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Interview with Dana Strong

We are in conversation with Dana Strong, CEO of UPC Ireland ahead of Cable Congress 2013.

Is there anything that makes the Irish cable market stand out from others in the wider European market? What about the similarities? I am pleased to say that the Irish cable market has become a stand out in the Liberty Global family due to our recent extraordinary growth. We are currently topping the LGI charts in terms of growth - being the fastest growing company in the group in 2011 and second fastest in 2012. Our growth clearly demonstrates that Irish consumers and businesses have recognised the benefit of superfast broadband coupled with value based bundle pricing.

In regards to similarities, as with other markets in Europe, cable is leading the way for next generation broadband investment and driving broadband innovation, awareness and adoption.  In Ireland, UPC has been the leading investor and innovator in fixed Irish infrastructure over the past few years. We have invested €500M upgrading our network to world class standards, and this is contributing to national competitiveness and overall economic progress.  On foot of our investment, broadband adoption in Ireland has grown from 437,000 of the population in 2006 to 1.1million in 2012. We see this kind of trend all over Europe where cable innovation is driving more adoption as well as more investment right across the other industry sectors.

Can you tell us a bit about the importance of investing in next generation broadband to keep these positive trends on track? There is no doubt that network investments from cable operators across Europe provide a strong foundation for economic growth and recovery.

We recently commissioned a study, The UPC Report on Ireland’s Digital Future (available at www.upc.ie/digitalindex) which covers digital trends across all consumers and businesses (not just UPC customers).  It identifies how Irish society and the economy are embracing the digital revolution and how our digital lives will evolve in the future.

The research shows the extraordinary impact that digital growth has on a local economy. At present, the internet economy accounts for roughly 3% of Irish GDP however, research shows that this is set to double to 6% or over €11B over the next four years. Using the Booz & Company Digitisation Index, the UPC Report estimates that this could translate into employment of 18,000 or more if Irish society and industry can keep pace with the digitisation levels of our EU neighbours and particularly our UK and Scandinavian counterparts.

Recent research by the McKinsey Global Institute examined the internet economies of G8 nations as well as those of Brazil, China, India, South Korea and Sweden. This study shows that the internet has become a critical element of economic progress driving a significant proportion of economic growth. In the five years 2004-2009 its contribution to economic growth in more mature economies was 21%.

The trends show that investments in next generation broadband lead to increases in digital adoption and research is building to show that improving digital engagement drives economic growth creating jobs creation and improving societal inclusion.

Another tech woman recently reminded us of the fibre power in cable networks. European Commissioner Neelie Kroes tweeteda photo of a piece of fibre from Cable Europe on her desk. Tell us a bit about the fibre power in your networks and why it matters to customers in your market. The Irish market has very high adoption of digital devices compared to other markets. As a result, peoples’ engagement with digital technology is evolving quickly, with multiple devices in use in the household simultaneously, more time spent online, and high expectations for lifestyle enhancements due to digital engagement.  This is driving an explosion in consumer bandwidth and content requirements, figures from INEX (the Irish Internet Neutral Exchange) show there has been an 800% increase in total internet traffic per month since 2009.

Only fibre power can keep up with this change in consumer and business consumption.  As part of a major global player, Liberty Global, we are able to bring extraordinary financial investment to Ireland, deepening the reach of fiber in the network and leveraging the innovation of the second largest cable company in the world.  As an example of this we recently demonstrated an end user broadband speed of 1.4 Gbps over a standard home TV cable showing the potential for our network to deliver the required speeds of the future.

We have some evidence that these investments do impact consumer behaviour. I can reveal to you that UPC customers are far more digital than the average broadband customer, based on the findings from the independently researched UPC Report on Ireland’s Digital Future.

  • While UPC customers are 85% satisfied with service today, the sum of other providers is only 53%.
  • We see that UPC customers spend over 4 hours a day on average online in various ways, 32% more than customers with other operators.
  • Our customers have 19% more devices connected in the home than other operators.
  • 37% of UPC customers use the Internet at home for work purposes and that is 12% more than other providers.
  • And 63% of UPC customers believe their future needs will be met through UPC, which is 66% more positive result than customers of other operators.

Twitter

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Rovi creates innovative technologies that connect people and digital entertainment. Reaching millions of consumers through popular applications, devices and websites, Rovi helps global consumer electronics manufacturers, service providers, content producers, retailers and advertisers provide a better entertainment experience at home and on the go. With unparalleled entertainment data, industry-leading media guides and storefronts, high quality video playback solutions, a multi-platform interactive ad network and more, Rovi covers the digital entertainment ecosystem with both custom and cloud-based products that bring consumers closer to the TV shows, movies, music and games they love. Learn more at www.rovicorp.com

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TiVo, the leading consumer TV product provider, offers best in class user-interface, enterprise video services and seamless delivery of broadband and broadcast content to every video screen in the home. TiVo’s intuitive experience offers consumers the ability to effortlessly aggregate, search and navigate one user interface to enjoy the best digital entertainment content available today. For pay TV operators, TiVo delivers proven financial benefits with increased ARPU, higher customer satisfaction and reduced churn. The TiVo hosted service provides a whole home solution across TV, mobile and tablet platforms, in addition to traditional set-top boxes.  Distribution partners include:  Cable One, Charter, Comcast, Com Hem, DirecTV, GCI, Grande, Mediacom, Midcontinent, Ono, RCN, Suddenlink, and Virgin.


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With more than 40 years of innovation in the IC industry, Intel brings the benefits of its established CPU architecture and its world-leading process technology to the cable industry in the form of system-level ICs for data and video gateways. High performance Intel®AtomTM processors at the heart of its cable gateway System on Chip products are delivering an exceptional user experience, with proven Intel®AtomTM processor virtualization technology set to further accelerate the way service providers can deliver and monetarise new services. Intel is proud to be a sponsor of the 2013 Cable Congress. www.intel.com

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NAGRA, the digital TV division of the Kudelski Group, provides security and multiscreen user experience solutions for the monetization of digital media. It offers content providers and DTV operators worldwide with secure, open, integrated platforms and applications over broadcast, broadband and mobile platforms, enabling compelling and personalized viewing experiences. Please visit www.nagra.com/dtv for more information and follow us on Twitter at @nagrakudelski.

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Teleste is an international technology group providing HFC and deep fibre solutions and comprehensive network planning and maintenance services for leading cable operators in Europe.

In 2012 our net sales was EUR 194 million and Teleste employed 1325 persons

The company is listed on the NASDAQ OMX Helsinki Ltd.

Visit www.teleste.com for more information.

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Farncombe is the leading independent specialist digital TV consultancy, providing world-class strategic advice, engineering and design services to clients across the digital TV and entertainment value chain. Farncombe’s experience in digital TV is unrivalled, focusing on the commercial opportunities in multi-platform, multi-screen and hybrid IP TV delivery. Founded in 1991, the company now has offices in the UK, France and Germany, and is recognised as an innovator driving the industry forward and the ‘go-to’ source for independent and authoritative strategic counsel. Farncombe’s international client roster includes amongst others: Arqiva, Broadcom, BSkyB, BT, Irdeto, Kabel BW, NAGRA, NDS, Ofcom, SABC, Top Up TV, UPC and YouView. For further information, visit www.farncombe.com.

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