Virgin Media to invest £3bn in broadband infrastructure, but 'digital divide' fears persist

Virgin Media's network will increase from 13 million to 17 million premises over next few years

Virgin Media is to embark on what it claims is the largest investment in the UK's internet infrastructure for more than a decade, earmarking more than £3bn for improving the reach of fibre-optic superfast broadband.

With the support of parent company Liberty Global, Virgin Media plans to roll out superfast broadband to an additional four million premises over the next five years.

The announcement comes after recent government figures suggested that inner London has some of the worst broadband infrastructure in the country.

If the rollout meets its target, it'll result in an additional four million homes and businesses having access to broadband speeds of 152Mbps, increasing the network's reach from 13 million to 17 million premises.

Virgin Media estimates that its £3bn investment will result in a £8bn boost to the UK economy.

"Fast, reliable, cost-effective internet access is vital in giving British businesses a sharper digital edge," said Peter Kelly, Virgin Media Business managing director

"Our multi-billion pound private investment means companies in more parts of the country will benefit from the best connectivity," he continued. "With small firms alone contributing £378bn to the economy, digital tools have the power to unlock growth, create jobs and generate wealth for Britain."

Virgin Media said its broadband rollout will create 6,000 jobs, including 1,000 apprenticeships, over the next five years, and Prime Minister David Cameron said he welcomed "this substantial investment from Virgin Media".

Virgin Media also hit out at rival network infrastructure provider BT, which Tom Mockridge, Virgin Media CEO, suggested isn't fit for purpose in many areas.

"In virtually all of the areas we have identified for expansion, BT is the only option available right now. Its ageing copper telephony wires are not capable of the ultrafast connectivity that Virgin Media delivers," he said.

"Soon we will offer unbeatable services to even more homes and businesses across the country," Mockridge added.

Nonetheless, there are fears that despite Virgin Media's planned expansion, rural areas will once again miss out on fast broadband connections - as MPs warned this month - given that the company plans to "focus on areas closest to Virgin Media's existing network".

"This could mean rural customers are knocked down the priority list if there aren't enough residents in remote areas to convince Virgin to 'Cable My Street'," warned Ewan Taylor-Gibson, broadband expert at uSwitch.com

"That said, anyone struggling with archaic speeds should take the opportunity to sign up and highlight poor speeds in their local area," he added.

But while Virgin Media looks to expand its reach, Unite head of IT Paul Mease has previously told Computing that his organisation is cutting links with Virgin in favour of an alternative provider called Exponential-e.

The latter "can give us a VPLS network that is two and a half times faster at 50 per cent of the cost of what we're paying Virgin Media", he said.