The relationship between BT and Virgin has long been acrimonious, and now it’s set to hit a new low. Hostilities have once again been raised by the introduction of Virgin’s own business broadband service, which is set to go head-to-head against BT’s own similar service.
The new service from Virgin is called Virgin Media Business, and constitutes a re-branding of the previous name, ntl:Telewest Business. It will be targeted specifically at SMEs (small to medium enterprises), and Virgin is hoping that it will be able to steal a large chunk of the market from under BT’s nose.
Hostilities have hardly ceased in recent months between the two companies. BT last month vowed to undercut Virgin with its new super-fast broadband service, and Virgin replied in kind by highlighting the deficiencies in BT’s service in comparison to its own.
Virgin is intent on making its mark on the broadband market, and has seen the SME market as a tempting opportunity to expand. The chief operating officer, Andrew Barron, said that they were trying to offer “a clear alternative to BT”.
Virgin currently has about 60,000 SME clients. Barron highlighted the fact that after 18 months working in the business broadband division they had “improved it dramatically” and that they can now use the fibre network to “differentiate” Virgin from the other providers.
Some insiders have claimed that this move is going to be a tricky one for Virgin to pull off because the recession has had such a negative effect on SMEs. But Virgin has claimed that the demand is there, so it remains to be seen just how successful this new venture will be.
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