Virgin Media shows off its new bundle of joy

UK multiplay operator Virgin Media has attempted to raise the stakes in the consumer and SME markets with some new products.

Scott Bicheno

April 29, 2019

3 Min Read
Virgin Media shows off its new bundle of joy

UK multiplay operator Virgin Media has attempted to raise the stakes in the consumer and SME markets with some new products.

The consumer initiative involves bundling together everything Virgin Media offers and charging one price for it all. Not especially innovative in itself, but it seems to be the size of the bundle that Virgin thinks will be a differentiator. The ultimate manifestation of this latest effort is the VVIP bundle, that offers the fastest broadband Virgin does as well as an unlimited data mobile tariff.

“We’re combining the UK’s fastest widely available broadband speeds with a superfast 4G mobile network that’s faster on average than Vodafone, 02, Three and Sky, and a  top-notch TV line-up to give Virgin Media customers greater choice, flexibility and an unrivalled connected entertainment experience,” said Virgin Media’s Chief Operating Officer, Lutz Schüler.

VVIP comes in at £99 per month, but that’s only for the first year, after which it goes up to £139 per month. That deal is only available to new customers, which feels like an own-goal. It’s understood that customer acquisition is a priority but why not extend the same deal to your existing ones too? They probably could get it if they threatened to leave, but that’s a hassle and makes them feel exploited. This ‘new customer only’ tactic seems self-defeating and petty.

“A major overhaul in its bundles represent a renewed drive to kick-start the UK multiplay market,” said Telecoms and Media Analyst Paolo Pescatore. “This feels like multiplay v2.0 as most offers still rely on cross-selling additional services. The premium all singing and dancing bundle is very punchy compared to rivals in terms of value. This will put pressure on BT and Sky to integrate more services into a convergent bundle. More so given the huge focus on retention and reducing churn.”

On top of that Virgin has created a feature called ‘boost your bundle’, which seems similar in concept to super-sizing a fast food order except in this case you get things like mobile SIMs and increased broadband speeds instead of more chips and Coke. “With our boosted bundles, we’re offering the best of all worlds: a superfast 4G mobile network; even bigger broadband with ultrafast speeds – quicker than those included in our standard packages – and the option to spread the cost of the latest and greatest mobile handsets,” said Schüler.

Virgin-Medias-new-bundles.jpg

Lastly Virgin is also trying to disrupt the SME broadband market with the launch of Voom 500, which claims to be the UK’s fastest of its kind with speeds of ‘up to’ (hasn’t that been banned?) 500 Mbps. “With a free upgrade to Voom 500 on offer for existing Voom customers when they take selected mobile or Cloud Voice services, our customers can stop worrying about their broadband and focus on using it,” said Rob Orr, Executive Director of Commercial Marketing at Virgin Media Business. Otherwise it will set you back £62 per month.

About the Author

Scott Bicheno

As the Editorial Director of Telecoms.com, Scott oversees all editorial activity on the site and also manages the Telecoms.com Intelligence arm, which focuses on analysis and bespoke content.
Scott has been covering the mobile phone and broader technology industries for over ten years. Prior to Telecoms.com Scott was the primary smartphone specialist at industry analyst Strategy Analytics’. Before that Scott was a technology journalist, covering the PC and telecoms sectors from a business perspective.
Follow him @scottbicheno

Subscribe and receive the latest news from the industry.
Join 56,000+ members. Yes it's completely free.

You May Also Like