Urban Communications Buys Cablenet Subs

[cablewithaview]

Urban Communications of Vancouver has entered into an agreement to purchase the subscriber base of Cablenet Communication Services, a cable television and Internet service provider in Burnaby, BC, subject to regulatory approval.

Cablenet presently provides service to 300 subscribers in seven high rise rental apartment buildings containing a total of 750 residential units and 13 businesses. This gives Urban the opportunity to acquire up to a further 450 subscribers and to provide additional services to the existing and new subscribers such as VoIP, and eventually video on demand and full IPTV, the company describes.

CableNet operates under an exemption from the broadcast distribution licensing requirements prescribed by the CRTC, but the acquisition will give Urban recognition with content providers in advance of it providing IPTV services over its state-of-the-art fibre optic network when it becomes licensed to do so. CableNet also has its own customer support and technical support services on site, which aligns with Urban's strategy of providing superior customer service to all business and residential users wanting the best in connectivity, content and communication.

Urban has agreed to issue common stock in payment for the agreed value of the subscriber base on the Closing Date, and a discounted amount for subscribers generated by Urban over the next 12 months, at the 10 day average closing price of the stock on the TSX Venture Exchange as of the Closing Date. In addition, Urban has agreed to pay an ongoing royalty on average revenue per user from all subscribers.

Urban Communications Inc., through its operating subsidiaries, is a full service telecommunications company providing a range of next generation IP application services to residential and commercial clients in British Columbia. The Company's services include developing and operating leased fibre optic networks, engineering design and construction of advanced telecommunications systems to facilitate delivery of video, telephone and broadband Internet services, outside plant and maintenance of the networks plus product sales.


mediacastermagazine.com - Mediacaster - 10/11/2007