Virgin Media backs Tories' plans as it re-brands NTL:Telewest

Virgin Media is behind the Conservative party's plan to take money from the TV licence to pay for broadband, one of its executives has said.

At an event in London to re-brand NTL:Telewest as Virgin Media Business - led by Virgin's head Richard Branson - Neil Berkett, chief executive of Virgin Media, gave praise to the Tory plans to extract cash from the BBC to fund next generation broadband across the UK.

"The opposition, if they were to get into government, believe that they should take a slice of of the [TV licence] which I think is a good idea quite frankly," he said.

Although he strained to not directly insult the plans of the current Labour Government when it comes to super-fast broadband, his tone was less than praising when he described their proposals.

"The current Government has a view in terms of increasing [connectivity] outside of our network and to be funded by a tax, which any tax is not attractive in that respect," he added, "but I think we understand that there will be government funding."

As Virgin Media Business, the company plans on building on the consumer brand's reputation to offer more services to more types of business. Currently it focuses on the mid market territory but claimed it would liked to extend this, offer to more government and public sector as well as take up the small business opportunity that is out there.

It is set to launch a marketing campaign soon, confirming the NTL:Telewest brand was firmly in the bottom of the bin.

Branson concluded: "NTL will be firmly at the bottom of the basket. Telewest not quite so far down."