Cable group NTL will offer customers an extra 35 channels as spart of its digital television service rollout. But the services will cost an extra £10 per month in addition to the recent increases it has sought.

NTL said yesterday its digital service would be available to 140,000 homes in Dublin, Galway and Waterford by the end of September. It marks as part of its first phase of introducing a broadnet service by the end of 2003.

NTL television customers living in upgraded digital areas can opt for its new Go Digital package which offers 35 additional channels to the existing basic 15 channels for an extra £10 per month, including the digital set-top box. There will also be an initial once-off £25 installation fee. The upgraded service is optional.

Customers in Dublin pay £9.12 per month for the basic service, while those in Galway pay £10.57 a month and customers in Waterford pay £9.72. But NTL has applied to the telecoms regulator for a standard price of £12.21 per month in each of the three cabled areas.

"We still think this is tremendous value for money and it won't our launch of digital TV," said Mr Brian Moore, managing director of NTL Ireland.

He was optimistic that the regulator would agree to the price increases which he said were based on historical investments by the company in its network and services as well as recruiting extra staff for its expanded services. Inflation was another contributory factor.

Currently, around 140,000 households in NTL's catchment areas are ready for digitalisation. Mr Moore said the company planned to upgrade 10,000 Dublin households per month between September 2001 and March 2002. The firm hopes to enable 290,000 homes for digital services by the end of next year.

NTL will contact customers living in areas upgraded to digital standard through a direct mail campaign over the coming weeks. The company is targeting a 20 per cent penetration of its customer base by the end of next year for the digital service.

This would equate to 58,000 households. Mr Moore said the new service was not a loss leader for the company.

"At £10 a month we will be making money," he said.

But some customers may have to wait until March 2004 until their areas are upgraded before being able to avail of the new service which will offer a range of channels, including news, documentaries, entertainment, music, sports and children's channels, and is compatible with all television sets. An additional 23 add-on and premium channels will be available on a subscription basis. The service will also include an electronic programme guide which will enable customers to tailor their viewing. The launch is part of a wider strategy to become a leading broadband player in Ireland, according to Mr Moore.

"We could have some interactive services today, but we wouldn't have critical mass, so it doesn't make sense at the moment," said Mr Moore.

NTL plans to present interactive services by the end of 2002 and, by the end of the following year, it will introduce its broadnet service with TV, phone and internet services being offered through a single piece of equipment. Set-top boxes are already being equipped with modems to offer the new service, Mr Moore said.