Irish Times: UGC to cut 185 jobs at NTL, Chorus

Elmo

Pan-European cable operator UGC plans to cut 185 jobs at cable operators Chorus and NTL Ireland if their planned merger gets the go-ahead from the Competition Authority and the Minister for Enterprise Trade and Employment.

The company - which bought Chorus last year - intends to close NTL's existing call centre in Waterford and cut jobs across both firms, according to documents seen by The Irish Times.

A post merger business plan prepared by UGC shows it expects to generate cost savings worth €40.4 million in the first three years following a merger of the two cable companies.

It also expects to enjoy a further 22 per cent saving on the economies of scale produced by introducing NTL to UGC's existing set-top box purchasing agreement.

The 185 redundancies would represent almost 20 per cent of the merger workforce at NTL and Chorus, which is understood to be about 950 employees.

However, the document suggests that the 185 redundancies is only the "initial" figure targeted by the firm. There could be more job losses when the merger is completed by UGC, which operates cable television systems in 14 European countries.

The closure of NTL's customer care facility in Waterford, which employs more than 100 people, would be a major blow for the city. UGC plans to integrate NTL's customer support operation in Chorus's Limerick call centre. It remains unclear if staff would be offered relocation to Limerick under the merger plan devised by UGC.

UGC's proposed €325 million acquisition of NTL is currently being considered by the Competition Authority.

If the authority rules that the merger does not reduce competition in the market then the Minister for Enterprise, Micheál Martin, will make the final ruling on the merger.

The threat to jobs could increase the political pressure on Mr Martin, although under the legislation governing media mergers he can only intervene to protect the public interest.

UGC's plan to merge Chorus and NTL also envisages centralising the network planning and upgrade operations for both companies. The two firms are currently investing millions of euro to upgrade their cables to enable them to offer broadband internet and telephone to customers. This strategy would be co-ordinated.

The document also shows that the firm expects to receive regulatory approval for the merger in September 2005. This suggests that UGC believes the deal will go to a second stage review by the Competition Authority.

The new entity would be called UGC Ireland and will focus on rapid migration of customers to digital television. Some NTL content agreements are to be used in the merged entity, however UGC content pricing is already available to NTL, according to the business plan.

The proposed merger of NTL and Chorus would create the biggest provider of pay television services in the State. Both firms combined would have a customer base in excess of 550,000 people, dwarfing the satellite firm BSkyB, which has 355,000 customers for its platform.

UGC said it could not comment on the details of its merger strategy. But it confirmed redundancies would occur.

Elmo

Just realised that Minister For Trade is Martin Cullen is a waterford man.

Some how I cann't see the merger going a head if the Waterford call centre was to close.

Pity.

iano

Elmo wrote:

Just realised that Minister For Trade is Martin Cullen is a waterford man. Some how I cann't see the merger going a head if the Waterford call centre was to close.

Cullen is Minister for Transport.
What's he going to do? Introduce a special road toll for UGC vans?

Elmo

Cullen is Minister for Transport.

Sorry I thought he moved to trade in the ReShuffle.

Micheal Martin is the Minister for Trade.

Mossy Monk

job losses at dungarvans waterford crystal plant followed by some more in waterford. the government wont be pleased

icdg

So it will be essentially a take-over by Chorus of NTL, and run from Limerick. The old Irish Multichannel emerges the winner in the consolidation game. Given that Chorus service is substantially behind NTL's, this does not bode well for the NTL viewer, but we can only hope that UGC will improve things. The comment that UGC will continue to use some of NTL's content agreements will help things. The move to UPC's platform also threathens some disruption. Are the existing Pace and Sagem platforms going to be run alongside UPC's (I believe is Motorola based, but can't find the exact box on their website)?

Incidently, I would have thought (and would, despite the article, still think) that the combined company will be called "UPC Ireland", given that UPC is the brand used by UGC accross Europe.

channelsurfer

I wonder will they standarise the line up of channels like they did with the cmi line up when they took it over now its just the one line up on chorus digital so will it mean the chorus digital line up will be used on ntl or will maybe they might add the ntl channels to the chorus digital cable areas seen as there is capacity there

Marcopolo85

icdg wrote:

So it will be essentially a take-over by Chorus of NTL, and run from Limerick.

Wouldn't quite agree with that one. There's still a lot to play for and it remains to be seen what impact the takeover has. Remember - the Irish Times has got it wrong before about NTL.

dahamsta

iano wrote:

Cullen is Minister for Transport.
What's he going to do? Introduce a special road toll for UGC vans?

