Price hikes not linked to speed upgrade, says Virgin Media

Virgin Media has said a forthcoming price hike has nothing to do with its broadband speed doubling scheme.

The provider recently launched a programme of upgrades that will see nearly 13 million homes receive faster cable broadband, with the top speed offered by the company rising to 120Mbps.

However, the Inquirer pointed out that the cost of broadband services from Virgin Media is also set to increase next month.

In response, a spokesperson from the company said there is no association between the speed upgrades and this price hike.

He claimed that Virgin Media will fund the speed doubling programme with a separate investment of £110 million, which came from the sale of VMtv to Sky in June 2010.

The spokesperson told the publication: "There is no charge associated with the upgrade and when customers have their broadband boosted they will not see an increase in their bill as a result of this."

He added that the "annual price changes coming into effect in April are unconnected with this programme".

Virgin Media has used a new TV advertising campaign featuring Olympic sprinter Usain Bolt and Richard Branson to advertise its high-speed broadband services.

The company's scheme to double customers' connection speeds will be rolled out over an 18-month period, with the first batch of upgrades due to reach 1.5 million homes in March and April.

Subscribers with a 10Mbps service will see it increase to 20Mbps, while existing 20Mbps and 30Mbps services are set to go up to 60Mbps. Virgin Media's 50Mbps offering will be increased to 100Mbps, then 120Mbps when the new top speed is rolled out.

"All of our customers will be 'superfast' as standard and ready to access a new breed of high bandwidth entertainment services," said Jon James, executive director of broadband at Virgin Media.