CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Virgin Media to expand broadband service

Article By: ,  Financial Analyst
February 13, 2015 11:26 AM

Broadband is set to be the focus of Virgin Media's latest investment programme.

The company announced that it is planning to spend a huge £3 billion on improving its fibre optic broadband network, expanding the service to reach 17 million homes. As part of the expansion, Virgin will be creating 6,000 new jobs, 1,000 of which be apprenticeships in what it describes as the largest investment in broadband infrastructure in the UK for over a decade.

Virgin believes that the investment will provide £8 billion of value to the country's economy and its consumers. With the support of its parent company Liberty Global, Virgin wants to add around four million properties to its network over the next five years. It will mean expanding its service by almost a third.

The move has been backed by prime minister David Cameron who described Virgin's plans as a "vote of confidence in our [the government's] long-term economic plan to support business and create jobs". The prime minister added that it complements the government's goal of rolling out superfast broadband across the UK.

Tom Mockridge, Virgin Media chief executive officer, said: “Millions of homes and businesses will soon be able to benefit for the first time from broadband speeds at least twice as fast as those available from the other major providers."

Strong competition on TV

Virgin was among a number of opposing voices against the Premier League's auction of its TV rights. The deal, valued at over £5 billion, was a new record to screen top flight football. It saw broadcasters Sky and BT pay £4.1 billion and £960 million respectively.

Mr Mockridge described the auction process as giving the Premier League as a licence to "print money" and was concerned that the increase in money would ultimately "hurt fans". Virgin had previously complained to Ofcom about the lack of competition when it comes to bidding for Premier League football broadcasting rights.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024