Virgin Media wants more SME clients

Hostilities between Virgin Media and BT are poised to continue to grow this year after Virgin Media announced yesterday that they will start to target SMEs that are BT’s customers.  If the move succeeds, Virgin Media could boost their overall revenues by 66% over the coming five years.

The announcement marks the growing competition between the two mobile and broadband providers after just last month BT guaranteed consumers that it would undercut Virgin’s pricing on next generation broadband.

Virgin Media responded with its chief operating officer Andrew Barron promising SMEs that they would offer a ‘clear alternative to BT.’  There is a great amount of profit to be made as SMEs typically spend around £18m every year on their telecoms and IT.

Currently, Virgin Media has around 60,000 public sector and SME clients that produce around £600m of revenues for the company.  Over the next five years industry analysts expect their revenues could increase up to £1bn.  Among the key contracts that Virgin holds is with the Hampshire County Council, Terminal 5, and Arqiva the broadcasting infrastructure group.

Among the many attractions that Virgin has posted to attract consumers is a 50Mbps fibre broadband network.

Barron also said that the new Virgin Media announcement is a step forward for the broadband provider since they have been working the last 18 months on getting their fibre network ready to provide businesses with the right level that could help distinguish their offerings from other broadband companies.