Feeds

NTL acquires CWC cable unit

Two left, only Telewest to go

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Two years ago the UK had 24 cable operators. But now there are only two, following today's news that NTL is to acquire the cable television interests of Cable & Wireless Communications for £8.2 billion in cash and stocks. Meanwhile, Cable & Wireless, owner of 53 per cent of CWC, is buying out the data and business divisions, with its own shares, valueing this part of the business at £5.3 billion The upshot is that CWC, accounting for 24 per cent of Cable & Wireless turnover is dismembered; NTL becomes by far the most important cable operator in the UK, with customers in 2.8 million homes; and Cable & Wireless gains full control of CWC's 117,000 business customers. Post deal, it will also control up to 12.4 per cent of NTL. Indications are that this is a passive stake - Cable & Wireless promises to retain its holding for at least a year. The end game for the British cable industry could be only months away, with confirmation that New York-listed NTL is also wooing Telewest Communications, the UK's other remaining operator. That would give it near national coverage as a telco for consumers. NTL is also positioning itself as a credible contender in the new world of consumer broadband multimedia services, lining up against BT and BSkyB in the UK. The company has secured two big name backers -- France Telecom and Microsoft -- in its rush to create a British cable monopoly. France Telecom is by far the more important backer, in cash terms. It is underwriting the CWC take-over by pumping in $5.5 billion for up to 25 per cent of NTL. France Telecom already owns ten per cent of NTL. Microsoft operates an investment portfolio in several cable operators, including a small stake in NTL, but it disclaims any ambition to run its own cable operator. It is keen to establish its technology as the de facto set-top standard for cable TV. ®

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.