International CableTel Exceeds Expectations in 1994 UK Construction and Marketing Test-Bed Efforts

Strategic Insights -

CableTel, a UK cable/telephony company, announced impressive results from its 1994 construction and operational start-up efforts, exceeding its objectives in nearly every area. According to President and Chief Operating Officer Barclay Knapp, the company built an advanced, fibre-optic network that covered over 152,000 homes in its franchise areas, with over 134,000 of those homes activated and able to receive service.

Key Takeaways:

  • CableTel constructed its state-of-the-art network, passing over 152,000 homes in its franchise areas, with over 134,000 of those homes activated and able to deliver service.
  • The company exceeded its Oftel regulatory network development milestones, installing six regional cable television headends and five regional telephone switches.
  • CableTel's total passed homes, including a second-half 1993 build and previously constructed cable-only systems, reached over 246,000, or 17% of its total of 1,432,000 franchised homes.
  • The company tested various sales techniques in a residential sales and marketing test bed in four areas, ultimately contacting 7,200 homes, and reported a successful penetration index of 55%.
  • CableTel achieved a 31% household take-up rate of at least one service, with 75% of those taking both cable television and telephony, resulting in over 3,960 revenue-generating units.
  • The company believes that tracking the revenue-generating unit (RGU) index as a measure of performance provides a better vehicle for comparing the UK cable/telephony business with separate cable television and telephone operations in other parts of the world.

Statistics:

  • CableTel passed over 152,000 homes in its franchise areas in 1994.
  • The company activated over 134,000 homes covered by its new dual network.
  • CableTel tested various sales techniques on 7,200 homes, achieving a 31% household take-up rate of at least one service.
  • The company reported a successful RGU penetration index of 55%, with 75% of those taking both cable television and telephony.
  • CableTel's cable television penetration reached 28.5% in the 7,200 home test-bed, while its telephony penetration reached 26.5%, both above UK averages.

Sources:

  • International CableTel Incorporated PR Newswire, February 22, 1995
  • Oftel regulatory network development milestones
  • CableTel, "Annual Report 1994" (release of full financial results for the fiscal year ended December 31, 1994, at the end of March)