Liberty Global Stock

Liberty Global plc, an international converged fixed and mobile communications company, provides connectivity and entertainment services to its residential and business customers.

The company is focused on building fixed-mobile convergence national champions in the company’s core European markets, and the company is constantly striving to enhance and simplify the company’s customers’ lives through quality products and services that give them the freedom to connect, converse, work and be entertained anytime, anywhere they choose. To that end, the company delivers market-leading connectivity and entertainment products through next-generation networks that connect retail and wholesale customers subscribing to over 86 million (at December 31, 2022) broadband internet, video, fixed-line telephony and mobile services across the company’s operating companies. The company’s primary business operations are listed below, all of which the company consolidate, with the exception of the VMO2 JV and the VodafoneZiggo JV (each as defined below). Additionally, the company’s ventures arm, Liberty Global Ventures, has investments in more than 75 companies in the fields of content, technology and infrastructure, including strategic stakes in companies such as Plume Design, Inc. (Plume), ITV plc (ITV), Televisa Univision, Inc. (Televisa Univision), AE Group Sàrl (AtlasEdge) and Formula E Holdings Ltd. (Formula E).

Dispositions

On June 1, 2022, Telenet Group Holding N.V. (Telenet) completed the sale of substantially all of its passive infrastructure and tower assets to DigitalBridge Investments LLC (DigitalBridge) (the Telenet Tower Sale).

On April 1, 2022, the company completed the sale of its operations in Poland (UPC Poland) to a subsidiary of iliad S.A. (iliad).

The company is one of the world’s leading converged video, broadband and communications companies, with a commitment to providing the company’s customers the ‘best in class’ connectivity and entertainment services. These services are delivered to the company’s residential and business customers over the company’s networks and include broadband internet, video, telephony and mobile services. The company designs its services to enable its customers to access the digital world on their own terms, with ‘best in class’ connectivity at the core of the company’s strategy. The company’s extensive broadband network enables the company to deliver ultra-high-speed internet service across its markets, be it through fiber, cable, a combination thereof or mobile technology. The company continually strives to extend its reach and reinforce the company’s speed leadership. In most of the company’s footprint the company offers converged fixed and mobile experiences in and out of the home, and it is the company’s ambition to further enhance this proposition through strategic acquisitions and partnerships and through product development to offer the company’s customers a world-class suite of products and services. As part of this strategy, Telenet, the VMO2 JV, the VodafoneZiggo JV and Sunrise deliver mobile services as mobile network operators, and Virgin Media Ireland (VM Ireland) delivers mobile services as an MVNO through Three (Hutchison’s) network.

The company provides residential and business telecommunication services in Ireland through VM Ireland, Belgium through Telenet, Switzerland through Sunrise and Slovakia through UPC Slovakia, and the company is a leading fixed network provider in each of these countries. The company also has investments in the VodafoneZiggo JV and the VMO2 JV, each of which is a fixed network leader in their respective countries.

Products and Services

The company’s main products and services are intelligent WiFi and internet services, video, mobile and telephony services.

Intelligent WiFi and Internet Services

To meet the company’s customers’ expectations of seamless connectivity, the company is developing a fully digital, cloud-based connectivity ecosystem that the company calls ‘ONE Connect,’ built on top of the company’s fiber-rich fixed broadband network and recently expanded mobile network. ONE Connect is orchestrated by a fully cloud-based digital journey, enabling fast and flexible introduction of new hardware and services, as well as cloud-to-cloud open API integration, simplifying the on-boarding of new services and devices. The devices used within the company’s ONE Connect ecosystem are connected and protected through the company’s security gateway and VPN, both at home and on the go. At home, the company’s customers can benefit from the gigabit speeds enabled by its ‘Connect Box’ (described below), as well as ‘Intelligent WiFi’, which has optimization functionalities, such as the ability to adapt to the number of people and devices online at any given time in order to improve and extend wireless connectivity reach and speeds. The company has completed the rollout of its Intelligent WiFi across all the company’s markets. In addition, the company introduced its first ‘Smart Home’ bundles in select markets, enabling those customers to take their smart home ambitions to the next level, including enhanced entertainment, home automation and home security. Finally, the company’s ‘Connect App’ is the digital touchpoint that allows customers to access and manage all of the company’s services.

The company’s Connect Box is a next generation Intelligent WiFi and telephony gateway that enables the company to maximize the impact of the company’s ultrafast broadband networks by providing reliable wireless connectivity anywhere in the home. This gateway can be self-installed and allows customers to customize their home WiFi service. The company’s latest versions of the gigabit Connect Box are based on DOCSIS 3.1 technology and WiFi 6, providing even better in-home WiFi service. The company’s new DOCSIS 3.1 Connect Box runs the company’s ‘One Firmware’ stack, a middleware software system based on the Reference Design Kit for Broadband (RDK-B). RDK-B is an open source initiative with wide participation from operators, device manufacturers and silicon vendors that standardizes core functions used in broadband devices, set-top boxes and IoT solutions.

