On Tuesday, he told a Broadcasting Press Guild lunch that Virgin Media would continue to offer a service to existing customers who moved out of its coverage area. But he added: “Our strategy, offnet, is actually not that important.”
The board of Virgin Media had agreed the investment needed to begin raising broadband speeds on its network from a maximum of about 20 megabits a second now to 50mbps by the fourth quarter of this year, he said, with the roll-out to be completed early next year.
The group believed that “hundreds of thousands” of customers would sign up for the faster speed within the next few years, he said, without setting a clear timetable or disclosing the likely pricing of the 50mbps product.
Mr Berkett also made clear that Virgin Media no longer aspired to compete with BSkyB for premium content such as films and sports rights. “In premium TV we do not have a competitive advantage and the profit growth is stagnant,” he said.
Virgin Media would not spend its capital on premium TV unless a change in the regulatory landscape made it more financially attractive, he added, in a sharp diversion from his predecessor’s ambitions to take on BSkyB.