgin Media's mobile operations had transitioned from EE to a planned Vodafone agreement, but the June 2021 merger with O2 redirected efforts toward integration with Telefónica's infrastructure. Following the formation of on 1 June 2021, all customers were migrated to O2's plans and network, with the process commencing in March 2023 and completing thereafter, unifying services under O2's umbrella while retaining some Virgin branding for bundles. This shift leveraged O2's established infrastructure, recognized as the UK's largest mobile network by subscriber base, providing nationwide , (phasing out by late 2025), , and coverage. 's mobile portfolio now includes pay-monthly phone contracts, SIM-only deals via O2 and its giffgaff MVNO, and converged bundles with broadband, emphasizing unlimited data options and roaming perks like EU inclusion. The O2 network delivers 99% 4G population coverage, with 5G available in over 800 locations as of 2023, expanding to standalone 5G—enabling advanced features like network slicing—in 500 towns and cities by September 2025. Recent enhancements include site upgrades at 22 holiday locations in August 2025 and a long-term network-sharing extension with Vodafone announced in 2024, aimed at improving rural coverage and efficiency without full merger. As of mid-2024, Virgin Media O2 served 15.9 million mobile contract customers, though net additions slowed amid competition, with quarterly gains of 15,600 in Q4 2024 reflecting stabilized post-transition growth. Performance metrics highlight reliable connectivity, with the network topping combined fixed-mobile experience awards in 2024, though user reports note occasional variability compared to pre-transition EE coverage.

Television and content delivery

Virgin Media delivers television services through its Virgin TV platform, providing linear broadcast channels and on-demand content to approximately 3.5 million households via a hybrid cable and IP network. The service bundles over 200 channels, including public service broadcasters like , ITV, and , alongside premium options such as channels, and integrates streaming apps including , Disney+, and . Packages such as Mega TV offer core channels like , , and , with add-ons for sports and movies customizable per subscriber. Content delivery combines traditional cable transmission for live with IP-based streaming for on-demand and catch-up services, enabling features like simultaneous recording of up to six channels and multi-room viewing across up to three televisions via additional boxes. The platform supports Ultra HD content on a dedicated channel and streaming directly through the interface. In 2025, Virgin Media simplified its channel guide and introduced enhanced search functionality for faster content discovery on compatible devices. Set-top box technology has evolved from older and V6 models to the 360 and Stream boxes, with the latter emphasizing IP delivery for free-to-air and streaming channels without full cable dependency. Customers with legacy boxes faced discontinuation of support after July 23, 2025, prompting free upgrades to V6 boxes with firmware updates or new 360 hardware to maintain compatibility. These updates align with a shift toward software-enhanced boxes supporting and app integrations, though older V6 units require remote upgrades for full TV 360 platform access.

Telephony and business solutions

Virgin Media offers services primarily bundled with its packages, providing unlimited calls to landlines and mobiles as standard. These packages include access to international calling options, with all landline deals featuring unlimited calls to a selection of over 100 international destinations, such as the , , and parts of . The service has transitioned to Digital Voice, a VoIP-based system that operates over the customer's connection rather than traditional copper lines, aligning with the 's ongoing digital switchover from analogue . Key features include , , , and tools for blocking nuisance calls, with support for up to six devices per line. For business customers, provides telephony solutions integrated with high-speed connectivity, including business phone lines delivered over fibre broadband and advanced (VoIP) systems. These offerings support features like multi-line setups, call routing, and integration with platforms for enhanced collaboration. Packages such as Voom Fibre combine telephony with download speeds up to 1 Gbps, static IP addresses, and 24/7 support, starting from £29 per month for entry-level plans suitable for small businesses with 1-10 users. Beyond core telephony, Virgin Media Business delivers comprehensive solutions encompassing dedicated internet access (DIA), SD-WAN for optimized cloud connectivity, VPN services, and leased lines for reliable, high-capacity data transfer. These cater to enterprises requiring low-latency fixed-line services, with options for Ethernet-based connectivity reaching speeds of up to 10 Gbps. Additional tools include mobile integration via O2 partnerships, cybersecurity from providers like Sophos, and managed services for Office 365 deployment, targeting small to large organizations across private and public sectors. As of 2025, these solutions emphasize fibre-optic infrastructure for scalability, with emphasis on 4G/5G backup for resilience during outages.

