In Holland UPC (a part of John Malone’s Global MSO Empire) Shoots Self in the Foot
August 17th, 2006 by Gordon Cook
Things are becoming clearer on this side of the pond.
Jame Enck tells us here:
“So, with fiber (muni, entrepreneurial and incumbent) nipping at its heels and KPN pushing DTT, it would seem the right time for UPC to go on a charm offensive, er, no, instead it’s shopping two of its file sharing subscribers’ identities to Dutch artists’ rights group Brein. The background here is complex - UPC initially denied that it had passed information to Brein, then claimed that the information was only included in court papers to demonstrate UPC’s internal controls, though Brein claims that earlier it was explicitly promised such information. Whether this reflects malice or merely ineptness at UPC is probably academic now, as the public is outraged and feeling that trust has been violated. Watch those churn numbers fly!”
Cook’s Edge: Thanks James. I am hearing some comments from someone in Holland who need to be on background. Lets call him Mark van Doorn. Yesterday I wondered whether it was some kind of attack. Mark responded: It’s not an attack, it’s an inconceivable series of blunders by Mr Malone’s staff. Latest development is that UPC now will sue the Brein foundation not to use those names, but that’s of course too late.
And then Mark sent this translation of an angry blogger’s post.
Commenting on a press statement by Malone’s UPC:
“We of UPC loan our 10 year old children out to pedophiles,
but only after decreeing they can only use them to give
the child a nice afternoon. Moreover we at UPC like to
set the fox to watch the hen house. Anybody have a piece of rope?
Our lawyer is suicidal!”
COOK’s Edge: Interesting response from the puiblic you are trying to appease.
Mark van Doorn: There’s worse to come for UPC. In their fiefdom of Rotterdam, second city of NL. Tomorrrow housing corporation Stadswonen will make public that all of their 6,500 homes will be connected to FttH. Actually the roll out is allready half way done. See for yourself here A video is here.
Part of the pro-American owned cable stance of our outgoing cabinet was directly caused by the former American ambassador, a Bush platinum donator, who strongly defended Malone and Carlyle’s cashflow.
COOK’s Edge: At the Netherlands page of the broadband wiki we learn “No wonder UPC’s owner Malone last year told the Financial Times the “in the Netherlands we realize a gross margin of 70 to 80%.”
“The coppernetwork is owned by incumbent KPN (for just 7.8% owned by the national government), the cable (MSO) sector is for about 60% privatized (UPC = Liberty Global, Casema = Carlyle + Providence and Multikabel = Warburg Pincus) and 38% government owned (Essent, Zeelandnet).”
Mark concluded: “UPC is despised. Recently a representive poll among journalists showed UPC as the least respected large corporation. KPN on the other hand is more favorably regarded, “OK they ‘re not that innovative, but they are at least Dutch” ”
UPC for many years ( from ‘98 till ‘03, but it was enough) was CEO-ed by American cowboys (Schneider paladins) . They did not understand a bit of local culture. Now they’ve hired a nice guy from KPN, but anybody looking sees a puppet on a Gene Schneider/John Malone string.”
“UPC NL generates a free cashflow of some 2.3 million times 100 euro a year…”
COOK’s Edge: A nice lesson from the Captains of Industry in how to treat your customers - from Captains who seem to have no clue about this internet beast.