TDS Telecom-operated subsidiary TDS Broadband Service has gone to the M&A well this week, signing a deal to acquire Central Oregon-based Crestview Cable Communications as a way to further its fiber-based broadband reach.
Financial terms of the acquisition were not disclosed.
Jim Butman, CEO of TDS Telecom, said in a release that the Crestview acquisition fits in well with its FTTH expansion plans for Oregon.
“With plans to immediately invest and further expand our fiber-to-the-home (FTTH) footprint in key communities such as La Pine—along with accelerating broadband speed upgrades and modernizing video products and services in Prineville and across the larger Crestview footprint, we are confident this transaction will benefit the communities Crestview serves,” said Butman.
While the initial focus of the acquisition will be to serve more residential customers, TDS Telecom sees opportunities to enhance business services reach.
The service provider said that network improvements will result in additional commercial services being developed and offered to local businesses. Earlier this year, TDS Telecom extended its fiber-to-the-premises (FTTP) capabilities it developed for residential customers to small business customers, for example.
Similar to earlier deals TDS made for other cable properties such as Bend Broadband, the Crestview acquisition is about scale. Interestingly, the purchase will complement the BendBroadband cable assets.
The deal is pending regulatory approval at both the federal and local levels. TDS Telecom told FierceTelecom that it needs three main regulatory approvals:
1. Local franchise authority approvals.
2. FCC approval of assignment of Cable Television Relay Service (CARS) license; and
3. Consents to assignment of various agreements, since the transaction is an asset purchase transaction.
Upon completing the deal, TDS Telecom will add more than 21,000 service addresses to the adjacent BendBroadband system the telco acquired in 2014.