(The) dedicated internal modem capable of delivering HD video and other online services will grace the box without impacting a customer's regular broadband connection.The internal modem will be used to provide dedicated connectivity for video and TiVo-based apps, but won't be a regular broadband connection. Virgin will have control over which apps will be allowed on the TiVo and use the dedicated connection. One of the advantages to Virgin of that approach is that they have a better chance of preventing streamed, DRM-protected content from falling into the hands of pirates.
Virgin didn't say as much, but sources who are familiar with the project say the operator will allocate spectrum for those set-tops across its existing Docsis 3.0 architecture, which today is being used to offer best-effort 50Mbit/s and 100Mbit/s downstream cable modem service tiers. On top of that, it's believed that Virgin will also apply (Quality of Service) to video that's delivered to those boxes over a dedicated IP data path, creating an expressway of sorts for broadband-delivered video.
Meanwhile, Ian Mecklenburgh, Virgin's Director of Digital Entertainment told DTVE Daily (via Digital TV Europe.Net) that the connection was "a proper IP pipe optimized for TV".
So, Virgin-TiVo has the optimized pipe. All that's needed now are the apps and the content (preferably HD content) to take advantage of it. Over to you, Virgin.