Virgin Media has had a disappointing first quarter in part because of competition from BSkyB and Carphone Warehouse, reports The Financial Times.

The company launched a new campaign in the U.K. highlighting what its "quadruple play" of offerings, an entertainment package that runs the gamut from TV and broadband to mobile and land-line phone services. To date, only 126,000 customers have signed up for the four-pronged package.

Virgin is also losing customers to other services that offer free broadband Internet as an add-on to other services. And as BSkyB pulls channels from its line-up, Virgin is also bracing itself for cable subscriber losses.

Virgin is working on a deal with Cable and Wireless to extend its reach to 57 percent of the U.K., something it hopes will help it sell other services beyond cable operations.