Ziggo, UPC takes about: what will change?

Jan

27

2014

ziggo upc When one company takes over another, is that sometimes a total surprise, but occasionally it is no more than a confirmation of a suspicion that everyone had. The acquisition of the parent company Ziggo, UPC was not unexpected in any case. Liberty Global already had a stake in the cable company and in 2011 were already rumors of a takeover by the parent company of UPC. Ultimately, it took longer than expected, investors who Ziggo had owned, not sold directly to the cable operator Liberty Global, but spent the first company to go public.

Anyway, the acquisition is great news for the millions of customers of the cable companies. Especially the UPC customers go some brands. Although the UPC that Ziggo takes over the brand name ‘UPC’, originally disappears United Philips Cable. Customers who cabler so, go if the acquisition is completed, another name shown on the invoice.

But in the longer term changes probably much more for customers, as well as the market for television and the Internet in general. Suddenly we get into the Netherlands megakabelaar almost the entire country as a market, and that is bigger than us. This is a unique situation in the cable and the question is how that will turn out.

Next page (Where the acquisition by – 2/6)
UPC Ziggo
Number of potential customers 2.8 million 4.2 million
Total number of customers 1.7 million 2.8 million
Number of Internet customers 1 million 1.9 million
Number of customers with digital TV 1.1 million 2.3 million
Number of telephony customers 976,000 1.6 million
Turnover 955.6 million (2012) 1.6 billion (2013)
Where the acquisition is by?

Firstly, the shareholders of Ziggo must agree to the acquisition. Liberty Global offers a price that is 3.8 percent higher than the closing price of the Ziggo share last Friday, probably in the hope that shareholders will agree with it. Such consent is not yet certain. Moreover, in the next eight weeks, an alternative bid for Ziggo be accepted, but which is 8 percent higher than the purchase price which Liberty Global to pay. Given the price of EUR 10 billion, that is not likely.

The government must agree to a takeover. Who must weigh whether competition is harmed as UPC and Ziggo join forces. Whether or not overweight Although UPC and Ziggo not compete directly with each other – each region has a cable company, providing coverage of UPC and Ziggo not overlap – creates an exceptionally large provider.

Autoriteit Consument en Markt The new provider has a coverage of 90 percent, or nearly all of the Netherlands, with the exception of Zeeland. Thus, the Dutch Internet market would be a monopolist in the ADSL market, KPN, and a near-monopoly in the cable market, Ziggo, know. So it is not a given that the acquisition is approved. Also, the Authority for Consumer Market and demand that the cable is open to competitors, as KPN competitors must admit.

Competition Lawyer Bass Braeken thinks the acquisition is approved. “It really does not change that much, because they have different catchment areas,” he says. “Consumers can now choose from but if a cable company.” Braeken does not think the new cable company to give up its network. Competitors access “The OPTA has tried to regulate the cable industry a few times but never succeeded., But it might be that KPN, the monopoly position of the new provider engages as an argument for the regulation to which it applies to relax,” said Braeken.

You will get the new cable company a powerful negotiating position with the broadcasters, who have the money to pay for the transmission of TV channels. “But that regulators never find quite problematic.” Previous mergers and acquisitions of cable companies are also authorized to sign Braeken. Another competition lawyer, Joost Fannoy, said last month in the Financial Dagblad, however, that he thinks the Consumer and Market Authority for that very reason, additional requirements will make, precisely because the new provider gets such a great position. To the acquisition
Research

How long it will take before there is clarity about the acquisition, it is not yet known. Next month, Liberty Global will submit a formal request to take the European Commission. That should be the European Commission because it involves an acquisition by a foreign company with a high turnover, says spokesman Murco Mijnlieff of the ACM.

Although the European Commission is investigating itself acquisitions sometimes, it is likely that this case is delegated to the Dutch ACM. The European Commission has 35 working days for the reference time. Thereafter, the ACM four weeks to investigate the acquisition. “But if we have additional questions, the clock stopped put like that so pretty hot,” said spokesman Mijnlieff. “He starts running again when the answers to those questions are within.”

Depending on the results of the first study can be decided whether an additional study comes second, which takes a further thirteen weeks. In theory, the acquisition can therefore be completed in March, but it may take until August or even later before the government agrees. Consequence: UPC disappears

UPC logo The first result of an acquisition of Ziggo, UPC is very visible, the brand name ‘UPC’ disappears. You can call remarkable, because it is the parent company of UPC Ziggo takes over. Liberty Global probably thinks Ziggo has a better reputation than UPC and there is something to be said. UPC gating some still the poor image of the beginning of this century, especially when left to be desired, the customer service of the company.

The name change will not only be on paper. Liberty Global is planning to set up. A nationwide cable provider The head offices of the two providers are merged, with the existing office Ziggo Utrecht the new headquarters of the provider will be. Headquartered in Amsterdam, UPC thus disappears.

The name change has eventually also affect customers, but existing customers is that it provisionally. UPC and Ziggo go as a provider same subscription handle, making the existing packages disappear. However, it is far too early to speculate what the new subscription forms. At this time it is slightly cheaper than UPC, Ziggo, UPC, but offers higher speeds.

