Virgin Media to invest £3billion in broadband
Virgin Media has announced it is to invest £3billion in improving its fibre optic broadband network, which will create 6,000 new jobs of which 1,000 would be apprenticeships.
It says it is the biggest investment in broadband infrastructure in the UK for more than 10 years and will be increasing the network’s reach from 13 million to 17 million homes.
Virgin Media currently has five million customers and the company is already in the process of expanding its network to over 110,000 homes across east London, Glasgow, Sunderland and Teesside.
Virgin Media said the additional £3billion in broadband investment would be worth £8billion in terms of stimulating UK economic activity.
However, the money will be spent on filling in gaps in its existing network rather than widening the network to rural areas, which many critics say has long been neglected by communications companies such as Virgin and BT.
The investment comes at Virgin Media announced a 2.3% increase in total revenues to £4.214bn for the year to the end of December, compared with a year earlier.
Virgin said the increase in revenue was largely the result of increased cable subscription revenue, which grew 3% last year.