UK cable operator Virgin Media is preparing to launch a new budget broadband brand as it expands the coverage of its network next year, the Daily Telegraph reports. The plans are understood to be at an early stage and under development at Virgin Media under the code name 'Project Prosecco'.
The paper's sources said Virgin Media was likely to offer significantly lower internet speeds under the new brand, while the premium customer base is served by the Virgin brand. BT does something similar with its Plusnet brand, positioned to compete directly with TalkTalk for more budget-conscious households.
Asked whether Virgin Media would launch a budget broadband, CEO Tom Mockridge said: "There are a lot of people down in the more economic sector. But we think there is room for everyone in this market." A Virgin Media spokesman declined to comment on its plans.
