ITV

Tag: ARPU

  • DirecTV US 2Q revenues increase 12% to $3.3 billion

    DirecTV US 2Q revenues increase 12% to $3.3 billion

    MUMBAI:The DirecTV Group Inc. today reported that the second quarter revenues increased 10 per cent to $3.52 billion and operating profit nearly doubled to $977 million compared to last year’s second quarter.

    The Group reported second quarter 2006 operating profit and net income both more than doubled to $741 million and $459 million, respectively, when compared to the same period last year.

    Earnings per share were $0.36 compared with $0.12 in the same period last year. These operating results include the effect of $253 million of equipment that DirecTV US capitalized during the quarter under its lease program, which was implemented 1 March 2006, according to an official statement.

    “Similar to recent quarters, DirecTV US generated excellent financial results highlighted by a 12 per cent increase in revenues to $3.3 billion, a 93 per cent increase in operating profit before depreciation and amortization to $977 million and a nearly tripling of cash flow before interest and taxes to $450 million,” said DirecTV Group president and CEO Chase Carey.

    “In many ways, the results in the quarter reflect our strategy to target higher quality subscribers. For example, although gross subscriber additions of 863,000 and net additions of 125,000 in the quarter were below expectations, it’s important to note that we added 11 per cent more higher quality gross subscribers in the quarter compared to last year,” said Carey.

    “This trend — which is driving both the top-line and bottom-line financial results — is primarily due to the ongoing changes we’re making to refine our credit policy and dealer network. These factors played an important role in reducing DirecTV’s monthly churn rate from 1.69 per cent to 1.59 per cent this quarter.”

    “In addition, customers are buying more premium services such as high definition programming and digital video recorders which is contributing to the strong ARPU growth of 5.6 per cent in the quarter.”

    On 1 March 2006, DirecTV US introduced a set-top receiver lease program primarily to increase future profitability by providing DirecTV US with the opportunity to retrieve and reuse set-top receivers from deactivated customers. Under this new program, set-top receivers are capitalized and depreciated over their estimated useful lives of three years.

    The amount of cash DirecTV U.S. paid during the quarter ended 30 June 2006 for leased set-top receivers totaled $253 million — $153 million for subscriber acquisitions and $100 million for upgrade and retention.

  • Next-Gen technologies drive growth in consumer telecom market: Study

    Next-Gen technologies drive growth in consumer telecom market: Study

    MUMBAI: As Internet Protocol (IP) technology becomes more pervasive in the telecommunications industry, next-generation services is increasingly driving growth in the consumer market. Although regulatory constraints and dwindling fixed-line revenues are key challenges for service providers, renewed focus on 3G (Third Generation) services, convergence and multimedia should enable them to stay ahead of competition.

    New analysis from global growth consulting company Frost & Sullivan, Service Providers’ Consumer Strategies Revealed in Asia Pacific, reveals that 3G, VoIP (Voice over Internet Protocol) and WiMAX (worldwide interoperability for microwave access) are perceived as key revenue generators for service providers. In fact, most service providers have invested heavily into deploying these technologies, states an official release.

    “Growth in the Asia Pacific consumer telecommunications market will revolve around wireless, IPTV (Internet Protocol television), and other multimedia services,” explains Frost & Sullivan research analyst Aravind Venkatesh. “Moving forward, service providers will continue to leverage on key next-generation technologies such as WiMAX, IPTV and VoIP to offer innovative service packages to customers.”

    Due to declining fixed-line revenues, service providers in developed markets have to consider next-generation technologies such as 3G, wireless broadband access, IPTV and VoIP to drive revenue growth. While service providers in China and India are anxious to deploy 3G services, their counterparts in South Korea, Singapore and Hong Kong are looking at media-rich 3G applications to boost revenues.

    The key challenge for all service providers in the consumer space is to maximize voice revenue and increase ARPU (average revenue per user) in the midst of increasing competition.

    Intense competition and product commoditization have resulted in service providers finding it difficult to increase ARPU and reduce customer churn. Regulatory barriers delaying the deployment of 3G services in markets like India and China have also fettered service providers. Fixed-line service providers face the dual challenge of declining fixed-line revenues and increasing fixed-to-mobile substitution, the release adds.

