Comcast offers $17M for AP & T’s telecom business
Comcast has offered $17 million for Alameda Power & Telecom’s (AP&T) struggling telecommunications business in Alameda, Calif., according to the Contra Costa Times (story here).
According to the paper, if the Alameda City Council approves the deal, Comcast could take over as early as Nov. 21. The council is slated to discuss the deal on Nov. 18, and the Public Utilities Board is set to discuss it on Nov. 17 to offer its own recommendation to the council.
AP&T currently has about 9,500 cable customers and 6,600 Internet customers. Cable customers could see some changes in their channel lineup, and Internet customers would have one year to change their e-mail addresses, the paper reported.
In February, according to the paper, the Public Utilities Board directed AP&T staff to look at three options for the future of its telecommunications line: 1) refinance its existing bonds and provide the same services, 2) refinance and add a voice service, or 3) sell the system.
According to an op-ed piece in the Alameda Journal, the proposed $17 million offer from Comcast won't solve all of the problems of the troubled telecom system, but it's a better deal than expected (story here).
It’s “the best possible scenario at this point,” the op-ed piece says. “Once the decision has been made, it is prudent to move quickly to implement the deal and cut the losses.”
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