In the media: Knology negotiating to pick up 1,000 subs in Fla.
Knology is working on acquiring 1,000 video subscribers from the city of Springfield, Fla.
According to The News Herald, the city of Springfield would make about $3.1 million in infrastructure upgrades before transferring its cable system over to Knology.
If a deal is completed, the city would get about 33 percent of Knology's gross revenue for those subscribers for roughly eight years. After that time period, Knology would take over the system entirely.
Springfield Cablevision serves about 28 percent of the city's households and breaks even financially, according to The News Herald.
Knology would be able to bundle its voice and data services in with the city's video offering, which the city hopes would keep customers from migrating to other video service providers.
Knology's Royce Ard, who was named as the company's new vice president of sales and marketing last month, said that Springfield would be a continuation of the company's "edge out" strategy since it's located next to Knology's Panama City system.
During Knology's third-quarter earnings report last year, Knology President Todd Holt said the company was looking for additional edge out opportunities.
Knology initially targeted $100 million for its edge out projects. After the $25 million earmarked last year was finished, the company will have invested about $46 million of the initial $100 million.
Earlier this month, West Point, Ga.-based Knology bought Tampa-based colocation provider E Solutions Corp. for $13.8 million in cash. E Solutions operates two SAS 70 Type II-certified data centers in Tampa.
Knology provides broadband network services to business and residential customers in the Southeast, upper Midwest and Kansas regions. Its offerings include digital cable TV, local and long-distance digital telephone service, and high-speed Internet access.