Liberty Global Annual Report 2020

Form 10-K (NASDAQ:LBTYB)

Published: February 13th, 2020

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019 OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to Commission file number 001-35961

Liberty Global plc (Exact name of Registrant as specified in its charter)

England and Wales 98-1112770 (State or other jurisdiction of (I..S. Employer incorporation or organization) Identification No.)

Griffin House 161 Hammersmith Rd London United Kingdom W6 8BS (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: +44.208.483.6449 or 303.220.6600 Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Class A ordinary shares LBTYA Nasdaq Global Select Market Class B ordinary shares LBTYB Nasdaq Global Select Market Class C ordinary shares LBTYK Nasdaq Global Select Market Securities registered pursuant to Section 12(g) of the Act: none

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Y es ☑ No ☐

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ No ☑

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S- T during the preceding 12 months. Yes ☑ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Check one:

Accelerated Filer ☐ ☐ Smaller Reporting Company Emerging Growth Company Large Accelerated Filer ☑ Non-Accelerated Filer ☐ ☐ If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

State the aggregate market value of the voting and non-voting common equity held by non-affiliates, computed by reference to the price at which the common equity was last sold, or the average bid and ask price of such common equity, as of the last business day of the Registrant’s most recently completed second fiscal quarter: $18.5 billion. The number of outstanding ordinary shares of Liberty Global plc as of January 31, 2020 was: 181,568,323 shares of class A ordinary shares, 12,151,526 shares of class B ordinary shares and 438,884,260 shares of class C ordinary shares. DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement for the Registrant’s 2020 Annual General Meeting of Shareholders are incorporated by reference in Part III of this Form1 0- K.

LIBERTY GLOBAL PLC 2019 ANNUAL REPORT ON FORM 10-K TABLE OF CONTENTS

Page Number PART I Item 1. Business I-1 Item 1A. Risk Factors I-29 Item 1B. Unresolved Staff Comments I-42 Item 2. Properties I-42 Item 3. Legal Proceedings I-42 Item 4. Mine Safety Disclosures I-42

PART II Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities II-1 Item 6. Selected Financial Data II-3 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations II-4 Item 7A. Quantitative and Qualitative Disclosures About Market Risk II-35 Item 8. Financial Statements and Supplementary Data II-40 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure II-40 Item 9A. Controls and Procedures II-40 Item 9B. Other Information II-40

PART III Item 10. Directors, Executive Officers and Corporate Governance III-1 Item 11. Executive Compensation III-1 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters III-1 Item 13. Certain Relationships and Related Transactions, and Director Independence III-1 Item 14. Principal Accounting Fees and Services III-1

PART IV Item 15. Exhibits, Financial Statement Schedules IV-1 Item 16. Form 10-K Summary IV-6 PART I

Item 1. BUSINESS

Who We Are

We are Liberty Global plc ( Liberty Global), an international broadband and television company. We are focused on building a strong convergence of fixed and mobile communication opportunities and we are constantly striving to enhance and simplify our customers’ lives through quality services and products that give them the freedom to connect, converse, work and be entertained anytime, anywhere they choose.

Liberty Global has consolidated operations in six European countries serving 10.7 million customers in Europe at December 31, 2019. Our primary business operations are listed below, all of which we consolidate, with the exception of the VodafoneZiggo JV (defined below).

Brand Entity Location Ownership

Virgin Media United Kingdom & Ireland 100.0%

Telenet 60.2%

UPC Holding Switzerland, Poland, 100.0%

VodafoneZiggo 50.0%

General Development of Business

As a result of a series of mergers that were completed on June 7, 2013, Liberty Global became the publicly-held parent company of the successors by merger of Liberty Global, Inc. (the predecessor to Liberty Global) and Inc. (Virgin Media). In the following text, the terms “we”, “our”, “our company” and “us” may refer, as the context requires, to Liberty Global (or its predecessor) or collectively to Liberty Global (or its predecessor) and its subsidiaries. Unless otherwise indicated, convenience translations into United States (U.S.) dollars are calculated as of December 31, 2019, and operational data, including subscriber statistics and ownership percentages, are as of December 31, 2019.

