The wireless companies need a foothold in content and media.
A combination of wireless and cable companies is an extremely logical measure, in view of the anticipated developments in the telecommunications market, and the growing power of the wireless companies as a key element in the composition of consumers’ telecommunications.
The wireless companies, which already account for 56% of the total revenue in the telecommunications market, are rapidly striding towards 3G networks, which will enable them to transmit media directly to wireless devices. For that, however, they need a significant foothold in content and media, and the cable companies can provide it.
Furthermore, the wireless companies aspire to become general telecommunications companies, offering their subscribers a variety of telecommunications services, such as Internet, fixed-line telephony, and television. Owning part of the merged cable company will enable them to offer a subscriber a full telecommunications package, without having to build extensive infrastructure.
Published by Globes [online] - www.globes.co.il - on March 11, 2004