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Comcast Buys San Fran Muni-Network
Alameda Power and Telecom
by Karl Bode 08:25AM Tuesday Nov 18 2008
Comcast will be buying a financially strapped municipal cable operation run by Alameda Power & Telecom in the San Francisco Bay Area. According to Multichannel News, Comcast will pay $15 million for the system, which has 9,500 video customers and 6,600 data customers just outside of San Francisco. The municipal utility started as an electrical company, then got into video and broadband services in 2001. The outfit funded their plan with revenue bond anticipation notes, and now faces a balloon payment of $35 million on those notes in June.

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knightmb
Everybody Lies

join:2003-12-01
Franklin, TN

wow, sweet deal for Comcast

Wire everywhere already, customers already, just take over management and hopefully your technicians can fix up the network setup. Sounds like a sweet deal at $15 million since with that many customers, turn over $6 million a year get the amount paid off after a couple of years.
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dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: wow, sweet deal for Comcast

said by knightmb:

Wire everywhere already, customers already, just take over management and hopefully your technicians can fix up the network setup. Sounds like a sweet deal at $15 million since with that many customers, turn over $6 million a year get the amount paid off after a couple of years.
It's a sweet deal until they have to fork over the $35 million debt payment, assuming that's part of the deal and the taxpayers aren't eating the debt.
Sammer

join:2005-12-22
Canonsburg, PA

Re: wow, sweet deal for Comcast

said by dynodb:

[It's a sweet deal until they have to fork over the $35 million debt payment, assuming that's part of the deal and the taxpayers aren't eating the debt.
Since 95% of the debtholders have agreed to the sale, that debt is apparently part of the sale although it sounds like Comcast is insisting on better terms.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by dynodb:

said by knightmb:

Wire everywhere already, customers already, just take over management and hopefully your technicians can fix up the network setup. Sounds like a sweet deal at $15 million since with that many customers, turn over $6 million a year get the amount paid off after a couple of years.
It's a sweet deal until they have to fork over the $35 million debt payment, assuming that's part of the deal and the taxpayers aren't eating the debt.
Oh thats easy. just put a new line item on everyones bill!
--
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rody_44
Premium
join:2004-02-20
Quakertown, PA
i dont know where you get your calculations, but i come up with probably around 950,000 a year in gross revenue. your not going to average more than 100.00 a month average and thats tops.

funchords
Hello
Premium,MVM
join:2001-03-11
Yarmouth Port, MA
kudos:6

Re: wow, sweet deal for Comcast

said by rody_44:

i dont know where you get your calculations, but i come up with probably around 950,000 a year in gross revenue. your not going to average more than 100.00 a month average and thats tops.
(Did you forget that there are 12 months in a year?) That's $11.4 million. Comcast runs around a 20% operational profit, leaving it $2.3 million/year to pay off the debt, somewhere between 6-7 years from now.

That sounds like a good deal -- it's probably not exactly that rosy because the network they're buying has probably suffered some neglect over its past austere years.

I'm bummed that it's Comcast as it can't keep up with its own problems and is dead last in customer satisfaction -- it's exactly the kind of buyer that the bondholders wanted to avoid when they started this thing.
--
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Sammer

join:2005-12-22
Canonsburg, PA

Re: wow, sweet deal for Comcast

said by funchords:

That sounds like a good deal -- it's probably not exactly that rosy because the network they're buying has probably suffered some neglect over its past austere years.
It's an overbuilt system in an area Comcast already serves so Comcast cares more about acquiring the subscribers than the system.

funchords
Hello
Premium,MVM
join:2001-03-11
Yarmouth Port, MA
kudos:6

Re: wow, sweet deal for Comcast

ah!
Mordhem
Love it, Hate it.

join:2003-07-10
Baltimore, MD
I guess you have a bad area of comcast, when I was in Baltimore my service was top notch now that I am dealing with charter I crying and wishing comcast would buy them out and upgrade this pos system they have liked they did to TCI when they acquired Baltimore
--
Being Corporate is not a bad thing, its a matter of who you work for & how much they value you! I would not have it any other way!
mdurkin

join:1999-08-11
San Bruno, CA
Check your math. You forgot the X 12 for yearly gross.
ashworth7

join:2001-10-06
Pittsburgh, PA
Actually, seems kind of expensive, 35M in debt + 15M price tag = 50M/16100 subs = over $3100/sub ?? But our friends @ Comcast can afford it.

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Just close it down

$15 million well spent. Shut down the system and let them be converted to Comcast Cable customers. All they will have to do is switch out some headend gear.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Just close it down

they'll leave the network in place and won't change anything but maybe a channel line up and changes the pricing and internet speeds. Why spend the money to change out the headend? Especially if it is working just fine and it's not that old.

