Cable Forum - View Single Post - BT Open Up Ducting

m419 · 11-02-2010, 21:42

In the long run, it might be better for Virgin Media to keep it as it is for now, if they open up there network for others to use, they will charge less and Virgin Media will loose custom from its own customer base and possibly revenue.

Example:

Virgin Broadband 10MB alone: £18 per month

Then Virgin Media then allow say Easynet or TalkTalk to use the same network for the wholesale price of £5. Obviously Easynet and TalkTalk will sell it for £10, and Virgin will see customers flee to them and although technically, Virgin Media are still generating revenue from the customer by being on the network, Virgin Media will only get the wholesale rate and not the retail price as well.

Its just like BT, when Virgin Media refreshed its Virgin Media National services in 2007,loads of BT customers drifted away from BT to Virgin Media to the point where there was a backlog of customers waiting to be transfered over, there is an article on this somewhere in Cable forum and I think on 'The Register' website.

The same happened when Sky,Orange and TalkTalk launched its so-called free broadband and bundled services.

And the next threat to BT is mobile broadband, its getting better year by year and many people are taking mobile broadband up simply because you don't need a phone line and don't have to be in a Virgin Media Cabled street and also don't need to go through a credit check because there is a pre-pay option available, thats probably why BT have retained its mobile broadband service even though it pulled out of the mobile phone market in 2008.

Apart from that, since BT has a wider coverage area and since its fibre optic service will be national eventually, who cares if Virgin Media and other companies such as Smallworld Media open there networks, there is a national network regulated by Ofcom that allows competition and national services and thats all BT's rivals care about.

Can you really see Virgin Media working with the likes of Easynet(Sky) and Colt, they will purposely charge them a fortune to prevent competition.

11-02-2010, 21:42	#15
m419 Inactive Join Date: Jul 2005 Location: London Services: BT Broadband,BT Anytime calls,Sky entertainment extra HD,Vodafone pay monthly Posts: 1,512	Re: BT Open Up Ducting - Look To Use Virgin's In the long run, it might be better for Virgin Media to keep it as it is for now, if they open up there network for others to use, they will charge less and Virgin Media will loose custom from its own customer base and possibly revenue. Example: Virgin Broadband 10MB alone: £18 per month Then Virgin Media then allow say Easynet or TalkTalk to use the same network for the wholesale price of £5. Obviously Easynet and TalkTalk will sell it for £10, and Virgin will see customers flee to them and although technically, Virgin Media are still generating revenue from the customer by being on the network, Virgin Media will only get the wholesale rate and not the retail price as well. Its just like BT, when Virgin Media refreshed its Virgin Media National services in 2007,loads of BT customers drifted away from BT to Virgin Media to the point where there was a backlog of customers waiting to be transfered over, there is an article on this somewhere in Cable forum and I think on 'The Register' website. The same happened when Sky,Orange and TalkTalk launched its so-called free broadband and bundled services. And the next threat to BT is mobile broadband, its getting better year by year and many people are taking mobile broadband up simply because you don't need a phone line and don't have to be in a Virgin Media Cabled street and also don't need to go through a credit check because there is a pre-pay option available, thats probably why BT have retained its mobile broadband service even though it pulled out of the mobile phone market in 2008. Apart from that, since BT has a wider coverage area and since its fibre optic service will be national eventually, who cares if Virgin Media and other companies such as Smallworld Media open there networks, there is a national network regulated by Ofcom that allows competition and national services and thats all BT's rivals care about. Can you really see Virgin Media working with the likes of Easynet(Sky) and Colt, they will purposely charge them a fortune to prevent competition.