Chorus to increase price of basic cable package by 15%

Cable television firm Chorus will increase the price of its basic cable television service by up to 15 per cent later this month…

Cable television firm Chorus will increase the price of its basic cable television service by up to 15 per cent later this month.

The price hike will see customers' monthly bills for the most basic package of television channels rise to almost €23 in some areas, up from about €19.

This is the second major price increase by Chorus in little more than a year.

In October, 2001 Chorus increased the price of its basic package of television channels by up to 29 per cent.

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At the time, the telecoms regulator, Ms Etain Doyle, reviewed the proposed increase and made Chorus agree to stringent upgrade programmes to improve its cable network. A spokeswoman for the telecoms regulator said yesterday the office would review the new prices.

Chorus, which has more than 200,000 subscribers in rural areas and towns outside Dublin, faced severe public anger from customers last year at the time of the rise in charges. It is likely to face criticism again over the new price increases.

One elderly subscriber who spoke yesterday to The Irish Times said he was appalled at this second substantial increase in little more than a year, even if the picture quality on his television had improved over the period.

Mr Willie Fagan, director of regulatory affairs at Chorus, said the price changes would standardise pricing across its franchise areas.

He said the new tariffs would reduce the current price regime from 18 separate prices to four.

Chorus will also move to reduce the cost of its premium packages of movies and sports and its new digital television service in a bid to encourage consumers to purchase additional services.

It is believed the firm plans to reduce the cost of its movies and sports packages to about €30 per month, down from the current rates of €38.37 and €42.21.

The company's digital television package is expected to be reduced to about €55.99 per month, compared with the previous price of €57.99 but the installation charge will rise to €50, from the current price of €40.

Like many communications firms, Chorus - which is 50 per cent owned by Independent News & Media - currently faces a severe cash squeeze and is examining ways to increase its revenues.

The firm lost €36.6 million last year and is losing market share to the British satellite provider Sky television.

Independent News & Media has disclosed that Chorus is no longer core to its operations.