This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (August 14, 2017).
LONDON -- Decades after earning the nickname the "Cable Cowboy" for building an American cable-TV empire, John Malone is at it again. This time, he has set his sights on internet delivery overseas.
Mr. Malone's investments have been making plenty of headlines in the U.S. recently. He owns a nearly one-third voting stake in Discovery Communications Inc., the television-programming company that agreed on July 31 to buy rival Scripps Networks Interactive Inc. for $11.9 billion. Another big Malone investment, Charter Communications Inc., last month rejected a one-on-one tie-up with Sprint Corp.
But he and his lieutenants have also been building, more quietly, a cable colossus far from American shores that has the potential to be the backbone for 5G, the next generation of wireless communications that promises to turbocharge mobile download and upload speeds. Liberty Global PLC, which is incorporated in London but run out of Mr. Malone's hometown of Denver, is currently the world's biggest international cable company. Currently, it has 25 million subscribers across 30 countries in Europe and Latin America. The company said Monday it planned to spin off the Latin American business later this year.
The company's ambition when it started in 2005 was to be a cable-TV and broadband-internet provider, but its focus has shifted to include wireless networks, too.
Liberty Global and its investors believe it has positioned its networks to take advantage of 5G technology if and when it gains traction. The strategy echoes Mr. Malone's moves in the U.S. in the 1990s, when he transformed cable into high-speed pipes for the internet.
Continue Reading Below
ADVERTISEMENT
Currently, Liberty Global's focus is selling customers its "quad play," a bundle of cable, internet, fixed-line telephone and mobile services, all for one price. Liberty mostly rents the use of cellular towers and other wireless infrastructure from carriers for its mobile offerings. But for the other three products, it owns the infrastructure -- miles of coaxial copper and fiber-optic cables.
It is those cables where more value potentially can be unlocked.
The telecom industry's vision of 5G, which is expected to go live in 2019 or 2020, is to connect the cables to small cellular antennas to transmit the gobs of data required for top-quality videos, self-driving cars, virtual reality and other technologies of the near future. Those antennas would be close to the ground, or atop buildings and streetlights, in contrast to the tall ones now that sit along highways. These smaller antennas would send that data on its final journey -- to customers in a radius as short as 300 feet. The process is similar to how a Wi-Fi router transmits data from a landline connection.
"There are two things that are going great for us," said Balan Nair, Liberty Global's chief technology and innovation officer. "We have fiber to many neighborhoods" and power, he said. The company has utility cabinets in neighborhoods already connected to power, which would allow the company -- or a mobile-carrier partner -- to quickly set up a 5G cellular site there.
Liberty Global's fiber-optic landlines could make the company an acquisition target for a mobile carrier that wants to buy 5G infrastructure, said Citi analyst Simon Weeden. "There's obviously going to be demand for this stuff," he said.
But one potential downside: Many wireless carriers are already building out their own fiber-optic networks for their own 5G services. If that happens, customers might just use their existing wireless carrier's 5G and skip Liberty Global's offerings altogether. "5G may not be good news" for Liberty Global, Mr. Weeden said.
Mr. Nair said it would be difficult for mobile carriers to invest in laying the landlines for their own 5G network. "The economics of building that infrastructure are high," he said, referring to costs. He said Liberty Global would decide whether to partner with a mobile carrier for 5G or whether to become a 5G carrier on its own on a case-by-case basis in each market.
Liberty Global Chief Executive Mike Fries struck a note of caution at a conference in February, saying that 5G wouldn't become a reality soon, at least in Europe. European mobile carriers don't have enough money to invest in 5G upgrades, and many are still in the process of adopting 4G, the current generation of wireless technology, Mr. Fries said.
The challenges extend to building out the infrastructure. Liberty Global's effort to install fiber-optic lines in the U.K., called "Project Lightning," has been delayed. Mr. Fries in May said the company had discovered irregularities in reporting the completion status of some fiber-optic plans by a small group of local managers. This week, he said management changes were helping to remedy the problem.
Mr. Malone, 76 years old, is Liberty Global's chairman, but he delegates responsibilities to the 54-year-old Mr. Fries, who is also based in Denver and occasionally fronts a rock 'n' roll cover band called "The Moderators." Liberty Global declined to make Mr. Malone available for an interview.
Liberty Global's fast growth has been somewhat overshadowed, especially lately, by Mr. Malone's other interests in the U.S.
In 1999, Mr. Malone sold cable-powerhouse Tele-Communications Inc. to what was then known as AT&T Corp. for $46 billion. In 2005, he merged two of his overseas interests, cable-operator UnitedGlobalCom and the international arm of media-investment company Liberty Media Corp., to create Liberty Global. Mr. Malone remains Liberty Media's chairman.
Mr. Malone is also chairman of Liberty Broadband Corp., the largest investor in Charter. Mr. Malone had been trying for a year to get Charter and rival Comcast Corp. to jointly invest in or partner with a mobile carrier, The Wall Street Journal reported in June. Charter on last month, however, rejected an informal offer for a merger with Sprint.
