Virgin Media Contemplating on Opening Fibre Access to Rival ISPs

Reports say that Virgin Media is working on plans of opening its fibre-optic cable network to rival broadband and telephone companies, as part of a dauntless bid to enhance revenue as well as avert any possible regulatory intervention. The move, if realised would come as a shock treatment to BT, as it would offer the companies that at present bank on the BT network, more choice.

The move of Virgin Media to open up its cable network is also expected to lower the charges for customers. Moreover, by opening up its infrastructure to competitors such as Sky, Tiscali, O2, and Cable and Wireless at a price, Virgin Media anticipates an enhancement in its financial performance, apart from preempting regulatory pressures.

According to the reports, Virgin Media headed by Neil Berkett holds 24 percent of Britain's broadband market currently, which could be subject to a further considerable rise if the company can extend its infrastructure to more households through its rival ISPs. It is believed that BT would be using the Openreach subsidiary of BT as a template.

BT is also reportedly in the good books of the regualtor, Ofcom since it had not any history of its engaging in anti-competitive behaviour. The chief broadband analyst of Broadband Suppliers, Chuck Doherty while lauding Virgin Media for its audacious plans, said that the move should be encouraged, simply for the reason that BT, had to be forced by the authorities, five years back into local loop unbundling.