Tag Archive for CLEC

PAETEC Buys Again

PAETEC Buys AgainPAETEC has expanded again. PAETEC Holding Corp.(PAET) recently announced that it has signed an agreement to acquire Cavalier Telephone Corporation. The acquisition will add Cavalier’s wholly-owned subsidiary, Intellifiber Networks’ fiber-optic network to PAETEC’s existing service footprint.

Intellifiber Networks is Intellifiber Networks logoone of the largest network providers in the nation with a high-capacity fiber network spanning nearly 17,000 route miles and representing over $2 billion of investment. The expansive 12,262 route mile intercity network spans the Midwest and Eastern U.S., as well as 4,689 route miles throughout several existing PAETEC metro areas,  allowing for broad connectivity options for customers. Intellifiber offers scalable network solutions for service provider, enterprise, and government customers. Their offerings include private networks, low latency routing, SONET services, wavelengths, Ethernet, and data options.

The expanded PAETEC fiber network will encompass a combined 10,609 metro fiber-route miles and 37,023 total fiber-route miles and a combined 1,178 collocations. After the closing of this transaction, PAETEC expects to have a local presence in 86 of the top 100 Metropolitan Statistical Areas (MSAs). The transaction will further solidify PAETEC as one of the largest competitive local communication service providers in the United States

PAETEC logoMarketWatch reports PAETEC Holding Corp. will acquire Cavalier Telephone Corporation in an all-cash $460 million transaction. Cavalier will become an indirect wholly-owned subsidiary of PAETEC Holding Corp. Cavalier is a privately held company whose majority owner is M/C Venture Partners, a private equity firm based in Boston.

This planned acquisition of Cavalier fits our strategic plan to add both fiber assets and regional density to better serve our customers and realize increased network synergies, both in the local loop and long haul,” Arunas A. Chesonis, chair, and CEO of PAETEC told MarketWatch. “Cavalier’s fiber infrastructure, network assets, and corporate culture make it a perfect match for PAETEC and dramatically strengthen the company in the Eastern United States.

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Norlight Bought by Windstream

The incumbent local exchange carrier (ILEC) Windstream (WINMQ) is going to acquire Q-Comm Corporation. Q-Comm is a privately held regional fiber transport and CLEC based in Overland Park, KS for about $782 million. Norlight, a wholly-owned subsidiary of Q-Comm has a fiber network in Michigan. The addition of Norlight to the Windstream market will expand its presence as a competitive force in the SMB market. Norlight currently has about 5,500 SMB customers.

Norlight map Michigan

Also included in the deal was Windstream’s purchase of Kentucky Data Link (KDL), another wholly-owned subsidiary of Q-Comm. Analysts suggest that the KDL addition by Windstream will complement its ongoing effort to upgrade and expand the fiber network in its own 16-state ILEC territory. KDL provides an additional 30,000 fiber route miles to the Windstream network. KDL has about 400 employees and provides fiber services for bandwidth-intensive customers such as wireline and wireless carriers — in 22 states.

Windstream“This transaction builds on Windstream’s strategy to become a next-generation telecom provider focused on broadband and enterprise customers,” Windstream CEO Jeff Gardner said in a release.

Windstream operates in 23 states, where it provides service for 3.3 million phone lines, 1.27 million Internet customers and 420,000 digital television customers. It has 9,500 employees and annual revenue of about $4 billion.

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Windstream says it will “increase success-based capital expenditure investments in the near term” with a concentration on “the wireless backhaul and enterprise businesses.”  Let’s hope so because the broadband in Michigan is terrible. According to theory, at least, increased competition for telco and cableco should drive down prices and increase services.

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.