CenturyLink to take on Comcast with its IPTV service in Colorado Springs

CenturyLink's (NYSE: CTL) move to extend its Prism IPTV service into Colorado Springs, Colo., illustrates the telco making good on its promise to expand it into former Qwest territories.

To date, CenturyLink offers its IPTV service in eight markets, but it has yet to offer it in Colorado.

Bringing service to a former Qwest territory like Colorado Springs is unsurprising. Earlier this year, Stewart Ewing, CFO and VP of CenturyLink, confirmed it would bring the service to at least 1-2 Qwest markets in 2012.  

While CenturyLink's video footprint trails that of its two ILEC brothers AT&T (NYSE: T) and Verizon (NYSE: VZ), the service is resonating with users in the areas where it's available. During the first quarter of 2012, it added nearly 15,000 new Prism IPTV subscribers, 55 percent of which were new CenturyLink customers, to end the quarter with almost 85,000 Prism TV subscribers.

In addition to Colorado Springs, The Gazette reported the telco has obtained a video franchise agreement in Monument, Co., and is in the process of developing agreements with Fountain and El Paso County.

"We're very excited about bringing cable service to Colorado Springs, but we're also excited about bringing competition," said Mike Burnett, vice president and general manager for CenturyLink's southern and western Colorado operations.

He added that while it will be a number of years before it could offer IPTV throughout the city, the presence of another video provider to challenge Comcast (Nasdaq: CMCSA) will help lower prices for all customers.

The Colorado Springs City Council has met with the telco and asked questions about its video service plans and franchise revenues. The council has set a June 26 hearing to decide whether to grant CenturyLink's franchise application.

For more:
 - see The Gazette article

Related articles:
CenturyLink's Prism IPTV service continues to attract new customers 
CenturyLink's legacy services drag earnings down 5.2% amidst gains in broadband, business, IPTV 
IPTV in the first quarter of 2012 

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