Liberty Global now operates eight brands, the most notable being Virgin Media in the U.K. and Ireland. Since 2005, it has snapped up more than 250 companies, spending $93 billion, and sold about 30, for $11 billion. It bought Virgin Media in 2013 for $24 billion.
Mr. Fries has kept the company's various businesses for the most part independent, counting on local brand recognition and manager expertise. But the parent company saves on research and development costs by rolling out the same set-top box across all of its markets. Liberty Global also has a stable of cable-industry veterans it can dispatch to its companies to help with technological and regulatory issues. "We are delivering people, we are delivering expertise," Mr. Fries said in a recent interview.
Write to Stu Woo at Stu.Woo@wsj.com
(END) Dow Jones Newswires
August 14, 2017 02:47 ET (06:47 GMT)
Excerpt from:
Liberty Global Quietly Shapes 5G Strategy -- WSJ - Fox Business
- Information Overload - November 8th, 2009 [November 8th, 2009]
- Same-Sex Marriage Gains - Iowa, DC and Vermont - November 8th, 2009 [November 8th, 2009]
- Obama and the Muslim World - November 8th, 2009 [November 8th, 2009]
- Nordyke - Incorporation of the Second Amendment to Apply to the States - November 8th, 2009 [November 8th, 2009]
- Obama's First 100 Days - Reclaiming the Constitution* - November 8th, 2009 [November 8th, 2009]
- Education Reform - November 8th, 2009 [November 8th, 2009]
- Legalize (and Tax) Vice - November 8th, 2009 [November 8th, 2009]
- Obama World vs. Cheney World - November 8th, 2009 [November 8th, 2009]
- National Rifle Association v. Chicago (McDonald v. Chicago) Oral Arguments* - November 8th, 2009 [November 8th, 2009]
- Reconciling Liberty and Progressive Government - November 8th, 2009 [November 8th, 2009]
- Obama in the Middle East - A Respectful, Rational Voice - November 8th, 2009 [November 8th, 2009]
- Second Amendment Incorporation Update - Seventh Circuit Decision - November 8th, 2009 [November 8th, 2009]
- Strong versus Weak Judging - November 8th, 2009 [November 8th, 2009]
- Drawing the Line on the Obama Administration's National Security Practices - November 8th, 2009 [November 8th, 2009]
- Supreme Court Amicus Brief in McDonald v. Chicago - November 8th, 2009 [November 8th, 2009]
- McDonald v. Chicago Amicus Brief - Volokh Conspiracy Link - November 8th, 2009 [November 8th, 2009]
- Healthcare Reform - Voices of Reason from Senators Wyden & Bennett - November 8th, 2009 [November 8th, 2009]
- Time to Legalize Drugs - Sensible WaPo Article - November 8th, 2009 [November 8th, 2009]
- Article in William & Mary Bill of Rights Journal: Rescuing the Fourteenth Amendment Privileges or Immunities Clause - November 8th, 2009 [November 8th, 2009]
- Just Do It - Obama Needs Backbone for Meaningful Healthcare Reform, a la FDR - November 8th, 2009 [November 8th, 2009]
- Nordyke v. King Rehearing - November 8th, 2009 [November 8th, 2009]
- Huge News - Supreme Court Grants Certiorari in McDonald v. Chicago re: Privileges or Immunities - November 8th, 2009 [November 8th, 2009]
- Obama Needs to Take Stands on Principle - November 8th, 2009 [November 8th, 2009]
- Kudos to Harry Reid for Including Public Option in Proposed Health Care Bill - November 8th, 2009 [November 8th, 2009]
- Free Radicals - Individual Efforts Can Change the World - November 8th, 2009 [November 8th, 2009]
- - November 8th, 2009 [November 8th, 2009]
- Destroy the Filibuster - December 13th, 2009 [December 13th, 2009]
- McDonald v. Chicago - Petitioner's Brief - December 13th, 2009 [December 13th, 2009]
- Something on Which We Can All Agree - Less Government in Criminal Justice - December 13th, 2009 [December 13th, 2009]
- Obama Approach to Governing; Afghanistan Policy - December 13th, 2009 [December 13th, 2009]
- McDonald v. Chicago - Law Professors' Amicus Brief - December 15th, 2009 [December 15th, 2009]
- Senate Passes Health Care Insurance Reform - Reflections - December 25th, 2009 [December 25th, 2009]
- "Radicals In Their Own TIme" - Introduction & Selected Excerpts - January 1st, 2010 [January 1st, 2010]
- Terrific WaPo Farewell Column by Ellen Goodman - January 2nd, 2010 [January 2nd, 2010]
