Full Description

Liberty Global, Inc. (LGI) is an international communications provider of video, voice and broadband Internet services, with consolidated broadband communications and/or direct-to-home (DTH) satellite. The Company operates in 15 countries, primarily in Europe, Japan and Chile. LGI conducts its business through its subsidiaries, including UPC Holding BV (UPC Holding) (an indirect wholly owned subsidiary), Telenet Group Holding NV (Telenet) (50.6% indirect controlling ownership interest), Jupiter Telecommunications Co., Ltd. (J:COM) (indirect 37.8% controlling ownership interest) and Austar United Communications Limited (Austar) (indirect 54%-owned subsidiary).

Through UPC Holding, the Company provides video, voice and broadband Internet services in 10 European countries and in Chile. UPC Holding’s European broadband communications operations are collectively referred to as the UPC Broadband Division. Through Telenet, LGI provides broadband communications services in Belgium. Through J:COM, it provides broadband communications services in Japan. Through Austar, LGI provides DTH satellite services in Australia. The Company also has consolidated broadband communications operations in Puerto Rico and consolidated interests in certain programming businesses in Europe, Japan (through J:COM) and Argentina. Its consolidated programming interests in Europe are primarily held through Chellomedia BV (Chellomedia), which also provides interactive digital products and services and owns or manages investments in various businesses in Europe. Certain of Chellomedia’s subsidiaries and affiliates provide programming and interactive digital services to its broadband communications operations, primarily in Europe.

On December 25, 2008, the Mediatti Communications, Inc. (Mediatti), a provider of cable television and broadband Internet services in Japan, including its subsidiary Liberty Japan MC, LLC (Liberty Japan MC), sold all of the issued and outstanding shares of Mediatti to J:COM. On June 28, 2008 (the 2008 PICs Agreement), Telenet acquired from the PICs certain cable television assets. On September 1, 2008, Chellomedia Programming BV, a wholly-owned subsidiary of Chellomedia, acquired 100% of the ownership interests in Spektrum-TV Zrt and Ceska programova spolecnost s.r.o. Telenet completed the Interkabel Acquisition on October 1, 2008.

Broadband Distribution

LGI offers a variety of broadband distribution services over its cable television systems, including video, digital video, broadband Internet and telephony. Available service offerings depend on the bandwidth capacity of the cable systems and whether they have been upgraded for two-way communications. In select markets, the Company also offers video services through DTH or through multi-channel multipoint (microwave) distribution systems (MMDS). The Company’s analog video service offerings include basic programming and expanded basic programming in some markets. LGI tailors both its basic channel line-up and its additional channel offerings to each system according to culture, demographics, programming preferences and local regulation. The Company’s digital video service offerings include basic programming, premium services and pay-per-view programming, including near-video-on-demand (NVoD) and video-on-demand (VoD) in some markets. The Company offers broadband Internet access services in all of its markets. LGI’s residential subscribers can access the Internet via cable modems connected to their personal computers at faster speeds than that of conventional dial-up modems.

The Company offers telephony services in all of its broadband communications markets. In Austria, Belgium, Chile, Hungary, Japan and the Netherlands, it provides circuit switched telephony services and voice-over Internet protocol (VoIP) telephony services. Telephony services in the remaining countries are provided using VoIP technology. In select markets, including Australia, it also offers mobile telephony services using third-party networks.

The Company operates its broadband distribution businesses in Europe through the UPC Broadband Division of Liberty Global Europe, NV. (Liberty Global Europe) and Liberty Global Europe’s indirect subsidiary, Telenet; in Japan through J:COM, a subsidiary of Super Media; in the Americas through VTR GlobalCom, S.A. (VTR), and Liberty Cablevision of Puerto Rico Ltd. (Liberty Puerto Rico), and its satellite distribution business in Australia through Austar. Each of Liberty Global Europe, Super Media, VTR, Liberty Puerto Rico and Austar is a consolidated subsidiary.

Programming Services

LGI owns programming networks that provide video programming channels to multi-channel distribution systems owned by it and by third parties. The Company also represents programming networks owned by others. LGI’s programming networks distribute their services through a number of distribution technologies, principally cable television and DTH. Programming services may be delivered to subscribers as part of a video distributor’s basic package of programming services for a fixed monthly fee, or may be delivered as a premium programming service for an additional monthly charge or on a VOD or pay-per-view basis.

Basic programming services derive their revenue from per-subscriber license fees received from distributors and the sale of advertising time on their networks or, in the case of shopping channels, retail sales. Premium services generally do not sell advertising and primarily generate their revenue from subscriber fees. LGI operates its programming businesses in Europe principally through its subsidiary Chellomedia; in Japan principally through its subsidiary J:COM, and in the Americas principally through its subsidiary Pramer S.C.A. The Company also owns joint venture interests in MGM Networks Latin America, LLC, a programming business that serves the Americas, and in XYZ Networks Pty Ltd. (XYZ Networks), a programming business in Australia.