skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view

Summary

Virgin Media’s plan to extend its network in the UK will help Virgin Media Business (VMB) with its current drive into the SoHo and SME business markets. It will also help with the quality of its bid-response efforts for large enterprises with national network requirements, and reinforce its competitive position against BT and Vodafone.

Reaching the high street

Virgin Media’s announcement of a £3bn investment to extend its broadband network to an additional 4 million premises in UK cities feels like it has been driven by the provider’s owner, Liberty Global. Building out the US system of hybrid fiber-coax cable might not be what a business services provider would be looking to do first in this market, but Ovum understands that some of the spend over the next five years will include advancing the core network based on MPLS and Ethernet territorially. The VMB network has been notable for taking Ethernet onto business parks; the new endpoints mean it will be able to take higher bandwidth Internet access services and VPN to minor business sites and even into the high street, where previously it had been dependent on DSL tails.

In sourcing engagements Ovum has worked on over the past three years, VMB has impressed with its network reach and service support for national retail and utilities companies with data network, datacenter, and contact center requirements. However, sometimes it has to sacrifice SLA performance at off-net sites in order to keep price competitiveness uniform across third-party links. Typically, this is for a small number of sites – 5% or fewer. Where these can be migrated back to its Gigabit Ethernet environment, VMB will be able to show substantial cost benefits to the enterprise buyer. It could also gain a compelling SLA position in the UK enterprise services sector.

Appendix

Author

David Molony, Principal Analyst, Enterprise

david.molony@ovum.com

Recommended Articles

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

  • Enterprise Services

    5G: Another technology in search of enterprise use cases

    By Evan Kirchheimer 26 Apr 2018

    Service provider interest in justifying 5G investment through its potential to open new revenue streams from the enterprise segment is growing ever greater.

;

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at ClientServices@ovum.com

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now