When it comes to the internet Virgin Media say they are taking the fast lane

As the launch of Virgin Media super-fast 50Mbps broadband product draws near its chief executive has predicted that even during the recession consumers will continue to pay for high speed internet access.

Neil Berkett said “Broadband is not a discretionary spend,” and went on to say that there may even be scope for the US-listed UK cable company to raise its prices after price wars between companies like BT, BskyB and Carphone Warehouse recently appear to be defining the marketplace.

A distinct lead will soon be claimed by Virgin Media over any of its rivals that currently use the DSL network from BT with the release of its 50Mbps broadband service. The service providers network already covers over 50 percent of the UK and it current offers its customers speeds of 2Mbps, 10Mbps and 20Mbps.

After an extensive testing period the end of December will see a roll-out that should reach half of the Virgin Media’s broadband network and by June 2009 there should be full coverage throughout the country. At a recent UBS conference held in New York recently Mr Berkett told investors “It will be premium-priced. I see no reason to go in cheap.”

When considering its bad debt statistics the group found that there had been no deterioration so far, nor had it seen more customers disconnected for not paying their bills. In the third quarter, however, one of its two highest-priced packages where chosen by half of its new customer base, which compared to the year before was an increase of 30 percent.

He said “Despite the current environment, despite the doom and gloom about people choosing very wisely and frugally, customers are paying for the superior services they need for their superior data consumption.”