Corporate affairs

Ownership and governance

Virgin Media O2 operates as a 50:50 joint venture between Liberty Global plc and Telefónica S.A., established through the merger of Virgin Media (Liberty Global's UK subsidiary) and O2 UK (Telefónica's UK operation), which was completed on June 1, 2021. The joint venture structure ensures equal ownership stakes, with the entity managed autonomously while ultimate strategic oversight resides with the parent companies. As of October 2025, no changes to this ownership balance have been finalized, despite reports in May 2025 speculating on potential acquisition of Liberty Global's stake by Telefónica. Governance follows the Virgin Media O2 Governance Framework, which emphasizes board-level accountability for strategy, performance, and risk management, with delegation to an executive team for operational execution. The board of directors comprises representatives nominated by the joint venture partners to maintain balanced influence, including Mike Fries (CEO of Liberty Global and co-chair), Marc Murtra (Telefónica chairman and co-chair), Ángel Vilá Boix (Telefónica CFO), Emilio Gayo (CEO of Telefónica España), and other directors such as Laura Abasolo García de Baquedano and Enrique Rodriguez. The board is supported by committees, including an Audit Committee with two board members plus independent advisors, ensuring oversight of financial reporting, internal controls, and compliance. Day-to-day leadership is provided by CEO Lutz Schüler, who reports to the board and chairs certain subsidiary boards. This structure aligns with principles of effective corporate governance for large private companies, focusing on integrity, fairness, and adherence to a group-wide Code of Conduct.

Financial performance and market share

Virgin Media O2 (VMO2), the parent entity encompassing 's operations following the 2021 merger with O2, reported total revenue of £10.68 billion for the full year 2024, reflecting a 2.1% year-over-year decline primarily driven by reduced mobile sales and competitive pressures in fixed services. Adjusted EBITDA fell 3.7% to an unspecified figure, with the margin contracting to 34.8% from 35.5% in 2023 due to higher operational costs and investments exceeding £2 billion in network upgrades, including expansion and fibre rollout. Fixed-line revenue showed resilience with customer growth to 5.8 million, including 5.7 million subscribers (up 21,300 year-over-year), supported by ARPU increases from premium speed tiers, while mobile revenue declined 2.4% in Q4 amid market softness. In early 2025, Q2 results indicated stabilizing trends with guided revenue (excluding handsets and nexfibre construction impacts) down 0.4% year-over-year at £2.175 billion, alongside fixed-line customer losses of 51,300 offset by mobile connection additions of 480,200, reaching 46.2 million total. VMO2 anticipates revenue and adjusted EBITDA growth for full-year 2025, backed by projected property and equipment additions of £2.0-2.2 billion focused on network densification. These figures align with broader telecom sector challenges, including regulatory constraints on pricing and altnet eroding legacy base, though VMO2's scale has enabled sustained exceeding peers. In the UK fixed broadband market, Virgin Media held approximately 21.1% share of contract customers as of mid-2025, ranking third behind BT (22.7%) and ahead of Sky (18.3%), with a subscriber base of around 5.74 million amid a total market of 29.2 million lines at end-2024. This position leverages Virgin's cable infrastructure for higher-speed offerings, though net adds slowed due to full-fibre altnet gains; performance metrics show Virgin leading in download speeds and consistency per independent tests. For mobile, O2's integration has positioned VMO2 with roughly 25-30% market penetration through 46 million connections, bolstered by 5G coverage reaching 75% outdoors by 2024, though facing churn from value operators. Overall, VMO2 commands a combined fixed-mobile share enabling cross-selling, with fixed broadband ARPU premiums countering volume pressures.

Advertising and branding strategy

Virgin Media's branding strategy leverages the Virgin Group's distinctive identity, characterized by the red color palette, signature script , and a disruptive that positions the company as a challenger to incumbents like BT and . This approach emphasizes customer empowerment through innovative bundled services, maintaining consistency with Virgin's broader portfolio while highlighting technological differentiation. Since its 2006 formation from the merger of NTL, , and , advertising has centered on the quad-play model integrating TV, , , and mobile, with campaigns designed to showcase speed and reliability as key differentiators. High-profile endorsements, such as Usain Bolt's appearances in 2013 and 2016, depicted the sprinter's velocity to symbolize ultrafast , culminating in calls to action like "Be The Fastest" to drive consumer perception of superior performance. In , Virgin Media reallocated its advertising budget from short-term direct response tactics to sustained brand-building efforts, launching the "Unlimiting" platform via agency Adam&EveDDB. This initiative featured narrative-driven ads portraying scenarios of limitless possibilities through connectivity, such as family empowerment via 1Gb and , with the goal of elevating Net Promoter Scores and establishing the brand as the most recommended provider—achieving 80% message takeout in initial tests, exceeding industry benchmarks. Subsequent campaigns shifted toward emotional and relational benefits, as seen in the 2021 "Faster Brings Us Closer" effort, which illustrated ultrafast networks enabling personal connections, such as gaming-facilitated romances. Post-2021 merger into , the "To Better and Beyond" platform emerged as a unified creative framework, exemplified by the August 2025 "Trunk Trucker" installment from VCCP, employing surreal elephant-driven narratives to promote TV entertainment and streaming, thereby blending whimsy with service highlights to sustain engagement amid competitive pressures.

