Virgin Media takes on Sky

Virgin Media is officially launched today by Richard Branson, with the aim of providing a complete quad-play package to customers.

The launch today of Virgin Media is a rebranding of the existing NTL:Telewest service which took over Virgin Mobile last year.  The newly launched Virgin Media brand is intended shake off the company’s previous reputation for poor customer service.

Virgin media will offer broadband, Digital TV, Phone and mobile services, available in bundles or separately. The bundles are offered in 2 for £20, 3 for £30 and 4 for £40.  For example. A phone and broadband bundle is available for £20 per month.

Topping the bundles is a VIP (Very Impressive Package), offering the high-end of almost everything in terms of broadband, TV, phone and mobile. 

Virgin Media also plans to offer the services in non-cable areas in the future to extend its footprint.

What about the customer service?

Virgin Media seems to be keen to wash off the previous poor customer service image with £10m worth of investment in 2006 to hire extra staff, new trainers and a new training programme, pointing out that 71% of calls are now answered within 30 seconds compared to 37% at the same time last year.

Coming to a store near you

Virgin Media also plans to bring its offering to the high street through its own Virgin Mobile stores and other high street retail outlets.

The competition

Virgin Media will mainly take on rival Sky in the home entertainment market by offering similar deals.  However, Sky are yet to offer similar quad-play bundle.  Tiscali also announced plans recently to offer TV, telephone and a basic digital TV service.  Many other CSPs are offering the combination of telephone and broadband, including Carphone Warehouse.

With the new Virgin brand name, it will be interesting to see consumer reaction to todays much publicised launch.

Steve Burch, CEO at Virgin said:
“We’ve been working towards this day for a long time and the transformation of our business is already well advanced. Virgin values are starting to permeate all aspects of our company, from the culture to our product line up. Looking forward, we have a world of opportunity before us. Consumers are ready for something genuinely different. As a company and as individuals, their needs and aspirations will remain at the heart of everything we do.”

Richard Branson, founder of Virgin Group, said:
“Today’s creation of Virgin Media sees a milestone in the history of the media industry and cable in particular. For the first time there is a single brand set to provide a more extensive range of television entertainment, broadband and communication services than previously offered by anyone in the UK. Our transition to Virgin Media has been underway since last July and will continue over the coming months, as we roll out an outstanding 21st century customer experience in home entertainment and communications.”