UPC Reports Bumper Quarter

Sponge Bob

http://www.siliconrepublic.com/business/item/27166-upc-broadband-subscribers-g/

Cable provider UPC has seen a 26pc increase in broadband subscriptions with numbers now standing at 272,700. Entry-level speeds currently stand at 25Mbps.

26% is for for the year not for the quarter. I'd say eircom had a conniption when they read SR this morning.



UPC added 12k Broadband Enabled homes to reach a total of 720k homes passed. They added 17k BB Customers on the quarter not 58k.



Telephony performed better. They enabled 17k homes and added 25k customers on the quarter.


MMDS is set to go below 50k punters off 25 masts this quarter. Surely MMDS is facing a shutdown before the April 2014 deadline.

D'Peoples Voice

Sponge Bob wrote: »

http://www.siliconrepublic.com/business/item/27166-upc-broadband-subscribers-g/
UPC added 12k Broadband Enabled homes to reach a total of 720k homes passed. They added 17k BB Customers on the quarter not 58k.

makes you wonder what they could achieve if they had a decent marketing department!

They seem to be obsessed with the advertising for the triple play.
But maybe they should be looking at their customers and customizing their plans around their customers. Some crazy suggestions might involve thinking about

1. How many middle aged people now retired that are at home but unable to use a computer - could UPC not sponsor some training programes with Age Action Ireland. Obviously UPC would need to get something out of these courses, so perhaps those that choose to install UPC broadband get the training for free

2. Should there be more entry level broadband for those that really only need broadband for browsing - min 25 MB is overkill for many people. Perhaps offering a lower service might cost next to nothing, so it would be a no-brainer to get people hooked.

3. Should they offer off-peak broadband at a low price, again it will bring in more customers for whom the 25MB service is just too pricey to justify given their low use.

4. With emigration back in fashion, perhaps advertise the benefits of skype & other VOIP services to keep in touch with loved ones - perhaps even offer X amount of minutes on skype for free per month.

5. UPC told people of the benefits of watching Channel 4 on Demand, the RTE player, or even listening to internet radio.

For me, SKY are great at telling me why I should get SKY TV, the programmes that are on it etc, if only UPC's marketing could learn from SKY.

Sponge Bob

D'Peoples Voice wrote: »

makes you wonder what they could achieve if they had a decent marketing department!

They seem to be obsessed with the advertising for the triple play.

The third leg of which...Telephony, is growing faster than any other service. TV was down 6k, BB up 12k Telephony up 25k. Simple message too.

Some crazy suggestions might involve thinking about

1. How many middle aged people now retired that are at home but unable to use a computer - could UPC not sponsor some training programes with Age Action Ireland. Obviously UPC would need to get something out of these courses, so perhaps those that choose to install UPC broadband get the training for free

Not crazy at all. Very good suggestion in fact.

2. Should there be more entry level broadband for those that really only need broadband for browsing - min 25 MB is overkill for many people. Perhaps offering a lower service might cost next to nothing, so it would be a no-brainer to get people hooked.

No point really...and ADSL2+ is max 24mbits so 25mbits is quite deliberate.

3. Should they offer off-peak broadband at a low price, again it will bring in more customers for whom the 25MB service is just too pricey to justify given their low use.

Off Peak is Peak in UPC land. The network is quiet during the day.

4. With emigration back in fashion, perhaps advertise the benefits of skype & other VOIP services to keep in touch with loved ones - perhaps even offer X amount of minutes on skype for free per month.

Offer emigrants their own Irish number and offer the elders at home free unlimited calls to it. Deliver by VoIP to the emigrant.

For me, SKY are great at telling me why I should get SKY TV, the programmes that are on it etc, if only UPC's marketing could learn from SKY.

They do not appear to have the touch. I thought NTL was better than UPC overall while Chorus was always utterly appaling.

bk

D'Peoples Voice wrote: »

1. How many middle aged people now retired that are at home but unable to use a computer - could UPC not sponsor some training programes with Age Action Ireland. Obviously UPC would need to get something out of these courses, so perhaps those that choose to install UPC broadband get the training for free

Not much point in doing this when their is so much easy low hanging fruit in picking off Eircom customers with their much higher prices and lower speeds.

