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Cable Europe Press Briefing (PDF)

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					 Cable Europe
 Press Briefing




 Cable Congress 07
Tuesday, 6 February
                                                Your Hosts


Manuel Cubero, President, Cable Europe
Member of the Management Board, Kabel Deutschland


Manuel Kohnstamm, Vice President, Cable Europe
Managing Director, Communications and Public Policy,
Liberty Global Europe


Caroline van Weede, Managing Director, Cable Europe

Niels Hersough, Managing Director, EuroCableLabs

Toon Diegenant, Head of Communications
Cable Europe and EuroCableLabs
                                         Cable Congress 07


Cable Congress 07
  ECCA Congress is now the Cable Congress
  Continues to grow: more than 675 delegates, including 70 speakers
  More dedicated sessions on day 2 and day 3 of the programme
  Gala Dinner featuring Ainsley Harriot, BBC TV Cook and much more


That’s Entertainment
  The cable industry is providing its customers an increasing amount of
  services to the living room and beyond. Most of these services are
  focused on entertaining the customers.


Cable Congress 08: Madrid
Key Metrics, Trends and Evolutions



              Special thanks to

    and to PricewaterhouseCoopers and ING
           for their input and support
                      Double Digit Growth in Revenue +12%

    Doubled between 2000 (9.4b EUR) and 2006 (18.8b EUR)
    Internet and Telephony account for >1/3rd of Total Cable Revenue

              18.8b EUR Total Cable Revenue in Europe (YE 2006)




                                                     YE 2000: 9.4b EUR

                          YE 2006: 18.8b EUR


Source: Screen Digest – Cable Europe
                          Digital Cable TV: +52% year-on-year

    2006 year of breakthrough of digital cable TV on continental EU
    Digital Cable TV Subscribers Doubled in last two years

            11m Digital Cable TV Subscribers in Europe (YE 2006)

                   Millions
                         12

                         10                         4%   +52%
                                               58
                           8               +

                           6

                           4
                           2
                           0
                               2000 2001 2002 2003 2004 2005 2006


Source: Screen Digest – Cable Europe
                                       Digital Cable TV Breakthrough
                                          Also On Continental Europe



                                               2004   2005   2006




                                                                    DTV Cable Subscribers

                                                                                2004

                                                                                2005

                                                                                2006




Source: Screen Digest – Cable Europe
                                        Digital Cable Subscriber growth
                                                             2001-2006

    Despite a slower start in digitalisation, Europe is catching up with
    the US’ pace of digital customer growth.



              Year to Year Digital Cable subscribers growth
                     Millions
                           4
                         3,5
                           3
                         2,5
                           2                                                Europe
                                                                            US
                         1,5
                           1
                         0,5
                           0
                                2001-     2002-     2003-   2004-   2005-
                                2002      2003      2004    2005    2006


Source : NCTA website and Screen Digest 2006 yearbook
                               Cable Telephony: Strongest Growth
                                                    Since Launch

    +21.6% year-on-year
    Stronger growth expected in 2007
    VoIP cable telephony is major driver for further growth

                10m Telephony Subscribers in Europe (YE 2006)
                   Millions
                        12
                                                                   +21,6%
                        10

                         8

                         6

                         4

                         2

                         0
                              2000     2001   2002   2003   2004    2005   2006



Source: Screen Digest – Cable Europe
                              Cable Internet: +26% year-on-year

    Continuous strong growth
    In markets with a strong cable industry, broadband Internet
    penetration is higher

                  13m Internet Subscribers in Europe (YE 2006)
              Millions
                         14                                    +26%
                         12
                         10

                          8
                          6
                          4
                          2
                          0
                              2000     2001   2002   2003   2004   2005   2006



Source: Screen Digest – Cable Europe
                     A Steady Acquisition Volume in Cable…

                                                                  EV/         EV/
 Target          Date        Country       Acquirer              Sales(1)   EBITDA(1)
 Karneval        Aug - 06 Czech            Liberty Global         6.6x       12.6x
                          Republic

 Essent          Aug - 06    Netherlands   Warburg Pincus         5.2x       12.8x
                                           Cinven
 Casema          July - 06   Netherlands   Warburg Pincus         7.7x       16.1 x
                                           Cinven
 Cabovisao       Jun - 06    Portugal      Cogeco Cable           3.6x       12.6x
 UPC Sweden      Apr - 06    Sweden        Carlyle Group          4.6x       9. 9x
                                           Providence Equity
 UPC France      Mar - 06 France           Altice/Cinven          2.4x       11.4x
 Telewest        Mar - 06 UK               NTL                    3.6x        8.1 x
 Global
 PT Multimedia   Feb - 06    Portugal      Sonaecom               4.6x       14.8x
 Services
 UPC Norge       Dec - 05 Norway           Candover               4.3x       10. 8x
 Kabel           Dec -05 Germany           Providence Equity      3.1x        8.0x
 Deutschland
 Aster City      Dec - 05 Poland           Mid Europa Partners    6.7x       11.3x
 Cable


