Wednesday 17 December 2008

Virgin Media's Berkett 'pulls a Ratner'

Virgin Media is at the centre of negative publicity after seeming to confirm that it will be bringing in technology to target BitTorrent users – reneging on previous pledges to support net neutrality – and calling into question why consumers should shell out for its much trumpeted 50Mb service.

Neil Berkett, chief executive officer of the company, apparently revealed the plans this week to the Reg. Mr Berkett seems to have told the irreverent techy site that the technology to restrict BitTorrent use will be introduced midway through 2009 for its users on plans which offer 20Mb and below. He also said that although its much hyped 50Mb service currently has no restrictions it is planning to impose them as take-up grows. He did not specifically mention application-targeting tech for 50Mb customers, but surely after these revelations this cannot be ruled out?

What is for sure is that the timing of this story could not be worse for Virgin, which has launched their 50Mb service with an advertising campaign that makes much of the speed with which downloads can be completed. This naturally will be massively compromised should BitTorrent users be targeted. All of this begs the question, why pay out for faster access if downloading is subject to restrictions? If you just wanted to read your e-mail and surf the web, you’d be on a dial-up.

Meanwhile, gamers who are also expected to be a core market for the faster service are also now likely to look at Virgin Media with thinly disguised disdain after Mr Berkett’s comments. Not least because many legitimate games now have peer to peer sharing at their core. In view of this the Virgin CEO’s remarks could be a pr own goal on the scale of Gerard Ratner’s dismissal of his jewellery as crap.

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