NTL follows up losses with subscriptions hike

UK cable operator NTL is increasing the cost of its basic subscription package by £5 after reporting losses of £2.1bn for the year 2000.

LONDON (Brand Republic) - UK cable operator NTL is increasing the cost of its basic subscription package by £5 after reporting losses of £2.1bn for the year 2000.

NTL, which has 600,000 digital subscribers, is increasing the cost of a monthly digital subscription to £15 from May in a bid to meet its earnings targets of £385m for 2001.

It says it wants to meet its target by boosting the average amount it obtains from each subscriber, called Arpu. It believes it can reach its 2001 target with as few as 100,000 new subscribers.

Barclay Knapp, NTL chief executive, said, “Our immediate goal is to drive the majority of revenue growth from Arpu increases rather than adding new customers.”

The company also announced plans to launch a business broadband internet access service which it claims will cost half as much as rival BT’s broadband offering.

At the end of last year, NTL had 530,700 digital TV subscribers and 12,800 broadband internet customers. It aims to increase these figures to 1.25m and 100,000 respectively by the end of 2001.



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