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Virgin Media to splurge BEELLIONS on UK network infrastructure expansion
Promises faster broadband speeds for millions of premises
Virgin Media temporarily pushed BT's shares down more than 2 per cent on Friday, after it announced a juicy £3bn cash injection into Britain's internet infrastructure.
The cable company, which was bought by John Malone's Liberty Global roughly 18 months ago, promised to bring broadband speeds of 152 Mbps to four million more homes and businesses in Blighty.
It also claimed that its private network investment would create 6,000 jobs over the next five years and boost the UK's economy by £8bn.
By 2020, Virgin Media plans to have reached 17 million premises across the country.
The company said it would raise most of the money through "incremental borrowings" for the expansion work, dubbed Project Lightning – a name that could come back to haunt VM if its five-year plan overruns.
UK Prime Minister David Cameron was able to shoehorn his favourite pre-election phrase – "long-term economic plan" – into the cable firm's announcement.
Virgin Media boss Tom Mockridge crowed:
“In virtually all of the areas we have identified for expansion, BT is the only option available right now. Its ageing copper telephony wires are not capable of the ultrafast connectivity that Virgin Media delivers." ®
Biting the hand that feeds IT
