The Mobile Internet Report Key Themes*

Tiered Pricing Case Study #1 –
Virgin Media Mix Shift Toward Higher Data Usage Driving ARPU Growth
Subscriber mix continues to shift toward higher data packages, despite price increases
across UK broadband market, driving broadband ARPU higher
Virgin Media is currently beta-testing a 200MB package for heavy data users
Broadband Subscribers (000s)
4,000
3,200
2,400
1,600
800
Virgin Media Broadband Subscriber
Growth / Mix, CQ1:09 – CQ3:09
3,502
8% 9% 10% 10% 11% 12% 13%
17% 17% 19% 21% 25%
75%
3,563
74%
3,626
71%
3,646
3,730
68% 64%
3,735
30%
5%
53%
3,770
36%
22%
29%
Monthly Broadband ARPU (GBP)
Virgin Media Broadband Monthly
ARPU, CQ1:09 – CQ3:09
Mix Shift in Recent Quarters Driving
Broadband ARPU Growth
14
13.12
13
12.70
12.77
12.50
12.29 12.27
12
11
13.26
0
CQ1:08 CQ2:08 CQ3:08 CQ4:08 CQ1:09 CQ2:09 CQ3:09
10
CQ1:08 CQ2:08 CQ3:08 CQ4:08 CQ1:09 CQ2:09 CQ3:09
2MB 2-10MB 10 MB 20/50 MB
Note: Virgin Media began migrating 2MB package subscribers to 2-10MB packages in CQ2:09 (834K subs have migrated
as of CQ3:09). Source: Virgin Media, Morgan Stanley Research.
516