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Virgin Media mulls public Wi-Fi network investment

by Sarah Griffiths on 24 November 2010, 16:31

Tags: Virgin (NASDAQ:VMED)

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Wicked Wi-Fi

Virgin Media has confirmed it is in the ‘early stages' of mulling over whether it will offer thousands of Wi-Fi hotspots across the country in a bid to ease mobile capacity problems.

The company said it is ‘actively exploring' the investment opportunity in a move that could boost its mobile network and also act as a channel through which it could offer its video on demand service as more people hanker after TV and video on their smartphones.

A Virgin media spokesperson told HEXUS: "It's early stages but we are actively exploring opportunities around Wi-Fi and speaking to a number of organisations, including local authorities, about this with a view to see how we can provide great outdoor connectivity."

Virgin Media warned networks are close to capacity dealing with data, web surfing and consumers' constant desire to access feeds from social networks, let alone an increasing number of people streaming video on their smartphones.

The spokesperson hinted that Virgin is considering a Wi-Fi network in a bid to offer its video products on peoples' mobiles, rather than steal customers from the likes of BT, which the company is in well publicised competition within the broadband arena.

According to The Daily Telegraph, Virgin's theoretical network could copy a model by the US' Cablevision which extended Wi-Fi hotspots across New York, partnering with Time Warner to fund the $300m project aiming to ease congestion of 3G mobile internet access.

Kevin Baughan, Virgin's director of advanced technology told the newspaper: "We have been inspired by what Cablevision has been able to do in New York and are actively exploring the possibility of creating a similar network here. It takes the sheer power of the cable broadband network and puts it where people need it."

Baughan reportedly said Virgin could install broadband routers in secure public places where there is demand, connected to Virgin's curbside network boxes which should provide 5mbps.

He reportedly said: "Previous attempts were to fulfil a social objective. This is to solve a real problem. Steve Jobs [chief executive of Apple] has created phenomenal demand, and we've got the best fibre [optic] network in the country that could help meet it. This isn't about building broad coverage, it's about giving you fast, predictable, access where you need it."

Virgin Media is said to be considering making the possible service free to its mobile and home broadband customers but any member of the public could either pay a subscription or PAYG fee or the service could even be subsidised by a local council.



HEXUS Forums :: 1 Comment

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Virgin Media is said to be considering making the possible service free to its mobile and home broadband customers but any member of the public could either pay a subscription or PAYG fee or the service could even be subsidised by a local council.
Hmm, or a cynical person could suggest that this announcement coincides nicely with the current BT advert campaign - you know, the one with the Apple users hallucinating… ;) So maybe this is nothing more than a bit of “me too” by VM?

Now, whilst it doesn't effect me, (my VM service is quite good - no complaints), may I tentatively suggest that if VM have some spare money that they want to invest in their network, that they look at putting it to beefing up their current environment? From comments made here it would definitely appear that widening the backbone, especially in the cities, would attract more approval from the current VM customers.

Oh, and personally, I can't see any council being willing to waste precious pennies on WiFi folderol, especially at this time when they're talking about having to close libraries, fire dustmen and teachers, turn off street lights, etc …