The company has extended the One Firmware stack to support the company’s ONE Connect ecosystem. One Firmware runs on system-on-a-chip (SOC) technology from multiple vendors and can run on any SOC that is RDK-B compliant, enabling greater speed and agility for on-boarding of new customer premises equipment (CPE) platforms and ecosystem features, allowing the company to build once and port to many. During 2022, the company continued the roll out of One Firmware to the company’s legacy DOCSIS 3.0 WiFi 5GW and the company’s next generation DOCSIS 3.1 WiFi 6 GW. In addition, the company completed the porting activity of One Firmware to the company’s new XGSPON and ethernet WiFi 6 gateways. To support the adoption of fiber-to-the-home, cabinet, building or node networks (fiber-to-the-home/-cabinet/-building/-node is referred to herein as FTTx) access in both on-net and off-net scenarios, the company plans to add XGS-PON (an updated standard for passive optical networks that supports higher-speed, 10 Gbps symmetrical data transfers) and Ethernet-based Connect Boxes with WiFi 6, providing speeds up to 10 Gbps that run the company’s One Firmware and support the company’s ONE Connect ecosystem. The company’s Connect Box is available in all the company’s markets, and during 2022, approximately 12 million of the company’s customers have a Connect Box. In addition to the company’s core markets, the company distributes its Connect Box to other markets in Europe, Latin America and the Caribbean. Robust wireless connectivity is increasingly important with the company’s customers spending more and more time using bandwidth-heavy services on multiple devices. The company also offers its Connect App that, among other things, allows the company’s customers to optimize their WiFi coverage and manage their connected devices. In addition, the company provides Intelligent WiFi mesh boosters, which increase speed, reliability and coverage by adapting to the environment at home.

The company’s extensive broadband network enables the company to deliver ultra-high-speed internet service across the company’s markets. The company’s residential subscribers access the internet via cable modems connected to their internet capable devices, or wirelessly via a WiFi gateway device. The company offers multiple tiers of broadband internet service up to gigabit speeds that is available across the company’s entire European footprint. The speed of service depends on the customer location and their service selected.

By leveraging the company’s existing fiber-rich broadband networks, the company is in a position to deliver gigabit services by deploying the next generation DOCSIS 3.1 technology. DOCSIS 3.1 technology is an international standard that defines the requirements for data transmission over a cable system. Not only does DOCSIS 3.1 technology improve the company’s internet speeds and reliability, it allows for efficient network growth. The company’s ultra-high-speed internet service is based primarily on DOCSIS 3.1 technology, and the company offers this technology in all of the company’s markets. As of the end of 2022, both the VMO2 JV’s and the VodafoneZiggo JV’s broadband networks were capable of offering every customer of the VMO2 JV and the VodafoneZiggo JV gigabit internet speeds.

The company offers value-added broadband services in certain of the company’s markets for an incremental charge. These services include Intelligent WiFi features, security (e.g., anti-virus, anti-spyware, firewall and spam protection), Smart Home services, and online storage solutions and web spaces. Subscribers to the company’s internet service pay a monthly fee based on the tier of service selected. In addition to the monthly fee, customers pay an activation service fee upon subscribing to an internet service. This one-time fee may be waived for promotional reasons.

Mobile Services

Mobile services are another key building block for the company to provide customers with seamless connectivity. Telenet, the VMO2 JV, the VodafoneZiggo JV and Sunrise offer mobile services as mobile network providers, and VM Ireland offers mobile services as an MVNO over a third-party network through Three (Hutchison).

Pursuant to VM Ireland’s agreement with Three (Hutchison) to provide mobile services as an MVNO, Three (Hutchison) leases a third-party’s radio access network and owns the core network, including switching, backbone and interconnections. VM Ireland’s MVNO arrangement with Three (Hutchison) permits VM Ireland to offer its customers mobile services without needing to build and operate a cellular radio tower network.

In each of the company’s markets, the company offers a range of mobile related services. The majority of subscribers take a post-paid service plan, which has an agreed monthly fee for a set duration (typically 1 to 2 years). The monthly fee will vary depending on the country and service package selected. Service packages can have different levels of data allowances, voice minutes and network speed, as well as differing other aspects, such as roaming charges and contract duration. Post-paid services are also offered as a bundle with fixed services, and by taking a ‘converged’ offering, customers typically receive some benefits, such as lower total cost or additional features. Post-paid services are offered to both business and retail consumers. In addition, the company offers pre-paid mobile services, where the customers pay in advance for a pre-determined amount of airtime or data and which generally have no minimum contract term. In countries where the company operates as a mobile service operator, the company also offers a number of MVNOs, where other mobile providers use the company’s mobile network for their mobile offering.

