Cablecos: over 1m cable modem subscribers

ntl and Telewest have issued a joint statement this morning revealing that when their cable modem subscriber figures are combined, they have now passed the milestone of a million subscribers.

The two cable operators, which have previously worked on a joint marketing exercise known as "Broadband Cable", in an effort to stave off competition from other broadband services such as DSL and satellite broadband, estimate that where consumers face a choice between cable broadband and DSL, three out of four choose the cable option.

Barclay Knapp, ntl's CEO, said: "The history of broadband Britain will show that the cable industry drove its development. Our strategy of offering a choice of speeds at prices which offer outstanding value, coupled with high quality performance, has been hugely successful."

Both cable operators also report interest in broadband from their existing dial-up customers, indicating policies to "up-sell" these consumers to the more lucrative broadband services in an effort to improve the balance sheets of both companies are working.

Stephen Timms, the e-Commerce minister, applauded the cable operators for reaching the one million mark, but cautioned that the "challenge" is now to "extend this choice to users across the UK, and particularly in rural areas. So that no matter where we base our businesses and make our homes, we can all benefit from the significant benefits that broadband offers."

With both ntl and Telewest keeping a tight grip on capital expenditure - ntl having just emerged from a debt refinancing arranagement, and Telewest contemplating one - it is unclear when cable could begin a build programme into currently un-cabled areas. ntl and Telewest report at present, 12m homes are able to receive cable modem services.

Charles Burdick, Telewest's managing director, said: "Cable was not only the first, but is still the consumers preferred choice for fast and always on internet access. This is a significant milestone for the cable industry and broadband internet."