[Post edited due to personal attack/possible defamation]

icdg wrote:

So it will be essentially a take-over by Chorus of NTL, and run from Limerick. The old Irish Multichannel emerges the winner in the consolidation game.

Isn't it more like a takeover of both by Liberty Global?

Given that Chorus service is substantially behind NTL's, this does not bode well for the NTL viewer

First thing that came to mind here. NTL is bad, but they're consummate professionals compared to Chorus.

adam

The tax man

And then in yesterdays Irish Times UGC denied any of the facts/figures quoted in Fridays?? article.
Smart Telecom are apparently putting a case forward to the competitions authority over the NTL take-over.
So that'll waste another few months before things are finalized.

icdg

dahamsta wrote:

Isn't it more like a takeover of both by Liberty Global?

Indeed it is, but we're talking who (within the country) will be running it. Right now it looks like it will be the Chorus people who will be in charge.

According to yesterday's Times, UPC have debunked the story and offically denied that any such business plan exists. The Times is however usually reliable and I would be surprised if there is not a least a grain of truth in Friday's story.

I would remind people about the libel laws at this stage...

Marcopolo85

icdg wrote:

I would remind people about the libel laws at this stage...

???

dahamsta

Marcopolo85 wrote:

???

I was thinking the same thing myself.

Editing that comment out of my post was pretty silly btw. I'd challenge icdg to find me a libel case where calling someone stupid was the substance of the case. :rolleyes:

adam

Our man in Havana

Albert Reynolds Vs The Sunday Times High Court London

Mr Reynolds awarded 1p and ordered to pay costs.

Elmo

Albert Reynolds Vs The Sunday Times High Court London

He was called a Gombeen Man and I think the Sunday Times Paid Cost.

The Jury had to be shown a map of where Ireland was.

I think he should have got a little more then 1p and Costs.

[edit] not that I am calling the Jury stupid or anything, I mean I wouldn't want to fork out 12p [/edit]

icdg

Okay a few things:

We have rules on the ICDG forums. They are contained in the announcement at the top of each forum. When you post here you agree to obey them and also the rules of boards.ie.

The moderators' decision is final. I realise that freedom of speech is important but I do not want anyone to end up in court. Plus the person concerned is not here (as far as we know) to defend themselves.

Finally this topic is gone way off topic. If it does not return to the subject of the proposed takeover of NTL / merger with Chorus, it will be closed.

Elmo

Ok think it kind of an important topic so I don't think it should be closed. You can delete the other non-related posts, prehaps?

Mossy Monk

or just stay on topic

zuma

Look at what other UPC operations have done in other parts of Europe in terms of broadband:

http://www.chello.com/

Even the Czech Republic has a faster Cable Broadband speed than ireland now!!!

http://www.chello.cz/upcmnfc/start/slu_by_chello/

Wouldnt it be nice to have a choice of 6Mb/10Mb or even 20Mb services...Im pretty sure people in Cork would like to have cable Broadband fullstop.

Marcopolo85

zuma wrote:

Look at what other UPC operations have done in other parts of Europe in terms of broadband:

http://www.chello.com/

Even the Czech Republic has a faster Cable Broadband speed than ireland now!!!

http://www.chello.cz/upcmnfc/start/slu_by_chello/

Wouldnt it be nice to have a choice of 6Mb/10Mb or even 20Mb services...Im pretty sure people in Cork would like to have cable Broadband fullstop.

Cable Modems are capable of a maximum speed of 30 Mbps....... :eek: :eek: :eek:

Elmo

Ok are the two previous post anything to do with the topic?

idj

Yes they are Elmo.

The lads are talking about a service that UPC are actually providing. Rather than some bull / speculation from a newspaper article. As the tax man has rightly pointed out in his post 3/7/05
The tax man "And then in yesterdays Irish Times UGC denied any of the facts/figures quoted in Fridays?? article. "

JohnC.

NTL do broadband. The UGC takeover concerns NTL broadband users too.

zuma

Elmo wrote:

Both are about cable broadband.

Am I missing something seriously.

The topic is about UGC and its NTL Ireland takeover.

If this talk about Broadband over cable hurts your feelings so much then please alert a mod to close this thread and please.....stop acting like a child.

The original title of the thread has been rubbished and I was only moving into other areas of the takeover...more positive areas...such as the possible speeds of cable broadband that will be offered under the chello name when UPC get their act together here.

If you remain single minded on the negative aspects of the takeover then please steer the thread in that direction and we will see what happens!

Mossy Monk

can people just have the discussion? the introduction of cable broadband has always been covered, it is a part of the takeover, no need to go back and explain why it is included