Executives at Virgin Media, Britain’s main cable operator, are notable for two things: swift exits and large pay-offs. While subscribers to the pay-television and broadband group suffered years of frustration, a roll-call of high-ranking individuals including Stephen Carter, Simon Duffy and Steve Burch left handsomely remunerated even when they were deemed to have failed.

Next in the hot seat - and determined to leave a different legacy – is Neil Berkett, 51, a New Zealander who joined Virgin Media as chief operating officer in 2005.

Ostensibly he is filling the post only while the search for a new chief executive to replace Mr Burch, who left in August, continues. But the role is widely believed to be his and he is busy selling his formula for turning around the group to investors and analysts.

While not predicting a sudden transformation in fortunes for the operator, which was formed last year from the tie-up of the former NTL/Telewest and Virgin Mobile and boasts 4.7 million subscribers, those who have heard the self-described “practical Antipodean” believe that his core strategy is sound.

With a planned sale of the business off the agenda for this year, at least, following the turmoil in the credit markets, much is riding on it.

In a significant shift of strategy Mr Berkett is backing away from competing head on with BSkyB, the satellite operator that is 39.1 per cent owned by News Corporation, parent company of The Times, in the premium television market.

In effect conceding defeat in that arena – although not in its legal battles against Sky – Virgin Media is instead seeking to focus on attracting a “middle-tier” of customers. These might be consumers who currently have solely terrestrial television or Freeview customers who want to upgrade.

And instead of distinguishing itself as the “quadruple play” operator offering broadband, television, fixed-line and mobile phone under one roof, broadband is to become Virgin Media’s new focal product.

Claire Enders, of Enders Analysis, believes Mr Berkett is good news: “If Neil Berkett had said he wanted to step up to battle it out with Sky on football rights I would feel sick.

“Broadband is the only area of the company where there is a lot of positive feedback from customers.”

Virgin, which has 3.5 million residential broadband customers, is competing aggressively on price, she says, and there is still plenty of growth in the market with about 4 million nonbroadband users still up for grabs.

Wilton Fry, an analyst at Merrill Lynch, also believes Mr Berkett is playing to the group’s strengths by focusing on its broadband network.

But not everyone is upbeat. Rivals point out that the company’s uncertain future is a huge distraction: Mr Berkett may be able to put it to one side, but employees lower down the chain are certain to be unsettled.

If the search process does throw up an unexpected candidate for the top job Mr Berkett himself, who has no background in cable, could be gone by next year.

In addition Virgin is far from alone in the broadband sector: it faces fierce competition from the likes of BSkyB and Carphone. Although Virgin is working to offer broadband in parts of the country not covered by its network it will be available only in 2009, making it a late entrant to the market.

And Mr Berkett’s talk of “getting back to fundamentals” and focusing on customers” may seem as old-hat to investors as it does to some of the group’s long-suffering customers.

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