Virgin Media 2006 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2006 Virgin Media annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 276

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276

account and service managers. Our proximity to businesses is a key differentiator in the U.K. market and the benefits of this
strategy are reflected in the long−term relationships held with many of our customers.
Public Sector: This sales channel is divided into vertical segments, including local and central government, education, health
and emergency services. This meets the requirement for sector−specific expertise where an understanding of the drivers and
procurement processes of publicly funded organizations is needed to enable the efficient deployment of communications
solutions. Our deep network coverage benefits regionally−oriented public sector organizations, such as health authorities, who
require the deployment of managed voice and data solutions within a local or metropolitan area.
Service Provider: This sales channel is also divided into vertical segments, including fixed and mobile network operators and
ISPs, to reflect the different network requirements of service providers. This channel provides predominantly data connectivity
to other network operators. Strong market demand by local loop unbundlers and the deployment of 3G mobile networks has
enabled the service provider sales channel to leverage our extensive network asset to deliver strong underlying growth. In
addition to these network services, a small number of significant contracts drive financial performance, with revenue peaks
occurring during construction phases and lower ongoing rentals, reflecting the maintenance of this infrastructure.
Products and Services
ntl:Telewest Business offers a wide portfolio of voice and data services, from analog telephony to managed data networks and
applications. Our product strategy is focused on delivering managed solutions, such as inbound call management and internet protocol
virtual private networks, or IP VPN, which experienced strong growth in 2006.
Outbound and Inbound Voice: We offer a complete suite of voice products ranging from analog and digital services to
converged IP telephony solutions. Strong regional presence and expertise has driven market share in products such as Centrex,
where local government and private sector organizations benefit from a managed platform that delivers a uniform suite of
features across multiple sites. Developments like IP Multimedia, which offers functionality such as desktop−to−desktop video
conferencing, represent the next generation of voice services in a converging IP world.
Converged Solutions: By using a single network to transport voice, data and video, organizations can benefit from cost
synergies, flexibility and control. Our converged solutions portfolio enables this with products such as IP VPN. Our network
ownership allows the integration of various access technologies, including DSL, synchronous digital hierarchy, or SDH, and
Ethernet, while multi protocol label switching, or MPLS, ensures the priority of services during transmission.
Ethernet: We are recognized as a U.K. market leader in Ethernet solutions and were the first European service provider to be
accredited by the Metro Ethernet Forum (MEF), for ‘carrier’ service standards. This required the demonstration of rapid
service creation, scalability and, based on inherent resilience in the platform, robust service level agreements. A range of
products from local area network extensions to managed wide area Ethernet networks are available, providing high−bandwidth
and flexible solutions.
Applications and Services: As an overlay to network products, we also offer applications and services, which drive additional
value from customer’s communications infrastructure. Examples such as IP CCTV roll−out in the public sector also deliver
socioeconomic benefits within communities.
13
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007