Virgin Media has decided to open up a new front in its ongoing battle with
Sky.
After acting chief executive Neil Berkett admitted Virgin was not winning the
war with Sky
in the paid-for TV market,
the
cable giant said broadband will be its “hero service” in order to attract
customers.
Although Virgin said it will continue with its TV packages, it said being
able to offer broadband speeds of up to 50Mbits/sec will allow it to deliver
services Sky cannot.
"Sky is dominant in the TV market and ahead of our game, so rather than
continue to go head-to-head with it here, we decided to see where we could
exploit our technology and offer unique services," a representative said.
Virgin said it was the only broadband supplier that could currently offer
high-definition video-on-demand and interactive services because of its cable
infrastructure. Currently customers in Ashford, Folkestone and Dover are
testing a 50Mbits/sec service.
However, when Computeractive talked to various industry experts, they were
more dubious. They said if Virgin intended to offer these services it needed to
rethink its broadband traffic shaping policy introduced this year. This can see
people's speeds limited at certain times of the day or for certain applications.
Andrew Ferguson, editor of
thinkbroadband.com,
a partner in our
Crystal
Clear broadband campaign, said: "At the moment Virgin would do better to
not chase headline speeds and be clear about the limits it places on people and
ensure it offers sustainable speeds.
"The complaints we are getting, especially about limits placed on its
20Mbits/sec service in addition to service congestion show this is not happening
and, as the Crystal Clear campaign highlights, transparency in promised speeds
is of real importance to people."
Jupiter Research analyst Ian Fogg agreed the industry as a whole needs to
create more trust around their speeds and clarify the speed a person actually
gets.
Computeractive's campaign has gained huge support since it launched. With the
issue of delivering sustainable, transparent high-speed broadband connections
now on the Government's agenda.
Computeractive's editor Paul Allen will speak at the next Westminster eForum
on 21 November. He will talk alongside regulator Ofcom and Antony Walker chief
executive of the Broadband Stakeholder Group.
There is still time to sign our
petition
urging telecoms regulator Ofcom to make internet service providers give clear
information about the actual speed customers are likely to receive in the form
of a 'typical rate'.
We believe this information should be made clear prior to subscription. We
also believe Ofcom should introduce an independent speed-testing service for
consumers, so that they can compare advertised maximum rates against actual
broadband speed. In short, we want Crystal Clear Broadband contracts for UK
consumers.
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