Virgin Media 2006 Annual Report Download - page 19

Virgin Media TV has eleven genre−based entertainment channels, including LivingTV, LivingTV2, Bravo, Ftn, Trouble and
Challenge TV, and including four “multiplexed” channels which have identical content of another channel but broadcast one hour
later. Virgin Media TV also owns a 50% interest in the companies that comprise the UKTV Group, a series of joint ventures with
BBC Worldwide. Together, Virgin Media TV and the UKTV Group are the largest supplier of basic channels to the U.K. pay
television market. UKTV currently has ten pay channels, including UKTV Gold and UKTV History, and five associated multiplexed
channels.
Depending upon the distribution agreement with the platform operator and the package chosen by the customer, our
wholly−owned and UKTV channels are available on our own analog and digital platforms and BSkyB’s digital platform. These
channels generate revenue by the sale of airtime and sponsorship to advertisers and advertising agencies by Virgin Media TV’s
advertising sales department, IDS (Interactive Digital Sales Limited). Some channels also generate distribution revenue based on
either the number of customers subscribing to programming packages carried by the relevant platform operators or a fixed monthly
fee. Virgin Media TV and UKTV are also represented on Freeview, a U.K. free−to−air digital television service, with UKTV History,
UKTV Bright Ideas and Ftn available to Freeview viewers as well as subscribers to all multi−channel platforms, UKTV History,
UKTV Bright Ideas and Ftn are separate channels with distinct offerings that operate within one of the twenty−four hour general
entertainment slots available on Freeview.
sit−up provides a wide variety of consumer products through three interactive auction−based television channels: price−drop tv,
bid tv and speed auction tv. These channels are available on our own digital platforms, BSkyB’s digital platform and Freeview, as well
as on the internet.
Our Network
Our business is underpinned by significant investment in our cable network infrastructure. This consists of a national core
backbone network and a high capacity two−way local broadband network in the U.K. The entire cable network was designed for large
scale, high−speed telecommunications traffic from its inception. Our core network infrastructure transports our voice, internet, data
and digital television platforms, whilst our access networks deliver these services directly to our customers.
Our broadband communications network in the U.K. currently passes approximately 12.5 million homes in our regional franchise
areas. Our cables also pass a significant number of businesses in these areas. Our service areas include parts of many of the major
metropolitan areas in the U.K., including Belfast, Birmingham, Bradford, Brighton, Bristol, Cambridge, Cardiff, Coventry, Derby,
Dundee, Edinburgh, Exeter, Glasgow, Leeds, Leicester, Liverpool, London, Manchester, Newcastle, Nottingham, Oxford, Perth,
Plymouth, Portsmouth, Reading, Sheffield, Southampton, Swansea and Teesside.
The core network has a fiber backbone that is approximately 23,000 kilometers long. This includes over 15,500 kilometers which
are owned and operated by us and approximately 7,500 kilometers which are leased fiber from other network owners. Over 157
switches direct telephone traffic around the core and local networks. In addition, we have more than 600 hub sites, points of presence,
repeater nodes or other types of network sites, and facilities at over 150 radio sites.
Our local access networks deliver internet, fixed line telephone and digital and analog television services to our customers’
homes and businesses. Our access network is comprised of two networks together. First, to provide television services and high−speed
broadband internet access, our local fiber network is connected to a customer’s premises via high capacity, two−way, coaxial cables.
We are currently conducting a residential trial of a 50Mb broadband service on this network. Second, we use Time Division Multiplex
(TDM) technology over the fiber network to provide fixed line telephone services. This is then connected to a customer’s premises via
a relatively short length twisted copper−pair. Additionally, the copper−pair cables are capable of hosting DSL services. Shorter
lengths of copper (usually less than 500
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007