Flow takes hit in video subscribers
Telecommunications giant Cable & Wireless Communications (CWC), which operates here as Flow, is blaming a rise in competition and a tough economic environment for a fall in the number of its video subscribers here and in Trinidad and Tobago during the first quarter of its 2016/2017 financial year.
“Increased competition and challenging macroeconomic environments in Barbados and Trinidad and Tobago led to reduced video subscribers. However, we are seeing encouraging early results from recently launched fixed bundles in Trinidad and Tobago,” the company said today.
However, the British multinational company, which provides a range of entertainment, information and communication services to approximately 5.5 million mobile, television, internet and telephony subscribers – predominantly located in the Caribbean and Latin America – is reporting an overall increase in subscription.
In its report for the period beginning in April, the company said the number of fixed line subscriber grew by 14,000 additions as compared to just 4,000 in the corresponding period the previous year.
Pledging continued investments to drive improved performance across its markets, the London-headquartered company also reported additional subscribers, ranging from 2,000 to 6,000, to its video broadband and telephony services, as well as a seven per cent rise in mobile data penetration.
“CWC delivered a solid quarter one 2016/17 performance as the organic changes for all of our fixed and mobile product categories improved year-over-year. In our mobile business, which represents roughly 40 per cent of our total revenue, the total base increased by 148,000 subscribers or 4 per cent year-over-year to 3.7 million. This performance was led by a 21 per cent increase in subscribers who purchased a data plan. Mobile data penetration now stands at 53 per cent of our total mobile subscriber base, up 2 percentage points from 51 per cent at March 31, 2016,” it said in the report.
In addition, CWC pointed out that Panama mobile subscribers declined by about one per cent in the quarter under review, which it blamed on “continued competition through aggressive promotional activity” that “adversely impacted our prepaid customer base”.
CWC said the Bahamas market experienced relatively flat broadband and fixed voice performance, while the Jamaica market, one of the largest telecommunications markets in the region, showed an increase of two per cent in broadband subscribers.