Technology and infrastructure

Network architecture and upgrades

Virgin Media's core fixed-line network employs a hybrid fibre-coaxial (HFC) architecture, utilizing optical fibre for the backbone and distribution to local nodes or cabinets, followed by for the final connection to customer premises. This setup serves approximately 16 million premises across the , enabling the delivery of , television, and telephony services via the protocol. The current implementation relies on DOCSIS 3.1, which supports downstream speeds up to 2 Gbps in areas with full upstream and downstream channel bonding, though actual performance varies by local node segmentation and customer equipment. Network upgrades commenced prominently with Project Lightning, announced on February 13, 2015, as a £3 billion initiative over five years to boost capacity, segment nodes for reduced contention, and expand coverage to 4 million additional premises. This project transitioned the network from DOCSIS 3.0 to DOCSIS 3.1, achieving gigabit-capable symmetric speeds across the full footprint by December 2021 through enhanced allocation up to 1.2 GHz and improved modulation techniques. By mid-2023, these enhancements had enabled widespread availability of services like Gig1 (1 Gbps download) and Volt bundles offering up to 2 Gbps, supported by node splits that reduced the average premises per node from thousands to under 300 in upgraded segments. Post-merger with O2 in June 2021, Virgin Media O2 shifted strategy away from further HFC evolution, announcing on July 29, 2021, a plan to overlay full fibre-to-the-premises (FTTP) using XGS-PON technology across the entire 16 million premise footprint by 2028, at an estimated £10-15 billion cost or roughly £100 per premises passed. This approach explicitly bypasses DOCSIS 4.0 upgrades on coaxial infrastructure, prioritizing FTTP for its potential for 10 Gbps+ symmetric speeds and lower long-term maintenance costs despite higher upfront deployment expenses. Initial XGS-PON deployments began in select areas in early 2025, with customer sign-ups opening progressively, while the HFC network remains the primary delivery mechanism for the majority of users amid ongoing Wi-Fi enhancements like the free Hub 5 router rollout in October 2025.

5G rollout and future technologies

, the joint venture operating Virgin Media's mobile services via network, initiated its non-standalone deployment in 2020, leveraging existing infrastructure for initial coverage. By September 2025, the company activated its standalone (5G SA) network across 500 towns and cities, achieving population coverage of approximately 70 percent and enabling enhanced capabilities such as lower latency and improved efficiency independent of core networks. This rollout coincided with the planned retirement of services by the end of 2025, freeing spectrum for reallocation to and to support higher data demands. In October 2025, acquired additional high-frequency mmWave spectrum—800 MHz at 26 GHz and 1,000 MHz at 40 GHz—for £13 million, targeting ultra-high-speed connectivity in dense urban environments. The operator activated its first "Giga Site" in , , on October 2, 2025, utilizing this spectrum to deliver peak download speeds exceeding 4 Gbps in trials, with plans to deploy around 1,000 such sites nationwide by the end of 2026 as part of a £700 million Mobile Transformation Plan. These enhancements prioritize capacity in high-traffic areas like airports, train stations, and stadiums, where mmWave's short-range, high-bandwidth properties enable multi-gigabit speeds but require dense small-cell infrastructure to mitigate propagation limitations. Looking to future technologies, Virgin Media O2's strategy emphasizes evolution over nascent pursuits, focusing on wide-area coverage expansion, urban small-cell deployments, and spectrum optimization to support emerging applications like and industrial IoT. While fixed-line upgrades continue separately—offering gigabit to over 16 million premises—the mobile roadmap integrates converged fixed-mobile services under the Volt bundle, potentially leveraging fixed wireless access for hybrid solutions in underserved areas. No public commitments to research have been announced as of late 2025, with investments prioritizing maturity amid spectrum constraints and regulatory auctions.

