Portugal Telecom's Meo surpasses one million customers

Monday, November 14th, 2011
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Portugal Telecom (Lisbon: PTC; NYSE: PT) announces that Meo, its pay-TV service, surpassed one million customers in just three and half years after it was launched on a nation wide basis, in April 2008. Meo customers represent circa 93% of PT’s fixed broadband customers and 38% of its fixed lines, at the end of 3Q11. Net additions since the beginning of October 2011 surpassed 25 thousand customers.

The success of Meo is anchored in a disruptive, non-linear and interactive experience providing access to live TV channels, personal video recording (PVR), catch-up TV, video on demand, and to games and music on demand. Meo presents a differentiating content proposal, with over 150 channels, including channels with exclusive content, content in high definition and 3D, more than three thousand movies available in Meo video club, interactivity over anchor programs, available in the “red button” on the Meo remote control, as it is the case of American Idol, Secret Story and Biggest Loser. Meo also offers advanced interactive applications across multiple widgets available in the “blue button” on the Meo remote control and covering areas such as: (1) information, including MY newscast, developed in partnership with the RTP, and the application Sapo Kiosk; (2) sports, including a football application, the application of BenficaTV, the application of SportTV and Meo Surf, (3) music, including a radio application, the RFM Vi and a karaoke application, (4) convenience such as pharmacies, and (5) personal content, including the online photo storage.

Meo has, since its launch, placed its efforts on an innovative communication, and the market perceives its brand as young, innovative and fun. Meo brand reached the leadership in terms of notoriety and currently has the highest spontaneous recall in telecommunications. In 2011, Meo reaches 51% spontaneous recall when compared to other triple-play operators, having reached 62% in September, increasing the distance to the second operator to more than 40pp. Meo will continue to differentiate its communication. In this context, the advertising show “Fora da Box” will debut soon the 4th episode, which will convey the story of the four “majors” outside the house and will feature a special guest as well as the usual Rui Unas and Paulo Futre. This is a Christmas episode that also is a musical.

PT’s investment in new technologies, including fibre to the home (FTTH), which is being expanded up to 1.6 million homes passed, will continue to underpin Meo and triple-play growth, and differentiate and improve further the quality of service, while increasing customer loyalty. The extensive fibre coverage also leverages the investment in mobile broadband. PT already covers about 85% of its base stations with fibre and modernised its 2G network, making it compatible with the 4G technology, which will enable the provision of television and broadband services on multiple mobile devices.