The European cable industry remains a business characterized by strong growth and investment in cable is likely to remain attractive to mobile operators and other potential entrants, according to a report by IHS.
According to the European Broadband Cable Report, published in collaboration with industry association Cable Europe, the value of the European cable industry grew by over 5% in 2012 and future prospects remain robust. Cable generated revenues of €22.4 billion in 2012 and cable operators served 61.3 million European homes. Cable accounted for 112.9 million revenue generating units, including 28.7 million broadband internet customers, and ARPU hit €26.60 a month across the EU.
Revenue growth has been driven by telecom services, which now account for 46% of all cable revenue across Europe. According to the report, telecom revenues now account for more revenue than TV in 10 markets. Cable’s ability to bundle, as well as its focus on rolling out WiFi networks, will enable it to continue to grow and position it to deliver OTT content to multiple devices as well, according to the report.
The report’s authors argue that “the combination of Vodafone with Kabel Deutschland looks more like the beginning of a prolonged strategic trend than a one-off purchase”.
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