Virgin Media 2007 Annual Report Download - page 19

Our mobile telephone services are provided over cellular networks owned by third parties. Our
main mobile network provider is T-Mobile. We also use networks owned by other partners to provide
some ancillary services. T-Mobile currently operates 2G, 2.5G and 3G networks in the U.K.
Information Technology
The operation and support of our information technology systems are performed by a mix of
outsourced and internally managed services. These systems include billing, enterprise resource planning,
business intelligence, corporate network, payroll, data center and desktop infrastructure.
The program of integrating our key information technology systems in order to improve
operational efficiency continued in 2007. A further 1.57 million customers were migrated during the
year onto our principal customer care and billing system. The billing system integration is largely
completed with the remainder of our on-net broadband customers, our off-net broadband customers
and a portion of our ntl:Telewest Business customers expected to be migrated during 2008. As a result
of this program and other IT consolidation activities we continue to reduce our dependency on high
cost external support and management services for a number of diverse software applications and
hardware platforms that have now been decommissioned.
In April 2007, we completed the consolidation of the majority of our finance, logistics, human
resources and payroll functions into a single enterprise resource planning system. Our consolidated
enterprise resource planning system has facilitated a number of process efficiencies and governance
enhancements. During 2008, we will continue to investigate further consolidation and enhancements,
and will leverage cost savings and process benefits where appropriate.
Competition
Cable Segment
Consumer
We believe that we have a competitive advantage in the U.K. residential market because we offer a
wide range of communications services, including high-speed broadband internet, fixed line and mobile
telephone and television services using our advanced network, while many of our competitors must rely
on BT’s network to provide their services. We offer most of our products on a stand alone basis or as
part of bundled packages designed to encourage customers to subscribe to multiple services. We offer
broadband internet and telephone services nationally and currently offer television services in our
service areas only. Competition in each of these services individually is significant and some of the
other service providers have substantially greater resources than us.
Key recent developments amongst our primary competitors have included:
•BT Group plc. During 2007, BT Vision, a Freeview and IP-based pay television service, was
launched nationally. BT also expanded its library of on-demand programming through a number
of agreements with content partners. In mid 2007, BT Vision Sport was launched, offering access
to Setanta Sports and near-live matches. BT Retail launched its second evolution of BT Fusion
in 2007, which offers a dual-mode mobile/WiFi handset that allows a user to make Voice over
Internet Protocol, or VoIP, based calls via WiFi in the home and using the BT Openzone
network on a handset which can also make traditional mobile calls outside the home. BT also
acquired two small internet service providers, Plusnet plc and Brightview Group Limited.
•British Sky Broadcasting Group plc. BSkyB, a long-time competitor in the pay television market,
heavily markets triple play bundles (broadband, fixed line telephone and television). BSkyB also
has a limited video on demand service branded Sky Anytime for their customers with newer
PVRs.
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