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On February 8, 2007, Virgin Media made history in the UK by being the first quadplay provider offering broadband access, digital TV packages, mobile phone, and landline phone deals all under one company name. This unprecedented move promises to change the way consumers think about service, quality, and affordability, but what does the future hold for Virgin Media? Virgin Media is the company name formed after the merger of Telewest Global and NTL, and is currently a US-listed British company. By combining the services of both Telewest and NTL, Virgin Media promises to offer better service and a cheaper price than both previous business entities. Virgin Media Broadband offers three different size of packages: M, L, and XL. The Medium package offers a leased modem, internet security, and up to 2Mb with no download limits within reason. With an introductory price of £14.99 per month for the first 12 months and a standard price of £18.00 per month, this package is perfect for checking e-mail or just browsing the internet comfortably. The Large package by Virgin Media Broadband offers a leased modem, internet security, and up to 4Mbs with no download limits within reason. This package does not have an introductory offer, but has a standard price of £25.00 per month. The affordability and speed of the Large package is perfect for the individual wanting a bit more from their provider. Finally, the X-Large package offered by Virgin Media Broadband offers a leased modem, internet security, and up 10Mb with no download limits within reason. This package has a standard rate of £35.00 and is perfect for those individuals accepting only the best a broadband provider can offer. In comparison, Orange Broadband offers an unlimited package offering free leased modem, unlimited international and UK landline calls, and up to 8Mb with no download limits within reason. Orange Broadband has proven to be competitively priced at the package starting at a standard £19.99 per month. Another comparison is found with AOL’s Broadband Platinum package. With a free wireless modem, and speeds of up to 8Mbs, the £29.99 per month price tag includes other benefits available through AOL. With new service, AOL Broadband offers the first month free, and home networking support unique to broadband providers. Virgin Media also offers Virgin TV. What does Virgin TV offer the consumer? Well, Virgin TV has three available packages: M, L, and XL. The Virgin TV Medium package is totally free with Virgin Phone service and offers a ‘meagre’ 39 digital TV channels. The Virgin TV Large package is only £11.50 per month with Virgin Phone service and offers a hefty 83 digital TV channels. Finally, Virgin TV X-Large package is only £20.50 per month with Virgin Phone and offers a healthy 129 digital TV channels. What makes Virgin Media’s quadplay such a unique concept is that the packages available can be bundled to save the customer money on their monthly bill. Only want two services provided by Virgin Media? For only £20 per month you can get your choice of two standard packages. Looking for three services provided by Virgin Media? At a price as low as £30, the customer can choose three services provided by Virgin Media. What if you want it all? The ultimate package can by yours starting at only £40 per month. Other companies, such as Orange and AOL, offer many of the same services, but no one company offers all of the services offered by Virgin Media. Yet, some people are hesitant to make the switch. Yes, there are some great introductory rates for new customers, but what does the future hold for this new concept in media services? Virgin Media is not necessarily the cheapest company offering the individual services. For example, Orange Broadband can be purchased separately with the same benefits offered by Virgin Media at a cheaper rate, and it seems that Virgin Media is dependant on the customer purchasing more than one service to provide better rates. The goal of Virgin Media is to gain the loyalty of the customer wanting the larger bundle packages. To gain this loyalty, Virgin Media will need better customer support, friendlier and more knowledgeable technical support, and a more reliable service to gain the hearts and the pocketbooks of customers. Sure, Virgin Media may gain a lot of new customers with the promise of low introductory rates, but without the loyal customer base, the customers will migrate to the next best deal leaving Virgin Media struggling for the best introductory offer capable of maintaining interested customers.
Staff editor, Broadband Section, February 2007 |