For existing customers that does not matter much. The subscriptions that they have now, they can probably maintain. An ISP can there not just to make changes. If they do, then their subscribers can unsubscribe free, even though they have a notice period.
Employees

Ziggo For people at Ziggo and UPC work, there are probably more changes, because some jobs after the acquisition are no longer needed. During a press conference, Liberty Global has announced that there will likely compulsory redundancies. What jobs will disappear, not to say. Especially in departments such as finance and human resources are in reorganizations often blows. Until a reorganization is announced, however, all Ziggo employees remaining in service after an acquisition, as promises Liberty Global.
Patriot Act

Liberty Global is an American company and thus falls under a controversial U.S. law that makes it possible to recover, even if they are not stored. In the United States data of customers That was all for UPC, but will soon also apply for Ziggo. Liberty Global reported there in the press release about the acquisition nothing about, except that it’s commitment to customer privacy and will abide by regulations. Mobile Market: hotspots and networks

Ziggo Mobiel UPC and Ziggo has long formed a team in the mobile market. The two cable companies offered in 2010, all together on the 2.6 GHz frequency, which they now have in use for 4g. Moreover, they had already signed a cooperation agreement, so that could and vice versa. Customers of Ziggo, UPC-area on the wifi spots UPC customers

Nevertheless, the impact of the acquisition large. Ziggo is a mobile provider on the Vodafone network offers significant discounts to customers. If the discount will also apply, for UPC is the market suddenly much bigger; Ziggo Mobile now has 33,000 customers. Moreover megakabelaar now can better negotiate with Vodafone, there soon will be more customers with more minutes, SMS and MB decrease and that might mean more discount on the wholesale price.

The most important thing is that the megakabelaar now can wring. In the mobile market Because all wifi spots under the same business fall, the rear smooth and easy to work, while the cable company itself can fill the gaps. 2.6 GHz with 4g and 2g and 3g via Vodafone In this way, wireless internet can be offered in many places outside quickly.

With this step, the megakabelaar the mobile market outside break open, with a largely private infrastructure. To increase the range the company would even 4G modems can build and deploy. Femtocells as In this way, the user always reach home via a mobile network “to be accessible and be able to call something that’s missing from traditional providers for many customers. From small to big

It was in the seventies hardly conceivable that there would eventually grow out. Every little ‘cable operators’ Netherlands who was rich, a megakabelaar The roots of today’s cable operators are in the church services that spreading the ether signal of TV channels arranged via cable.

UnitedGlobalCom UPC evolved from the collaboration of the Dutch Philips UnitedGlobalCom from the United States. Therefore also the acronym stood for United Philips Cable, but after United GlobalCom Philips had bought out in the second half of the nineties, it changed the meaning of United Pan-Europe Communications. UPC began with the merger of Tele Cable and Amsterdam A2000, but around the turn of the century there were many cable companies through acquisitions in such GelreVision from Gelderland and local cable companies such as Haarlem and Alkmaar.

Centraal antenne systeem in Overloon (bron: CBSShop) Ziggo also came from smaller companies. The best known is probably Casema, an acronym for Central Antenna Systems Operating Company. Casema had in establishing objective a nationwide network of community antenna systems for the reception of TV to manage, but that plan was ultimately a majority in parliament.

Casema stayed long in the hands of the Nozema, the State and various broadcasters. KPN had Casema in the nineties also briefly owned. Casema eventually came into the hands of investors, who sold 2.1 billion euros to other investors, including Warburg Pincus. That is still part owner of Ziggo.

Casema

Ziggo came next Casema result of @ Home, a brand name of Essent, now only known as an energy supplier. The other major cable company was Multicable that Warburg Pincus for half a billion euros over from a German cable company. In total, the investor euro over five billion dollars for the companies which in 2008 merged into Ziggo.

Ziggo in 2012 went to the fair and even before that were the first rumors about a takeover. After the IPO, Liberty Global took a minority stake and expanded it slowly. Detail: when taking the minority interest appreciated Liberty Global Ziggo 5 billion, now it is doubled. In October, it became clear that the parent company of the competing cable operator UPC wanted to take over . Ziggo hit the first offer down because it was too low, after the companies were still negotiating. Finally,

Although the parent company of UPC, Ziggo take over financially speaking, it feels a bit like a reverse acquisition or merger. After all, Liberty Global puts the brand UPC in the Netherlands on the side and continues as Ziggo. Since both companies have approximately the same strategy, there will be little to change the direction of the cable companies.

“It is one of the largest acquisitions in the Dutch tech history”

It is obvious that after the acquisition new packages come with new conditions and prices, but what they look like is impossible to say. Moreover, the new megakabelaar in more areas can make a strong fist, whether it comes to marketing, negotiating copyright or making deals with Vodafone for example.

Of course, it remains as to whether the transaction goes ahead. UPC and Ziggo are no area competitors of each other, but together they control well over 90 percent of the cable market and they are a major player in the field of TV and Internet services. The cable was hitherto not open to competition, as it always was a ‘regional monopoly, but with the acquisition, the situation obviously changed.

We know whether the acquisition will require prior approval in March at the earliest and at the latest by the end of summer. Whatever happens, if the acquisition goes ahead, it will be one of the largest in the Dutch tech history are directly affecting millions of people.

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