There has been much talk and indeed surprise in the industry at the price NTL paid for Cablelink. Its final bid of £535 million (€679.3 million) easily surpassed that of all other rival bidders.

A recent report on the European Cable TV industry by Merrill Lynch shows that the price per subscriber which the US group paid for Cablelink at $2,028 (€1,963), is well above the average in recent European cable acquisitions.

The nearest equivalent is $1,617 which UPC paid for Time Warner in France. The total price it paid for the franchise was $730 million. UPC was an underbidder for Cablelink and it was always felt that the company saw the acquisition as another deal, whereas NTL would be prepared to pay whatever it took.

Merrill Lynch describes acquisition activity in Europe as "robust", and examines recent deals by NTL and UPC. Merrill says that there has been significant speculation regarding possible continuing industry consolidation, following an announcement by Telewest and CWC earlier this year. NTL's chairman Barclay Knapp is also on record as saying NTL is "a major player in all discussions going forward. As always is reported, we talk all the time." Asked about co-operation with UPC he said. "I think there is a lot of scope for co-operation going forward. Our personalities are aligned and we have got a common shareholder."

Consolidation in the Republic's cable industry is expected and few were surprised to learn that NTL was now talking to CMI, a smaller cable player with some very attractive franchises. The fact that NTL and UPC may be prepared to co-operate means one cannot rule out UPC entering the Irish market in another guise.