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Broadband & Media Perspective / Vol. 1, Issue 34, December EditionPublished by: Pyramid Research Published: Dec. 1, 2008 - 7 Pages Table of Contents
AbstractIn October 2008, the Bulgarian Commission for the Protection of Competition (CPC) approved the merger of CableTEL, Bulgaria’s largest cable company, and Eurocom, the second largest cable operator in the country. Eurocom is owned by private-equity firm Warburg Pincus, while CableTEL, which changed ownership in February 2007, is now owned by UK investment fund Ramford Alliance. The new company created by the merger will be incorporated into FN Cable Holdings, which is also controlled by Warburg Pincus.Cable technology has been facing increasing competitive pressures over the past several years due to new technologies and new operators in the Bulgarian market. Furthermore, cable-based broadband Internet access services are of lower quality than those provided over DSL networks, mainly because the old and weak cable networks are in need of repairs and upgrades. Many wonder whether the cable sector will deteriorate further due to weakening competiveness as the market consolidates. One might expect that less competition in the market would contribute to less investment and plummeting service quality. Quite the opposite: Pyramid Research believes that the merger of CableTEL and Eurocom Cable will improve the competitive standing of the cable segment in Bulgaria’s telecom and media markets. The merged company will achieve this by reducing operational costs, increasing capital expenditure and dipping into its pay-TV subscriber base to recruit new broadband Internet and voice customers. Get Full Details About This Report >> |
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