News
U.K. cableco reportedly preparing to take on TalkTalk, Plusnet with secretive ‘Project Prosecco’.
Virgin Media declined to comment on Wednesday about a report that it plans to launch a low-cost brand next year.
A report in the Telegraph over the weekend claimed the plan is being developed under the codename ‘Project Prosecco’. Sources cited in the report said Virgin Media will offer significantly slower Internet speeds to avoid cannibalising its customer base.
"There are a lot of people down in the more economic sector. But we think there is room for everyone in this market," said Virgin Media CEO Tom Mockridge, in the report.
A Virgin Media spokesman declined to comment on the report when contacted by Total Telecom. He described the Telegraph’s weekend report as "speculative."
Launching a low-cost brand would give Virgin Media a new front on which to do battle against BT, TalkTalk, and Sky.
BT has its low-cost, no-frills Plusnet brand, while Sky’s Now TV streaming service pitches its content at consumers who might balk at the price of its satellite service.
Meanwhile, TalkTalk has always tended towards targeting the more cost-conscious end of the market.
The rumours come hot on the heels of Virgin Media officially launching its new set-top-box (STB), the V6, along with a slew of new apps, plus a big-screen tablet designed for watching content.
Launching a low-cost brand would be a logical means of rounding out Virgin Media’s portfolio.
