anga_anga 12/07/2013 17:29 Page 1
REVIEW
ike Fries, president and CEO of Liberty Global International, described the fragmentation of the German cable market as not making sense. He also claimed that the cable MSO has “plenty” of money to fund potential acquisitions in Germany. He made his comments a matter of weeks before telco Vodafone made an agreed takeover bid for Kabel Deutschland, long considered a target for LGI who did consider a bid. Speaking in a TV Summit panel session at ANGA COM, Fries confirmed that the company’s investors had voted in favour of its $23.3 billion acquisition of Virgin Media in the UK. Fries said that Germany was LGI’s fastestgrowing market, and its largest, prior to the Virgin Media deal. “Germany is the engine of growth,” he observed, citing factors such as low broadband penetration and digital TV subscription levels; a willingness from customers to pay for value; low prices and among the fastest broadband speeds in Europe as typifying such potential. “Deutsche Telekom is investing, we’re investing,” he noted, admitting that LGI would “love to be bigger” in Germany, but was happy with the three states in which it was active. He described it as “interesting” for LGI that Germany didn’t have a national cable platform. “Fragmentation doesn’t make great sense. It only makes sense for our competitors. Consumers would benefit if the industry rationalised and consolidated.” Dr Adrian von Hammerstein, CEO of Kabel Deutschland, which in February 2013
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had its bid for fellow cabler Tele Columbus outlawed by Germany’s competition authority, the Bundeskartellamt, said that such a deal “would have made sense. Now we have to rely on organic growth.” He agreed that consolidation was “a big topic” adding that it had “an industrial logic” with people recognising the economic importance of cable networks. Dietmar Schikel, CEO of Tele Columbus, said that he was “relaxed” about the Bundeskartellamt’s decision, but admitted that the company’s shareholders might be unhappy. “Now we have a chance to redevelop the business.” Brian Sullivan, CEO of Sky Deutschland said that there were certain benefits and disadvantages to dealing with a lesser number of larger players, but stressed the importance of consumer choice in selection communications providers. “It’s more difficult to switch from cable to satellite [in Germany] than in the UK,” he observed. Fries agreed that it was competition that drove prices, with consumers benefiting when there was healthy, vibrant competition. “It’s easier to see when you have national scale. It’s very difficult to be a small operator in a large market,” he said, noting that LGI was “tiny” compared to Deutsche Telekom and other broadcasters. As the event drew to a conclusion, organisers revealed that ANGA COM ended with a record 450 exhibitors and 17,000 partici-
Consolidation was the name of the game in Cologne. Colin Mann reports.
pants. Some 1,700 of the participants took also part in the accompanying congress programme. The figures represented a 6% increased over last year’s participant numbers for the congress and exhibition. Thomas Braun, president of event host ANGA Association of German Cable Operators, commented: “This year, ‘ANGA Cable’ has become ‘ANGA COM’. The new name even better reflects our two thematic pillars, broadband and media. This was also clearly visible in the exhibition hall. In addition to the traditional cable and satellite technology, the roll-out of fibre, IPTV, Video on Demand, software solutions and consumer electronics have become integral parts of our exhibitors’ product range. We’re especially pleased with the success of the Connected Home special, which we organised in cooperation with the BITKOM association.” Herbert Strobel, chairman of the Satellite and Cable Trade Association within the German Association of the Electrical and Electronics Industry ZVEI also expressed his satisfaction with the show. “Yet again, the event has proven an impressive success, with the consistent thematic evolution towards ANGA COM contributing to that. As the market place for network operators, suppliers and broadcasters ANGA COM will remain the industry highlight of the year for our manufacturers and systems providers.” According to Dr Peter Charissé, managing director ANGA COM the new brand has taken off. “What our 450 exhibitors put in place was top class. Each year, our visitor structure is becoming more diverse and increases in quality,” he said.
EUROMEDIA 25
ANGA COM 2013