The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to recent developments in the cable and satellite sector in Europe.

Liberty Global which will employ a mobile virtual network operator system (MVNO) this being the term applied to companies that utilize the wireless infrastructure of other carriers for their own cellular networks. Speaking in an Interview in Amsterdam Liberty Global Senior Vice President Manuel Kohnstamm announced that the company would employ a MVNO approach, not only in Austria where the service will be initially offered but also eventually across the whole of Europe.

“Providing telecommunications services was a logical next step for Liberty Global as their existing cable set up can integrate with established carriers in a MVNO in a very cost efficient manner. This also gives them for the first time the ability to bundle service packages together offering, phone, cable TV and event internet, the last one being crucial to future expansion into streaming media,” said Murakami Hiroto, Senior Vice President of the Global Investment Division at The Avanti Group.

Malone’s Liberty Global believes that it will be able to keep its margins high despite paying for the use of its competitors infrastructure, because, as a European wide cable TV provider, the company already operates an integrated billing system, back office and back haul, which connects its primary network to its smaller sub networks across the continent, a system similar in design to those utilized by telecoms to manage their traffic and billing. Liberty Global's initial focus for its introduction of its MVNO network will be in the Netherlands, Belgium, and Switzerland.

“In the last decade we have seen Liberty expand constantly and even more importantly efficiently, there has only been a couple of missteps and these have only been failures to acquire their takeover targets, Ziggo, Time Warner and a few others, ultimately they have always found a replacement and been able to carry on with little modification to their strategy required,” added the Senior Vice President at The Avanti Group.

Liberty Global and John Malone acting separately have been actively making acquisitions into the European cable market in recent years, including the takeover of the U.K provider Virgin Media Inc in 2013 and in January of this year agreeing to buy Dutch operator Ziggo NV, as well as making a series of offers to buy out the U.S Time Warner Cable Inc which were ultimately unsuccessful with the company being acquired by Comcast Inc.

The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.