Expansion and Acquisitions

We have expanded our broadband footprint through new build projects and strategically selected acquisitions. Our new build projects consist of network extension programs pursuant to which we connect additional homes and businesses to our broadband communications network (Network Extensions). Our investment in Network Extensions is critical not only for our business to grow, but also for the countries and communities in which we operate. The Network Extensions, together with upgrades to our existing networks and next generation customer premises equipment, provide our customers the means to enter the gigaworld society. During 2019, through our Network Extensions, our continuing operations connected approximately 649,000 additional residential and commercial premises (excluding upgrades) to our networks, including approximately 505,000 residential and commercial premises connected by Virgin Media in the United Kingdom ( U.K.), and Ireland. We expect to continue the Network Extensions in 2020. Depending on a variety of factors, however, including the financial and operations results of our new build programs, the Network Extensions may be continued, modified or cancelled at our discretion.

Over the past five years, we have also completed several strategic acquisitions. We made these acquisitions in order to execute on our strategy to build broadband communications and mobile businesses that have strong prospects for future growth. Our significant acquisitions include: • On June 3, 2019, Group Holding .V. (Telenet) acquired the remaining 50.0% of De Vijver Media NV ( De Vijver Media) that it did not already own (the De Vijver Media Acquisition ). De Vijver Media provides content production, and advertising services in Belgium. • On June 19, 2017, Telenet acquired Coditel Brabant sprl, operating under the brand name SFR BeLux ( SFR BeLux), which provided broadband operations in Belgium (Brussels and Wallonia) and . • On May 16, 2016, we acquired Cable & Wireless Communications Limited ( C&W), a provider of telecommunication services, including mobile and high-speed broadband, focused in Latin America and the Caribbean. In connection with the Split-off Transaction referenced below under — Dispositions, we transferred C&W to Liberty Latin America Ltd. ( Liberty Latin America). • On February 11, 2016, Telenet acquired BASE Company N.V. ( BASE), the third-largest mobile network operator in Belgium. • On June 3, 2015, we acquired, together with investment funds affiliated with Searchlight Capital Partners, L.P., Choice Cable TV, a cable and broadband services provider in Puerto Rico, which was integrated into the operations of Liberty Cablevision of Puerto Rico LLC. In connection with the Split-off Transaction referenced below under —Dispositions, we transferred Liberty Cablevision of Puerto Rico LLC to Liberty Latin America. For additional information on our acquisitions see note 5 to our consolidated financial statements included in Part II of this Annual Report on Form 10- K. In addition, we have completed various other smaller acquisitions in the normal course of business.

Dispositions

We have completed the following dispositions during the past five years:

