Virgin Media 2008 Annual Report Download - page 9

PART I
ITEM 1. BUSINESS
Overview
We are a leading U.K. entertainment and communications business providing a ‘‘quad-play’’
offering of broadband, television, mobile telephone and fixed line telephone services. As of
December 31, 2008, we were the U.K.’s largest residential broadband provider and mobile virtual
network operator, and the second largest provider of pay television and fixed line telephone services by
number of customers. We owned and operated cable networks that passed approximately 12.6 million
homes in the U.K. and provided service to approximately 4.8 million cable customers on our network.
Approximately 56% of our customers on our network were ‘‘triple-play’’ customers, receiving
broadband internet, television and fixed line telephone services from us. In addition, we provided
mobile telephone service to 3.5 million pre-pay mobile customers and 0.6 million contract mobile
customers over third party networks.
We believe our advanced, deep fiber access network enables us to offer faster and higher quality
broadband services than our digital subscriber line, or DSL, competitors. As a result, we provide our
customers with a leading next generation broadband service and one of the most advanced TV
on-demand services available in the U.K. market. Through ntl:Telewest Business, which also operates
under the Virgin Media group, we provide a complete portfolio of voice, data and internet solutions to
leading businesses, public sector organizations and service providers in the U.K. Through Virgin Media
Television, or Virgin Media TV, we also provide a broad range of programming through our wholly-
owned channels, such as Virgin1, Living and Bravo; through UKTV, our joint ventures with BBC
Worldwide; and through the portfolio of retail television channels operated by sit-up tv.
We presently manage our business through three reportable segments:
•Cable (76.8% of our 2008 revenue): our Cable segment includes the distribution of television
programming over our cable network and the provision of broadband and fixed line telephone
services to consumers, businesses and public sector organizations, both on our cable network
and, to a lesser extent, off our network;
•Mobile (14.2% of our 2008 revenue): our Mobile segment includes the provision of mobile
telephone and data services under the name Virgin Mobile to consumers over cellular networks
owned by third parties; and
•Content (9.0% of our 2008 revenue): our Content segment includes the operations of our U.K.
television channels, such as Virgin1, Living, Bravo, and sit-up’s portfolio of retail television
channels. Although not included in our Content segment revenue, our Content segment
management team also oversees our interest in the UKTV television channels through our joint
ventures with BBC Worldwide.
For financial and other information on our segments, refer to note 18 to the consolidated financial
statements of Virgin Media Inc. included elsewhere in this annual report.
In November 2008, we announced a restructuring plan aimed at creating a fully-integrated,
customer-focused organization. Pursuant to our restructuring plan, we are implementing a new
operating model for our organization, aimed at delivering significant improvements in customer focus,
product delivery and management, and providing clearly defined divisions to streamline our decision-
making processes. Our strategic objectives for 2009 include continuing to exploit the capabilities of our
cable network to lead in next generation broadband and on-demand television, and to expand our
contract mobile customer base through cross-selling to our cable customers.
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