Virgin Media considers giving competitors access to cable network
The firm's plans to rent out part of its fibre-optic infrastructure could both appease the regulator and increase revenues
Virgin Media has drawn up secret plans to open its cable network to rival telephone and broadband companies as part of an audacious bid to boost revenue and head off possible regulatory intervention.
The move could also lower prices for consumers by providing more choice for companies that currently provide services over the BT network.
By charging rivals such as O2, Sky, Cable & Wireless and Tiscali to use its infrastructure, Virgin Media hopes to improve its financial performance and pre-empt regulatory pressure to allow competitors to use Virgin Media's fibre-optic network.
A US investment bank analyst said: "Letting rivals use its wires for a fee makes commercial sense. And it could also keep the regulator off the company's back."
Later in The Register:
Virgin Media has denied a report it has secret plans to wholesale access to its cable network to broadband and phone competitors next year.
...
"The report in this morning's edition of the Guardian does not reflect Virgin Media's position and we have no plans to develop a wholesale proposition," the spokesman said.
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