Virgin Media 2006 Annual Report Download - page 39

Unauthorized access to our networks could result in a loss of revenue.
We rely on the integrity of our networks to ensure that our services are provided only to identifiable paying customers. The
development of new technology facilitating unauthorized access to our network could result in a loss of revenue, and any failure to
respond to security breaches could raise concerns under our agreements with content providers. We continue to work on minimizing
unauthorized access to our networks.
We do not insure the underground portion of our cable network and various pavement−based electronics associated with our cable
network.
We obtain insurance of the type and in the amounts that we believe are customary for similar companies. Consistent with this
practice, we do not insure the underground portion of our cable network or various pavement−based electronics associated with our
cable network. Almost all our cable network is constructed underground. As a result, any catastrophe that affects our underground
cable network or our pavement−based electronics could prevent us from providing services to our customers and result in substantial
uninsured losses.
Risks Relating to Our Recent Acquisitions
We may be unable to successfully integrate operations and realize the full anticipated synergies of our recent acquisitions, which
may harm the value of our securities.
Our merger with Telewest and acquisition of Virgin Mobile involve the integration of companies that have previously operated
independently. The difficulties of combining operations include:
• the necessity of coordinating geographically separated organizations and facilities, including call centers;
• combining product offerings and coordinating the branding and pricing of these offerings;
• rationalizing each company’s internal systems and processes, including billing systems, which are different from each other;
and
• integrating personnel from different company cultures.
The process of integrating operations could cause an interruption of, or loss of, momentum in the activities of one or more of our
businesses and the loss of key personnel. The diversion of management’s attention and any delays or difficulties encountered in
connection with the merger and acquisition and the integration of the companies’ operations could result in the disruption of our
ongoing businesses or inconsistencies in the standards, controls, product offerings, level of customer service, procedures and policies
of the companies that could negatively affect our ability to maintain relationships with customers, suppliers, employees and others
with whom we have business dealings.
While we have already achieved many synergies from our recent acquisitions, we expect to continue to realize synergies by
creating efficiencies in operations, capital expenditures and other areas. If we are not able to successfully sustain these savings, the
anticipated benefits of the merger and acquisition may not be realized fully, or may take longer to realize than expected. Although we
have quantified an amount of synergies that we expect to realize, this amount is an estimate and has not been prepared in accordance
with GAAP. This estimate is a forward−looking statement and is based on assumptions that may not ultimately prove to be accurate.
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007