Mike Fries live interview on stage at Cable Congress 2013

On the evidence of this year’s Cable Congress, which was held in London on March 5-7, the European cable industry is in much better shape now than at any time since the global financial crisis began in 2008.

However, the challenges it faces, especially in securing new revenue streams in what remains a difficult economic environment, cannot be underestimated.

Take the case of mobile services. In a wide-ranging CNN interview, Mike Fries, Liberty Global’s president and CEO, said it would be important for the company to have a quad play option. After all, telcos do and it is not difficult to achieve, with little capital expenditure required.

However, he then went on to say that Liberty Global has already looked at acquiring mobile companies but found the process hard. Indeed, such companies may have a market share of up to 50-70%, but some mobile subscribers will never take cable services.

Perhaps more tellingly, when pressed Fries conceded that he considered mobile a threat as well as an opportunity.

That was certainly not the view of Ewan Mackay, MD, Cable Industry, EALA, Accenture, who contrasted the problems being faced by the mobile industry, certainly in such areas as the rollout of 4G services, with the manner in which cable has successfully responded to the challenges it faces.

Interestingly, he identified connected home, m Health and B2B sales as accelerated growth areas for cable in the future.

Wi-Fi, too, is also looming on the horizon, thanks in no small part to the activities of such operators as Virgin Media and Ono. The former, according to Kevin Baughan, Director, Metro Wireless, Virgin Media Business, has embarked on its London Underground project – begun ahead of the Olympics last year and still being expanded – due to an interest in Next Generation Wireless. It has also undertaken small cell trials in the cities of Newcastle and Bristol and secured concessions in Leeds and Bradford.

Ono, on the other hand, began a public WiFi trial in Alicante last July. Manuel Sequeira, the company’s director of technology, said that it has been very successful and may now be extended, with “lots of lessons” having been learnt from building access points.

All this comes against the backdrop of an industry in a much better place than it was even a year ago. Major deals such as Liberty Global’s acquisition of Virgin Media show that it attracting finance from the markets and markets are generally much more open for floatations.

For its part, Liberty Global now finds itself in the driving seat and setting the agenda, with the Virgin Media deal having given it control of one of Europe’s larger cable markets. That, coupled with its earlier acquisitions in Germany, could yet prove to be a game changer for the company in the face of competition from incumbent telcos.

It was interesting to note that when asked if 80% of Liberty Global’s revenues would still continue to come from five European markets Mike Fries said that it was possible, though the company would continue to look at other markets.

He was arguably less positive than in previous years when asked about the company’s commitment to its operations in Central and Eastern Europe. They have been “a historic part of our business” and Liberty Global will “stick it out” in the region.


Comments on: "Cable Congress 2013: Review by Chris Dziadul, Broadband TV News" (1)

  1. […] via Cable Congress 2013: Review by Chris Dziadul, Broadband TV News | Cable Congress Blog. […]

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