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Virgin Media UK: proceeding with caution as speed advantage comes under fire - Venture Insights

Report Overview

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Virgin Media UK: proceeding with caution as speed advantage comes under fire

PublisherEnders Analysis.
Publish Date March 20, 2019
Sector Telecom.
Company BT, Liberty Global, TalkTalk, Virgin Media.

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After strong underlying 2018 results, the more subdued outlook for 2019 is an important shift, driven by regulatory pressure on mobile, higher programming costs, one-offs and softening demand

Lightning is continuing to drive market share gains in new build areas, and should provide a 2ppt tailwind to revenue growth in 2019, but enhanced visibility on the economics of rollout suggests that its conservative approach is a wise one

In existing build areas, Virgin Media is facing-off pricing pressure from TalkTalk on high speed, and potentially from BT on even higher ultrafast speeds, with it moderating pricing and launching a market-beating 500Mbps product in Spring 2019 in response