By Archibald Preuschat
COLOGNE, Germany--Mobile phone services are an important driver
of growth for traditional cable network operators, Michael Fries,
chief executive of Liberty Global, said in an interview
Tuesday.
Mr. Fries indicated Liberty Global, controlled by U.S. media
mogul John Malone, has little appetite to acquire mobile assets
following a recent deal in Belgium for mobile-network operator
Base.
His remarks follow recent comments from Vodafone Ltd., the
world's second-biggest mobile firm, that it was in talks with
Liberty Global on an asset swap. Mr. Fries declined to discuss the
issue.
Offering bundled packages with TV, fixed-line telephony,
Internet and mobile services--so called quad-play services -- "is
an important piece of the puzzle," Mr. Fries said. Mobile services
in particular are "an interesting growth driver," he said, adding
Liberty Global needs to add mobile services because competing
telecom firms also offer quad-play-products.
"We see in the U.K. and Belgium that customers become more
sticky," or have greater allegiance to a service provider, he said.
Acquiring customers is expensive for cable companies and retaining
them is increasingly important.
While Liberty Global is a large player in the U.K., it "likely
won't buy a mobile operator" there, he said. "We are a cable
company and owning mobile assets would change our economics, our
profile," he said.
In Belgium, however, Liberty Global recently acquired Base from
Dutch carrier KPN. "In Belgium, especially in Flanders, we've been
big enough and Base was small enough to absorb them easily," Mr.
Fries said.
In most other markets it is more efficient to rent mobile
capacity than to buy an operator, he said.
Mr. Fries said Liberty Global isn't vulnerable as a takeover
target. "We are absolutely not vulnerable, in terms of becoming a
target against our own will," he said. "We have great organic
growth. There are no deals we need to do to be successful."
Write to Archibald Preuschat at archibald.preuschat@wsj.com
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