- Consolidation remained on the agenda in Germany’s broadband market, offering up the prospect of yet stiffer competition for Telekom Deutschland as it battles to maintain share (see separate report).
According to Reuters, two smaller fibre-to-the-home players are up for sale, Deutsche Glasfaser and Inexio, which are majority-owned by private equity houses Kohlberg Kravis Roberts (KKR) and Warburg Pincus, respectively. René Obermann, former Chief Executive of Deutsche Telekom (DT), is a Managing Director at Warburg Pincus, and has long been orbiting the Group via stakes in rival players, including Inexio and United Internet’s 1&1 Hosting business.
KKR’s investments include Telefónica’s tower business Telxius. The shape of Germany’s broadband market continues to shift, particularly via the European Commission’s recent decision to approve the acquisition by DT arch rival Vodafone of Liberty Global’s cable businesses in the Czech Republic, Germany, Hungary, and Romania (Deutsche Telekomwatch, #85 and passim). DT vehemently opposed the buyout, which brings together Vodafone Germany and Unitymedia, Germany’s two largest cablecos.