Cabovisao blown by competitive winds
Cabovisao continues to take a battering from Portugalís multiple triple play providers. The Canadian-owned operator has refused to match the discounting, resulting a fall in basic cable subscribers and lower growth to its high speed internet and telephony service in the third quarter of its 2008 financial year ending May 31. Basic cable customers fell by 1,069 customers in the period compared to the 5,694 customer increase in the prior year.
The bright spot is the newly launched digital TV service has already has 14,470 customers connected.
Owner Cogeco Cable believes the competitive dynamic in Portugal to be transitory and points out that the division remains ahead of expectations. The company has recently embarked on a national advertising campaign to increase brand awareness.