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Old 23-04-2008, 11:24 PM
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Record numbers, sober reflection

Record numbers, sober reflection




The Cable Congress got under way with the proud announcement of record numbers for the European industry in 2007. Manuel Cubero, president of organiser Cable Europe (formerly ECCA), said total revenue across Europe rose 12.6 per cent to E17.9 billion, the number of digital homes connected more than doubled in the past two years to 13.9 million, broadband internet customers grew 20 per cent to 15.6 million, telephony customers climbed 19 per cent to 11.6 million and growth in unique cable customers rose to 72.7 million from 70.5 million.

With all this good news it was perhaps a surprise that the opening plenary ‘a view from the top’ was a pretty sober affair. Each of the major operator CEOs on the panel said 2007 had been a difficult year. Mike Fries CEO of Liberty Global declaimed the competition its’ UPC networks were facing in some territories, especially Eastern Europe, as ‘irrational’ with unsupportable business models drawn up by desperate incumbents. But, he said, that didn’t mean they didn’t attack the ‘soft underbelly’ of UPC’s low price basic analogue subscribers, which once lost were hard to win back and up sell to digital services.

Neil Burkett, CEO Virgin Media, said the UK was a hyper competitive market. He said Virgin would concentrate on emphasising the benefits of its network, adding that while the premium pay market was probably near saturation, there was much to play for the in the 8-9 million free/low pay digital market that could be turned into ‘medium pay.’ He refused to qualify whether concentrating on delivering service, applications and functionality meant Virgin was likely to sell its content division, as has been speculated.

Meanwhile, Richard Alden CEO of host operator ONO, confessed it had been a tough year: "We were a David that took over a Goliath and we got indigestion" he said, adding consolidation issues were largely resolved and the last quarter of 2007 had been very positive.
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