CABLE CONGRESS 2011 – LUCERNE. Germany’s broadband strategy of ensuring that 75% of households have access to 50 Mbps services by 2014 cannot be delivered without cable, according to Adrian von Hammerstein, CEO, Kabel Deutschland (KD).
However, unlike DSL and FTTH/FTTB, cable is already more than playing its part and should be able to deliver services of up to 100 Mbps to 60% of German homes well before 2014.
In a wide ranging presentation on the German cable industry and in particular KD, von Hammerstein said that the latter had invested $1 billion (€740.3 million), sponsored by private equity, since 2005 and that its transformation – like that of the industry itself – was largely complete.
KD’s IPO in February 2010 was the first in Germany after the economic crisis and had been a success, with its stock up by 70% since going public.
Although Germany’s cable industry is still in many ways playing catch-up with the rest of Europe, with lower broadband, pay-TV and DVR penetration than many other countries, it is making progress on most fronts.
On the upside for cable, its biggest competitor to date – FTA satellite – will soon become less of a concern as it is moving to a pay model.
Nor can it offer as much interactivity as cable.