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Germany Will Fall Further Behind If Cable Merger Is Rejected
(old news - 03:35PM Monday May 10 2004)
LONDON-(Business Wire)

German Broadband Penetration Is Only 11.9 Percent, While Leading European Markets Are At 30 Percent

Germany risks falling further behind its European partners if it fails to approve KDG's proposed acquisition of its three rivals, and remove regulations that hinder competition in the media and communications markets. Strategy Analytics' latest report, 'German Cable At The Crossroads', finds that an enlarged Kabel Deutschland (KDG) would offer serious competition to Deutsche Telekom as a leading provider of broadband and digital services to Germany's 38 million homes, in spite of the significant investments required to upgrade the cable network.

"Germany faces a stark choice between a competitive market for advanced services and a stagnant market which serves the vested interests of the incumbent players," said David Mercer, Principal Analyst. "The fierce opposition of the leading media companies to a powerful cable industry suggests that the authorities are likely to support the status quo. In this case, Germany will continue to fall behind other European nations in broadband and digital TV adoption."

Full Story at TMCnet

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