Will Virgin threesome satisfy customers?

Chris Frost, Communications Expert at independent price comparison and switching service uSwitch.com, comments on today’s launch of Virgin Media: “Sky has been the undisputed leader in the digital television market since 1998. Today’s high profile launch heralds a new era in customer choice and value.

“Virgin Media’s 3 for £30 deal is £7 cheaper than the ‘equivalent’ Sky triple play package, although Sky offers speeds of up to 8Mb compared to Virgin’s 2Mb, a wireless router and free national calls not only at weekends but in the evenings. However, the new VIP package is £10.50 a month more expensive than the Sky equivalent. For people who currently subscribe to neither service, Sky offers savings of £52 over first year, taking set up costs into account.

“It is our hope that the rebrand is a service promise to the long suffering cable customers who have experienced years of sub-standard customer service. NTL came bottom of our home telephone customer satisfaction survey three times running, and in our most recent poll, 30% of customers were not satisfied with the overall service they received. Conversely, Virgin.net topped the broadband satisfaction stakes with 85% of its customers satisfied with their service.

“While it is encouraging to see £10 million invested in customer service last year, there are 10 million customers in the Virgin Media Group so put into context, this gesture only works out to £1 per customer. However, Virgin joins broadband competitors such as TalkTalk in pledging to become number 1 in customer service which will only serve as good news to the UK’s 13 million broadband customers.

“Virgin’s plans to take its media offering into non-cabled areas are ambitious but remain ambiguous. 97% availability by the end of 2007 is effectively doubling the current cable reach, and there remains a question mark about how this will be achieved. However, if it is, it will bring new competition to non-cable areas that for the first time will be presented with a choice of providers for premium movies and sports.

“Virgin Central is the first channel of its kind to offer compelling current content that is viewable on demand. This innovative approach is a clear signal that Virgin Media is gearing up to take on its main media rival, potentially negating the need for customers to tune in to Sky 1. Customers can look forward to a bidding war for both football and films and we are sure that the Premiership will also be rubbing its hands with glee at this thought!”

Frost concludes: “This is a battle for consumers to sit back and enjoy. For the first time ever, there is now credible competition to Sky and we wait with baited breath for Sky’s next strike.”