D'Peoples Voice wrote: »

2. Should there be more entry level broadband for those that really only need broadband for browsing - min 25 MB is overkill for many people. Perhaps offering a lower service might cost next to nothing, so it would be a no-brainer to get people hooked.

3. Should they offer off-peak broadband at a low price, again it will bring in more customers for whom the 25MB service is just too pricey to justify given their low use.

Well they have 20mb at €31.51 including phone. However that is actually looking a little expensive with Smarts new 24mb DSL product for €30

I would still recommend UPC over Smart's product due to higher cap, higher upload speed and you are far more likely to actually get 20mb with UPC then Smart due to the tech.

However I agree if they could get 20mb down to €25 or even better €20, it would very effectively compete against all those 3G mobile broadband dongles that are so popular.

But I think the thing that would really drive take up is if they dropped the minimum contract from 12 months to 3 to 6 months, or better yet, no contract at all.

I have a lot of foreign friends living in Ireland and most of them are using crappy 3G mobile dongles. When I point out the 20mb UPC product is only a little more expensive, they say they wouldn't mind paying a little more, but they won't get it because of the contract term. They don't know if they are going to leave or move house.

I know UPC have to make back the cost of the modem, but I'm sure if the modem is left in the house, then the next tenant would likely sign up to UPC as well.

It is partly psychological, most of them will actually end up being there for more then a year, but they just don't like having any permanent ties. In fact one of my friends has lived in the same place for 6 years now, but still insists she could move any day :rolleyes:

I don't think there is a need for any crappy off peak products or the like of that. Perhaps they could just have a smaller cap on the cheaper product.

D'Peoples Voice wrote: »

4. With emigration back in fashion, perhaps advertise the benefits of skype & other VOIP services to keep in touch with loved ones - perhaps even offer X amount of minutes on skype for free per month.

That is why their phone packages include free calls to phones around the world. I'm certain most people know about Skype now. Every single one of my foreign friends uses Skype (as do their elderly foreign parents after some training).

D'Peoples Voice wrote: »

5. UPC told people of the benefits of watching Channel 4 on Demand, the RTE player, or even listening to internet radio.

Actually it looks like UPC on Demand service, including RTE, TV3, C4 Player are coming soon to UPC over their TV service, with no need for broadband. This should give them a big leg up over Sky.

Then there is also the next generation Horizon set top box coming soon, that includes all sorts of exciting technology, like streaming, ipad integration, etc.

D'Peoples Voice wrote: »

For me, SKY are great at telling me why I should get SKY TV, the programmes that are on it etc, if only UPC's marketing could learn from SKY.

I think UPC up till now has been much more focused on broadband and their triple play products. They have been playing to their strength and growing by stealing customers from Eircom. This is much easier then stealing customers from Sky.

Competing with Sky is much harder as Sky own so many channels and the rights to so many movies and events. It puts UPC in a difficult position as they have to negotiate with their competitor for access to all of these channels and Sky has definitely been dragging their feet on making Sky HD channels available to UPC.

This situation should improve some what as UPC start taking advantage of their broadband network and introduce their on demand and Horizon services over it. Something that Sky can't do.

D'Peoples Voice

Sponge Bob wrote: »

The third leg of which...Telephony, is growing faster than any other service. TV was down 6k, BB up 12k Telephony up 25k.

Telephony - growing fastest - agreed, but how many people are just taking the phone out of spite, that is, they don't want to be paying the standlone charge? How much advertising do UPC do of their Anytime World package for example? do they get people to ask - why would i go for Telephony through UPC rather than Eircom?

Sponge Bob wrote: »

Off Peak is Peak in UPC land. The network is quiet during the day.

