Cable Forum - View Single Post - Virgin Media to open up broadband network to wholesalers

MovedGoalPosts · 06-05-2009, 00:44

Virgin Media's sole advantage over the many competitor ISPs is their cable technology. Where cable exist, VM should have the superior broadband capability, assuming they have been able to invest sufficiently to meet capacity.

On that basis why would they want to open their private invested infrastructure to the very competitors over which they have an edge?

The only reason would be a lack of further growth. If VM were to move towards being a network provider rather than an end user supplier, this might make sense. Could they make more money by simply providing the network for other carriers? It would be a foolish business that didn't keep things under review.

In the short term with the 50meg roll out and other upgrades like 2 to 10meg in progress, I suspect VM still have a lot of mileage in their own infrastructure.

However, from an economic point of view, if VM now has the fibre based networks in place, does it make sense for another supplier to come along and try and duplicate that?

06-05-2009, 00:44	#8
MovedGoalPosts Inactive Join Date: Jun 2003 Location: 127.0.0.1 Age: 61 Posts: 15,868	Re: Virgin Media to open up broadband network to wholesalers Virgin Media's sole advantage over the many competitor ISPs is their cable technology. Where cable exist, VM should have the superior broadband capability, assuming they have been able to invest sufficiently to meet capacity. On that basis why would they want to open their private invested infrastructure to the very competitors over which they have an edge? The only reason would be a lack of further growth. If VM were to move towards being a network provider rather than an end user supplier, this might make sense. Could they make more money by simply providing the network for other carriers? It would be a foolish business that didn't keep things under review. In the short term with the 50meg roll out and other upgrades like 2 to 10meg in progress, I suspect VM still have a lot of mileage in their own infrastructure. However, from an economic point of view, if VM now has the fibre based networks in place, does it make sense for another supplier to come along and try and duplicate that?