Virgin Media 2006 Annual Report Download - page 51

Mobile
• mobile services—monthly fees and usage charges for airtime, data, roaming and long−distance calls; and
• mobile handset and other equipment—charges for the supply of equipment.
Content
• advertising—on television airing of advertising from advertisers or advertising agencies;
• programming services—on transmission of television programs based on the numbers of customers subscribing to
programming packages; and
• transactional and interactive—on delivery of services.
Expenses
The principal components of our operating costs and selling, general and administrative expenses within each segment include:
Cable
• interconnection costs paid to carriers related to telephone services;
• television programming costs;
• costs of maintaining our cable network infrastructure;
• payroll and other employee−related costs;
• marketing and selling costs;
• facility related costs, such as rent, utilities and rates; and
• allowances for doubtful accounts.
Mobile
• interconnection costs paid to other carriers related to mobile telephony services;
• purchase costs of mobile handsets and other equipment;
• subscriber acquisition costs;
• marketing and selling costs;
• payroll and other employee−related cost;
• repairs and maintenance costs;
• facility related costs, such as rent, utilities and rates; and
• allowances for doubtful accounts.
Content
• television production programming costs;
• amortization of television and movie program costs;
• costs of purchasing consumer goods for re−sale;
• leased satellite transponder costs;
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007