CenturyLink to launch IPTV in Phoenix

Michelle Clancy | 09-11-2012

After years of partnering with satellite companies to add television to the triple play, CenturyLink (formerly Qwest Communications) is gearing up to launch the Prism TV IPTV service into Phoenix.

Phoenix is the first legacy Qwest market to receive the service, according to CEO and president Glenn Post, speaking during the third-quarter earnings call. The service should be a "very compelling entertainment alternative to cable.
CenturyLink added 10,000 new Prism TV subscribers in the third quarter and now has more than 104,000 IPTV subscribers in eight markets with a 10 percent-plus penetration rate across those markets—not bad considering that the fiber-based TV endeavor is a relatively new one for the company, which leapfrogged from regional telco status to full-blown AT&T/Verizon peer with the acquisition of Qwest in 2011.
"Prism TV continues to have a positive impact on churn and line-loss trends," Post said. "We experienced greater than 90% broadband pull-through rate with our Prism TV sales to new customers [and] continue to expand our Prism TV-enabled footprint and expect to drive additional subscriber growth in the months ahead."
The carrier said a dip in in third quarter operating revenues, coming in at $4.57 billion compared to $4.60 billion a year earlier. However, Prism TV came to the rescue: the loss was offset with "increases in strategic revenues, primarily resulting from business customer demand for high bandwidth data services and growth in high-speed Internet and Prism TV services."
The carrier is continuing to build out its fiber-to-the-node infrastructure, bringing IPTV-friendly bottom speeds of about 40 Mbps to the mix. The FTTN network passed an additional 310,000 living units in the quarter, to total 6.8 million units.