- Same-Sex Marriage Case in California - January 20th, 2010 [January 20th, 2010]
- Health Care; Corporate Speech Case - January 23rd, 2010 [January 23rd, 2010]
- McDonald v. Chicago - Essay in Cardozo Law Review de novo Online Journal - January 29th, 2010 [January 29th, 2010]
- Another Response to Citizens United: Remove Supreme Court Appellate Jurisdiction - February 11th, 2010 [February 11th, 2010]
- Olympics Idealism - March 1st, 2010 [March 1st, 2010]
- Framers Believed in Virtuous (ie, Humane) Government - March 21st, 2010 [March 21st, 2010]
- McDonald v. Chicago - Yesterday's Oral Argument - March 22nd, 2010 [March 22nd, 2010]
- Radicals in Their Own Time: Four Hundred Years of Struggle for Liberty and Equal Justice in America - May 21st, 2010 [May 21st, 2010]
- McDonald v. Chicago decision - October 11th, 2010 [October 11th, 2010]
- OpEd on McDonald v Chicago Case - June/July 2010 - October 11th, 2010 [October 11th, 2010]
- New Blog Format - October 11th, 2010 [October 11th, 2010]
- New Book - Radicals in Their Own Time - February 14th, 2011 [February 14th, 2011]
- Liberty Property Trust Hosts First Quarter 2012 Results Conference Call - March 31st, 2012 [March 31st, 2012]
- Liberty Property Trust Announces First Quarter 2012 Results - April 25th, 2012 [April 25th, 2012]
- Liberty Energy Announces Creation of Advisory Board and Appointment of Its First Member - April 25th, 2012 [April 25th, 2012]
- Liberty Tire Recycling, Keep Atlanta Beautiful and City of Atlanta Tire Commission Join Forces for Large-Scale Tire ... - April 25th, 2012 [April 25th, 2012]
- Liberty Bowl set for afternoon kick New Year's Eve - April 25th, 2012 [April 25th, 2012]
- Liberty Bowl Announces Date and Time - April 25th, 2012 [April 25th, 2012]
- Liberty ship sinking remembered - April 25th, 2012 [April 25th, 2012]
- Liberty Union searching for girls basketball coach - April 25th, 2012 [April 25th, 2012]
- How to Do a Liberty - Video - April 30th, 2012 [April 30th, 2012]
- Review: The "Liberty I" Ultra Compact Compound Bow vs. "Razor Edge" and "Slingbow" - Video - April 30th, 2012 [April 30th, 2012]
- Heavy Rain in Liberty City: Episode 1 (Grand Theft Auto IV Machinima) - Video - April 30th, 2012 [April 30th, 2012]
- Jordan Page "Liberty" (Acoustic Version) - Video - April 30th, 2012 [April 30th, 2012]
- StarCraft II: Wings of Liberty - Cinematic Trailer - Video - April 30th, 2012 [April 30th, 2012]
- China 9 Liberty 37 - Video - April 30th, 2012 [April 30th, 2012]
- Liberty`s Kids: #05 "Midnight Ride" (1/2) - Video - April 30th, 2012 [April 30th, 2012]
- Madness - The Liberty of Norton Folgate Live - Video - April 30th, 2012 [April 30th, 2012]
- I Pledge to Join Young Americans for Liberty - Video - April 30th, 2012 [April 30th, 2012]
- Steve Vai - Liberty - Video - April 30th, 2012 [April 30th, 2012]
- North Liberty fire chief: Email blasting staff was meant to motivate - May 4th, 2012 [May 4th, 2012]
- FCC dismisses Liberty Media request for control of SiriusXM - May 5th, 2012 [May 5th, 2012]
- Liberty FCC Request to Control Sirius XM Radio Rejected - May 5th, 2012 [May 5th, 2012]
- FCC rejects Liberty Media bid for Sirius XM control - May 7th, 2012 [May 7th, 2012]
- Liberty Rocket Targets 2015 - May 10th, 2012 [May 10th, 2012]
- Liberty boosts SiriusXM stake above 45% - May 10th, 2012 [May 10th, 2012]
- One Liberty Properties, Inc. Reports First Quarter 2012 Results - May 10th, 2012 [May 10th, 2012]
- Liberty to boost stake in Sirius XM to 45 pct - May 10th, 2012 [May 10th, 2012]
- ATK Announces Complete Liberty System to Provide Commercial Crew Access - May 10th, 2012 [May 10th, 2012]
- Penn Liberty Wealth Advisors Expands - May 10th, 2012 [May 10th, 2012]
- Romney Woos Evangelicals at Liberty University - May 13th, 2012 [May 13th, 2012]
- Liberty opener moved to MSG due to hockey game - May 13th, 2012 [May 13th, 2012]
- Romney Defends Marriage and Faith in Liberty University Speech - May 13th, 2012 [May 13th, 2012]
- Romney Speaks At Anti-Gay Liberty University Alongside Baptist Billionaire - May 13th, 2012 [May 13th, 2012]
- Liberty Center girls, Archbold boys reign - May 13th, 2012 [May 13th, 2012]
- Romney Courts Christian Conservatives at Liberty U - May 13th, 2012 [May 13th, 2012]