Video Services

The company’s video service is, and continues to be, one of the foundations of the company’s product offerings in the company’s markets. The company’s cable operations offer multiple tiers of digital video programming and audio services, starting with a basic video service. Subscribers to the company’s basic video service pay a fixed monthly fee and receive digital video channels (including a growing number of high definition (HD) and ultra-high definition 4K resolution (4K) channels) and several digital and analog radio channels, as well as an electronic programming guide. The company tailors its video services in each country of operation based on programming preferences, culture, demographics and local regulatory requirements.

The company also offers a variety of premium channel packages to meet the interests of the company’s subscribers. For an additional monthly charge, a subscriber may upgrade to one of the company’s extended digital tier services and receive an increased number of video and radio channels, including the channels in the basic tier service and additional HD and 4K channels. The company’s channel offerings include general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children and ethnic and foreign channels.

Discounts to the company’s monthly service fees are available to any subscriber who selects a bundle of two or more of the company’s services (bundled services): video, internet, fixed-line telephony and, in most of the company’s markets, mobile services. Bundled services consist of double-play for two services, triple-play for three services and, where available, quad-play for four services.

To meet customer demands, the company has enhanced the company’s video services with additional relevant content services and features, which increases viewing satisfaction and addresses individual user needs. The company’s latest next generation product suite is called ‘Horizon 4’, a cloud-based, multi-screen entertainment platform that combines linear television (including recording and replay features), premium video-on-demand (‘VoD’) offerings, an increasing amount of integrated premium global and local video applications and mobile viewing into one entertainment experience. Horizon 4 comes with a state-of-the-art personal user interface that is intuitively easy to navigate. Content recommendations and favorite channel settings can be customized to individual user profiles. Video playback control, navigation shortcuts and content searches can all be conducted via a voice control button on the remote control, a feature highly appreciated by the company’s customers. Horizon 4 is available in all of the company’s markets on the latest set top boxes and is capable of delivering 4K video content, including high dynamic range. The platform also features a ‘Personal Home’ page that automatically aggregates content, both linear and VoD, in a streamlined user interface, based on the user’s viewing habits. It has achieved significant positive customer feedback, manifesting in high product net promoter score figures. Horizon 4 is marketed under the name ‘Telenet TV-Box’ in Belgium, ‘Sunrise TV’ in Switzerland, ‘Virgin TV360’ in the U.K., through the VMO2 JV, and Ireland and ‘MediaBox Next’ in the Netherlands through the VodafoneZiggo JV.

In the U.K., the forerunner product of Horizon 4 is based on the TiVo platform and was developed under a strategic partnership agreement with TiVo Inc. The TiVo platform is deployed on a basic set-top box, as well as the Virgin Media V6 box. Similar to Horizon 4, the Virgin Media V6 box combines 4K video, including high dynamic range, with improved streaming functionalities and more processing power. The Virgin Media V6 box allows customers to record six channels simultaneously while watching a seventh channel. Customers can also start watching a program on one television and pick up where they left off on other boxes in another room or through an app on their smart phones and tablets. Over 50% of the VMO2 JV’s customers have the Virgin Media V6 box. Similar to the hardware already deployed via the VodafoneZiggo JV, over time these V6 boxes will be flashed with the latest Horizon 4 software, bringing the company’s latest and most successful television and entertainment experience to the VMO2 JV’s customers without the need to exchange the installed hardware. Approximately 25% of the VMO2 JV’s customers are on the Horizon 4 platform.

In the summer of 2020, the company launched its first IP-only streaming device in the company’s former Polish operations, which runs the full Horizon 4 product suite and features a small puck-like form factor that can be tucked away behind a TV screen. The company has also launched this all-IP 4K capable TV box in Switzerland, the Netherlands and the U.K. The company intends to continue rolling out this product to the company’s other markets in the coming years.

Underpinned by this new IP-only streaming device, the company launched its first subscription VoD-focused proposition in the U.K. called ‘Stream’. In addition to a slimmer channel lineup, this new package allows customers to pick and choose their favorite entertainment packages each month (e.g., Netflix, Disney+ and Prime Video) and get a 10% credit back for each subscription they add via the company’s platform. By bundling their over the top (OTT) subscriptions together, customers also have an easy-to-see overview of what they are paying for and can manage them in a straightforward way, allowing for added flexibility as their viewing habits change.

One of the company’s key video services is ‘Replay TV’. Through Replay TV, the last seven days of content (subject to rights related to blackouts) is made available via the electronic programming guide (EPG) for on demand viewing. Customers can simply open the EPG, scroll back and replay linear programming instantly. This same technical solution also allows the company’s customers to replay a television program from the start even while the live broadcast is in progress. Additionally, customers have the option of recording television programs in the cloud (or onto the hard disk drive in the set top box in the U.K., through the VMO2 JV, and in Ireland, through VM Ireland). Replay TV is one of the most used and appreciated features on the company’s platforms.

