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Virgin Media UK Tops 3.97m Broadband ISP Subscribers

Posted: 06th May, 2009 By: MarkJ
Virgin Media has reported its latest first quarter 2009 results, which saw the operators total broadband subscriber base (cable and ADSL) increase from 3,934,800 in Q4-2008 to 3,977,100 at the end of Q1-2009. This represents a slower but still fairly stable rate of growth over the previous quarter and puts Virgin Media within touching distance of a major 4 Million milestone.

Naturally the bulk of Virgin's broadband subscriber growth came from its increasingly strong cable platform, which jumped from 3.682m to 3.730m in the quarter. Sadly its lesser known and seemingly inferior Virgin.net (ADSL) based services saw yet another decline from 252,000 to 247,000 over the same period.

Broadband net additions were 47,300 (Q4-08: 57,100; Q1-08: 88,400). Net additions were down both sequentially and year-on-year due to lower gross additions, partially offset by our success in further reducing churn. We believe gross additions declined due to our shift in focus towards growth in higher speed (and higher ARPU) tiers, lower growth in the overall broadband market, along with the impact of a softer macroeconomic environment.

This increased focus on up-sell has improved the tier mix and the number of subscribers on our top two broadband tiers (20Mb and 50Mb) has increased by 48% to 416,200 in the last twelve months while the number of 10Mb subscribers has grown by 62% year-on-year to 946,500. In the first quarter, 75% of our broadband gross additions subscribed to 10Mb or higher compared to just 19% a year earlier. At the quarter-end, 37% of our broadband customers subscribed to a 10Mb tier or higher. From May 2009, we plan to begin upgrading our 2.4m existing 2Mb customers to our 10Mb service.

We continue to roll out availability of our 50Mb service which we expect to be available to our entire broadband-capable network during the third quarter of 2009.

Virgin Media does not reveal precisely how many of their customers have adopted its newest 50Mbps package, though the operators overall broadband platform continues to weather the recession better than some ISPs. We expect even faster cable based products to surface in the near future.
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