Telewest

Telewest

Former type	Public
Industry	Communications
Fate	Merged with NTL
Successor	Virgin Media
Founded	1984
Defunct	8 February 2007
Headquarters	United Kingdom
Products	Cable television Broadband Telephone Mobile phone
Website	(Via Wayback Machine) http://www.telewest.co.uk

Telewest, formerly Telewest Broadband and Telewest Communications, was a cable Internet, broadband internet, telephone supplier and cable television provider in the United Kingdom. It was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index.

In March 2006, Telewest merged with fellow cable telecom company NTL, and created 'NTL:Telewest', which then also merged with Virgin Mobile and Virgin.net in June 2006, creating the United Kingdom's first "quadruple play" telecom provider, offering television, internet, landline phone and mobile phone services. In February 2007, NTL:Telewest was rebranded as Virgin Media.

History

Telewest originated in Croydon in 1984 under the name "Croydon Cable".^[1] In 1988 United Cable of Denver, US, acquired Croydon Cable. Franchises extended the company scope in Edinburgh and the south-west and south-east of England. In 1989 United Cable merged with United Artists Cable International.

In May 1991, United Artists announced a merged deal with their largest shareholder TCI (now Liberty Media), to form the largest cable operator in the US, deal was valued at $142.5m,^[2] by June the deal was improved.^[3] A week later, on 8 June the deal was finalized with ITC acquiring the remaining 46% of United Artists, to allow full control.^[4]

TCI and US West announced a joint venture, and in 1992 the joint venture company became Telewest Communications. In 1995 Telewest merged with SBC Communications, adding franchises in the Midlands and North West serving 1.3 million homes. During this time Telewest founded a consortium called Cable Internet. This consisted of the major cable companies in the UK working together a provide national Internet access service.^[5]

In March 1998, Telewest announced a merger with General Cable,^[6] and acquired the outstanding interest in Birmingham Cable, adding a further 1.7 million franchise homes in Yorkshire, west London and Birmingham.^[7] Telewest purchased the remaining 50% stake in Cable London from NTL in August 1999, adding 0.4 million franchise homes in North London.^[8]

In April 2000, Telewest merged with Flextech,^[9] and in November extended its cable network with the acquisition of Eurobell, taking the total number of homes passed to 4.9 million.^[10] The company later became known as "Telewest Broadband" in a re-brand during 2001.^[1] In subsequent years Telewest experienced many financial problems due to huge debts incurred as a result of constructing its cable network and of acquiring other cable companies and assets. Notably the Eurobell acquisition had been funded by an equity based deal, with a cash option, the poor performance of the company's stock meant that the cash option was favourable, and the company was not able to cover the call.

In September 2003, Telewest re-structured itself by swapping its unsecured debt for 98.5% of its shares.^[11] The London Stock Exchange then de-listed the consolidated shares. Major Telewest shareholders included Huff and Liberty Media (run by cable tycoon John Malone). Afterwards the company emerged from financial restructuring and completed a merger with NTL in 2006.^[12]

Operations

A Telewest Vauxhall Vivaro van in Plymouth, Devon.

On its cable network, Telewest provided several residential services including:

Television

The majority of Telewest's television was digital. There were, however, areas that received an analogue service (Slough, Windsor and some other areas in West London). Telewest was in the process of converting the remaining analogue areas to digital and it was expected that the analogue service would cease in 2007.

The digital television service offered a number of different products including true video on demand, a PVR, and HDTV.

