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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (8018)	8/26/2000 5:23:40 PM
From: MikeM54321	Read Replies (1) \| Respond to of 12823

Re: European MSO - NTL Stats Thread- I picked up some interesting numbers from the boring article pasted below. I'm guessing they are reffering to their cable subs in the figures. Not telco subs. But it's only a guess on my part: -NTL has 3.1 million subs in UK and Ireland -NTL has another 3.5 in Switzerland/France/Germany/Sweden -NTL has a total of 6.7 million subs -NTL ranks number three behind ATT and TWX. -NTL counts France Telecom and Microsoft as investors -NTL charges $59/month for CM service -NTL claims 80% of current UK network two-way HFC upgraded -NTL only has a couple thousand CM subs today -NTL estimates costs $300-$600 upgrade European plant to voice and data I guess the article is not that boring afterall. Wonder why they only have a few thousand CM subs if 80% of their network is two-way capable? Kind of concerns me but my guess is the executive is just doing some PR work and exeragerated the upgrade figure. Or maybe it's the $60/month price? As most know, here in the USA it's $40/month. I think anything above $40/month misses the sweet spot of what the market will tolerate. BTW, the post linked to this one says NTL's network is valued at $5,000/sub. If accurate, kind of a average to high figure as compared to USA cablecos. -MikeM(From Florida) CM- cable modem MSO- multiple system operator(cable TV company) _________________________________ *NTL Plans New Pricing for Internet, Digital Services in U.K.* Edinburgh, Aug. 26 (Bloomberg) -- NTL Inc., the U.K.'s biggest cable-TV company, will start offering a wider choice of Internet services, with different prices depending on download speeds, later this year as it seeks to win customers and boost sales, Chief Executive Barclay Knapp said in an interview. The company currently provides regular Internet service to its phone-service subscribers for free and also offers a faster Internet service through cable modems for 40 pounds ($59) a month. ''Just as you can buy more TV channels on the TV side, we are going to price our broadband services incrementally a la carte for higher and higher speed and richer and richer content,'' he said. New York-based NTL is keen to use Internet services, including fast service through cable modems, to lure customers from larger U.K. rivals such as British Telecommunications Plc and British Sky Broadcasting Group Plc. In a speech to the Guardian Edinburgh International Television Festival, he said new technology means that ''Television is the Internet, and the Internet is Television.'' Winning Internet users also aims to increase sales at the unprofitable company. In the interview, Knapp said customers of NTL's free Internet service, called ntlworld, generate about 45 pounds per month in average revenue from TV and phone services compared with about 35 pounds for customers who subscribe only to television and phone service. NTL also expects to increase revenue by gaining customers for a fast Internet service, using cable modems, by the end of the year, Knapp said. ''Eighty percent of the network is capable of handling cable modems right now,'' he said. ''We're actively marketing that in four of our six regions but by the end of September I think it will be all of six regions.'' The company, which has ''just a few thousand'' customers for its cable modem service now, expects that number to rise to the ''tens of thousands'' by the end of the year as the company seeks to persuade free Internet service customers to buy the more expensive service, he said. Cable modem customers spend an average of 80 pounds a month, he added. NTL, whose shareholders include France Telecom SA and Microsoft Corp., doubled the number of homes its network can reach in Britain when it bought Cable & Wireless Communications Plc's cable business in May. Earlier this month the company said it now has 3.1 million clients in the U.K. and Ireland after buying CWC's cable business. Acquisitions in Switzerland, France, Germany and Sweden give it another 3.5 million. Knapp estimated that NTL will spend between $300 and $600 per customer on improving the European networks in the next three to four years to enable them to carry fast Internet, telephone and digital TV services.

To: MikeM54321 who wrote (8018)	9/12/2000 9:45:51 AM
From: MikeM54321	Read Replies (2) \| Respond to of 12823

Re: European MSO - UPC Raising Billions for Upgrades Thread- Looks like a pretty big offering to build the coffers to upgrade their coaxial plants. I've posted quite a bit of information on UPC upstream for those interested. My main interest is in keeping in touch with the ability of the European players to finance the upgrades of their plants. So far I have not seen where this will be a problem. That's why I was surprised to hear there was even a rumor(see bottom of article) that Goldman Sachs was even thinking about withdrawing a loan offer? I'm guessing it's not like as implied below. Maybe Goldman wanted a new deal, similar to this convertible? -MikeM(From Florida) __________________________ *UPC to Raise Eur 1.43 Billion in Convertible Shares* AMSTERDAM, Sept 12- Cable television operator United Pan-Europe Communications NV said on Tuesday it would sell 1.43 billion euros worth of convertible preference shares to a group of investors to finance its expansion. The issue comes as Dutch-based UPC, which has been on an acquisition spree and needs to deploy and upgrade its network, has seen its shares drop on market concerns on how it will finance its debt. UPC shares rose 2.9 percent to 26.75 euros in a slightly weaker overall market. They have recovered from a year low of 17.80 euros touched in May but are still nearly a third of the value at their peak of 77 euros hit in March. ``All in all it's a good deal, especially with the speculation and doubts whether they can finance their strategy,'' said SNS Securities analyst Bert Siebrand. ``It takes away insecurity surrounding the payment of the Telewest deal...and could convince smaller banks to also help underwrite the four billion euro syndicated loan.'' UPC, which secured the loan in May to refinance bank debt and upgrade its networks, bought a 25 percent stake in British cable firm Telewest (TWT.L) in June at an 18 percent premium, but Telewest shares have dropped since. Apart from UPC-linked companies UnitedGlobalCom(UCOMA), which owns a 51 percent stake in UPC, and Liberty Media Corp(LMGa) which owns a controling stake in UGC, the shares will be placed with a group of investors including Motorola Inc (MOT), funds managed by Capital Research and Management Company and certain clients of Alliance Capital. ``The equity injection will strenghten UPC's balance sheet and further fund the development and execution of the company's business plan,'' Dutch-based UPC said in a statement. The convertible preference shares will be issued at a discount based on an eight percent dividend yield and will be convertible into ordinary shares of UPC at a price of 35.455 euros. Apart from the convertible preference shares, the investors will receive warrants to buy UPC ordinary shares at a premium of 20 percent to the conversion price. The total number of warrants equals 15 percent of the total purchase price divided by the conversion price. UPC last week denied speculation U.S. investment bank Goldman Sachs could withdraw its two billion euros stand-by loan facility.