    “Regulatory barriers and spectrum allocation issues have been major hindrances to the rapid deployment of 3G services in some developing markets in Asia,” explains Venkatesh. “Delays in introducing regulatory frameworks have hampered the launch of innovative services based on new access technologies.”

    Innovative value-added services and lower price points are key differentiators in the fixed-line telephony segment. Fixed-line service providers should add value to their core services by offering bundled applications at competitive prices. Service providers in high growth markets such as India, China, Thailand and the Philippines can also explore new revenue streams by exploiting the largely untapped rural segment.

    The service providers’ consumer strategies revealed in Asia Pacific study is part of the Communications Services subscription. It evaluates the competitive landscape, including key partnerships and alliances, service portfolio and product strategies, and marketing and pricing strategies of seven leading telecom service providers in the region. The study also offers an in-depth analysis of the service providers’ growth strategies in the consumer segment. The leading service providers examined as part of the study are: Bharti Airtel, Chunghwa Telecom, KT, PCCW, StarHub, Telstra and True Corporation.

  • Cellebrum.com partners with three cellcos to offer users customised background music

    Cellebrum.com partners with three cellcos to offer users customised background music

    MUMBAI: Music is one of the few features, which is being pushed aggressively by various mobile operators. Himachal Pradesh based integrated telecom VAS solution provider Cellebrum.com Pvt. Ltd has launched a customised background music (BGM) solution as its latest offering, allowing users to play music in the background during a call.

    Cellebrum.com has tied up with leading operators like IDEA Cellular, Spice Telecom and Reliance Telecom at the national level and is offering BGM to its existing subscribers.

    The VAS solution provider is also running a pilot programme for Airtel for its landline services in the Madhya Pradesh Circle.

    It is upbeat about its BGM, which is played by the operator in the background of a call. The background music is a value addition to mobile peer to peer calling wherein a subscriber is allowed to create his own ambience during a call by playing music in the background.

    This customized solution in which, a call, when answered, is accompanied by music in the background. The caller can choose his music from a variety of sounds provided.

    This solution is different from CRBT solution, where music is played
    before the call is connected. In BGM, music is played after the call is connected. Technically, it is a conference service, which involves the calling party, called party and the music playing entity, which is also, part of the conference. This entity is responsible for playing back music
    during the conversation.

    BGM has the ability to boost the ARPUs of cellular operators due to the low cost at which it is being offered. However, this cost varies from operator to operator. There are three kind of charges — the activation charge, the chosen background song and the per minute cost of the song.
    Today, over 170,000 mobile subscribers across the network of IDEA Cellular and Spice Telecom have tried using the BGM service.

    In order to use the service, the user needs to dial a prefix (say 234) before the phone number, for the call to be connected with the Music M-vironment (BGM). Without the prefix, the call will be connected as a normal phone call. Users can always change background sound at will by dialling provided IVRS (Interactive Voice Response Services) Interface.

    It is important to note that the caller has to be within the coverage area of the home network. It is an IVR based service which will not be accessible outside home network.

  • Dish TV MD Sunil Gupta on way out

    Dish TV MD Sunil Gupta on way out

    MUMBAI: Zee’s DTH service Dish TV, which will soon be demerged as part of a major overhaul to streamline Subhash Chandra’s broadcasting business, is also seeing changes in its top management.

    Sunil Gupta, who joined Dish last November as managing director from Coke India where he was VP external affairs, South Asia, is leaving what is currently India’s only private DTH operator.
    Chandra confirmed to Indiantelevision.com that Gupta, whose initial responsibilities when he came aboard included increasing Dish TV’s subscriber base and penetration of the service across the country, would soon be leaving the company.

    Gupta was working along with Dish TV CEO Sunil Khanna in leading New Era Entertainment Network Limited (NEENL), which manages the affairs of Dish TV. Zee Telefilms holds 20 per cent stake in the company.

    Gupta has earlier worked with The Times of India as well as had a stint at Jain TV as COO.
    Dish TV is close to 1 million subscribers and is signing up around 3,000 customers a day. The average revenue per user (ARPU) is reportedly running at Rs 200 per month with services subsidised through the provision of a free annual subscription after a one-time charge of Rs 4,000.