PCCW Adds 92K IPTV Subscribers in 2007

PCCW, the incumbent carrier in Hong Kong, has announced that it reached more 850 thousand IPTV subscribers in August 2007. This is up 92 thousand from 758 thousand at the end of 2006. This is also up more than 32 thousand from the 818 thousand that the company had at the end of its first half in June 2007.

At the end of June PCCW also had 560 paying subscribers. PCCW offers a basic set of TV channels as part of its broadband subscribers, so there is no requirement to pay anything additional to get TV service. This is up 59 thousand from 501 thousand at the end of 2006. The company is adding new paying subscribers at almost the same rate as total subscribers. Its total number of subscribers increased 60 thousand in the 1H07.

The average customer spending for its IPTV service grew to US$21 at then end of June 2007 up from US$18 at the end of 2006. It attributed this increase in customer spending to several factors:

• Popularity of its Mega Sports package at US$28 per month
• Success in up selling its customers to two different packages priced at US$24 and US$47 per month each.
• New service installation set-top box rental fees
• Building momentum in advertising revenues
• Stock trading service introduced in August 2007

PCCW offers 150 channels today including exclusive access to sports, movies, news, and entertainment channels. In 4Q07 it will start to offer a split screen presentation showing four live football matches at one time along with football betting and network based PVR (NPVR).

PCCW stated that it was the first to offer HD in Hong Kong in July 2007.

PCCW also provides interactive services that enhance its sports viewing experience including:

• Access to promotional videos for all of its sports channels
• Head-to-head statistics, team line ups, player profiles available while watching a match
• Instant voting and results presentation for the player of the match

PCCW continues to be arguably the most innovative TelcoTV service globally. It is offering serices that the others are only thinking about right now.

PCCW also has been able to turn a "free" TelcoTV service into a money maker. Its TV service has been an important factor in maintaining its broadband growth and in stopping the loss of telephone customers. It is the only incumbent in a developed country that has been able to turn this loss around.

It is well worth taking a look at its 1H07 presentation.