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Virgin rebrands business offering to take on BT

by Scott Bicheno on 11 February 2010, 15:02

Tags: Virgin (NASDAQ:VMED)

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Verging on BT

UK telco giant Virgin Media said it's going to "shake up the UK business telecoms market" by launching Virgin Media Business.

Virgin Media was formed by the merger of Virgin Mobile and NTL:Telewest and the business comms arm kept the NTL:Telewest name, so this looks like a rebrand as much as anything else.

Neil Berkett, CEO of Virgin Media, said: "There is now a significant opportunity to leverage the full power of our fibre optic network in the business telecoms market. Virgin Media Business will take our strong customer-centric approach to a growing and under-served market in which there is a need for a compelling and distinctive alternative to BT."

That's all great, but what isn't clear is what the difference is between Virgin Media Business and NTL:Telewest Business, which Virgin itself says has experienced double-digit growth over the past three years. There's no question that the UK business broadband market could do with a bit more competition, though.

Target markets include mid-market enterprise and the public sector, and Virgin is clearly trying to maximise the revenue potential of its fibre network - the only one in the UK that's wholly independent of BT.

"We have big ambitions for Virgin Media Business," said Mark Heraghty, MD of Virgin Media Business. "Delivering fabulous fundamentals - great service, good quality and value for money - is at the heart of our strategy. Over the last three years we've invested heavily to put the building blocks in place, which means we're more than fit to wear the Virgin badge."


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