Just three players now account for most French broadband connections: Orange’s DSL market share is closing on 50%, Iliad’s rose to 25% from consolidation with Alice, while SFR’s dropped to 23.7%, with Neuf’s rebrand imminent. Cable remains a minimal presence on broadband

Prisa, the 98% owner of Sogecable, has put Spain’s leading pay-TV platform Digital+ up for sale in order to make a large reduction in its debts

Unity Media sold its 14.58% stake in German pay-TV operator Premiere to News Corporation at the start of 2008, prompting speculation of a full takeover by News Corporation later in the year

The long drawn out merger between the two Spanish pay-TV operators will finally be consummated in the next few weeks. As we have seen elsewhere in Europe, competition in pay-TV produces little but red ink. Investors will be pleased that Sogecable and Via Digital are finally combining. We have little doubt that this merger will eventually produce a profitable and successful business. But management appears too optimistic about the likely continuing cash drains as operations are combined and costs reduced over the next two years.