In most of the company’s markets, the company offers transactional VoD giving subscribers access to thousands of movies and television series. In several of the company’s markets, the company’s subscription VoD service is included in certain of the company’s video offerings. This service is tailored to the specific market based on available content, consumer preferences and competitive offers, and it includes various programming, such as music, kids, documentaries, adult, sports and TV series. The company continues to develop its VoD services to provide a growing collection of programming from local and international suppliers, including among others, Disney/Fox, NBC/Universal, CBS/Paramount, Warner Bros.-Discovery and Sony. In addition, in all of the company’s markets the company offers global premium OTT services, such as Netflix, YouTube and Amazon Prime Video, and the company also offers local OTT services via a large portion of the company’s set-top boxes. These types of paid subscription services can be bundled into customers’ packages like in the Stream proposition or, in many cases, added directly to customers’ bills, offering them further convenience.

Most of this content is also available via the company’s online mobile app, ‘Horizon Go’, which is available on mobile devices (iOS and Android) and, in some markets as well, via Amazon Fire TV, Apple TV and Android TV devices. Thanks to the 360 integration of Horizon 4 across multiple screens, customers can pause a program, series or movie and seamlessly continue watching from where they left off on another device, whether on a television, tablet, smart phone or laptop. Additionally, Horizon Go enables customers to remotely schedule the recording of a television program on their Horizon 4 box at home.

Telephony Services

Multi-feature telephony services are available through voice-over-internet-protocol (VoIP) technology in most of the company’s broadband communication markets. In the U.K., the VMO2 JV also provides traditional circuit-switched telephony services. The company pays interconnect fees to other telephony and internet providers when calls by the company’s subscribers terminate on another network and receive similar fees from providers when calls by their users terminate on the company’s network through interconnection points.

The company’s telephony service may be selected in several of the company’s markets on a standalone basis and in all of the company’s markets in combination with one or more of the company’s other services. The company’s telephony service includes a basic fixed-line telephony product for line rental and various calling plans, which may consist of any of the following: unlimited network, national or international calling, unlimited off-peak calling and minute packages, including calls to fixed and mobile phones. The company also offers value added services, such as a personal call manager, unified messaging and a second or third phone line at an incremental cost.

Multiple Dwelling Units and Partner Networks

In July of 2022, Telenet entered into an agreement with Fluvius System Operator CV (Fluvius) in which Telenet and Fluvius agreed to create a separate, self-funding infrastructure company in the Flanders region of Belgium (NetCo) that will operate the network infrastructure assets of both companies in the region. NetCo expects to further roll-out and operate a hybrid fiber coaxial (HFC) and fiber-to-the-home (FTTH) network within Telenet’s geographic footprint. Following the closing of this transaction, Telenet will become a wholesale access client of NetCo. This transaction is subject to regulatory approval by the European Commission, which is expected to be received mid-2023. Upon closing of the transaction with Fluvius, the long-term lease that Telenet currently has with Fluvius will terminate.

Sunrise offers broadband internet, enhanced video and telephony services directly to the video cable subscribers of those partner networks that enter into service operating contracts with Sunrise. Sunrise has the direct customer billing relationship with these subscribers. By permitting Sunrise to offer some or all of its broadband internet, video and telephony products directly to those partner network subscribers, Sunrise’s service operating contracts have expanded the addressable markets for Sunrise’s digital products. In exchange for the right to provide digital products directly to the partner network subscribers, Sunrise pays to the partner network a share of the revenue generated from those subscribers. Sunrise also provides network maintenance services and engineering and construction services to its partner networks.

Business Services

In addition to the company’s residential services, the company offers business services in all of the company’s operations. For business and public sector organizations, the company provides a complete range of voice, advanced data, video, wireless and cloud-based services, as well as mobile and converged fixed-mobile services. The company’s business customers include SOHO (generally up to five employees), small business and medium and large enterprises. The company also provides business services on a wholesale basis to other operators.

The company’s business services are designed to meet the specific demands of the company’s business customers with a wide range of services, including increased data transmission speeds and virtual private networks. These services fall into five broad categories:

Data services for fixed internet access, with a 4G connectivity backup, IP virtual private networks based on SDWAN solutions, and high-capacity point-to-point services, including dedicated cloud connections;

Cloud collaboration VoIP solutions and circuit switch telephony, unified communications and conferencing options;

Wireless services for mobile voice and data, as well as managed WiFi networks;

Video programming packages and select channel lineups for targeted industries or full programming packages for SOHO customers; and

Value added services, including managed security systems, cloud enabled business applications, storage and web hosting.

The company’s intermediate to long-term strategy is to enhance the company’s capabilities and offerings in the business sector so the company become a preferred provider in the business market. To execute this strategy, customer experience and strategic marketing play a key role.

