The vast majority of subscribers to CenturyLink’s Prism IPTV offering (95%) also take broadband service from the company, said CenturyLink Chief Financial Officer Stewart Ewing at the Morgan Stanley Leveraged Finance Conference yesterday. Ewing also noted that more than half of new Prism customers are new customers to the company, generally converting from either a cable company or a satellite video provider.
CenturyLink’s Prism service is available to 2.4 million homes, of which the company has 250,000 customers, Ewing said. He also noted that the company expects to make Prism available to an additional 500,000 homes this year.
CenturyLink IPTV Economics
Ewing also shared information about CenturyLink’s residential broadband and IPTV economics. GPON costs $600 per home passed to deploy, he said.
“If we sell video, [it costs] another $500 for the drop, the network interface device and the set-top box,” Ewing said. “We’re working to bring the set-top box cost down.”
Ewing’s comments came the same day that CenturyLink said it would expand Prism service to Salt Lake City.