On Monday 15th December, Virgin Media (VMed) announced the launch of its 50 Mbit/s ‘XXL’ broadband service, implemented over the existing cable network using the DOCSIS3 standard. This note looks at the details of the offer and the implications for VMed, other ISPs and the residential telecoms market as a whole
UK broadband net additions in Q3 2008 fell sequentially, the first time this has happened in a third quarter. Q3 net adds almost halved year-on-year to 320,000
Virgin Media’s Q3 results represent a significant step in the recovery of the business, with ARPU and consumer cable revenue stable for the first time in 18 months. Group OCF growth was hit by one-off opex reductions in the prior quarter but continues to grow on an underlying basis
VMed’s Q2 results represent a further step in the recovery of the business, with fixed line churn continuing to fall and operating cash flow (OCF) continuing to grow, helped by a dramatic improvement in OCF at Virgin Mobile
BT’s announcement of a project to extend fibre beyond the exchange for some existing homes as well as newly built ones is good PR, a useful regulatory gambit, and offers the prospect of regaining some initiative from unbundlers and Virgin Media at the wholesale and retail levels respectively
VMed’s Q1 results represent a further step in the recovery of the core cable business, with markedly lower churn and strong growth in operating cash flow (OCF)
To encourage investors, TF1 announced continued diversification of group revenues from reliance on the flagship TF1 channel, and an increase in group Ebitda from 16% in 2007 to 20% in ‘4-5 years’. Accelerating audience share decline at the TF1 channel indicates that new programming is also urgently required to maintain TF1’s ‘premium’ for advertisers
Growth in ARPU is reinforcing the impact of improving cable subscriber growth, but revenue remains in decline, year-on-year
MVNOs have attracted much attention recently. Virgin Mobile's IPO revealed attractive economics and discount MVNOs in certain smaller European markets have had success. This report considers the question of whether Virgin Mobile is a one-off or the start of a trend, and whether discount MVNOs can replicate their success in larger countries.