The company’s business services are provided to customers at contractually established prices based on the size of the business, type of services received and the volume and duration of the service agreement. SOHO and small business customers pay business market prices on a monthly subscription basis to receive enhanced service levels and business features that support their needs. For more advanced business services, these customers generally enter into a service agreement. For medium to large business customers, the company enters into individual agreements that address their needs. These agreements are generally for a period of at least one year.

Investments

VMO2 JV: Liberty Global owns 50% of the VMO2 JV, an integrated communications provider of broadband internet, video, fixed-line telephony, mobile and converged services to residential and business customers in the U.K. As part of the U.K. JV Transaction, Liberty Global entered into a shareholders agreement with Telefónica, that previously owned O2 in the U.K. (the U.K. JV Shareholders Agreement), which sets forth the corporate governance of the VMO2 JV, as well as, among other things, its dividend policy and non-competition provisions. The U.K. JV Shareholders Agreement mandates that the VMO2 JV distribute to Liberty Global and Telefónica on a quarterly basis a pro rata dividend equaling (unless agreed otherwise) all unrestricted cash, subject to certain minimum thresholds and financing arrangements. Subject to certain exceptions, Liberty Global may not transfer its ownership interest in the VMO2 JV without consent from Telefónica.

The VMO2 JV offers gigabit internet across its entire fixed network footprint, reaching over 16.1 million homes, combined with a mobile network that offers 99% indoor and outdoor population coverage on 4G, as well as 5G services in over 1,600 towns and cities across the U.K. The VMO2 JV had over 13 million RGUs as of December 31, 2022, consisted of approximately 5.7 million broadband internet subscribers. The VMO2 JV does not report video or telephony subscribers on an individualized basis, although such subscribers are included in its total RGU figure. In addition, the VMO2 JV had approximately 33.8 million mobile subscribers and is the U.K.’s leading mobile operator in terms of connections, with 44.7 million connections across its mobile, IoT and wholesale services.

In addition to gigabit broadband, the VMO2 JV provides fixed-line TV and telephony services. In 2022, the VMO2 JV launched a new flexible entertainment service called ‘Stream,’ which combines the customer’s subscription packages, such as Netflix, Disney+, and Amazon Prime, as well as the free TV channels under one system while also allowing the customer to transform their TV into a voice-activated unit. The VMO2 JV’s TV customers continue to have access to the Horizon 4 minibox and its functionalities (marketed as ‘Virgin TV 360’), including ‘Catch up’, ‘Startover’ and pause live TV, the Virgin TV Go app and VoD, along with access to a range of premium subscription-based and pay per view services.

The VMO2 JV provides a wide range of mobile telecommunications and associated value-added products and services, such as voice, messaging and data services, handsets and hardware (e.g., wearables and handsets), stand-alone mobile devices and other accessories.

The VMO2 JV’s consumer convergence offering is led by its ‘Volt’ proposition, offering new and existing customers that take Virgin Media broadband and eligible O2 Pay Monthly plans an upgrade to the next fixed broadband speed tier, increased mobile data and more value, including a wifi guarantee. As of December 31, 2022, Volt had surpassed 1.3 million customers, while fixed-mobile convergence penetration stood at approximately 45%.

The VMO2 JV also provides business and wholesale products and services to large enterprises, public sector entities and small and medium business customers as well as wholesale and MVNO partners.

nexfibre JV: The company owns a 25% interest in the nexfibre JV, a newly formed joint venture in the U.K. that intends to construct and operate a wholesale FTTH broadband network of 5-7 million premises that does not overlap with the VMO2 JV’s existing network. Telefónica owns 25% of the nexfibre JV, and InfraVia owns the remaining 50%. The VMO2 JV will act as the anchor client for the new nexfibre JV’s fiber network. The VMO2 JV also entered into a master services agreement with the nexfibre JV to provide access to the VMO2 JV’s expertise in the telecommunications business. In combination with the VMO2 JV’s existing network and planned FTTH upgrades, the VMO2 JV and the nexfibre JV networks are expected to expand gigabit coverage to approximately 80% of the U.K. once completed.

In connection with the formation of the nexfibre JV, the company entered into shareholders agreements with Telefónica and InfraVia, providing for the governance of the nexfibre JV, including, among other things, its dividend policy and non-compete provisions. It also provides for restrictions on transfer of interests in the nexfibre JV and exit arrangements. Under the dividend policy, the nexfibre JV is required to distribute all unrestricted cash to Telefónica, InfraVia and the company, subject to minimum cash requirements and financing arrangements.