• On July 31, 2019, we completed the sale of our operations in , , and the to Vodafone Group plc (Vodafone). The operations of Germany, Romania, Hungary and the Czech Republic are collectively referred to herein as the “ Vodafone Disposal Group.” In connection with the sale of the Vodafone Disposal Group, we have agreed to provide certain transitional services to Vodafone for a period of up to four years. These services principally comprise network and information technology-related functions. • On May 2, 2019, we completed the sale of our direct-to-home satellite ( DTH) operations, which serves customers in Hungary, the Czech Republic, Slovakia and Romania (UPC DTH) to M7 Group (M7). In connection with the sale of UPC DTH, we have agreed to provide certain transitional services to M7 for a period of up to two years. These services principally comprise network and information technology-related functions. • On July 31, 2018, we completed the sale of our Austrian operations ( UPC ) to AG ( Deutsche Telekom). In connection with the sale of UPC Austria, we have agreed to provide certain transitional services to Deutsche Telekom for a period of up to four years. These services principally comprise network and information technology-related functions. • On December 29, 2017, we effected the split-off of our LiLAC Group (the Split-off Transaction) by distributing 100% of the common shares of Liberty Latin America to holders of our then LiLAC ordinary shares. The “ LiLAC Group” consisted of our businesses, assets and liabilities in Latin America and the Caribbean, including C&W, VTR.com SpA, a 60% interest in Liberty Cablevision of Puerto Rico LLC and related cash and cash equivalents and indebtedness. Following such distribution, the LiLAC Shares were redesignated as deferred shares (with virtually no economic rights) and subsequently canceled. In connection with the Split-off Transaction, Liberty Latin America became a separate publicly traded company. • On December 31, 2016, our company and Vodafone contributed our respective operations in the Netherlands to VodafoneZiggo Group Holding B.V., a 50:50 joint venture (referred to herein as the VodafoneZiggo JV). We treat the VodafoneZiggo JV as an equity investment. For additional information on our more recent dispositions, see note 6 to our consolidated financial statements included in Part II of this Annual Report on Form 10-K. We have also completed various other smaller dispositions in the normal course of business and as required by regulatory authorities in connection with approving certain of our acquisitions. Equity Transactions

Pursuant to our share repurchase programs authorized by our board of directors, we have repurchased a significant amount of our shares since our inception in 2005. During 2019, our share repurchases were:

Average price paid Aggregate Title of shares Number of shares per share(2) purchase price(2) in millions

Class A ordinary shares (1) 24,348,562 $ 27.61 $ 672.4 Class C ordinary shares(1) 95,395,291 $ 26.64 $ 2,541.3 ______

(1) Includes repurchases made pursuant to modified Dutch auction cash tenders, including 24,002,262 shares of our class A ordinary shares at a per share price of $27.50 and 75,420,009 shares of our class C ordinary shares at a price per share of $27.00, for an aggregate purchase price of $2.7 billion, including direct acquisition costs.

(2) Includes direct acquisition costs.

A t December 31, 2019, the remaining amount authorized for share repurchases was $66.4 million. In February 2020, our board of directors authorized an additional $1.0 billion for share repurchases. For a further description of our share repurchases, see note 14 to our consolidated financial statements included in Part II of this Annual Report on Form 10-K.

Forward Looking Statements

Certain statements in this Annual Report constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent that statements in this Annual Report are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In particular, statements under Item 1. Business, Item 1A. Risk Factors, Item 2. Properties, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 7A. Quantitative and Qualitative Disclosures About Market Risk may contain forward-looking statements, including statements regarding our business, product, foreign currency and finance strategies, our property and equipment additions (including with respect to Network Extensions), subscriber growth and retention rates, competitive, regulatory and economic factors, the timing and impacts of proposed transactions, the maturity of our markets, the anticipated impacts of new legislation (or changes to existing rules and regulations), anticipated changes in our revenue, costs or growth rates, our liquidity, credit risks, foreign currency risks, interest rate risks, target leverage levels, debt covenants, our future projected contractual commitments and cash flows and other information and statements that are not historical fact. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. In evaluating these statements, you should consider the risks and uncertainties discussed under Item 1A. Risk Factors and Item 7A. Quantitative and Qualitative Disclosures About Market Risk, as well as the following list of some but not all of the factors that could cause actual results or events to differ materially from anticipated results or events:

