Chorus to raise monthly price

Cable television firm Chorus will increase the cost of its basic television service by up to €2 per month from November 1st in its franchise areas, it said yesterday.

More than 150,000 consumers will be affected by the price hike for its basic television service, which is just the latest in a series of price increases by Chorus, which is controlled by major shareholder Independent News & Media.

In 2001 Chorus increased the price of its basic television service by up to 29 per cent. In November 2002 it again raised its basic prices by up to 15 per cent.

The firm's basic television service of 15 channels will now cost consumers between €20.99 and €25.99 depending on the franchise area where each user lives.

This latest rise only refers to Chorus's basic analogue television service and not its digital television service, which currently retails at €25.99 to €27.99 per month.

It follows a pattern set by many international cable television firms, which are attempting to migrate their customers to digital technology.

Digital technology offers consumers better picture quality and the ability to view greater numbers of channels. It also enables cable firms in the long run to cut the cost of offering a TV service.

A Chorus spokesman said the price increases were being introduced because of increased costs including programming costs.

He also said the average price increase was about 6 per cent.

"The major population areas affected are Cork and Limerick cable and the microwave areas surrounding them. In most of those areas the price increase is €1," he said.

Chorus does not have uniform prices across its franchise areas. In three cable areas its users will face a price increase of €2 per month from November 1st.

But in two areas, including areas using Chorus's microwave wireless network, the increase will be just €1.

Chorus is under pressure to cut costs and increase revenue after posting losses of €36.6 million in 2001. Independent News & Media disclosed that the company is no longer a core asset within the media group.

Despite being put up for sale almost a year ago by its shareholders, Chorus has yet to attract a buyer.