VodafoneZiggo JV: The company owns a 50% interest in the VodafoneZiggo JV, which is a leading Dutch company that provides fixed, mobile and integrated communication and entertainment services to consumers and businesses in the Netherlands. In connection with the formation of the VodafoneZiggo JV, the company entered into a shareholders agreement with Vodafone Group plc (Vodafone) providing for the governance of the VodafoneZiggo JV, including, among other things, its dividend policy and non-compete provisions. It also provides for restrictions on the transfer of interests in the VodafoneZiggo JV and exit arrangements. Under the dividend policy, the VodafoneZiggo JV is required to distribute all unrestricted cash to Vodafone and the company, subject to minimum cash requirements and financing arrangements. The company also entered into a framework agreement with the VodafoneZiggo JV to provide access to each partner’s expertise in the telecommunications business.

The fiber-rich broadband network of the VodafoneZiggo JV passes approximately 7.4 million homes. In 2022 the VodafoneZiggo JV began offering gigabit internet speeds for residential and business customers across its entire footprint. The VodafoneZiggo JV also offers nationwide 4G and 5G mobile coverage. At December 31, 2022, the VodafoneZiggo JV had 8.8 million RGUs, of which 3.7 million were video, 3.3 million were broadband internet and 1.8 million were fixed-line telephony. In addition, the VodafoneZiggo JV had 5.5 million mobile customers. Besides its residential services, the VodafoneZiggo JV offers extensive business services throughout the Netherlands.

The VodafoneZiggo JV’s customers continue to have access to the Horizon 4 minibox and its functionalities (marketed as ‘Ziggo TV’), including Replay TV, the Ziggo Go app, pause live TV and VoD, gigabit internet speeds and an extensive WiFi community network. The VodafoneZiggo JV also has its own sports channel, Ziggo Sport, and offers some exclusive programming. The VodafoneZiggo JV’s customers also have access to Vodafone’s nationwide 4G (referred to herein as LTE) and 5G wireless services, under either a prepaid or postpaid service plan. The VodafoneZiggo JV provides its mobile services under various licenses that have a weighted average useful life of approximately 18 years as of December 31, 2022. With its mobile services, the VodafoneZiggo JV is able to offer quad-play bundles and converged services to its residential and business customers.

Ventures

Liberty Global’s investment arm, Liberty Global Ventures, has amassed a portfolio of investments in more than 75 companies across the world, investing in the fields of content, technology and infrastructure. With its long-term, founder-friendly mindset, Liberty Global Ventures makes meaningful investments in technologies that will change how people live and work tomorrow. Some of the companies in Liberty Global’s portfolio include All3Media Ltd. (All3Media), Plume, ITV, Lions Gate Entertainment Corp. (Lionsgate), Televisa Univision, AtlasEdge, Formula E, Aviatrix Systems, Inc., Pax8 Inc., Lacework Inc. and EdgeConneX Inc., among others. When advantageous, the company seeks to forge commercial relationships between the company’s operating companies and the companies the company invests in, creating an even stronger partnership to help drive growth and efficiencies. The investments identified by company name above are intended to be merely illustrative, do not represent a complete list and are not necessarily the largest of the company’s long-term investments. From time to time, the company may make investments in other companies that the company chooses not to identify by company name for commercial, legal, strategic or other reasons.

Technology

The company’s broadband internet, video and fixed-line telephony services are primarily transmitted over an HFC network. This network is composed primarily of national and regional fiber networks, which are connected to the home over the last few hundred meters by coaxial cable. Alongside the company’s HFC network, the company is increasingly rolling out services based on FTTH and leveraging fixed wireless access (FWA) technologies to service customers not covered by the company’s fixed networks in areas where it may not be cost effective to deploy fixed networks.

The company closely monitors its network capacity and customer usage. Where necessary, the company increases its capacity incrementally, for instance by splitting nodes in the company’s cable network. The company also continues to explore improvements to its services and new technologies that will enhance the company’s customer’s connected entertainment experience. These actions include recapturing bandwidth and optimizing the company’s networks by: ?increasing the number of nodes in the company’s markets; ?increasing the bandwidth of the company’s hybrid fiber coaxial cable network to 1 GHz; ?converting analog channels to digital; ?moving channels to IP delivery; ?deploying additional DOCSIS 3.1 channels; ?replacing copper lines with modern optic fibers; and ?using digital compression technologies; freeing spectrum for high-speed internet, VoD and other services by encouraging customers to move from analog to digital services; increasing the efficiency of the company’s networks by moving head-end functions (encoding, transcoding and multiplexing) to cloud storage systems; enhancing the company’s network to accommodate business services; using wireless technologies to extend the company’s services outside of the home; offering remote access to the company’s video services through laptops, smart phones and tablets; expanding the availability of the Horizon 4 minibox and Virgin TV Go, as well as Horizon 4, and related products and developing and introducing online media sharing and streaming or cloud-based video; and testing new technologies.

