Virgin Media 2011 Annual Report Download - page 13

We offer a broad range of mobile communications products and services, including mobile voice services
and data services, such as SMS, picture messaging, games, news and music services. We also offer a broad range
of handsets, including Blackberry and Android based smartphones, and mobile broadband services which
complement our fixed broadband offering. Our services are delivered over 2G, 2.5G, 3G and 3.5G platforms
provided by our network partner, Everything Everywhere.
In 2011, we continued to focus on increasing our proportion of higher value contract customers, improving
access to content via this mobile platform, expanding our range of higher value mobile handsets and cross-selling
into homes already connected to our cable network. We continued to promote the use of our mobile platform to
view internet and television content by introducing features such as easier access to social networking
applications via the mobile handset.
Non-cable Products and Services
We also provide broadband and telephony services to residential customers outside of our cable network, or
non-cable customers, over third-party telecommunications networks. Our non-cable broadband internet services
are provided via BT’s local access network and unbundled BT exchanges from Cable & Wireless plc, or C&W.
We offer various price and feature packages, including broadband service provided over asymmetric digital
subscriber line, or ADSL, technology. As of December 31, 2011, we had 248,200 non-cable broadband
subscribers. We also provide fixed line telephony service to non-cable customers via BT’s local access network.
As of December 31, 2011, we provided non-cable fixed line telephone service to 163,300 subscribers.
Marketing and Sales
Our consumer strategy focuses primarily on marketing bundled offerings of products and services across our
“quad-play” portfolio to existing and potential customers. We are focusing on our cable customers, most of
whom are not yet mobile telephone customers. Our bundling strategy provides our customers with discounts and
additional value added services when they buy our services. We also provide the convenience of a single bill for
“triple-play” (TV, broadband and fixed line telephony phone) packages. We believe that customers who
subscribe to multiple services from us are less likely to churn. We also actively pursue opportunities to cross-sell
complementary services across our product range and up-sell higher value services to our existing customers.
We offer our consumer products and services through a broad range of retail channels, including via
telesales, customer care centers and online. We also engage in direct face-to-face marketing initiatives through a
dedicated national sales force of approximately 300 representatives, as well as comprehensive national and
regional mass media advertising initiatives. We now have a significant retail store base with approximately 78
retail stores and over 50 kiosk type retail outlets. Our own brand stores and kiosks offer a complete range of our
consumer products and services. Our Virgin Media branded stores not only provide sales services but also
showcase our products, allowing demonstrations and customer interaction, and help resolve customer queries.
We offer our mobile telephony products through over 4,000 third party sales outlets in the U.K., including
over 1,000 specialist outlets of our distribution partners, such as Carphone Warehouse and Phones 4U. In
addition, we offer SIM-only products and mobile airtime vouchers through independent retailers across the U.K.
Customer Service
We believe that effective customer service contributes to customer satisfaction, which then results in
reduced churn and acquisition of new customers. As of December 31, 2011, we employed approximately 1,600
staff for our cable and non-cable call centers, and approximately 500 staff for our mobile telephony call centers,
in the U.K. We also use outsourced customer call centers in the U.K., Philippines, India and South Africa.
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