Cablevision Buys Bresnan, Expands Operations

Cablevision Systems Corp. has signed a deal to acquire Bresnan Communications, which is majority owned by Providence Equity Partners, in a transaction valued at $1.365 billion. Bresnan, the nation’s thirteenth largest cable provider, owns systems in Colorado, Montana, Wyoming and Utah that pass more than 630,000 homes and serve more than 300,000 subscribers. Bresnan operates an upgraded fiber-optic coaxial network and offers digital television, high-speed Internet and voice.

Bresnan has been on the block for some time, receiving bids from Cablevision, Charter Communications and Suddenlink.

Cablevision, the nation’s fifth largest cable operator, currently services more than 3.3 million customers in the New York City area. This acquisition is a departure from its metropolitan service model.

Cablevision is a formidable competitor in the New York region, aggressively competing head-to-head with Verizon’s FiOS service. The cable provider invested $300 million to upgrade its cable network to DOCSIS 3.0. The company offers a variety of digital services under the Optimum brand, including: iO TV digital television, Optimum Voice digital voice and Optimum Online high-speed Internet.

Cablevision also operates the nation’s largest WiFi network, Optimum WiFi, which provides a key advantage over its telco competitors and has been credited with increasing customer satisfaction and reducing churn. Cablevision recently launched an advertising campaign pitting its WiFi network against rival 3G networks. (see the video below) Cablevision said its customers are accessing the wireless network more than 3 million times a month via tens of thousands of installed hotspots. In addition, Cablevision’s Optimum Lightpath CLEC focuses on the needs of business customers.

“Bresnan is a well-managed company that has invested wisely in its operations and has pursued a strategy which is aligned and quite similar to Cablevision’s,” said Chief Operating Officer Tom Rutledge, who will oversee the Bresnan properties. “We look forward to building on Bresnan’s record by pursuing among other things: broader deployment of digital voice; the addition of more high-definition television offerings; the expansion of our groundbreaking Triple Play offer; and, the rollout of new services that have already shown great promise.”

For more, see this press release.

Cablevision’s WiFi commercial:

Related posts:

1. EarthLink Expands Business Operations with One Communications
2. NTELOS Buys FiberNet, Expands Regional Fiber Network
3. Midcontinent Buys US Cable Assets
4. Cablevision Testing New Services: Dual-Mode Phone, PC-to-TV Relay
5. Amid Controversy, Cablevision, TWC Launch Live TV iPad Apps