Eastlink purchases Persona (to become a nation-wide cable co.)

[digital_rookie]

Eastlink's parent company (Bragg Communications Inc.) just bought Persona.

See attached Newswire Link:

http://www.newswire.ca/en/releases/a.../04/c5096.html

[denben73]

Oh boy.....

How long are we going to have to wait for new stuff now???? 1...2.. maybe 3 years. I've always had the feeling that it would be sold soon but I wouldn't have thought it would have gone to them. I figured Shaw for the West systems, Cogeco for ON/QC and Rogers would take the NL ones.

[SensualPoet]

This is hardly the last of the consolidations in the industry. Be patient.

[stampeder]

As usual, this is subject to CRTC and other regulatory approval.

This gives them a network of local cable providers across the country that fill gaps in the Rogers, Shaw, and Videotron core regions. My guess is that they'll drop the "Eastlink" product name as being too regional and switch it all under the "Persona" banner.

[denben73]

stampeder...

I could see that happening as in Eastlink becoming "Persona".

When I was growing up in NB, I watched all upgrades, channel additions and new services get put on hold while Cable 2000 in Northeastern NB and Cable Service Ltd. in Moncton (how's that for some old forgotten names)were gobbled up by Fundy Cable, then it went to Shaw and now to Rogers. This all happened from 1994-2000.

The last I heard (May 2nd) was they are currently upgrading in Timmins to go to 750 Mhz. We "should" have an much expanded SD line-up (to match Sudbury) in the fall of this year and HD at the beginning of 2008. I'm not trying to be negative but I've been through this stuff a few times to know that I can probably forget about seeing anything new for at least a year. But why upgrade to 750Mhz now then turn around and go to 860Mhz in a couple of years. It seems like alot of work and time just to start all over again.

[SensualPoet]

A well-managed network at 750 MHz will not need to be upgraded to 860 MHz once Switched Broadcast Video (SBV) is rolled out. It's in extended trial use by Comcast and the final specs are being worked out by manufacturers and cable consortiums. Second, analog spectrum can be repatriated leaving significantly more room in that cable 750 MHz space.

Neither of these activities requiring string more cable, changing repeaters on the street or set-top boxes at the end-user. It would surprise me if SBV isn't in trial by one of Rogers, Shaw, Cogeco or Videotron within 2007 and a "product" sometime in 2008.

The Persona network will be a challenge to operate being so geographically spread-out. Cable is efficient in concentrate (marketing dollars, engineering, head-ends, network support including infrastructure); making Delta, BC as robust as Halifax, NS without duplicating facilities is very hard.

[stampeder]

making Delta, BC as robust as Halifax, NS without duplicating facilities is very hard.

Persona bought a state-of-the-art system in Delta Cable, so maybe your comment is the other way around or I misunderstood?

[ARR]

I configured and shipped all the IRT's, MPS's & RPD's for them.
They had Shaw build it and then operate it on Shaw's DAC for a while.
Same with Coast Cable.

I hear Gordie retired?

Persona could always just build a couple of regional superheadends and then fibre trunk the signals out to each system.

Shaw did that from the Okanagan for the entire B.C. interior.
This way you get consistent signals and lineup and reduced cost and can concentrate your engineering expertise.

[SensualPoet]

The challenge is the systems are in Delta BC, Timmins ON, Halifax NS, somewhere in NL ... and all point between. It would be spiffy to connect everyone on one fibre ... but expensive with relatively few customers at each head-end.

I doubt the CRTC would object to the merger/buyout provider the presented business plan sounds half-ways reasonable.

Frankly, it sounds like a nice morsel to gobble up in a year or two when further industry consolidations occur.

[ARR]

I'm sure Ted and Jim and sharpening up the carving knives and checking the bank balance.

[couch3]

just get HD and center ice in timmins already

I'm not gettin any younger

[Batman]

This is all about local telephone...

[denben73]

Well, the sale to Eastlink has been approved. (That didn't take very long...what's up with that. The CRTC actually being quick??)

Hopefully, we'll see some changes up here....soon!

http://www.crtc.gc.ca/archive/ENG/De...db2007-356.htm

[Quadratic]

About consolidations, I doubt EastLink will fall to Rogers any time soon. Bragg Communications has a habit of holding on to their companies and playing as the underdog. Plus, with their recent capture of nearly all of NS and NF's government contracts from Bell/Aliant, things are really looking up for them.

Also, Rogers and EastLink have a lot of competitive agreements and partnerships. In many ways it's to Roger's advantage to leave EastLink alone, and turn EastLink vs Aliant into a proxy war between Rogers and Bell, throwing EastLink customers 15% discounts on Rogers cell phone plans, for example.