Strong growth for UPC broadband and telephone

CABLE TV and telecoms provider UPC has continued its strong growth in broadband and telephony subscribers in the second quarter of this year, but its television customer base is still contracting.

Figures published yesterday show that UPC had 224,800 broadband customers in the three months to the end of June, up 32 per cent on the same period of 2010. Its growth in phone customers was even higher, rising by 56 per cent to 121,200.

These figures are a spin-off from a near €400 million investment in its network in recent years, which now allows it to provide a triple play of services – TV, phone and broadband – to more than 600,000 homes in Ireland.

However, UPC’s overall TV subscriber number continues to shrink. The company added 26,700 digital TV subscriptions year on year, but it shed 40,600 analogue and MMDS customer accounts. In total, it had 480,800 TV subscribers at the end of June, down from 494,700 a year ago.

The company said the contraction in television customers was down to a combination of emigration and the consolidation of accounts within households.

UPC’s revenues, which are filed in the US by its parent group Liberty Mutual, rose in the second quarter by 11 per cent year on year to just over €76 million.

Dana Strong, who took over as chief executive of UPC in Ireland earlier this year, said the figures were a “testament” to the investment strategy “put in place a few years ago”.

UPC last week said it would invest another €80 million in its fibre network, creating 50 jobs.

UPC currently has the fastest broadband speeds in the market. Ms Strong said that by the end of this year, about 700,000 homes would be able to receive 30mb broadband speeds while 500,000 would be covered for 100mb.

Its triple-play price bundling has also undercut competitors, notably Eircom, the incumbent fixed-line phone provider. Eircom has responded by announcing a €100 million phase one upgrade of its fibre network and said it would offer television over broadband.

Ms Strong said Eircom’s announcement was not a surprise and it did not affect her “optimism” that UPC would continue to develop its business here.

“There are plenty of opportunities for everyone in this marketplace,” she said. “We don’t intend to stop investing in our network.”