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Cable Industry Expects That Broadband, Mobile, B2B Will Drive Next Phase of Growth
Published on:
The 5th Solon Survey of European Cable Communication shows that cable operators remain optimistic about revenue growth and see broadband, mobile and B2B as their largest opportunities. European cable operators participating in this year's survey are forecasting a revenue growth of over five percent per year until 2014 and further EBITDA margin expansion by two percentage points up to 48% on average during the same period.
The survey also highlights an important trend - for the first time, cable operators forecast a declining basic TV penetration while the pay-TV penetration is forecast to continue to grow.
Next-generation TV services are cited as the main tool to protect the TV customer base of cable operators. Major elements of future TV services include multi-screen, TV-everywhere and next-generation STBs. In addition, cable operators highlight the importance of turning OTT from a threat into an opportunity.
"TV customers increasingly prefer tailor-made video offerings rather than 20-30 analog channels. TV customers look for HD TV, digital recorders as well as movies and TV series on demand. This is the reason why 86% of participating cable CEOs put next-generation-TV on top of their strategic agenda," explains Christian Teichmann, Managing Director at Solon Management Consulting in London.
The uptake of online video usage on multiple devices in consumers' homes will lead to a further increase of average bandwidths. The capability to offer higher speeds is therefore considered key by most participating cable operators to preventing churn and winning the infrastructure competition against FTTH players.
The great majority of cable operators have moved into the mobile and the B2B business. While these operators often experienced initial draw-backs in gaining a foothold in these segments, they are now reporting an increase in revenues and expect strong growth in the coming years.
"The Solon Survey of European Cable Communication clearly shows that cable operators are planning to continue the battle for dominance with telecoms incumbents by pushing quadruple-play offers (TV, broadband, telephony and mobile) as well as B2B services. Cable operators have so many growth options - it is up to them to make the most out of it," says Teichmann.
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