KDG’s fusion plans on ice

Jörn Krieger

Germany’s largest cable operator, Kabel Deutschland (KDG), has put its plans for a nationwide cable concern on ice, saying that resistance from the federal cartel office against a takeover of Unitymedia and Kabel BW is too strong.

“That topic is not currently in our focus,” KDG head Adrian von Hammerstein told news agency Reuters. The Munich-based company wants instead to acquire smaller operators, thereby expediting the consolidation of the cable market.

Of most interest are level 4 cable operators which offer KDG’s packages via last mile connections in housing estates. KDG provides almost a fifth of its customers via such intermediaries which have direct customer contact – an important factor in marketing profitable pay-TV, internet and telephony products. “It is obvious that we are substantially more successful in selling our premium products when we have direct access to customers,” said von Hammerstein.

KDG has already signalled interest in an acquisition of Germany’s largest network level 4 operator, Orion Cable, which is currently struggling under enormous debts.