Virgin Media clearly announced its intentions to cloud Sky's horizons when it formally launched yesterday.

The company formed by the merger of Virgin Mobile and NTL Telewest said it plans to "shake up the industry and offer consumers quality, value, innovative products and outstanding customer service" with its new range of television, phone and broadband packages.

Customers can choose from a range of regular quad-play packages ranging in cost from £20, £30 and £40 depending on features the customer chooses to add on.

Virgin Media's premium package costs a whopping £85 per month, but includes a 10Mbps broadband connection, an HD-ready personal video recorder (PVR), unlimited landline calls and a free TV-enabled mobile phone.

The phone comes with 500 minutes of mobile airtime per month, 1,000 texts a month and a bonus of £60 free airtime for the television service.

The company is also launching its own on-demand television channel on 20 February 2007 at cable channel 119. Content will include free access to hit shows such as The West Wing, Little Britain, The OC, Nip/Tuck, Grey's Anatomy and CSI.

The firm also plans to roll out its services into non-cable areas in 2007, extending its reach to more than 97 per cent of UK households.

To sell its services to customers, in addition to its existing promotional sites in over 100 UK shopping centres and 75 Virgin Mobile concessions in Virgin Megastores, the company will set up 15 high street Virgin Mobile stores over the coming year.

In retaliation to the onslaught, Sky is now refusing to carry adverts for Virgin Media's service. But currently this looks unlikely to deter Virgin Media.

"Virgin Media will be the UK consumer's company of choice to bring together all of the products, services and great content, such as Virgin Central, under a totally dedicated and national customer service banner," said Jim Mooney, chairman of Virgin Media.