German fixed network operator Versatel acquires German cable network operators AKF Telekabel TV und Datennetze (AKF). The Versatel supervisory board approved the transaction, which remains subject to the approval of the German cartel office. Versatel will pay EUR 30 million including debts to the Deutsche Wohnen group for AKF, which is based in Frankfurt am Main and operates a level 4 cable network. The deal gives Versatel direct physical access to end customers and thus leverages Versatel's main competitive advantage: its own network. In regions where AKF has a presence, Versatel has the chance to become more independent from Deutsche Telekom and will save LLU fees. Buying access to some 76,000 households (as of 31 December 2007) Versatel gains a portfolio of stable customer relationships because of the long-term contracts involved. AKF currently offers a full range of TV and entertainment services together with internet and telephony. Among more than 50,000 AKF-served households within Versatel regions, nearly 80 percent have back channel access and are suited for a migration of Versatel customers to the AKF cable network.

Source:telecompaper