), a leading cable TV operator in Europe and Latin America, has
planned to offer wireless services to its customers.
According to a recent Bloomberg report, the company intends to
establish a pan-European mobile virtual network operator (MVNO)
system to provide mobile phone services. MVNO is a company which
uses the established network infrastructure of an existing
wireless operator to offer its own services.
Liberty Global intends to provide this service across Europe,
especially in the Netherlands, Belgium, Switzerland, Austria and
the U.K. Consequently, the company will become a competitor to
major wireless operators, such as
Vodafone Group plc.
), Deutsche Telekom, Royal KPN N.V. and Belgacon.
As a leading cable TV operator in Europe, Liberty Global has
an automated billing system, powerful back office support and a
back-haul network which will facilitate the connection between
core wireless operator networks and its own sub networks. All
these infrastructural conveniences will help the company to drive
margins of its mobile services.
Currently, Liberty Global is in the process of acquiringa 100%
stake in Ziggo N.V., the largest cable MSO (multi-service
operator) in the Netherlands. At present, Liberty Global holds a
28.5% stake in Ziggo. The deal is expected to close by the second
half of 2014, subject to regulatory approvals.
Liberty Global is also trying to acquire full control of the
Belgian cable TV operator, Telenet Group Holding NV. Currently,
the company holds a 58.4% stake in Telenet.
In Jun 2013, Liberty Global acquired a 100% stake in the
British cable MSO, Virgin Media. In the U.K., the merged entity
poses serious competitive threat to British Sky Broadcasting
Group plc. and
BT Group plc.
). British Sky Broadcasting Group is the largest pay-TV operator
in the U.K.and is partially controlled by
). Currently, Liberty Global has a Zacks Rank #3 (Hold).
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