Virgin Media selects BT Wholesale as supplier of fixed-line telephone switch operations and support

New £98 million Fixed-Line Voice Network Management Agreement

Virgin Media Inc. (NASDAQ: VMED) and BT Wholesale today announced the signing of a major new five year managed network telephony agreement. Under the terms of the agreement, BT Wholesale will manage the operation and maintenance of Virgin Media’s UK fixed-line voice switching network, as well as a number of Virgin Media’s existing support contracts with specialist third-party hardware and software suppliers for transmission equipment on its behalf.

The total value of the contract is worth an estimated £98 million and will allow Virgin Media to enjoy significant cost savings as well as focusing on developing the future of its voice network business. Virgin Media’s fixed-line voice switching network supports around 20 percent of all landline telephone connections in the UK. 184 skilled Virgin Media employees have transferred to BT Wholesale as part of the agreement.

Paul Weir, Managing Director of Networks for Virgin Media said: “Our telephony switching network remains an important asset within Virgin Media, and by utilising BT Wholesale we gain operational cost efficiencies ahead of the network's eventual upgrade to Voice over Internet Protocol technology, whilst keeping guaranteed levels of service for our customers.”

Sally Davis, chief executive, BT Wholesale, said: “Virgin Media’s selection of BT Wholesale to manage its fixed-line telephone switching network adds to the roll-call of industry heavyweights who have chosen to benefit from BT's capability in delivering managed network solutions. BT’s management of Virgin Media’s existing voice network, one of the largest such contracts in Europe, will help Virgin Media to continue to meet its customers’ needs while gaining the benefits of service flexibility and economies of scale.”

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