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Jim Barthold
Buying Fundy Communications Inc. does more than just add 192,000 subscribers to Shaw Communications Inc.'s subscriber base, it expands the Canadian MSO's fiber backbone network.
"The network's tremendous," admitted Peter Bissonnette, Shaw's SVP-operations, commenting on the $460 million acquisition. "It's 3,200 kilometers of fiber interconnecting probably 90% of the customers."
This interconnection will let Shaw expand its digital and Network high-speed data service roll outs, Bissonnette said. Shaw is the most aggressive partner and is adding between 350 and 450 customers every day, he added.
Shaw is deploying General Instrument Corp.'s DCT-2000 digital set-tops while awaiting top-end DCT-5000 units, with more than 100,00 customers on line already, Bissonnette said, as opposed to "maybe 800" digital customers at Fundy.
"It provides an opportunity to really get a foothold into the Atlantic region where we think there will be a great propensity for those two products," he said.
Fundy's network will mesh with Nova Scotia-based Access Cable, which Shaw also recently purchased, Bissonnette added.
"Putting those two systems together, because they are connected via fiber, provides us with another large cluster of customers," he explained. "There's also a backbone going down to Bangor, Maine, and we would look at that as an access point to our Network."
Shaw is not sitting back waiting for the deal to get regulatory approval and close in the September-November time frame, Bissonnette said.
"Between now and the time when we take over the system ... we can do a lot of work on the cable side and then take advantage of the backbone that's in place," he explained.
Part of that work will impact Shaw's Toronto system from which Shaw plans to move its 550 MHz two-way equipment to upgrade Fundy systems.
"At the same time, we'll be upgrading our Toronto system from 550 to 750. We get a double bang from our buck on that one," he said.
OTHER TIDBITS: Royal Philips Electronics NV made an unspecified strategic investment in TiVo Inc. as part of its commitment to personal TV, the Netherlands-based company said ... Com21 Inc. announced cable modem contacts with Casema Kabeltelevision N.V. in the Netherlands and Telia Stofa A/S in Denmark ... General Instrument Corp. said it would collaborate with Cisco Systems Inc. on a dual-return cable modem that allows operators to use both RF and telephone return paths ... Cablevision S.A. will deploy Antec Corp. distribution equipment as part of its three-year rebuild/upgrade project in Rosario, Argentina ... GTE Media Ventures Inc. will use CableData Inc.'s customer management and billing system, starting with its Multipoint Multichannel Distribution Service (MMDS) system in Oahu, Hawaii.
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