Ziggo sets third party wholesale price

By Robert Briel

August 24, 2009 08.12 UK

Holland’s largest cable operator Ziggo has said that the price for third party resellers will be €11.05 per month. With such pricing, competition will virtually be impossible for newcomers.

Ziggo calculated the cost down from its own retail price of €16.2 (€13.66 without VAT). Subtracting the costs of content – including authors’ rights (€1.29), the transmission costs of digital channels (€0.61), and the retail costs per subscriber, including marketing, call centre (€0.71), the operator said the price will be €11.05.

Ziggo claimed it used the calculation method prescribed by OPTA to come to this amount. UPC had not published its wholesale price, but it is believed to be in the same region. Earlier, YouCa chairman Peter Jelgersma said that a wholesale price of around €4.00 would be in order.

With the price as set by Ziggo, it will be very difficult if not impossible for third parties to build a business case. The newcomers not only have to build their own back office, but also have to come to agreements with all channels that are available in the analogue tier
Following a ruling by telecoms regulator OPTA, UPC and Ziggo have to allow third parties access to their networks in order to be able to sell analogue television subscriptions.

The IPTV provider Tele2 and newcomer YouCa have already expressed interest, as have the independent telecoms company Scarlet and Online, the Dutch broadband subsidiary of Deutsche Telekom.