• economic and business conditions and industry trends in the countries in which we or our affiliates operate; • the competitive environment in the industries in the countries in which we or our affiliates operate, including competitor responses to our products and services; • fluctuations in currency exchange rates and interest rates; • instability in global financial markets, including sovereign debt issues and related fiscal reforms; • consumer disposable income and spending levels, including the availability and amount of individual consumer debt; • changes in consumer television viewing and broadband usage preferences and habits; • consumer acceptance of our existing service offerings, including our , broadband internet, fixed-line telephony, mobile and business service offerings, and of new technology, programming alternatives and other products and services that we may offer in the future; • our ability to manage rapid technological changes; • our ability to maintain or increase the number of subscriptions to our cable television, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household; • our ability to provide satisfactory customer service, including support for new and evolving products and services; • our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; • the impact of our future financial performance, or market conditions generally, on the availability, terms and deployment of capital; • changes in, or failure or inability to comply with, government regulations in the countries in which we or our affiliates operate and adverse outcomes from regulatory proceedings; • government intervention that requires opening our broadband distribution networks to competitors, such as the obligations imposed in Belgium; • our ability to obtain regulatory approval and shareholder approval and satisfy other conditions necessary to close acquisitions and dispositions and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions; • our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from, and implement our business plan with respect to, the businesses we have acquired or that we expect to acquire; • changes in laws or treaties relating to taxation, or the interpretation thereof, in the U.K., the U.S. or in other countries in which we or our affiliates operate; • changes in laws and government regulations that may impact the availability and cost of capital and the derivative instruments that hedge certain of our financial risks; • our ability to navigate the potential impacts on our business of the U.K.’s departure from the E.U.; • the ability of suppliers and vendors (including our third-party wireless network providers under our mobile virtual network operator ( MVNO) arrangements) to timely deliver quality products, equipment, software, services and access; • the availability of attractive programming for our video services and the costs associated with such programming, including retransmission and copyright fees payable to public and private broadcasters; • uncertainties inherent in the development and integration of new business lines and business strategies; • our ability to adequately forecast and plan future network requirements, including the costs and benefits associated with the planned Network Extensions; • the availability of capital for the acquisition and/or development of telecommunications networks and services; • problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire; • the leakage of sensitive customer data; • the outcome of any pending or threatened litigation; • the loss of key employees and the availability of qualified personnel; • changes in the nature of key strategic relationships with partners and joint venturers; • our equity capital structure; and • events that are outside of our control, such as political unrest in international markets, terrorist attacks, malicious human acts, natural disasters, pandemics and other similar events.

The broadband distribution and mobile service industries are changing rapidly and, therefore, the forward-looking statements of expectations, plans and intent in this Annual Report are subject to a significant degree of risk. These forward-looking statements and the above-described risks, uncertainties and other factors speak only as of the date of this Annual Report, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on any forward-looking statement. Narrative Description of Business

We are a leading international telecommunications company with a commitment to providing our customers the “best in class” communications and entertainment services. These services are delivered to our residential and business customers over our networks and include broadband internet, video, telephony and mobile services. We deliver mobile services as a mobile network operator through Telenet and as a MVNO through third-party networks. We design our services to enable our customers to access the digital world on their own terms and at their own pace. In most of our footprint, the core of our offer is “triple-play”, which we use to describe bundled services of broadband internet, digital video and telephony in one subscription. We have been enhancing this offer by expanding our services to include mobile services for a “quad-play” or fixed-mobile convergence service in most of our markets. Available service offerings depend, in particular, on the bandwidth capacity of a particular system. In certain markets, we also offer video services through fiber-to-the-home networks.

Our continuing operations provide residential and business telecommunication services in the U.K. and Ireland through Virgin Media, Belgium through Telenet, and Switzerland, Poland and Slovakia through various wholly-owned subsidiaries that we collectively refer to as “ UPC Holding”. In terms of video subscribers, we operate the largest cable network in each of these countries, except in Poland, where we operate the second largest cable network. We also have investments in the VodafoneZiggo JV, which operates the largest cable network in the Netherlands, and in various content businesses.

A breakdown of our revenue by major category for our consolidated reportable segments appears in note 20 to our consolidated financial statements included in Part II of this Annual Report on Form 10-K.

