What’s the impact of consolidation?

 

Consolidation of the cable sector is essential. This means better competition, not less. The cable sector is still very fragmented with many regional players (6,000 operators within the European Union) compared to the 28 incumbent telecom operators and 52 operators of satellite pay TV services which have a national footprint. At the same time, the sector is undergoing tremendous changes, both in terms of the speed of technological development and new market entrants. Over-the-Top players (OTT) delivering services through the internet with brands such as Skype and Netflix are reinventing the business models and shaking up the traditional competitive scene.  Consumers, on the other hand, expect affordable prices, good quality service and great content.

 

 

The current trend of consolidation in the cable sector is a positive development for stimulating competitive pressure and preparing the scene for more competition to come from diverse entrants such as OTT players.