2nd Qtr.Operating Statistics
October 11 2000 - 3:00AM
UK Regulatory
RNS Number:3310S
Atlantic Telecom Group PLC
11 October 2000
ATLANTIC TELECOM GROUP PLC
STATISTICS FOR THE QUARTER ENDED 30 SEPTEMBER 2000
Atlantic Telecom Group PLC ("Atlantic"), a leading European broadband
telecommunications provider, today reports its operating statistics for its
second quarter, ended 30 September 2000.
Group Highlights
* Penetration of directly connected SME's in UK breaks 5% barrier
* Accelerated build of DSL access multiplexers (DSLAMs) in German Central
Offices ahead of target
* Refocus of local network planning in the UK to ensure wider geographical
coverage of SME's now well advanced
* Implementation of the UK national network on target with activation on
schedule for the end of this calendar year
* Major re-branding completed with introduction of the Atlantic brand across
all markets
* Expansion into Holland with investment in Telepartner Plus. Commercial DSL
based services to be launched in Holland before 2001
Operational Highlights
* The DSL network build has seen significant growth this quarter with 97
installed DSLAMs in place at 30 September, compared to 7 at 30 June.
Atlantic has accelerated the DSL build and expects significantly more
coverage next quarter.
* In Germany there are firm orders in place from 13 partner ISPs for 4,300
unbundled DSL lines, an excellent start.
* SDSL direct services launched in second German city, Munich, on 19 September
2000
* Services launched in Manchester on time on 31 July 2000
* First unbundled test local loop activated in Paris during August 2000
* First allocation of central offices obtained in UK
* Integration of First Telecom substantially completed
Operational Statistics
* Total lines installed and pending installation at 30 September 2000 total
400,957. The actual increase in the period, after taking account of the
removal of a number of First Telecom's low spending residential customers
that are netted in the overall numbers, is approximately 20,000. This has
been achieved without substantive new network to sell into this quarter and
is a significant achievement in what is a traditionally slow quarter. In
addition, at 30 September 2000, the Group has 149,317 active call-by-call
customers in Germany, similar to last quarter.
* Directly connected lines in the UK rise strongly to 65,977 from 58,309, an
increase of 7,668 in the quarter, the second highest quarterly increase
since commercial service launch in October 1996
* The penetration of directly connected SME customers has reached 5.7% at 30
September 2000, compared to 4.8% at 30 June, well ahead of expectations.
This quarterly increase is higher than any previous quarter in the last
twelve months and illustrates Atlantic's focus on this sector
* Penetration of direct service in the residential market continues to climb
and has reached 4.0% at 30 September 2000
* Churn remains well within budgeted levels at 18.95% in the business market
and 15.08% in the residential market, both on an annualised basis, similar
to last quarter
* Since service launch in Manchester on 31 July Atlantic has achieved a
significant take up in the service with over 6,400 connected customers at 30
September, including 160 business customers. Atlantic is capitalising on its
strategy to connect customers indirectly ahead of direct build being
available.
* Three new wireless base stations were activated during the quarter and a
further 15 are in build or have obtained full planning with build about to
commence, all of which will benefit future quarters.
Graham J Duncan, Executive Chairman of Atlantic Telecom, commented:
"We continue to make significant progress. We have paid a lot of attention
this quarter to execution of the network build, particularly in Germany. With
97 co-locations already in place and with the monthly rate being increased in
the current quarter, we are ahead of expectations and early results on line
sales are very encouraging. Moreover in the UK we have quickly moved to
redesign our network build to achieve wider coverage of SMEs and we expect
this to benefit future quarters as we expand the UK build and activate our UK
national network.
"We have seen excellent growth in the overall business this quarter,
particularly in the SME business area. We are confident we can move the
business forward in a controlled manner that provides the best return on our
capital and delivers our blend of bundled high value services to an increasing
customer base."
For further information please contact:
Graham J Duncan,
Atlantic Telecom 020 7638 9571 (11 October only)
01224 454000 (thereafter)
Susy Atkinson, Atlantic Telecom 0141 403 4747
Patrick Toyne Sewell, Sara Thomas,
Citigate Dewe Rogerson 020 7638 9571
ATLANTIC TELECOM GROUP PLC
Certain Operating Data
The following table sets forth certain data concerning the Group's
telecommunications operations as of and for the six-month period ended 30
September 2000, the three-month period ended 30 June 2000, and for the
twelve-month period ended 31 March 2000.
As of and for the periods ended
-------------------------------
31 March 30 June 30 September
2000 2000 2000
Direct Telecommunications
Business Customer Data (UK)
Estimated business premises
passed (1) 41,921 43,196 44,309
Business customers (2) 1,959 2,073 2,533
Business customer lines (2) 7,276 7,813 8,564
Penetration rate of
estimated business premises
passed (3) 4.7% 4.8% 5.7%
Average lines per
business customer (4) 3.71 3.77 3.38
Business customer churn (5) 16.87% 18.82% 18.95%
Residential Customer Data (UK)
Estimated residential homes
passed (1) 693,804 716,217 734,479
Residential customers (2) 22,435 25,401 29,013
Residential customer lines (2) 44,683 50,496 57,413
Penetration rate of
estimated residential homes
passed (3) 3.2% 3.6% 4.0%
Average lines per
residential customer (4) 1.99 1.99 1.98
Residential customer churn (5) 16.77% 14.86% 15.08%
Network Data
Number of active base
stations in UK 133 136 139
Installed co-locations in
Germany n/a 7 97
Indirect Telecommunications (UK, Germany, France)
Business customers (2) 1,054 11,693 12,307
Business customer lines (2) 21,360 83,839 85,606
Average lines per
business customer (4) 20.27 7.17 6.96
Residential customers (2) 24,816 259,922 249,155
Residential customer lines (2) 24,953 260,027 249,374
Average lines per
residential customer (4) 1.01 1.00 1.00
TOTAL TELECOMMUNICATIONS LINES 98,272 402,175 400,957
Call by Call Telecommunications (Germany)
Active customers (6) 0 149,132 149,317
(1) Estimated homes passed or estimated business premises passed is the
Company's estimate of the residential homes or business premises seen by
the direct networks which are capable of connection to a base station or
to a fibre network excluding certain multiple dwelling units which the
Company does not presently serve.
(2) Residential or business customers or residential or business customer
lines represent the number of customers or lines which are connected and
in service, the number of customers or lines for which customers, where
applicable, have contracted for service but are not yet connected and the
number of customers or lines where service has been suspended but the
customers or lines have not yet been disconnected.
(3) Penetration rate of estimated homes or estimated business premises passed
is calculated by dividing the number of residential customers or business
customers on the given date by the estimated homes or estimated business
premises passed as of such date, expressed as a percentage.
(4) The average lines per customer is calculated by dividing the number of
lines on a given date by the number of customers on that date.
(5) Churn is calculated by dividing net disconnections (total disconnections
less the number of disconnected accounts for which service is later
restored and disconnections for customers moving premises and reconnecting
at their new premises) in a period by the average number of customers in
the period (calculated as the simple average of the number of customers at
the end of each month during the period.) Churn is expressed on a rolling
twelve-month basis, meaning that the churn is calculated over the twelve
months ended on 31 March 2000, 30 June 2000 and 30 September 2000.
(6) Customers who use the service on an individual call basis at some point
during the quarter.
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