Free broadband deals bite at NTL

Posted on 9 Aug 2006 at 15:21

NTL has begun to feel the pinch from the number of 'free' broadband offers from rival Internet providers.

The UK cable provider revealed that while it had gained an additional 104,000 new broadband subscribers in the last quarter, growth had slowed considerably, down from 191,400 in the previous quarter.

In addition to pressure from ADSL providers, NTL's chief executive, Steve Burch cited more people moving house and stricter credit checks as further reasons for the drop.

But he remains confident that the company is well positioned as the broadband market continues to expand, not least because, with the purchase of Virgin Mobile, NTL is the only company that can offer a 'quad-play' package of television, broadband, and landline and mobile phone services.

'We can really start to reap the benefits of being able to exploit our bundling, branding and network strengths along with new channels to market,' Burch said. 'The launch of quad-play and Free TV bundles will provide more opportunities to offer our consumers unbeatable value and service, whatever their communication and entertainment needs.

NTL also stressed the value of its broadband package, which, it said, provides consistent speeds no matter where users are located on the network, with top speeds of 10Mbps - and from September an entry-level of 2Mbps - throughout its coverage area.

NTL's profits rose 62 per cent in the quarter, its first full accounting period since the merger with Telewest was completed.

Author: Simon Aughton