News From the European Cable Industry

News From the European Cable Industry

MUNICH, Germany, September 28/PRNewswire/ --

- Profits are Still Growing - but so are Customer Demands

For the third edition of the "Solon European Cable Survey", the team of
experts from the Munich consultancy surveyed 18 CEOs of Europe's leading
cable companies on their current market positions, product trends and the
future of the European cable industry. The Survey's findings, which Solon was
able to complete in collaboration with the Cable and Telecommunications
Association for Marketing (CTAM) Europe, show that only those providers,
which react quickly to the growing expectations of customers, are able to
prevail in the long term on the highly dynamic European market.

An attractive offer alone, however, is no longer enough to maintain the
customer relationship. Excellent customer management and customer retention
programs are becoming increasingly important. "Although this necessity is
widely known to cable CEOs, still no one has managed to provide outstanding
performance in all areas - from the development of products, to customer
acquisition, installation and activation, customer service and adequate
customer retention and churn prevention measures," Dorothea von Wichert-Nick,
cable expert at Solon, says. "There is still ample room for improvement."

That cable is a highly profitable business can be seen by its
high EBITDA margins of on average 43.5%. Having their own network
infrastructure, cable network operators themselves have a cost advantage over
alternative network operators and resellers that will also be useful in the
future. "However, cable network operators have become somewhat more cautious
when considering their future margin growth, a fact that can essentially be
traced back to the more competitive environment," explains Wichert-Nick.
"Therefore, increases in productivity and efficiency through economies of
scale are especially important."

Network expansion and the formulation of the product portfolio
offer have been completed by most companies. Thus, the focus is now shifting
towards the production of outstanding performance with existing products and
services. In order to withstand growing competition pressure from satellite,
antenna and web TV, companies must be able to deal with three challenges:

1) Secure attraction to their product portfolios and react to
trends

2) Institutionalize customer management

3) Achieve economies of scale and increases in efficiency

"The past years have seen cable network operators efficiently
expanding their markets and sophisticatedly diversifying revenue structures,"
Dorothea von Wichert-Nick, head of the Telecom Practice at Solon Management
Consulting, comments. "Emphasis should now be made on the optimization of the
product portfolio, attractive TV channels, interactive TV and the
establishment of VoD and PVRs."

With 18 participants from ten countries, representing a total of
25 million users, the "European Cable Survey 2007" is the most comprehensive
Survey of strategic perspectives and operational challenges of European cable
network operators. The Survey is available for download at
http://www.solon.de for free.

Solon Management Consulting is the leading consultancy of the European
cable TV industry. Projects range from the accompaniment of M&A ventures to
the development and implementation of company strategies. Along with cable
network operators, telecommunications and media companies, our network of
clients includes banks and private equity institutes.

Press Contact:

Dr. Dorothea von Wichert-Nick
Solon Management Consulting
Kardinal-Faulhaber-Str. 6
80333 Munich
Tel: +49-(0)-89-210388-0
Fax: +49-(0)-89-210388-44
E-mail: press@solon.de

Source: Solon Management Consulting GmbH

Press Contact: Dr. Dorothea von Wichert-Nick, Solon Management Consulting, Kardinal-Faulhaber-Str. 6, 80333 Munich, Tel: +49-(0)-89-210388-0, Fax: +49-(0)-89-210388-44, E-mail: press@solon.de

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