By connecting our customers through our telecommunication services, we recognize that we are a global corporate citizen and that we play a role in addressing the environmental impacts generated through our business. By seeking to address these issues, we strengthen our company and provide strong benefits to the communities in which we operate. This includes enhancing the energy efficiency of all our operations, with a focus on energy use, carbon emissions and management of electronic waste. In 2018 alone we avoided 4,809 metric tons of carbon emissions and saved close to $290 million through our various sustainability programs. By the end of 2018, we were 20 times more carbon efficient than our base year 2012. We are also working with our major cable partners to innovate and power the network of tomorrow through the Society of Cable Telecommunications Engineers Energy2020 initiative. Additionally, we are proud to confirm that in 2018 we refurbished 2.6 million set-top boxes and modem units, avoiding 4,213 metric tons of waste that would otherwise have ended up in a landfill. We also recognize that coding skills and other technology-based jobs of the future are essential to our industry. As a result, we have partnered with the CoderDojo Foundation, a global community of coding clubs for children age 7-17. Our support for CoderDojo is enabling the next generation of creators, improving their long-term career prospects. We are also working with European Schoolnet to raise awareness of teachers on educational resources available for them to help address online issues teenagers are facing. These efforts are being recognized by many independent analysts. We received bronze class distinction in the Dow Jones Sustainability Index for our sustainability performance in 2019, placing third overall in our sector, while our subsidiary in Belgium, Telenet, was once again the sector leader. Corporate responsibility is a key part of who we are, and we are committed to continuing our efforts to reduce the environmental impacts of our business.

Liberty Global Statistics

The following tables present certain operating data as of December 31, 2019, with respect to the networks of our consolidated subsidiaries. The following tables reflect 100% of the data applicable to each of our subsidiaries regardless of our ownership percentage.

Consolidated Operating Data - December 31, 2019

Video Fixed-Line Enhanced Homes Customer Total Internet Basic Video Video Telephony Mobile Passed Relationships RGUs Subscribers Subscribers Subscribers Total Subscribers Subscribers (1) (2) (3) (4) (5) (6) Video (7) (8)

United Kingdom 14,894,400 5,518,100 13,563,900 5,271,000 — 3,687,400 3,687,400 4,605,500 3,179,500 Belgium 3,385,200 2,072,100 4,743,500 1,664,400 164,700 1,701,900 1,866,600 1,212,500 2,808,400 Switzerland (9) 2,372,800 1,038,800 2,179,800 661,400 418,700 593,200 1,011,900 506,500 200,700 Ireland 939,900 435,400 993,700 378,200 — 280,400 280,400 335,100 97,600 Poland 3,547,800 1,483,800 3,167,600 1,229,600 196,600 1,067,000 1,263,600 674,400 9,000 Slovakia 619,000 193,000 399,000 140,600 28,800 142,500 171,300 87,100 — Total 25,759,100 10,741,200 25,047,500 9,345,200 808,800 7,472,400 8,281,200 7,421,100 6,295,200 ______

(1) Homes Passed are homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant. Certain of our Homes Passed counts are based on census data that can change based on either revisions to the data or from new census results. Due to the fact that we do not own the partner networks (defined below) used in Switzerland (see note 10 below), we do not report homes passed for Switzerland’s partner networks.

(2) Fixed-Line Customer Relationships are the number of customers who receive at least one of our broadband internet, video or telephony services that we count as Revenue Generating Units (RGUs), without regard to which or to how many services they subscribe. Fixed-Line Customer Relationships generally are counted on a unique premises basis. Accordingly, if an individual receives our services in two premises (e.g., a primary home and a vacation home), that individual generally will count as two Fixed-Line Customer Relationships. We exclude mobile-only customers from Fixed-Line Customer Relationships.