Source: ING
                                         … Leads to Consolidation
                                             in the Cable Sector…




                                                    One cable operator
                                   EMC              serving +70% of total
                                                    cable customers
                                                    One cable operator
                                                    serving between
                                                    40% - 70% of total
                                                    cable customers




Source: Screen Digest – Cable Europe
                                       …and New Ownership Structures




                                         Orion
                                         Cable
                              Altice




Source: Screen Digest – Cable Europe
                                                                            Consolidation is Needed
                                                                            for a Level Playing Field

                     Total Domestic Revenues of Telco Incumbent                       Total Cable Industry Revenues         Cable
                                   - € billion, 2005 -                                       - € billion, 2005 -        Fragmentation 2)
                                                                                                                    (# of cable operators to get a
                                                                                                                   combined market share of 80%)
     D                                                                34,2      10:1               3,5                         4

     F                                                             28,5         19:1              1,5                          1

    UK                                                           25,6 1)        8:1                3,4                         1

    NL                                                8,7                       6:1               1,5                          2

     B                                          4,7 1)                          6:1               0,8                         >6

    AT                                          3,5                             7:1               0,5                         >6

    IR                                         1,7                              11:1              0,2                          1

                                           0                20             40                 0          20   40


Notes: Revenue includes fixed telephony, mobile telephony, internet access and TV distribution
      (1) 2005 domestic revenue for UK and B assumed to be the same ratio from total as in 2004
      (2) Year end 2006 - Dutch competitive landscape after the merger of Casema, Essent and Multikabel in
      summer 2006


     Sources: ABN Amro 2005, Screen Digest 2005, Annual Reports, Booz Allen analysis
                                                                        Consolidation is Needed
                                                                        for a Level Playing Field

                  Total Domestic Revenues of Telco Incumbent                    Total Cable Industry Revenues                Cable
                                - € billion, 2005 -                                    - € billion, 2005 -               Fragmentation
                                                                                                                   (# of cable operators to get a
                                                                                                                  combined market share of 80%)

Poland                                                           4,35    8:1               0,52                                >6


Hungary                                               2,21               6:1               0,35                                >6


 Czech                                                2,20               16:1             0,14                                 >4
Republic


Slovenia                                   0,81 1)                       16:1             0,05                                 >6


Slovakia                                   0,74                                            n.a.                               n.a.


Romania                                     0,93                         3:1               0,37                                >3

                                      0    1      2     3    4    5                   0     1     2   3   4   5


(1) Includes unconsolidated revenues of Telekom Slovenje Group


    Sources: Screen Digest 2005, Liberty Global, Annual Reports, Press Release Romtelecom, Booz Allen
                           EU Policy Recommendations

Europe’s cable networks invest in competitive
infrastructures, providing real competition to the
incumbent telecom operators in Europe

But national markets and policies are still fragmented

Cable Europe supports a further policy review at EU level :
   Optimised conditions for digital cable tv migration
   Stronger role for the European Commission over national
   regulatory decisions
   No market distorting state-subsidies to competitive
   infrastructures such as Digital Terrestrial, WiFi and FTTH
   Harmonised implementation of EU rules, in particular in areas
   such as must-carry
   A revision of the EU copyrights clearance system, leading to
   50% efficiencies
                    New Name, Logo, and Branding


Quick Facts
  Cable Europe is new name as of September 8th, 2006
  Acronym ECCA no longer in use
  European Cable Communications Association remains official name


Why?
  To better reflect the dynamic identity of the EU cable industry
  Our story needs to stand out


Branding
  Consistent look and feel throughout communications increases
  recognition
  Focus on entertaining, converging services cable provides to its
  customers, though maintain seriousness as representative of a multi
  billion industry
New Website and Newsletter
                        EuroCableLabs Highlights 2006


DOCSIS 3.0: First joined specification for Europe and US
   Increased cooperation with CableLabs
   Speed up to +200Mbps



Integration of Certification Activities
   EuroCableLabs manages certification process
   # products received EuroDOCSIS or EuroPacketCable certification
   Independent lab testing outsourced to Excentis

New Member: Cabovisão
   Second largest cable operator in Portugal
                       EuroCableLabs Highlights 2006

Associate Supporters Programme
   9 Vendors in total
   Stimulates exchange between vendors and cable operators

				
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