iesy Repository GmbH - Irish Stock Exchange

Our business would be materially and adversely affected if there were any adverse changes in relevant laws or
regulations (or in their interpretation or enforcement) regarding, for example, the imposition of access or re-sale obligations,
price regulation, interconnection agreements, frequency allocation requirements, restrictions on the ability of cable operators
to package channels into premium cable television offerings, restrictions in the operation of digital platforms or obligations
regarding certain platform standards, the imposition of universal service obligations, or any change in policy allowing more
favorable conditions for other operators, broadcasters and subscribers. Our ability to introduce new products and services
may also be affected as we cannot predict how existing or future laws, regulations or policies would apply to such product or
service.
In the future, our high speed Internet, telephony and premium cable television business, in particular, may be subject to
new laws and regulations, the impact of which is difficult to predict. Any new laws or regulations affecting the Internet,
telephony or premium cable television services, or amendments to or new interpretations of existing laws and regulations to
cover related activities could increase the costs of regulatory compliance to us or force us to change our business practices or
otherwise have a material adverse effect on our business.
We expect to be deemed to possess significant market power in the regional markets in which we operate, which may
subject us to more extensive regulation.
Under the existing regulatory regime, RegTP is entitled to impose certain obligations on operators of
telecommunications networks which have significant market power. Amongst other things, it may impose the obligation on
such operators to grant access to, or interconnection with, their telecommunications networks and to offer third parties the resale
of their telecommunications services on a wholesale basis. Moreover, the prices that operators with significant market
power charge to their customers are subject to tariff regulation.
We could be found to have significant market power in the following relevant regional markets: (i) the distribution of
radio and television programs via telecommunications cable networks to subscribers, (ii) possibly also the signal delivery to
cable network operators on network Level 4, and (iii) possibly the feeding-in of radio and television programs into
telecommunications cable networks. Such a determination would entitle RegTP to impose various obligations on us. See
“Regulation.” Even if we were not considered to have significant market power, we are subject to regulation insofar as we
control the network access to our customers. For example, RegTP could require us to grant access or interconnection at
specific conditions and regulated prices to other network or service providers or broadcasters for purposes of providing
competing or additional services, and impose other restrictions on how we operate our networks and market our services.
Furthermore, we may be required to offer our services to third parties for re-sale on a wholesale basis. Although RegTP has
to take into account the feasibility of providing the access with regard to the capacity available and our initial investment,
granting such access or interconnection would limit the bandwidth available for us to provide other products and services to
customers served by our networks.
Such regulation could:
• impair our ability to use our bandwidth in ways that would generate maximum revenues;
• create a shortage of capacity on our networks, which could limit the types and variety of services we seek to
provide our customers;
• strengthen our competitors by granting them access and lowering their costs to enter into our markets; and
• have a material adverse impact on our profitability.
We do not have complete control over the prices that we charge to broadcasters and customers, including Level 4
operators, and this may adversely affect our future cash flows and profitability.
Fees paid to us by the broadcasters (carriage fees) and by customers, including Level 4 operators (subscription fees) are
subject to regulation by RegTP under certain circumstances. RegTP may have to approve fees ex ante and/or may declare our
fees void if it finds that they are abusive and may either direct us to adjust our fees or provide for fees that are not abusive.
See “Regulation.” Therefore, we may not be able to enforce our current or future changes to our carriage and subscription
fees. This may have an adverse impact on our revenues, profitability of new products and services and ability to respond to
changes in the cable television market.
Furthermore, our carriage fees and subscription fees that are to be paid by Level 4 operators may require the prior
approval by RegTP if we are considered to have significant market power and RegTP orders us to grant access to
broadcasters and/or Level 4 operators. Fees that are subject to ex ante review must be based on the costs of efficient service
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