TDS Telecom is finding that in the markets where it offers IPTV via its FTTH network, a majority of its customers subscribe to a triple-play package.
Jane McCahon, SVP of corporate relations and corporate secretary for TDS, told investors during the 2018 Global TMT West Conference that the service provider sees IPTV as a key component of its broadband strategy.
“We still think IPTV is important,” McCahon said. “We have been rolling out IPTV in 29 markets that we have fibered up and 96% are taking a triple play and our churn is under 1%.”
This is up from the third quarter, where TDS IPTV markets reached the 30% penetration level and 94% of its IPTV customers were on triple-play bundles.
TDS believes the high uptake of triple play enables it to keep churn levels low.
During the third quarter, IPTV connections grew 8% and with 3,700 new connections over last year.
McCahon said that IPTV could also be a factor in how it evaluates future acquisitions of other last mile fiber and cable properties.
“IPTV is certainly something that as we model out an acquisition that we’ll look at in terms of being pretty realistic about where video margins may go, but right now we see it as an important part of the overall bundle,” McCahon said. “We still have a positive margin on IPTV.”
Along with providing 1 Gbps speeds over its FTTH network in select markets, IPTV has been part of TDS’ broadband growth strategy. From a FTTH build-out perspective, TDS Telecom had about 23% of its addresses covered by fiber as of the end of the third quarter.