Back to top

Analyst Blog

Unitymedia GmbH, the German subsidiary of  Liberty Global plc. (LBTYA - Analyst Report) is looking to expand its mobile stores in that country. Currently, Germany’s third and fourth largest wireless operators, namely, Telefonica S.A. and Royal KPN N.V. are seeking regulatory approval for a merger between their German units. The merged entity will have more than 44 million mobile subscribers surpassing Vodafone Group plc. (VOD - Analyst Report) and Deutsche Telekom AG.

However, the European regulatory authority may ask the Telefonica-Royal KPN combine to divest some of their wireless customers and stores in order to eliminate monopolistic power. Unitymedia is targeting these divested wireless subscribers and stores that will put up for sale.

Currently, the company operates 300 mobile stores in west and southwest Germany where it offers triple-play broadband Internet, telephony and pay-TV bundle. Unitymedia also provides mobile phone services to about 240,000 subscribers using Telefonica Deutschland Holding AG’s network.

Last month, Bloomberg reported that Liberty Global intends to establish a pan-European mobile virtual network operator (MVNO) system to provide mobile phone services. MVNO is a company which uses the established network infrastructure of an existing wireless operator to offer its own services. Consequently, the company will become a competitor to major wireless operators, such as Vodafone, Deutsche Telekom, Royal KPN N.V. and Belgacon.

In Jun 2013, Liberty Global acquired a 100% stake in the British cable MSO, Virgin Media, which offers mobile phone services.  In the U.K., the merged entity poses serious competitive threat to British Sky Broadcasting Group plc and BT Group plc. (BT - Snapshot Report). Liberty Global currently carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%