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Virgin Media O2 launches first converged service

News

Claims this first joint product "gives customers the best of both brands" 150 days after merger concluded

Virgin Media O2 has announced its first joint product, Volt. Benefits include:

• put customers into next broadband speed tier, such as upgraded from 100Mbps to 200Mbps
• double mobile data on all eligible O2 Pay Monthly plans
• up to £150 off a connected device such as a tablet or smartwatch when taking a new O2 Pay Monthly Custom plan
• WiFi Pods available to bolster connectivity around the home
• roaming in 75 countries including the US, Australia and Spain with O2 Travel
 
Volt is available to new and existing customers. Those new to either Virgin Media or O2 will be able to upgrade to Volt when they add relevant services to their bundle, while existing customers of either Virgin Media and O2 need to enrol via MyO2 to upgrade their services at no additional cost.

Consumers who do not currently take services from either brand can supercharge their package with Volt from the start, with new bundles containing an O2 SIM and Virgin Media broadband available on 18 month contracts.

The new packages include the Big Volt bundle, Bigger Volt bundle and Ultimate Volt bundle, which come with the Volt benefits.

Pricing for Volt bundles start from £40 per month for 200Mbps Broadband (boosted from 100Mbps), Talk More Weekends and a 10GB O2 SIM (boosted from 5GB). The top Volt bundle (Ultimate Volt bundle) includes Gig1 broadband, an unlimited data O2 SIM, TV programmes and two TV 360 boxes for £99 per month.

Small businesses and start-ups who take a Voom broadband service from Virgin Media Business and an eligible O2 Small Biz tariff can also supercharge their services, with 4G start-up and back-up, double mobile data and exclusive perks from Priority.

Is there the appetite?

Analyst Paolo Pescatore of PP Foresight, commented, "It feels like a relatively simple offering and seamless signing up process that should resonate with customers. Ultimately, consumers want reliable and robust connections at affordable pricing. In turn this will help increase loyalty and reduce churn.
 
"The pace of roll-out since the entity got off the ground has been nothing short than impressive. While, this might not be a game changing move, there is clearly a strong pipeline of new products and services that will be positioned…to attract users [from] rival networks. Therefore, expect to see VM02 up the ante significantly over coming months and throw down the gauntlet to other UK telcos.
 
"Ultimately, convergence represents the next battleground for all UK providers. While there are plentiful opportunities, appetite for consumers to buy numerous services from one provider remains lacklustre."