(3) RGU is separately a Basic Video Subscriber, Enhanced Video Subscriber, Internet Subscriber or Telephony Subscriber (each as defined and described below). A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer in our U.K. market subscribed to our enhanced video service, fixed-line telephony service and broadband internet service, the customer would constitute three RGUs. Total RGUs is the sum of Basic Video, Enhanced Video, Internet and Telephony Subscribers. RGUs generally are counted on a unique premises basis such that a given premises does not count as more than one RGU for any given service. On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two RGUs for that service. Each bundled cable, internet or telephony service is counted as a separate RGU regardless of the nature of any bundling discount or promotion. Non-paying subscribers are counted as subscribers during their free promotional service period. Some of these subscribers may choose to disconnect after their free service period. Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as RGUs. We do not include subscriptions to mobile services in our externally reported RGU counts. In this regard, our RGU counts exclude our separately reported postpaid and prepaid mobile subscribers.

(4) Internet Subscriber is a home, residential multiple dwelling unit or commercial unit that receives internet services over our networks, or that we service through a partner network. In Switzerland, we offer a 2 Mbps internet service to our Basic and Enhanced Video Subscribers without an incremental recurring fee. Our Internet Subscribers in Switzerland include 70,400 subscribers who have requested and received this service.

(5) Basic Video Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network either via an analog video signal or via a digital video signal without subscribing to any recurring monthly service that requires the use of encryption-enabling technology. Encryption-enabling technology includes smart cards, or other integrated or virtual technologies that we use to provide our enhanced service offerings. We count RGUs on a unique premises basis. In other words, a subscriber with multiple outlets in one premises is counted as oneR GU and a subscriber with two homes and a subscription to our video service at each home is counted as two RGUs. We have approximately 27,900 “lifeline” customers that are counted on a per connection basis, representing the least expensive regulated tier of video cable service, with only a few channels.

(6) Enhanced Video Subscriber is a home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network or through a partner network via a digital video signal while subscribing to any recurring monthly service that requires the use of encryption-enabling technology. Enhanced Video Subscribers are counted on a unique premises basis. For example, a subscriber with one or more set-top boxes that receives our video service in one premises is generally counted as just one subscriber. An Enhanced Video Subscriber is not counted as a Basic Video Subscriber. As we migrate customers from basic to enhanced video services, we report a decrease in our Basic Video Subscribers equal to the increase in our Enhanced Video Subscribers. Subscribers to enhanced video services provided by our operations in Switzerland over partner networks receive basic video services from the partner networks as opposed to our operations.

(7) Telephony Subscriber is a home, residential multiple dwelling unit or commercial unit that receives voice services over our networks, or that we service through a partner network. Telephony Subscribers exclude mobile telephony subscribers. In Switzerland, we offer a basic phone service to our Basic and Enhanced Video Subscribers without an incremental recurring fee. Our Telephony Subscribers in Switzerland include 183,300 subscribers who have requested and received this service.

(8) Our Mobile Subscriber count represents the number of active subscriber identification module S( IM) cards in service rather than services provided. For example, if a Mobile Subscriber has both a data and voice plan on a smartphone this would equate to one Mobile Subscriber. Alternatively, a subscriber who has a voice and data plan for a mobile handset and a data plan for a laptop would be counted as two Mobile Subscribers. Customers who do not pay a recurring monthly fee are excluded from our Mobile Subscriber counts after periods of inactivity ranging from 30 to 90 days, based on industry standards within the respective country. In a number of countries, our Mobile Subscribers receive mobile services pursuant to prepaid contracts. As of December 31, 2019, our Mobile Subscriber count included 444,600 and 263,900 prepaid Mobile Subscribers in Belgium and theU .K., respectively.

(9) Pursuant to service agreements, Switzerland offers broadband internet, enhanced video and telephony services over networks owned by third-party cable operators (“partner networks”). A partner network RGU is only recognized if there is a direct billing relationship with the customer. AtD ecember 31, 2019, Switzerland’s partner networks account for 118,300 Fixed-Line Customer Relationships, 299,300 RGUs, which include 109,400 Internet Subscribers, 104,200 Enhanced Video Subscribers and 85,700 Telephony Subscribers.

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