Virgin Media to invest £3bn in UK’s digital infrastructure
- 18th February 2015
- Innovation & Technology
Virgin Media and its parent company announce plans for £3 billion network expansion in the UK.
The UK internet provider Virgin Media has announced plans to team up with parent company Liberty Global to invest a further £3 billion in private investment for its ultra-fast broadband network.
Virgin believes it will be the largest investment in the UK’s internet infrastructure in over ten years and will create thousands of new jobs in the country, which would boost the UK economy by £7.7 billion. Around 6,000 new jobs will be created by Virgin and the contractors of its immediate supply chain, and will also include some 1,000 apprenticeships over the next five years.
“Fast, reliable, cost-effective internet access is vital in giving British businesses a sharper digital edge,” said Peter Kelly, managing director of Virgin Media Business. “Our multi-billion pound private investment means companies in more parts of the country will benefit from the best connectivity.”
The calculated £7.7 billion boost to the economy was calculated by economic consultancy Oxera to include: a £5.3 billion boost to economic activity which will be fuelled by increased spending and indirect jobs; and a £1.6 billion net benefit to consumers between now and 2030.
Virgin’s plan to extend its super-fast broadband will bring the UK up to speed with other countries such as Singapore and South Korea, who have had such speed for several years. It will also mesh nicely with the government’s goal of upgrading the digital infrastructure in Britain, however will not include consumers in rural areas who have been struggling to get connected for some time now.
“Together with this Government’s rollout of superfast broadband which has now reached more than two million UK homes and businesses, this additional private investment will create more opportunities for people and businesses, further boosting our digital economy and helping secure a brighter future for Britain,” said prime minister David Cameron.
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