This report presents our analysis of Neuf Cegetel alongside that of close rival Iliad (which trades under the Free brand). Neuf and Iliad are France’s two leading unbundlers, are both quoted on the Euronext exchange and, since Neuf’s IPO in November 2006, have been assessed largely in parallel by investors. We anticipate Neuf's Investor Day on 12th September will provide analysts with greater detail on Neuf’s strategy to improve by 2010 its profitability to the level enjoyed by Iliad.

Carphone Warehouse is seeking to position itself as an impartial guide to the broadband products from 6 different brands, although it is not selling the product sets of BT, Sky or Tiscali

H3G’s revenue growth has slowed significantly, with H1 revenue flat on the previous half, driven by steady churn and a reduced investment in customer acquisition

The loss of Sky basic channels, strong competition and a maturing broadband market have combined to weaken Virgin Media’s top line results sufficiently to cause cash flow to decline

The distribution business was slightly weak despite good like-for-like store sales, due to the lower quality ‘off-the-page’ newspaper advertisement business being successfully cut back by the mobile operators

The release of FY 2007 results on 27th July 2007 confirmed the strong performance of Sky and the success of its multi-product and service strategy over the past year, as reported in its trading update of 11th July

On 27th July the BBC will open access to the iPlayer to UK internet users, en route to a hard launch later this summer. This PC-based application allows the user to download BBC TV content after broadcast to view on the PC for a limited time, and provides a TV-like display on the PC. Delays to the launch will mean the iPlayer enters a field already crowded by other broadcasters, including Channel 4's 4oD service, ITV's broadband portal, Sky Anytime, as well as content aggregators such as Joost and Babelgum (both currently in beta)

Another record quarter of subscriber growth testifies again to the strengths of Sky’s marketing strategy and its successful entry into the telecommunications arena. The target of 10 million subscribers by the end of 2010 looks increasingly likely

TM is now looking at a sales target of £450 million instead of £600 million, though the revised target may still be too high, with the sale taking place at a time when regional newspaper fortunes are at a low ebb

Other results present a mixed picture: some improvements in costs, some progress online, but persisting doubts about TM’s ability to match its competitors over national newspaper sales and advertising revenues

Ofcom’s decision to hold a consultation on Sky’s pay DTT proposal will prevent its launch before Q1 2008 at the earliest and could be delayed to 2010 if Ofcom’s current investigation of the UK pay TV market ends, as seems increasingly likely, with a referral decision to the Competition Commission

The distribution business had a strong year, marred by a longer than usual Christmas hangover in the last quarter, but the early signs for the new financial year are promising