Virgin Media 2006 Annual Report Download - page 18

Customer Service
The goal of ntl:Telewest Business is to become the natural choice provider within our core markets by delivering the best
customer experience. This is reflected in the organizational structure, where 75% of employees are dedicated to the provision of
in−life support of customers and their communications services. In 2006, the Communications Managers Association (CMA),
recognized ntl:Telewest Business in this area, reporting that, amongst its members, the division led the market in providing a
high−quality customer experience.
Mobile Segment
On July 4, 2006, we acquired Virgin Mobile Holdings (UK) plc, or Virgin Mobile, the U.K.’s leading mobile virtual network
operator with approximately 4.5 million customers as of December 31, 2006. As a mobile virtual network operator, Virgin Mobile
provides mobile telephone services to its customers over cellular networks owned by third parties. Currently, Virgin Mobile’s main
network partner is T−Mobile, and Virgin Mobile has entered into a minimum 10 year, non−exclusive network supply agreement with
T−Mobile that was signed in January 2004. Virgin Mobile also uses networks owned by other partners to provide other services. The
majority of Virgin Mobile’s customers are prepay customers, who top up their accounts prior to using the services and are not
contracted to remain with Virgin Mobile for any period of time. Contract customers represent the fastest growing customer segment
and enter into contracts with Virgin Mobile ranging from 12 to 18 months in duration. Virgin Mobile’s customer base reflects a broad
age demographic.
Virgin Mobile’s successful business philosophy is centered around five key strengths: a strong brand; a capital−light business
model; a differentiated approach to the market; award−winning customer service; and a strong management team.
Virgin Mobile offers a broad range of mobile communications products and services, such as mobile voice and non−voice
services (including SMS, picture messaging and entertainment services, such as games, news and music services) delivered over 2G,
2.5G and 3G platforms. In addition, Virgin Mobile has recently launched a mobile TV service, which allows its customers to watch
broadcast TV as it happens (including BBC1, ITV1 and Channel 4) on its proprietary TV handsets. This service utilizes the U.K.’s
Digital One DAB broadcast network through an agreement with BT Movio, a division of BT. Virgin Mobile offers handsets and/or
SIM cards through approximately 5,000 sales outlets in the U.K., including approximately 1,100 specialist shops, concessions located
in Virgin Megastores and Virgin Mobile stores, as well as through a wide range of general retailers, its website and its customer care
centers. We plan to expand the distribution network by opening further retail stores over the next few years. The concessions and retail
outlets act as both a sales and service channel and provide Virgin Mobile with direct access to its customers. Prepaid airtime is sold in
all of these channels in addition to others.
Virgin Mobile aims to provide superior customer service, and has won the Best Customer Service Award from Mobile Choice
magazine for the past six years running, as well as many other industry customer service awards. Virgin Mobile’s three existing
customer call centers are located in Trowbridge and Middlesbrough in England, and in Johannesburg, South Africa. Customers can
contact the call centers 24 hours per day, 7 days per week. A fourth center, in Glasgow, Scotland, was launched on a trial basis in
January 2007.
Content Segment
Through our wholly−owned subsidiaries, Virgin Media Television Limited, or Virgin Media TV, and sit−up Limited, or sit−up,
we provide basic (i.e., non−premium) television channels and related services to the U.K. multi−channel broadcasting market
(including to our Cable segment) and a wide variety of consumer products by means of sit−up’s auction−based shopping channels.
14
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007