Achievements and market impact

Innovations in speed and coverage

Virgin Media introduced Gig1 in September 2019, delivering average peak-time download speeds of 1,104 Mbps and upload speeds of 52 Mbps, which was marketed as the UK's fastest residential service at launch using 3.1 over its hybrid fibre-coaxial network. By December 2021, the company had upgraded its entire national footprint to support gigabit-capable speeds, enabling over 1,000 Mbps availability to all connected premises without requiring full fibre-to-the-premises (FTTP) conversion. In laboratory and field trials in and during April 2021, Virgin Media demonstrated multi-gigabit performance reaching 2.2 Gbit/s download speeds via enhanced spectrum allocation, though these were not commercially deployed at scale. More recently, in February 2024, Virgin Media rolled out Gig2 packages offering up to 2,000 Mbps downloads on upgraded connections, approximately 28 times the average speed of 69 Mbps as measured by . To expand coverage beyond its legacy coaxial footprint serving about 55% of UK homes, Virgin Media launched Project Lightning in 2017 with a £3 billion investment to build FTTP to up to 17 million premises over five years, prioritizing underserved areas through aerial and underground deployments. This initiative added over 2.5 million premises by mid-2021, including 89,000 in the prior quarter alone, often leveraging existing infrastructure for rapid rollout. In July 2022, Virgin Media O2 announced an additional £4.5 billion commitment to extend fibre coverage toward 80% of the UK population by 2028, combining organic builds with potential wholesale partnerships via Nexfibre. By May 2025, the programme had constructed fibre connectivity to over 550,000 homes, with ongoing expansions such as 12,000 new premises in Sleaford gaining access to 2 Gbps-capable full-fibre in September 2025. These efforts have increased Virgin Media's median download speeds to 1,130 Mbps as of 2025, with network reliability reported at 99.91% uptime, though actual performance varies by location and contention.

Competitive advantages and customer growth drivers

Virgin Media O2's primary lies in its proprietary hybrid fibre-coaxial (HFC) network, which spans approximately 15 million homes and has been progressively upgraded via Project Lightning to deliver gigabit-capable speeds across 17.8 million premises as of Q3 2024. This provides an alternative to BT Openreach's dominance, enabling VMO2 to control end-to-end delivery without wholesale dependencies, which supports higher peak speeds—averaging 380 Mbps for broadband customers in mid-2024—and facilitates rapid upgrades to 3.1 and beyond for enhanced upload capabilities in dense urban footprints. The 2021 merger forming has enabled fixed-mobile convergence, allowing seamless bundling of , TV, , and O2 mobile services, which boosts (ARPU) through premium multi-play packages and reduces churn by integrating billing and support. This convergence drove fixed ARPU growth of 2.0% year-over-year in 2024, alongside net fixed-line additions of 9,900 in Q4, contributing to overall fixed customer base expansion of 9,300 for the year despite competitive pressures. Customer growth is further propelled by sustained network investments and spectrum enhancements, including a £343 million acquisition of 78.8 MHz from in June 2025, pending approval, to bolster mobile capacity and coverage for O2's 46 million connections (including wholesale). These factors supported 480,000 total mobile connection additions in Q2 2025 and positioned VMO2 for core revenue recovery in 2025 after foundational spending in 2024. Incremental improvements in metrics, such as reduced complaints per data, have also aided retention amid rivalry from full-fibre altnets.

Criticisms and controversies

Service reliability and customer service issues

Virgin Media has faced persistent criticism for broadband and TV service outages, with notable incidents including a nationwide disruption on February 24, 2025, that affected thousands of customers' internet and streaming services starting around 9:50 a.m. GMT and lasting until later that afternoon. Individual cases have highlighted prolonged disruptions, such as one customer experiencing 170 days without service due to a damaged fiber cable, as reported in an April 2025 BBC investigation. Other reports include fiber cable damages causing outages exceeding 11 days in July 2025, exacerbating perceptions of unreliable infrastructure maintenance. Despite a 2025 Expert Reviews survey indicating 70% customer satisfaction with broadband reliability—higher than competitors—regulatory data underscores broader issues, with Virgin Media customers 26% more likely than average to report problems in 2024. Customer service handling has drawn significant scrutiny from Ofcom, the UK communications regulator, which recorded Virgin Media as the most complained-about pay-TV provider in Q1 2025, with complaints primarily centered on inadequate resolution processes. In fixed broadband, Virgin Media attracted 32 complaints per 100,000 customers in early 2024, outpacing rivals like Now Broadband at 18 per 100,000. A March 2025 Which? survey ranked Virgin Media lowest for overall broadband customer satisfaction, with a net score of +36—14 points below the industry average—and specific deficiencies in support responsiveness. Virgin Media O2 also led mobile complaints in Q4 2024, reflecting patterns of delayed fixes and poor communication during service faults. These metrics, derived from verified consumer reports rather than anecdotal forums, indicate structural challenges in fault rectification and escalation, contributing to elevated churn risks despite network speed advantages elsewhere.

