Unitymedia GmbH, the German subsidiary of
Liberty Global plc.
) is looking to expand its mobile stores in that country.
Currently, Germany's third and fourth largest wireless operators,
) and Royal KPN N.V. are seeking regulatory approval for a merger
between their German units. The merged entity will have more than
44 million mobile subscribers surpassing
Vodafone Group plc.
) and Deutsche Telekom AG.
However, the European regulatory authority may ask the
Telefonica-Royal KPN combine to divest some of their wireless
customers and stores in order to eliminate monopolistic power.
Unitymedia is targeting these divested wireless subscribers and
stores that will put up for sale.
Currently, the company operates 300 mobile stores in west and
southwest Germany where it offers triple-play broadband Internet,
telephony and pay-TV bundle. Unitymedia also provides mobile
phone services to about 240,000 subscribers using Telefonica
Deutschland Holding AG's network.
Last month, Bloomberg reported that Liberty Global 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. Consequently, the
company will become a competitor to major wireless operators,
such as Vodafone, Deutsche Telekom, Royal KPN N.V. and
In Jun 2013, Liberty Global acquired a 100% stake in the
British cable MSO, Virgin Media, which offers mobile phone
services. In the U.K., the merged entity poses serious
competitive threat to British Sky Broadcasting Group plc and
BT Group plc.
). Liberty Global currently carries a Zacks Rank #3 (Hold).
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