Virgin Media becomes the latest provider to offer mobile broadband in the UK

Based on its most recent financial reports, the last quarter of 2008 should see Virgin Media releasing its mobile broadband dongles in the UK.

According to a recent report Virgin Media is set to enter the mobile broadband market towards the end of this year. This means that competition is likely to increase as a result of Virgin Mobile’s entrance into the UK mobile broadband marketplace, and it is more likely that providers will need to increase their speeds and up their data allowance limits in order to improve their market standing, which should prove popular with consumers.
Virgin Mobile has announced its decision to enter the mobile broadband market after striking a deal with T-Mobile which agreed to drop the price of its wholesale data rates. The reason for this is most likely so that T-Mobile can make use of Virgin Media’s fixed-lines to increase its backhaul network capacity. The future partnership between these two providers could prove beneficial to both as they use one another’s strengths to increase their respective market values.

At the current time Virgin Mobile is using the T-Mobile network to operate its mobile broadband service and as such is likely to offer connection speeds similar to that of T-Mobile itself. The current maximum download speed for T-Mobile is 7.2Mbps with the average connection speed of 4.5Mbps. It is likely that Virgin Mobile will follow the other main mobile broadband providers in offering its mobile service along with its fixed line packages.

With over ninety percent of Virgin Mobile subscribers using prepay it is looking to increase the lifetime value of its customers by using the mobile broadband service to move them onto contracts. It will also use the fixed broadband, TV and telephone services offered by its parent company, Virgin Media, in combination with its mobile broadband service to help increase its contract sales.