Broadband News

Even faster Virgin Media speeds by next year

Tuesday, 24 March 2009

By Garnet Roach garnet@consumerchoices.co.uk

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Virgin Media could offer speeds of between 100Mb and 150Mb before BT even completes its own fibre network, the cable provider has revealed.

“We have an opportunity with our network to provide significantly higher speeds,” Neil Berkett, Virgin Media (www.VirginMedia.com) chief executive, told BBC News.

"We have an opportunity to provide significantly higher speeds"

Although Virgin Media currently offers the UK’s fastest broadband package at speeds of up to 50Mb, Berkett said he expected Virgin Media to begin rolling out faster speeds next year.

BT Broadband (www.BT.com) yesterday announced the locations of the first exchanges to be upgraded with fibre to the cabinet (FTTC) technology, allowing speeds of between 40Mb and 60Mb.

However, BT already provides homes and businesses in Ebbsfleet, Kent with fibre to the home (FTTH) at speeds of up to 100Mb, though this is currently only available to selected new-build areas where installation at the time of building reduces costs.

“When we look at the market I don’t see us getting the returns right now for 100Mb or 150Mb,” Berkett told the BBC.

“As we work with application providers, and content providers there will be a natural point where we upgrade from 10, 20 and 50Mb to something more.

“If BT were to meet the time frame they have suggested - of finishing by 2012 - I would see us as having much, much faster upstream speed, running at a minimum of 100Mb downstream and possibly more. You can see a real opportunity there.”

Virgin Media’s network covers around half of all homes in the UK - though only a small portion can currently access its XXL 50Mb broadband package, and BT’s £1.5 billion plan to build a fibre network will also only cover around 40 per cent of homes and businesses, raising fears of an extended digital divide.

Michael Phillips, BroadbandChoices.co.uk product director, said: “Competition is great for keeping consumer costs down so Virgin Media and BT’s rival fibre networks will no doubt help to make next-generation broadband more accessible to everyday users.

“However, many people in the UK are still struggling to reach speeds of up to 2Mb - with some still languishing in ‘broadband not-spots’ and this is an issue that needs to be seriously addressed - we cannot have half of the UK speeding ahead on 100Mb while others are stuck in the slow lane.”

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