Liberty Global, the parent company of Virgin Media, reports that its investments in UK broadband produced a total social benefit exceeding £1 billion.
This figure reflects the company’s spending on faster broadband speeds, competitive pricing, and the productivity gains these improvements enabled between 2013 and 2017. The estimate is based on analysis by Oxera Consulting rather than company conjecture.
“Liberty Global’s substantial investment in expanding and upgrading its broadband cable network is delivering meaningful benefits for both businesses and households across Europe. With the digital economy growing much faster than the rest of the economy, high-quality broadband networks are essential,” says Enno Eilts, Partner at Oxera. “Beyond delivering communication and entertainment services, fast and reliable broadband boosts business productivity and gives individuals access to extensive information and learning resources.”
Across Europe, Liberty Global invested £11.6 billion in capital expenditure (adjusted for inflation) in new and existing infrastructure, customer premises equipment, business support, and related services.
The report follows the November 2016 announcement of Liberty Global’s GIGAWorld initiative, which sets out the company’s plan to bring gigabit-capable internet to the countries where it operates. Around 50 million European homes can already access Liberty Global’s fibre-based “GIGAReady” networks, and the company expects to connect many more homes through planned network expansion programs.
“GIGAWorld is our mission to build robust, reliable, superfast networks that not only satisfy today’s consumer needs but also support next-generation devices and applications that will drive future demand,” said CEO Mike Fries. “Our investments produce clear benefits for consumers and businesses across Europe, generate significant economic value, and create social gains through improved speeds, productivity, and competition.”
In the UK, one of Virgin Media’s largest ongoing projects is the £3 billion Project Lightning network expansion, which targets 17 million premises by 2019. When finished, this should increase the company’s national coverage to roughly 60–65 percent.
A key question remains when Liberty Global will begin rolling out DOCSIS 3.1 technology to enable widespread gigabit-capable speeds.
Do you think Liberty Global’s broadband investment has had a positive effect on the UK? Share your views in the comments.