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Compared to most other regions, North Rhine-Westphalia is characterized by above average population density with
more people living in cities than any other region (except the three so-called city states Berlin, Hamburg and Bremen). The
high population density reduces the overall cost associated with the deployment, operation and maintenance of cable
infrastructure. North Rhine-Westphalia is also characterized by an above-average proportion of multiple-dwelling units,
which would support a cost effective potential upgrade of the cable network. These are typically less susceptible to
competition from satellite due to restrictions in the installation of satellite dishes.
North Rhine-Westphalia has a relatively diverse population, with approximately 2.0 million foreign inhabitants,
approximately 10.9% of the total population. The region features the largest Turkish community in Germany, representing
more than 33% of all Turkish speakers in the country, or more than 600,000 people. This and other important minorities from
countries such as Russia and Poland create additional opportunities for segmented cable services, such as foreign language
programming.
We believe that such economic and demographic characteristics make North Rhine-Westphalia an attractive region for
a cable services provider relative to other German Federal States. High population density leads to certain cost efficiencies in
the implementation and operation of cable network infrastructure. Higher levels of disposable income are likely to lead to
greater demand for new services offered via cable. Finally, high numbers of foreign residents indicate that a significant
market exists for foreign language pay television offerings.
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2000 2001 2002 2003 CAGR (1)
Population (million) (1) 18.009 18.052 18.076 18.079 0.13%
Density (population / km²) 528 530 530 530 0.13%
GDP (€ billion) 448.2 458.2 466.3 469.7 1.57%
GDP / Capita (€) 24,888 25,382 25,797 25,980 1.44%
Population breakdown (million)
German citizen 16.011 16.064 16.096 16.114 0.21%
Foreign nationalities 1.998 1.998 1.980 1.965 -0.55%
(1) Size of North Rhine-Westphalia as of the end of 2003 was 34,083 km 2 .
Source: Landesamt für Datenverarbeitung und Statistik Nordrhein-Westfalen
According to industry sources as of December 2004, North Rhine-Westphalia has about 8.4 million television homes,
of which approximately 4.8 million or 57.1% use cable television, approximately 3.2 million or 38.1% use satellite, and
approximately 0.4 million or 4.8% use terrestrial transmission via antenna.