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Virgin.net has completed a U-turn in its Internet strategy with confirmation that it is to remerge its ISP and portal businesses.

Last year, Virgin.net said it was going to concentrate on being an entertainment portal and flog its ISP business to partner NTL in a deal reportedly worth £240 million.

That, though, fell through. Now, the two businesses are to be joined at the hip again.

Of course, there are going to be casualties as duplication is eradicated. And according to MediaGuardian, that includes Virgin.net chief exec, Alex Heath, and four of his senior colleagues.

Virgin.net's current MD, Alex Dale, will head the newly merged outfit.

Virgin.net is due to offer flat-fee unmetered Net access later this month.

Even though a rack of other ISPs already offer similar services Virgin.net denied it was playing "catch-up" with its competitors. ®

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Virgin.net to be split

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