Deutsche Telekom would still dominate Germany’s communications market, even if Vodafone precedes with an acquisition of Kabel Deutschland, the country’s largest cable operator.
IHS Electronics & Media telecoms analyst James Allison notes a combined Vodafone and Kabel Deutschland would hold a leading market share in the pay-TV market – 34.8% compared to 7.6% for Deutsche Telekom - but that incumbent would remain the leader in voice (54.3%), broadband (44.9%), and mobile (32.3%). Vodafone and Kabel Deutschland would hold 15.7% of the voice sector, 17.9% broadband, and 29.9% mobile.
Nevertheless, Allison backs the proposed deal, noting it will “allow Vodafone to better compete” with the German incumbent.
Vodafone confirmed this week that it has made contact with Kabel Deutschland regarding a deal, but states it is only an initial approach and that it hasn’t decided to proceed, or discuss potential terms.
The carrier was responding to press reports it has already tabled a £6.4 billion ($10.5 billion) offer for Kabel Deutschland.
Vodafone is also eyeing an acquisition of FastWeb in Italy, as it plans for a windfall from the sale of its stake in Verizon, Bloomberg reports