iesy Repository GmbH - Irish Stock Exchange

Subscriber Segments
ish divides its subscribers into the following three segments, each targeted with its own tailored sales techniques:
Residential. Residential subscribers represent accounts with single dwelling units, which total approximately 1.2
million, or 30.4%, of ish’s total basic subscribers, but represent 52.4% of ish’s basic cable subscriber revenues for the year
ended December 31, 2004, and 52.2% for the three months ended March 31, 2005. These accounts command the highest
revenues per subscriber with an ARPU of approximately €12.40 per month for the year ended December 31, 2004, and
€12.37 for the three months ended March 31, 2005. ish sells to the residential market through its external residential sales
force.
Business. Business customers, which represent multiple-dwelling units contracts based either on the number of
dwelling units per building that actually use ish’s services or on the total dwelling units per building regardless of the number
of units that use ish’s services, account for approximately 1.4 million subscribers, or 34.9%, of ish’s total basic subscribers,
and represent 27.1% of ish’s basic cable subscriber revenues for the year ended December 31, 2004 and 28.2% for the three
months ended March 31, 2005. These contracts are provided to landlords, small and medium housing associations and local
Level 4 operators. Most business customers enjoy volume-based discounts, which are built into ish’s standard rate card. In
addition, ish may enter into agreements with larger business customers, which provide for further discounts that may vary
according to a number of factors, including the number of homes serviced, payment terms and contract duration. While the
majority of the housing associations in this segment subscribe to ish’s services pursuant to its standard terms and conditions,
ish has multi-year framework agreements with a number of its larger customers within this segment. ish sells to the smaller
business customer through its external business sales force. Larger landlords, small and medium housing associations and the
local Level 4 operators are served by the in-house business sales force. ARPU for business subscribers amounted to €5.55 for
the year ended December 31, 2004 and €5.82 for the three months ended March 31, 2005.
Strategic accounts. Strategic accounts customers, which include professional and other large Level 4 operators and
large housing associations, account for approximately 1.4 million, or 34.7%, of ish’s total basic subscribers and represent
20.5% of ish’s basic cable subscriber revenues for the year ended December 31, 2004, and 19.6% for the three months ended
March 31, 2005. Strategic accounts represent customers outside of ish’s standard terms and conditions. Level 4 operators
procure the basic television signal from ish and resell it generally to housing associations. Most strategic accounts customers
enjoy volume-based discounts built into ish’s standard rate card. In addition, ish typically enters into agreements with
strategic accounts customers which provide for further discounts that may vary according to a number of factors, including
the number of homes serviced, payment terms and contract duration. Strategic accounts subscriber ARPU was €4.19 per
month for the year ended December 31, 2004 and €4.06 for the three months ended March 31, 2005. ish’s costs associated
with these customers are lower for a variety of reasons, particularly since ish is not responsible for certain activities such as
customer care. ish seeks to establish closer cooperation with Level 4 operators so that both parties can grow their respective
businesses. For example, ish and Tele Columbus have entered into an agreement, whereby Tele Columbus will promote and
sell ish’s premium cable television and high speed Internet services to its subscribers.
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