Telewest Boss Considers Flotation Of UKTV

Cable group Telewest has said it is considering a flotation of UKTV, its joint venture with the BBC. Speaking at the Guardian Edinburgh TV festival, Telewest CEO Adam Singer said that the two groups had held “perennial conversations” about the possibility of a flotation of their stable of cable channels, which include UK Gold and UK Horizons.

Seeking an IPO for UKTV in the near future would help both groups to raise the extra cash needed for their digital projects. An expected £200m each from the flotation would allow Greg Dyke, director-general of the BBC, to fulfil digital plans for the corporation outlined this weekend (see Greg Dyke Lays Out Future Of The BBC) and Singer would use the extra cash to build Telewest’s interactive broadband platform.

Speaking at the festival on Sunday he said that the advent of broadband technology has allowed cable to discover its raison d’etre. “For a long time cable has been a piece of technology in search of something to transport. Broadband content allows cable platforms to unleash a whole new form of television,” he said.

The group’s recent merger with Flextech (see Telewest And Flextech Agree Terms Of £2.26bn Merger) married content with Telewest’s cable infrastructure, and Singer said his company will continue to pursue similar deals to further the scope of its digital platform. Print-based companies, whose content can be transformed onto a broadband text-based product, are particularly attractive.

He answered recent criticisms of his company, which has lagged behind its competitors both in terms of customer service and as a result of a shortage in the supply of set-top boxes (see Set-Top Box Shortage Puts Telewest Three Months Behind). “We have spent our time and energy raising money and building networks and now we have to concentrate on customers,” he said. A total £30m investment in call centres was promised, which will be consolidated from 14 centres to five.

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