Wired for value, Magnet Networks

CVC News > Wired for value, Magnet Networks

April 10, 2005

As the market for new housing stock becomes more difficult to predict, astute developers are increasingly turning to digital service providers like Magnet Networks to future proof their developments.

With the supply of some types of new housing in the greater Dublin area widely predicted to outstrip demand in the coming years, some developers are looking for ways of adding value to projects currently in the pipeline.

Experience elsewhere has shown that one of the most effective means of doing this is by incorporating value-added services into the fabric of the buildings themselves, and one of the best ways of delivering such services is through state- of-the-art fibre-optic cable. In Italy, where digital networks have been in place for some time, independent surveys have shown that their installation can add an average of 6% to the value of otherwise identical properties.

Supplying these services and the infrastructure to deliver them is the core business of Magnet Networks, an Irish company dedicated to enabling subscribers to enjoy to the full the many benefits of digital living.

No cost to developers
Already available to subscribers in the Grange section of Dublin's new Capital North development through partnerships with Gannon Homes, Menolly and Killoe, the Magnet Networks offering blends together phone, TV, broadband internet and video-on-demand services into a single package custom-tailored to suit the needs of each subscriber.

"All our services are delivered through a single, futureproof fibre-optic cable installed by us at no cost to the developer," reveals Magnet Networks CEO Ingvar Gardarsson.

"Customer installation is currently being offered at an introductory rate of EUR99, followed by a monthly charge of less than EUR75 for our full basic package, which includes line and digital phone rental, 20 digital TV channels, and 2 Mbps broadband internet offering up to 12GB upload and download per month. Subscribers can then add a wide range of premium channels at very reasonable rates. If compared to, say, a domestic phone line and similar ADSL broadband service purchased from Eircom and TV content from a satellite or cable provider, it immediately becomes clear that this is a highly competitive offer," he adds.

No watting time
An added attraction of Magnet Networks is that there is no waiting time for connections. Every home comes equipped with a minimum of eight sockets, each connecting phone, TV or computer. A single bill covers all services, subscriber packages can be modified at will, and the potential for creative customer offerings is virtually limitless.

No less important is the access to funding provided by the company's status as a wholly owned subsidiary of US-based global investment company Columbia Ventures Corporation (CVC). Having spent an initial EUR5 million on infrastructure, it has already declared itself ready and willing to invest triple that amount and more as the market matures.

"We have already concluded agreements with developers that will lead to the installation of infrastructure to several thousand homes at new developments in the greater Dublin area over the next few years, while the first half of 2005 will see the launch of a wide1 range of attractive new options, including on-line gaming and digital home security systems," says Gardarsson.

In a recent interview in the Irish Independent, Ian McDonald, a senior consultant at Dublin-based telecoms consultancy Mason Communications, commented, "For the developer, it's [the Magnet offering] a value-added propo- sition for their estate; for the operator, it gives them a cheap and easy way to tap into a ready customer base... As going out becomes increasingly more expensive, people will be looking to be entertained at home through digital TV or high-speed internet access."

As Ireland's housing market enters an era of increased competition, this is a trend to which developers could find themselves paying increasing heed to in the months and years ahead.

Affiliate Spotlight