Consolidated Communications has wrapped its acquisition of Champaign Telephone Company (CTC), enhancing its on-net building footprint and overall fiber route miles to address additional business and wholesale opportunities.
What CTC brings to the table for Consolidated is great business service customer density and fiber assets.
Today, CTC serves about 1,500 business customers across the greater Champaign, Ill. area. CTC also adds 275 fiber route miles and 310 lit buildings to Consolidated's Illinois network.
By having more lit fiber buildings, Consolidated will be able to expand its Ethernet and cloud services footprint.
Bob Udell, CEO of Consolidated, told investors during its first quarter earnings call that the CTC deal and its decision to sell off its rural ILEC company in Iowa to Premier Communications and Winnebago Cooperative Telephone Association furthers its fiber-centric business service focus.
"This is an attractive tuck-in opportunity for us to expand our existing Illinois footprint into a growing market that's underpinned by education and healthcare," Udell said.
Thus far, Consolidated's strategy is showing positive signs. During the first quarter, an uptick Ethernet and cloud services drove up total commercial and carrier revenues to $76.6 million. Within the segment, data and transport service revenue was $49.1 million, up year-over-year from $46.1 million in the same period a year ago.
The acquisition of CTC and its sister company, Big Broadband Services, reflects the service provider's growth strategy to grow its commercial business unit via a mix of organic and acquisition growth.
Consolidated has continued to snap up a series of wireline assets in recent years. Besides CTC, the service provider purchased Enventis and SureWest -- two deals that gave the telco greater presence in other markets such as California, Iowa and Minnesota.
For more:
- see the release
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