FCC approves $24m Cable acquisition

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas yesterday received approval from the leading US communications regulator for its $24 million acquisition of US Metropolitan Telecom, one of its three Florida-based acquisitions.

Taking its cue from the US government’s national security agencies, which had given their backing for the BISX-listed communications provider’s purchase a day earlier, the Federal Communications Commission (FCC) said it had no objection to the deal given that it accounted for a less than 10 per cent market share.

The FCC said: “Grant of the application will serve the public interest, convenience, and necessity.

“Upon consummation of the transaction, the resulting entity would have a market share in the US interstate interexchange market of less than 10 per cent, and would provide competitive telephone exchange services or exchange access services (if at all) exclusively in geographic areas served by a dominant local exchange carrier that is not a party to the transaction.”

US Metropolitan Telecom is the provider of a fibre optic ring that connects northern and central Florida. It is both an attempt to give the BISX-listed communications provider instant critical mass, and build a business model similar to the one it has developed in the Bahamas.

While its earlier announced $65 million acquisitions of Marco Island Cable/NU Vu and Summit Broadband give Cable Bahamas providers of cable TV, broadband Internet and phone services, US Metropolitan Telecom will provide it with the necessary telecommunications infrastructure in Florida - the same role as its wholly-owned Caribbean Crossings subsidiary performs in the Bahamas.

US Metropolitan Telecom’s fibre optic ring runs from Miami all the way across to the Florida west coast, then tracks north to the Orlando area, and back down to Miami again.

Tribune Business understands that US Metropolitan Telecom already carries communications traffic for Marco Island Cable/NU Vu and Summit Broadband. It will perform the communications infrastructure role that Caribbean Crossings does in the Bahamas, with the other two entities acting as the cable TV, Internet and phone providers.

With the Summit Broadband deal also approved by the FCC, which has granted Cable Bahamas a ‘window’ until April 8, 2013, to close that purchase, the only hurdle to closing its $89 million worth of Florida acquisitions remains obtaining Bahamian government permission.

On the Bahamian side, the company needs exchange control approval from the Central Bank of the Bahamas to facilitate the foreign currency outflows necessary to consummate its purchases.

Ultimately, though, the decision rests with Perry Christie’s Cabinet and the Investments Board, the latter often functioning as a Cabinet committee or sub-committee.

Tribune Business understands that the delay in obtaining approvals on both sides of the Florida straits has forced Cable Bahamas to push back its planned $40 million preference share issue, which will part-finance the deals.

It is also understood to be costing the company money in keeping the deals alive, and has potentially exposed it to a “substantial break-up fee” - particularly in the Summit Broadband transaction.

The transactions have exposed the difficulties faced by Bahamian companies in obtaining timely approvals, especially in multi-jurisdictional deals.

Comments

isabella says...

After this acquisition it is going to help them offer better service to the consumers. Now that the service providers have access to latest equipments and technologies we can certainly hope to find better networking facilities. However, the service providers need to upgrade their knowledge before using an equipment, if they are going to use latest fiber optics then they have to <a href="http://www.netsys-direct.com/category_s…">learn about fiber optics</a>.

Posted 5 February 2014, 6:27 a.m. Suggest removal

leonardo85 says...

This acquisition would prove to be a positive move for them. However, to offer better service they need to use cutting edge equipments and they should also focus on upgrading their system. For my business I buy the hardware and software I need online from <a href="http://www.perfdata.com/home.php">http://www.perfdata.com/</a>.

Posted 24 April 2014, 7:13 a.m. Suggest removal

holymoly says...

Everybody knows that when running a business it is essential to have quality telecommunication systems in order to be permanently in touch with your customers. This is why is recommended to have some advanced technology telephone systems such as those from <a href="http://www.qccusa.com/solutions/telepho…">http://www.qccusa.com/solutions/telepho…</a> in order to provide to your customers an easy access to information. The Cable Bahamas is one of the best telecommunication companies and they've extended a lot in the last years.

Posted 10 August 2014, 10:48 a.m. Suggest removal

karina says...

This acquisition would definitely help them provide a better service in the coming years. Thanks to the advancement of technology people now have access to better connectivity. Be it the presence of <a href="http://premierdiscountsonline.com/about…">cable network in Canton</a> or similar network in other area, one can enjoy hassle free entertainment and communication facilities.

Posted 4 December 2014, 3:14 a.m. Suggest removal

zinos85 says...

This new deal would no doubt prove to be quite fruitful for the sector here. Now the telecommunication sector is going through a big transformation thanks to the advancement of technology. So the communication services providers like cable companies should strive to provide the best service to the clients. As an user you can find the best cable deal at <a href="http://premiersalesonline.com">http://premiersalesonline.com</a>.

Posted 20 January 2015, 4:10 a.m. Suggest removal

melanyjames says...

It was about time for the authorities to make this acquisition and expand the telecommunications infrastructure in Florida. Everyone depends on this infrastructure, especially business owners. Depending on how long this process will take, those who need support in this regard should take a look on <a href="http://www.tele-pro.net/">http://www.tele-pro.net/</a>. No one can run his business without a reliable telecommunication network.

Posted 29 January 2015, 8:50 a.m. Suggest removal

karina says...

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Posted 20 February 2015, 7:18 a.m. Suggest removal

leonardo85 says...

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Posted 21 February 2015, 3:35 a.m. Suggest removal

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