As stated above, the company is expanding the company’s HFC and FTTH footprint. In addition, the company is seeking mobile service opportunities where the company has established cable networks and expanding the company’s fixed-line networks where the company has a strong mobile offering. This will allow the company to offer converged fixed-line and mobile services to the company’s customers.

The company delivers high-speed data and fixed-line telephony over the company’s broadband network in the company’s markets. The cable networks of the company’s operations in Europe are connected to the company’s ‘Aorta’ backbone. The Aorta backbone is recognized as a Tier 1 Carrier, which permits the company to serve the company’s customers through settlement-free collaboration with other carriers without the cost of using a third-party network.

In the support of the company’s connectivity strategy, the company is moving its customers into a gigabit society. All of the company’s broadband networks are already capable of supporting the next generation of ultra-high-speed internet service at gigabit speeds. To provide these speeds to the company’s subscribers, the company plans to grow its base of DOCSIS 3.1 technology throughout the company’s footprint. The use of DOCSIS 3.1 technology provides the company significantly higher efficiencies on the company’s networks and allow the company to offer faster speeds, in-home WiFi and better services. The new gateways and the continued upgrades to the company’s network in the coming years will allow the company to maximize high-speed connectivity over the company’s broadband networks and deliver gigabit services in a cost-effective manner. It will also allow the company to meet the expectations of the company’s customers for high-speed internet access both in cities and rural areas of the company’s footprint. While DOCSIS 3.1 technology will provide up to 2.5 Gbps, in 2023, the company plans to deploy XGS-PON technology across the company’s FTTH footprint, enabling speeds of up to 10 Gbps. In addition, the company has started prototyping technology that is anticipated to equally provide 10 Gbps capabilities across the company’s HFC footprint.

Supply Sources

Content

In the company’s markets, entertainment platforms remain a key part of the telecommunication services bundle. Therefore, in addition to providing services that allow the company’s customers to view programming when and where they want, the company is investing in content that customers want. The company’s content strategy is based on proposition (exceeding the company’s customers’ entertainment desires and expectations); product (delivering the best content available); procurement (investment in the best brands, movies, shows and sports); and partnering (strategic alignment, acquisitions and growth opportunities).

The company licenses almost all of the company’s programming and on-demand offerings from content providers and third-party rights holders, including broadcasters and cable programming networks. For a majority of the company’s agreements, the company seeks to include the rights to offer the licensed programming to the company’s customers through multiple delivery platforms and through the company’s apps for smart phones and tablets.

In seeking licenses for content, the company, including the VMO2 JV and the VodafoneZiggo JV, as applicable, partner with leading international and regional pay television providers, such as Disney, Sony, UKTV Paramount Global, AMC, NBCUniversal, RTL, BBC and Warner Bros. Discovery (including HBO). The company also seeks to carry in each of its markets key public and private broadcasters, and in some markets, the company acquires local premium programming through select relationships with companies, such as Sky plc (Sky), BT Group plc (BT), Warner Bros. Discovery and CANAL+ Polska S.A. For the company’s VoD services, the company licenses a variety of programming, including box sets of television series, movies, music, kids’ programming and documentaries.

The company has arrangements with Disney (The Walt Disney Company Limited and The Walt Disney Company Benelux), Netflix International B.V. (Netflix) and with Amazon Europe Core S.A.R.L. (Amazon). Pursuant to these arrangements, Disney+, Netflix and Amazon Prime Video services, respectively, are available via certain of the company’s set-top boxes to its video customers across many of the company’s markets each as premium OTT services. The Disney+ app is available to customers in the U.K. through the VMO2 JV and in the Netherlands (launched December 2022) through the VodafoneZiggo JV. The Netflix app is available to customers in the U.K., through the VMO2 JV, the Netherlands through the VodafoneZiggo JV, Ireland, Switzerland and Belgium. The Amazon Prime Video app is available to the company’s customers in the U.K. through the VMO2 JV, the Netherlands through the VodafoneZiggo JV, Ireland, Switzerland and Belgium. The company also entered into an arrangement with Google Ireland Limited for the YouTube and YouTube Kids services apps, which are available via certain of the company’s set top boxes to customers in the U.K. through the VMO2 JV, the Netherlands through the VodafoneZiggo JV, Ireland, Switzerland and Belgium. In order to tailor the company’s entertainment offerings to each market, the company has added various locally relevant apps, such as BBC iPlayer in the U.K. through the VMO2 JV, NPO Start and Videoland in the Netherlands through the VodafoneZiggo JV, VRT Max in Belgium and BluePlay in Switzerland. In addition, the company has concluded deals with the Viaplay group for the Viaplay service in the Netherlands through the VodafoneZiggo JV, which launched in March 2022.