I agree, but you could use the analogy of Irish Rail, in the evenings is when they are busiest, so Irish Rail offer cheap travel tickets if you travel during the day. Could UPC not offer something along these lines? How many people that are sat at home during the day would be able to able to afford the full service - surely then targeted services are required.

bk wrote: »

Well they have 20mb at €31.51 including phone. However that is actually looking a little expensive with Smarts new 24mb DSL product for €30. I would still recommend UPC over Smart's product due to higher cap, higher upload speed and you are far more likely to actually get 20mb with UPC then Smart due to the tech.

You see this is where they could explain to people that with their product, they get what they paid for, with Smart in most circumstance you don't. But do you see that advertised - they try to do it on TV adverts with the blue beam image of everyone being congested in normal broadband and not with UPC - but how many people understand that?

bk wrote: »

But I think the thing that would really drive take up is if they dropped the minimum contract from 12 months to 3 to 6 months, or better yet, no contract at all.

Agree with the contract issue, surely they can ask for a deposit upfront as an alternative.

bk wrote: »

Competing with Sky is much harder as Sky own so many channels and the rights to so many movies and events.

No you misunderstand, I'm not directly comparing UPC tv services to SKY tv service, I'm using Sky sales approach as an anology. Sky persuade you to purchase its services by advertising the programs you get to see if you had their service. UPC should be advertising broadband by advertising the services you get to do, be that online gaming, email, facebook, watching movies online, in other words make it a no-brainer for people to want it.

Just for me, my perception is that their Marketing Manager is poor!
Where is the innovation? There are many things they could do - obviously the Marketing Manager could at least get their website updated - what a poor reflection on a telecommunications company to have its Broadband availability checker out of date by over a year. They should be purchasing rights to databases such as this and assessing who can get what services, if there are any obstacles to prospective customers - blockers on an estate - what can be done to cable aroud their house etc, and what are the Company doing to persuade those that can get all the services to switch! The perception is that there is no granularised targeting of customers!

Solair

The reason that UPC are making bumper profits is quite simple - they are offering the right product, at the right price for the market.

Eircom is offering an obsolete product at a ridiculously high price.

In areas where UPC cable is available, it is BY FAR the best alternative.

The only thing that will touch it is eircom's fibre-to-home product which is as yet only available in a very very limited area. They're nearly 5 to 10 years behind UPC in terms of roll out of fibre-to-kerb at this stage in a lot of areas.

Eircom's only hope is to go after customers with fibre-broadband in areas where UPC aren't rolled out yet! E.g. a lot outlying commuter towns around Cork, Limerick etc where Chorus didn't bother to cable and to look at rolling out fibre to kerb in small-mid sized towns in rural Ireland.

D'Peoples Voice

D'Peoples Voice wrote: »

1. How many middle aged people now retired that are at home but unable to use a computer - could UPC not sponsor some training programes with Age Action Ireland. Obviously UPC would need to get something out of these courses, so perhaps those that choose to install UPC broadband get the training for free

Looks Like Rabodirect, the ONLINE bank, are going to do this
Digitise the Nation

Get on board and get online!
Are you flummoxed by Facebook or skuppered by Skype? Fear not! Help is at hand. We've teamed up with the Irish Internet Association to become lead sponsor of Digitise the Nation to help get Ireland online!

Yes, I know they have a VESTED interest in this, but I for one still welcome it

Sponge Bob

UPC Q2 results tomorrow BTW

starviewadams

UPC's marketing could be a lot better and more descriptive,the area I live in in Clondalkin was upgraded for BB over two years ago, yet a lot of my friends and family are still with Eircom and get at most 3mb DL speeds.When I ask them why they won't change over to UPC the main excuses are:

1.I don't want to go through the hassle of switching and want to keep my current phone number.

2.I've heard NTL are very un-reliable and have awful customer service.

Even on my road when I scan for wireless networks the only UPC network that comes up is mine,along with 7 Eircom ones,which is mad considering just how superior UPC's service is.

Solair

To be fair, it'll take a LOT of reputation re-building after Chorus in particular. NTL was never wonderful, but Chorus really set the bar extremely low and treated a lot of customers very badly.

