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August 18, 2006

German Telcos In Demand, As Acquisition Targets

Is the German broadband services market going to get more competitve or less competitive? More competition would be good for online service and media companies whose businesses rely on lots of users having big fat data pipes, as prices would drop and adoption would increase.

We are wondering about it because the German press is reporting that private equity giant, Apax, and the UK-based telecommunications giant, are both looking to buy German telcos. AOL's AOL Deutschland business is up for sale, but there are others that they are eyeing too.

BT says it would consider businesses doing €100M and up to €250M in sales, while Apax has a wider price span.

Apax's plan is to do a rollup, while BT's is aiming to find new revenue streams.

The Apax strategy seems kind of counterintuitive from where we sit as it would lead to less competition in the telecoms market, rather than more.

Read - Das große Fressen (manager magazin)
Read - VDSL: BT Group rechnet mit ungehindertem Zugang (pcwelt)

Posted on August 18, 2006 06:21 AM | Posted to Broadband Services | Permalink

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