Exclusive content is another element of the company’s content strategy. To support this approach, the company is investing in content assets. The company has invested in various content companies, including ITV, All3Media, Lionsgate, Virgin Media TV, SBS Belgium, Woestijnvis and Caviar Group. The company is also investing in sports, both as a broadcaster and as a rights owner. The company has its own sports channels, under the Play Sports brand in Belgium, which is exclusively available to Telenet customers, and MySports in Switzerland, which Sunrise licenses to other platforms in Switzerland. In Ireland, Virgin Media customers have access to VM More, which includes sports programming, as well as first look products and premium content. In addition, the VodafoneZiggo JV owns Ziggo Sport and commissions the production of certain shows, such as Rondo and Race Cafe. The basic Ziggo Sport service is available exclusively to the VodafoneZiggo JV’s customers, however, the premium service is widely available through license arrangements.

In addition, the company has commissioned the company’s own drama series content. Through All3Media, the company co-produced a television series, known as The Feed, which was released in 2019 in several of the company’s markets, and co-produced Blood in Ireland, which aired in 2018 and 2020. With Lionsgate, the company pre-purchased the spy thriller series The Rook, which premiered in 2019. In addition, the company has produced the Swiss sitcom Fassler-Kunz, the Swiss series Im Heimatland and the original Belgian series Chaussée d’Amour and De Dag with local production companies. These television series will primarily be available to the company’s customers on an on-demand basis. The company will also continue to commission, produce and/or co-produce content for the company’s free-to-air (FTA) assets and VoD platforms in Ireland and Telenet will continue to commission, produce and/or co-produce content for its FTA assets via SBS Belgium and VoD platforms in Belgium, mainly via Streamz, its joint venture for subscription VoD with DPG Media.

Customer Premises Equipment

The company purchases each type of CPE from a number of different suppliers. CPE includes set-top boxes, modems, WiFi routers and boosters, digital video recorders (DVRs), tuners and similar devices. For each type of equipment, the company retain specialists to provide customer support. For the company’s broadband services, the company uses a variety of suppliers for the company’s network equipment and the various services the company offers. Similarly, the company uses a variety of suppliers for mobile handsets to offer the company’s customers mobile services.

Software Licenses

The company licenses software products, including email and security software, and content, such as news feeds, from several suppliers for the company’s internet services. The agreements for these products typically require the company to pay a fee for software licenses and/or a share of advertising revenue for content licenses. For the company’s mobile network operations and the company’s fixed-line telephony services, the company licenses software products, such as voicemail, text messaging and caller ID, from a variety of suppliers. For these licenses the company seeks to enter into long-term contracts, which generally require the company to pay based on usage of the services.

For mobile services in Ireland provided through an MVNO arrangement with Three (Hutchison), the company is dependent on third-party wireless network providers. The company’s MVNO operation in Ireland has an agreement with Three (Hutchison) to carry the mobile communications traffic of the company’s customers. The company seeks to enter into medium to long-term arrangements for these services. A termination of this arrangements could significantly impact the company’s MVNO-operated mobile services in Ireland.

Competition

Telenet’s primary competitor is Proximus NV/SA (Proximus).

In Switzerland, Swisscom is the largest provider of broadband internet services, and is Sunrise’s primary competitor.

In the U.K., the VMO2 JV faces numerous competitors for broadband internet services, the largest of which is BT.

The VodafoneZiggo JV’s primary competitor, Koninklijke KPN N.V. (KPN), offers internet protocol television (IPTV) over its FTTx network and through broadband internet connections using DSL or VDSL.

Regulatory Matters

In addition, the Competition Act, the Data Protection Act and the Act on the Surveillance of Post and Telecommunications are relevant to the company’s business.

The European Electronic Communications Code (the Code) is the primary source of regulation governing the company’s E.U. operations.

The Audiovisual Media Services Directive (AVMSD) governs the activities of broadcasters under E.U. law. The E.U. Member States that the company operate in have fully transposed the AVMSD into their respective national laws.

As a provider of an on-demand program service (ODPS), the VMO2 JV must comply with numerous statutory obligations related to ‘editorial content’ and notify Ofcom of its intention to provide an ODPS.

The AVMSD established quotas, applicable to both linear and non-linear services, for the transmission of European-produced programming and programs made by European producers who are independent of broadcasters. Such obligations are applicable to the company’s businesses in the E.U. The U.K. and Switzerland have similar principles in their regulatory systems.

In the U.K., the VMO2 JV is required to hold individual licenses under the Broadcasting Acts 1990 and 1996 for any television channels (including barker channels) that it owns or operates and to provide certain other services on its cable television platform, such as electronic program guides. These television licensable content service (TLCS) licenses are granted and administered by the U.K. Office of Communications (Ofcom), the U.K.’s NRA. Under these licenses, each covered service must comply with a number of Ofcom codes, including the Broadcasting Code, and with all of Ofcom’s directions. Breach of any of the terms of a TLCS license may result in the imposition of fines and, potentially, license revocation.

History

Liberty Global plc was founded in 2004. The company was incorporated in 2013.