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Allgemeine Zeitung On German MDU Regulatory Changes

COMMUNICATIONS


  • Nothing new but Allgemeine Zeitung with a decent overview of the MDU regulatory changes facing the German telco market.
  • https://www.allgemeine-zeitung.de/wirtschaft/wirtschaft-deutschland/tv-kosten-fuer-mieter-bald-faellt-das-nebenkostenprivileg-3671200
  • The changes are due to come into effect in July and are commonly cited as a headwind for VOD and a tailwind for DT and other operators. The existing MDU regulatory setup was a big selling point in the German takeover of Kabel Deutschland back in 2013.
  • VOD’s CEO implied on their earnings call that the changes will drive negative EBITDA in the German market this year with around half of the high margin EUR 800mn revenue stream dissipating.

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