TP SA cuts Neostrada prices

2010-10-12

TP SA has presented a new price list for Neostrada, the internet access service. The prices have been cut by around 20%.
Lower prices are not to result in a sizable decrease in revenues. The company’s management estimates that after the price reduction the quarterly results might be as much as PLN 30m (€7.5m) lower, which translates into 1% of the company’s total sales revenues. Moreover, the lower prices for internet access are expected to be compensated by higher demand for television service, which is offered along with Neostrada.
The internet segment brings TP SA around PLN 400m (€100.3m) of sales revenues. In mid-2010, the provider has serviced 2.1 million individual customers, which translates into a 37% market share. Still, over the last year, the telecom lost around 90,000 clients for the first time in its history. Previously, the number of subscribers was gradually growing.
Thanks to the new offer, TP SA expects to increase the number of the broadband internet subscribes to 3 million customers by 2012.