Posts tagged ‘industry news’

European cable operators optimistic about broadband growth

European cable operators expect CAGR of 5% on average this year, with broadband driving most of the growth, according a survey of European cable operators carried out by Solon Management Consulting.

Average margin from cable’s services is expected to grow to 48% by 2014, while operating cash flow margin is expected to rise to 29%, Matthias Hamel, principal, head of technology and innovation, Solon Management Consulting, told CTAM Europe EuroSummit attendees this morning.

Cable operators believe premium pay TV will continue to grow, according to the survey, while broadband penetration is expected to grow to 70% of the cable base by 2014. About 69% of survey respondents selected multiscreen delivery as the innovation that would be their major area of focus, ahead of the launch of next-generation set-top boxes and HD services. Some 45% of cable subscribers took only one service in 2011, but bundling products could reduce churn by a factor of five, according to Solon’s survey.

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