More than 250,000 NTL customers will face an 8.5 per cent price increase for cable television services from January 1st.

The company said yesterday it would increase the price of its basic cable television service from €18 to €19.50 per month in Dublin, Galway and Waterford.

The cost of the firm's wireless cable television service will rise to €19.50 from €19.05 per month.

NTL said the price hike was reflective of changes in its cost base, which include the cost of providing the channels and the costs of operating the business.

The cost of NTL's analogue television service has increased significantly over the past few years as it seeks to persuade consumers to upgrade to digital television. In May 2001 its package of 15 basic cable television channels cost consumers just €11.58.

However, NTL will simultaneously reduce the price of some of its broadband services and its digital television service in January.

About 70,000 NTL customers who have signed up for its basic digital television service will enjoy a 50 cent reduction in the cost of a monthly subscription, as it falls to €29.50 from €30.

The cable firm also said yesterday that it would reduce the cost of two of its three broadband services in the New Year. NTL's broadband starter service, which offers download speeds of up to 300 kilobytes per second, will drop in price to €25 per month, down from €30 per month.

The cost of the firm's 750 kilobyte per second service will fall to €35, down from €40 per month.

NTL currently supplies about 5,400 people with broadband.

Meanwhile, Chorus increased the price of its basic television service by 6 per cent in October to an average of €24.99 across its franchise areas. The satellite operator Sky Television is currently offering a package of basic digital television channels for €28.