Pricing practices and billing disputes

Virgin Media's pricing practices include annual mid-contract increases for , , mobile, and services, permitted under contracts but often tied to inflation indices such as the Retail Prices Index (RPI) plus additional percentages. In April 2025, the company raised prices by a flat £3.50 per month for most existing customers, affecting bundles that previously started as low as £39.50 for unlimited and . From October 2025, new and re-contracting customers face a fixed £4 monthly hike, or £48 annually, applied to -only and bundled packages, with the company citing rising operational costs as justification. These adjustments have drawn scrutiny for lacking transparency in advertising, though the Advertising Standards Authority upheld Virgin Media's 2024 promotions in October of that year, finding no implication of fixed pricing over the full contract term. Consumer advocacy group Which? has contested the legality of these hikes, arguing in August 2023 that terms allowing RPI-linked increases (e.g., RPI + 3.9%) may breach unfair contract regulations under the Consumer Rights Act 2015, as they enable unpredictable rises unrelated to service improvements. Which? urged Ofcom to probe the practices, highlighting compounded issues with "woeful" customer service that hinders challenge processes, though Ofcom has not yet ruled on unlawfulness as of late 2025. Virgin Media maintains compliance via clear contract disclosures, including its Consumer Code of Practice, which mandates explanations of charges and billing accuracy. Billing disputes frequently arise from overcharges, erroneous fees, and delays in credits or cancellations, contributing to elevated complaint volumes reported by . In Q4 2024, Virgin Media topped pay-TV providers for complaints, with billing, pricing, and charges as the primary category, exceeding rates for peers like and TalkTalk. By Q1 2025, these issues persisted, alongside faults in complaint handling, positioning Virgin Media among high-complaint telecoms for unresolved disputes. Customers have reported cases of unapplied discounts, post-cancellation charges on rolling contracts, and refusals to adjust credit reports for disputed debts, often requiring escalation to the Communications (CICAS) for resolution. data underscores systemic patterns, with billing errors linked to automated systems and service interactions, though Virgin Media attributes variances to individual account complexities rather than widespread malpractices. In November 2018, Ofcom fined Virgin Media £7 million for failing to accurately calculate early termination charges, resulting in overcharges to customers who cancelled fixed-line broadband and phone contracts prematurely; the regulator determined that the company had breached general conditions on billing accuracy and fairness, affecting thousands of subscribers between 2014 and 2015. A similar £25,000 penalty was imposed in 2017 for related non-compliance with VAT-inclusive pricing rules on early exit fees, following updated HMRC guidance that Virgin Media had not promptly implemented. Ofcom launched an investigation in July 2023 into Virgin Media's contract cancellation processes, citing evidence of excessive hold times—sometimes exceeding 90 minutes—repeated information requests, and barriers to accessing , potentially breaching rules on facilitating switches and handling complaints; the probe could lead to further fines or mandated process changes if violations are confirmed. In January 2020, the Competition Appeal Tribunal upheld 's finding that Virgin Media contravened general conditions on number portability and information provision, stemming from delays in transferring customer phone numbers during switches. Virgin Media has consistently ranked as the most complained-about provider to , recording 32 complaints per 100,000 customers from July to September 2023, primarily related to faults, service disruptions, and billing—rates exceeding the industry average and prompting ongoing regulatory scrutiny over standards. The 2021 merger forming faced initial competition concerns from the CMA regarding potential mobile market consolidation but was provisionally cleared after remedies addressed wholesale access and , avoiding structural divestitures. In June 2025, the ruled that Virgin Media's 30-day notice period for contract termination did not constitute a disincentive to switching providers, dismissing broader claims under laws.

Data privacy and security incidents

In March 2020, Virgin Media disclosed a exposure incident involving a marketing database that had been incorrectly configured by a staff member, leaving it accessible online without authentication for approximately 10 months. The incident affected about 900,000 customers, with exposed personal details including phone numbers, home addresses, and email addresses, but excluding passwords or financial information. Upon discovery, the company immediately secured the database, launched a forensic investigation, notified the (ICO), and emailed affected customers with guidance on mitigating risks such as and . The ICO investigated the matter but did not issue a monetary penalty. In May 2025, a misconfiguration in 's calling software exposed location-related data for millions of mobile customers over up to two years, potentially including users of partner networks like and . The flaw enabled unauthorized access to details such as cell ID, information, phone model, and approximate user location based on the nearest mobile mast. Following public disclosure via a company blog on 17 May 2025, the issue was resolved the next day; reported it to the and , confirming no detected external exploitation, and the opted against further enforcement.

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