Cabovisão Joins Europe's Speed Club
Other cable players around Europe have been launching similar offerings as they put their EuroDocsis 3.0 technology into action and look to steal a march on their telco rivals, many of which are rolling out VDSL2-based or fiber access broadband services of their own. (See Euro MSO Hits Back at IPTV, Liberty Takes 120 Mbit/s to the Dutch, ONO! Another Docsis 3.0 Story!, Europeans Ramp FTTH Rollouts, and BT Ramps Its FTTx Plans.)
And one of those other trendsetters is fellow Portuguese MSO ZON TVCabo . (See TVCabo Seeks Docsis Independence.)
Cabovisão, which has just over 142,000 broadband customers, needs all the service ammunition it can get. Incumbent Portugal Telecom SGPS SA (NYSE: PT) is pushing hard with its triple-play package (Internet access, voice, and IPTV) and rolling out GPON-based fiber-access broadband. (See AlcaLu's GPON Goes Portuguese and PT Deploys Moto STBs.)
Other Portuguese service providers are migrating to next-generation access and multimedia services too. (See Sonaecom Reports Q1, Portugal 'Gets' FTTH, Sonaecom Enhances IPTV, PT Uses DS2 for IPTV, and Sonaecom Plans $350M FTTH Build.)
The pressure of more intense competition for Cabovisão has shown in the fiscal third-quarter results (ending May 31) of parent, Canadian cable operator Cogeco Communications (Toronto: CCA). (See Cogeco Cable Reports Q3.)
While reporting an 11 percent increase in revenues and a 9.6 percent increase in operating income for the third quarter, Cogeco noted it had taken a near $400 million non-cash hit to its Cabovisão investment "as a result of recurring competitive pressure resulting in subscriber losses that were more severe than originally anticipated."
Cabovisão ended the third quarter with 678,000 revenue-generating units (RGUs), down by 12,190, and saw its broadband customer base shrink by 4,420 to 142,184.
As a result, the Portuguese MSO saw its third-quarter revenues dip by 10 percent to $57.6 million, and its operating margin slip to 25.9 percent from 37.6 percent a year earlier.
— Ray Le Maistre, International News Editor, Light Reading