NTL buys Virgin Mobile
So NTL have finally managed to purchase Virgin Mobile. They have been after this for a while now, giving them two significant benefits. Firstly, they have an established mobile business now, making them a true quadruple player (TV, Broadband, Fixed Line Telco, Mobile), and secondly the ability to use the Virgin brand.
With NTL merging with Telewest, this second benefit is crucial. The branding issues were always going to be complex, with the larger NTL brand not being perceived anywhere near as well as the smaller Telewest brand. Also many customers in Telewest areas haven't heard of NTL (as they have never marketed there due to zero local presence) and vice versa.
Now the overall cable service can be branded Virgin, a well known, respected and established nationwide brand. This will help with the migration of the two platforms and services, as well as growing the number of customers and revenues in the future.
With the mobile services as well, NTL can now offer combined telco tariffs for customers to reduce bills, offer interactive services across three platforms (TV, Internet and Mobile) and offer significant benefits for customer upgrades, growing the number of RGU's (Revenue Generating Units) and increasing ARPU (Average Revenue Per User).
Smart moves for NTL, even if the £962.4m price tag was higher than they would have liked. They also need to pay 0.25% of revenues to Virgin for use of their brand, but for the reasons above, this is a small price to pay.
With NTL merging with Telewest, this second benefit is crucial. The branding issues were always going to be complex, with the larger NTL brand not being perceived anywhere near as well as the smaller Telewest brand. Also many customers in Telewest areas haven't heard of NTL (as they have never marketed there due to zero local presence) and vice versa.
Now the overall cable service can be branded Virgin, a well known, respected and established nationwide brand. This will help with the migration of the two platforms and services, as well as growing the number of customers and revenues in the future.
With the mobile services as well, NTL can now offer combined telco tariffs for customers to reduce bills, offer interactive services across three platforms (TV, Internet and Mobile) and offer significant benefits for customer upgrades, growing the number of RGU's (Revenue Generating Units) and increasing ARPU (Average Revenue Per User).
Smart moves for NTL, even if the £962.4m price tag was higher than they would have liked. They also need to pay 0.25% of revenues to Virgin for use of their brand, but for the reasons above, this is a small price to pay.
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