Deutsche Tel still top if Vodafone buys cable rival
Deutsche Telekom would still dominate Germany’s communications market, even if Vodafone precedes with an acquisition of Kabel Deutschland, the country’s largest cable operator.
IHS Electronics & Media telecoms analyst James Allison notes a combined Vodafone and Kabel Deutschland would hold a leading market share in the pay-TV market – 34.8% compared to 7.6% for Deutsche Telekom - but that incumbent would remain the leader in voice (54.3%), broadband (44.9%), and mobile (32.3%). Vodafone and Kabel Deutschland would hold 15.7% of the voice sector, 17.9% broadband, and 29.9% mobile.
Nevertheless, Allison backs the proposed deal, noting it will “allow Vodafone to better compete” with the German incumbent.
Vodafone confirmed this week that it has made contact with Kabel Deutschland regarding a deal, but states it is only an initial approach and that it hasn’t decided to proceed, or discuss potential terms.
The carrier was responding to press reports it has already tabled a £6.4 billion (€7.5 billion) offer for Kabel Deutschland.
Vodafone is also eyeing an acquisition of FastWeb in Italy, as it plans for a windfall from the sale of its stake in Verizon, Bloomberg reports