German Cable Operator Now Looking for Wireless Assets

Over the weekend I read an article whereby a German cable network operator is now looking actively for cooperating with a wireless network operator to offer a fixed / wireless access package and combined services. That's good news for connected home services I am advocating as the next great thing for network operators after fixed line voice telephony, as this is further proof that network operators on both ends of the table are looking into how the connected home can be enriched with remote access.

Interestingly enough, the cable operator in question, Kabel Deutschland, was rumored to be a takeover candidate itself for Vodafone Germany just recently to bolster its fixed line assets beyond the DSL business it already has with Arcor, soon to be renamed into Vodafone. Looks like there is a lot of movement in the market these days.

Comments

[Christian von der Ropp]

Another imminent move is Telefonica to bid for at least one of Germany's large ADSL-providers. The rumor goes that Telefonica is not only interested in taking over United Internet (2.8m ADSL-customers) and/or Hansenet (a Telecom Italia subsidiary with 2.4m ADSL-customers) but also in Freenet, a service provider reselling serivces of all four German MNOs, who has 1m ADSL-clients and 19m cell phone subscribers, of which most are served by Telefonica O2's competitors. If Telefonica actually takes over Freenet, they will face the hard task of migrating approximatley 15m customers to Telefonica O2's network, which would siginificantly impact on market shares in Germany.
Seems like some companies will take advantage of the credit crunch accompanied by low share prices and drive forth market consolidation thrustfully.

[Carlo]

Hi Martin,

Several cable operators in the US are making moves in this direction, too: Cox bought some 700 MHz spectrum (http://gigaom.com/2008/05/05/cox-wireless-broadband/), and Comcast will begin reselling Clearwire's WiMAX (http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031902427.html).

Meanwhile, AT&T and Verizon are moving into the home video space with U-Verse and FIOS TV, respectively.