Analysts have been responding to the news of Virgin Media’s proposed multi-billion pound UK broadband network investment.
Ovum analyst Nick Thomas (Practice Leader Digital Media) told IP&TV News today that the investment belied a distinct broadband focus for parent company Liberty Global, in contradistinction to competing service providers.
“This is welcome news from Virgin Media, and an indication of what its parent company Liberty Global sees as the priorities for a multi-service provider in the next decade,” Thomas explained. “While its competitors in the UK have this month spent billions on either a mobile operator or exclusive content rights, Virgin Media sees high-speed broadband as the core of its future business.”
The news concerning the massive UK investment comes one day after Liberty Global posted strong 2014 financial results, including an additional 1.3 million additional advanced television service subscribers.
“Comparisons have been made between the building of the railways and the investment in broadband, and indeed the potential benefits to the economy of greater connectivity are numerous,” concluded Thomas. “The only caveat is that while the railways allowed for the creation of great wealth in the 19th century, the owners of the railway themselves did not see all those benefits. But Virgin Media will argue that by strengthening their broadband offering they will remain a major player in the competitive UK marketplace over the next decade.”