• On Demand: On Demand (Formerly known as Teleport) was the brand name for Telewest's video on demand (VOD) service. The On Demand service launched in 2005. In contrast to Sky Digital which, due to technical limitations, is only able to provide near-VOD services, Teleport is a true VoD system. Users could search through a large library of programmes and watch them when they want to as part of their subscription. This library included a free 7-day watch again feature for TV programmes produced by the BBC, Channel 4 and Virgin Media Television (formerly known as Flextech). On Demand also offered movies that could be purchased and watched as many times as desired within a twenty-four-hour period. On Demand also offered HD content that worked in conjunction with the Telewest PVR (now renamed the V+).
• HDTV Telewest was the first UK broadcaster to offer HDTV. Telewest's HDTV service launched several months earlier than that of their chief competitor, Sky Digital.^[13] Telewest's HD service initially comprised around 10–30 hours per week of video-on-demand content, with no linear high definition television channels available, although the early trial services of BBC HD and ITV HD were carried for a brief time. In January 2006 Telewest started to broadcast HD documentaries such as The Blue Planet, Planet Earth and Pride, through their Teleport service, and later broadcast some movies in HD. Telewest had an agreement with both ITV and the BBC and claimed to be the only provider in the UK to offer all the 2006 World Cup matches in HD. In reality however half of the final group stage matches were not available in HD. Telewest's HD service was provided exclusively through their TV Drive box. Sky launched their HD service in May 2006, initially charging a £300 setup fee and an additional £10/month for several subscription HD channels, including HD versions of Sky One, Sky Movies and Sky Sports. Telewest charged a £75 setup fee and £10/month, although no subscription HD channels were offered. Telewest's fees however included the TV Drive recording service, equivalent to the recording features of the Sky+ service.
• TV Drive was the name of Telewest's Digital Video Recorder (PVR) service. The product incorporated a 160 gigabyte hard drive as standard, meaning it was able to store around 80 hours of recorded programmes. This was in contrast to BSkyB's Sky+ service which offered only 80 gigabytes (40 hours). Similarly, Telewest's product incorporated three tuners while Sky's incorporated only two, meaning that Telewest's service could record two channels at the same time while watching a third. A few days ahead of the rebranding to Virgin Media, TV Drive was renamed V+.

Internet

Telewest's internet service called Blueyonder, formerly branded as Cable Internet, ran on the cable internet architecture and offered speeds of 2 Mbit/s, 4 Mbit/s and 10 Mbit/s downstream. The broadband service was 'uncapped', meaning that its use was unlimited and no extra charges were payable related to the amount of data downloaded. On 21 November 2006, after the merger with NTL, The Register reported that Subscriber Traffic Management was being trialled in areas in the north of England and was rolling out nationwide.^[14]

Blueyonder also provided dial-up internet services on a pay as you go or fixed monthly fee of £14.99 for unlimited use.

Telephone

• Talk Unlimited
• Talk Evenings and Weekends
• Talk Weekends

Provided UK landline calls for up to an hour for a fixed fee monthly inclusive of line rental. Telewest were the first UK landline company to offer 'unlimited' calls to landlines for a fixed monthly fee.

• Talk Mobile

UK mobile calls with 25% reduction from standard rates.

• Talk International

Similar principle to Talk Mobile, with different reductions to different countries.

• Talk Anywhere

200 Minutes

400 Minutes

800 Minutes

Telewest were the first landline company to offer a package of this kind as it included bundled minutes every month that could be carried over to the next. It included calls to UK mobiles, landlines (01 and 02; latterly also 03), businesses with 0845 and 0870 numbers, and specified international mobiles and landlines. It was available nationally, varying in price depending on the number of minutes.

Marketing

Telewest has tried a number of different strategies over the years, with a solid corporate identity not coming out until late 2005 to coincide with the three for £30 offer. Until 2007, the company used the mascot Ellie West to promote its services. In 2004, when The Incredibles was released. Telewest promoted blueyonder internet services with branding from the film, including television adverts starring characters from the film.

References

1. "Company history". Virgin Media. Retrieved 2007-04-27.
2. "United Artists". LA Times. 1991-06-08.
3. "TCI cable television". Chicago Tribune. 1991-06-08.
4. "United Artists deal". New York Times. 1991-06-08.
5. "Cascade switches spearhead TeleWest's cable Internet infrastructure". UK's largest cable operator selects Cascade multiservice switches for Frame Relay network to provide cable Internet services
6. "Telewest in £649m merger". Retrieved 2009-01-01.
7. "Telewest buys up NTL stake". Retrieved 2009-01-01.
8. "Telewest buys Cable London". BBC News. BBC. 1999-08-26. Retrieved 2009-01-01.
9. McIntosh, Bill (1999-12-07). "Telewest merger with Flextech would challenge Murdoch grip". The Independent. London. Retrieved 2009-01-01.
10. "UK Group buys independent". Retrieved 2009-01-01.
11. "Telewest signs debt swap deal". BBC News. BBC. 2003-09-15. Retrieved 2009-01-01.
12. "NTL seals $6bn takeover". BBC News. BBC. 2005-10-03. Retrieved 2009-01-01.
13. "Telewest beats Sky to HD launch". Broadcast Now.
14. "NTL/Telewest admits limiting unlimited web access". The Register. 2006-11-21. Retrieved 2007-04-27.

External links

• Virgin Media Business home page