UPC's customer support in my experience is far better than eircom's and certainly a lot better than most of the eircom resellers. UPC is an entirely different company to the two entities it purchased.

Smart also has NO support over the weekend which is really crazy if you're using it for business or whatever.

There are also a lot of people out there who think broadband must come from eircom. It's amazing that in many rural areas some people don't even bother to phone the local wireless providers who, in many cases, provide better service than they will ever get with DSL over a long phone line.

Same goes for UPC in urban areas, there are some people who just don't 'get' that they don't need an eircom line.

I have had relatives argue that you absolutely still need an eircom line to get UPC broadband too. They don't really get that point across clearly enough.

D'Peoples Voice

Sponge Bob wrote: »

UPC Q2 results tomorrow BTW

looking at the take-up of services versus the number of houses serviced,
not a great return on their investment so far you'd have to say :eek:

from http://www.lgi.com/PDF/press-release/Press-Release-Q2-2012-Final.pdf

Subscriber Variance Table – June 30, 2012 vs. March 31, 2012

Homes Passed 865,200
Two-way home Passed 728,300

Analog TV         72,300 (down 5,000 on Q1)
MMDS 	          50,500 (down 2,200 on Q1)
Digital TV        333,200 (up 500 on Q1)

Internet
Homes Servicable  728,300 (up 7,500 on Q1)
Subscribers       283,400 (38.9% of homes servicable) (up 10,700 on Q1)

Telephony
Homes Servicable  700,200 (up 9,000 on Q1)
Subscribers       205,800 (29.4% of homes servicable) (up 18,600 on Q1)

Solair

Those figures are actually hugely successful compared to their counterparts in the UK!

http://www.ispreview.co.uk/index.php/2012/07/superfast-broadband-available-to-60-percent-of-uk-homes-but-low-uptake-remains.html

1% of homes in the UK has taken up 100mbit/s services

http://www.zdnet.com/just-0-1-percent-of-uk-has-100mbps-broadband-3040155403/

From EU Digital agenda:
UK:

In January 2012, the penetration rate of fixed broadband is 31.7% of the population, up by only 0.1 percentage points (p.p.) year-on-year but still 4 p.p. above the EU average of 27.7%.

The United Kingdom has 73.1% of fixed lines providing speeds of 10 Mbps and above. With regards to high and ultra fast speeds, 5.5% of lines provide speeds between 30Mbps and below 100Mbps and 0.1% of fixed lines provide speeds equal or above 100 Mbps. The percentage of lines above 10Mbps in United Kingdom is 23.9 p.p. above the EU average rate of 48.4% of lines in this speed range.

Mobile broadband penetration is 63.9%, up by 27.5 p.p. year-on-year and it is 20.8 p.p. above the EU average penetration level.

Ireland:

In January 2012, the penetration rate of fixed broadband is 24.3% of the population, up 1 percentage points (p.p.) year-on-year but still 3.4 p.p below the EU average of 27.7%.

Ireland has 28.6% of fixed lines providing speeds of 10 Mbps and above. With regards to high and ultra fast speeds, only 4.3% of lines provide speeds between 30Mbps and below 100Mbps and 0.4% of fixed lines provide speeds equal or above 100 Mbps. Around 60% of broadband lines in Ireland are in the range of 2Mbps and below 10Mbps, 16.6 p.p. above the EU average rate of 43.4% of lines in this speed range.

Mobile broadband penetration is 60%, up by 19 p.p. year-on-year and it is 16.9 p.p. above the EU average penetration level. Ireland is the seventh country in mobile broadband penetration while in fixed broadband penetration Ireland is below the EU average.

Weirdly, we're utterly crap at the low speeds to mid speeds, then do better than the UK at the top tier by a very small %

Overall, our broadband network (the bits operated by the PSTN/DSL system anyway) are pretty embarrassing for a country that's just been through a mega-boom! You'd think we'd have spent a few quid on something other than empty apartment blocks and housing estates in places where nobody wants to live.