Usually MSOs will only change out the headend if its beyond using like my old mom and pop cable company in Fremont, OH. The only thing we had was 45 channels of analog and 1 HBO and CinMax. Those were not even on a cable box just some type of scrambler that was just screwed on the line. TWC had to overbuild the network before they could even use it.

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17

1 edit

Re: Just close it down

The only problem I've been seeing with my connection is a bottleneck within the Alameda network at night since this summer. Once we peer off to AT&T no problem.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Just close it down

Comcast will move you to their network and shit can AT&T.

But would be the same network within your town.

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17
Reviews:
·Comcast

Re: Just close it down

Well that's gonna be a bummer. Maybe they will fix that up eventually. At least my speeds will be faster so I might not notice it as much. After 8 pm or sooner, my pings within the network can hit as high as 500.
--
TH ~ NE ~ EPN ~ NC ~ TD
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Just close it down

the comcast network is built out to keep your traffic on their network until it needs to peer out. which means you won't have to go directly out to the Internet after you request the page. you can stay on the comcast network all the way to FL if you are requesting a website there before you "touch" the internet.

its part of their own network called CRAM. Also you'll have PowerBoost too

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17

1 edit

Re: Just close it down

This shall be interesting come Saturday when I switch over.

I decided to switch now to take advantage of a promo for a year - It's less than what I am paying AP&T now.

dadkins
Can you do Blu?
Premium,MVM
join:2003-09-26
Hercules, CA
kudos:18
said by hottboiinnc:

the comcast network is built out to keep your traffic on their network until it needs to peer out. which means you won't have to go directly out to the Internet after you request the page. you can stay on the comcast network all the way to FL if you are requesting a website there before you "touch" the internet.

its part of their own network called CRAN/B>. Also you'll have PowerBoost too
CRAN... I can tracert all the way to New Jersey and never leave Comcast's network!
--
Think outside the Fox... Opera
JJV
Premium
join:2001-04-25
Seattle, WA

Bad news for their customers

Comcast recently bought my Moms local cable system.

Nothing has changed but the bill went up 50%.

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17
Reviews:
·Comcast

2 edits

1 recommendation

Speechless almost....

I have had AP&T cable and internet since 2004. I've heard rumors that they were in financial trouble and might be selling out. I should have figured it would be to Comcast.

I choose them because I wanted to support my community rather than a big corporation.

I wonder how the switch over is going to affect me?

Alameda is an island off of Oakland which is across the bay from San Francisco.
--
TH ~ NE ~ EPN ~ NC ~ TD

badtrip
I heart the East Bay
Premium
join:2004-03-20
Albany, CA

Re: Speechless almost....

»www.unwiredltd.com/

is based in Berkeley. I use their service, they are very reliable, friendly and I am very happy with them.

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17

Re: Speechless almost....

Thanks for the suggestion. I'll look into it.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

1 recommendation

Another one bites the dust

Yet another Muni bites the dust. Is there a list somewhere of failed municipal broadband initiatives, or would it be too long to fit on one page?

Of course the next time a state or local government proposes becoming a broadband provider, most on BBR will think it's a great idea.

badtrip
I heart the East Bay
Premium
join:2004-03-20
Albany, CA

2 edits

1 recommendation

Re: Another one bites the dust

No, Albany is

EDIT: I live in Albany. It was a joke Mr. Mod =/

ninjatutle
Premium

join:2006-01-02
San Ramon, CA

Re: Another one bites the dust

No one has a sense of humor here

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17

1 recommendation

That is not true!

I think they are failing because they don't offer the internet speeds that Comcast offers and the upcoming change 2/09 in TV.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Another one bites the dust

cable does NOT have to change anything to digital in 2/09 that is only for OTA tv viewers. Comcast has a private network and would not be affected by the change. The only thing MSOs want to do is move all the channels to digital to free up that used space for more digital channels, HDTV, and internet. but are NOT required to do so.

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17
Reviews:
·Comcast

Re: Another one bites the dust

The last time I talked with AP&T, they told me they had to buy some expensive equipment to reconvert the digital signal back to an analog signal. I took that with a grain of salt.
--
TH ~ NE ~ EPN ~ NC ~ TD
rody_44
Premium
join:2004-02-20
Quakertown, PA

Re: Another one bites the dust

actually we dont know where they were at. its possible that they only recieve a analog signal. and after feb. that signal goes away. its very possible that they would have to upgrade after the feb deadline if thats the case.
Expand your moderator at work

Matt3
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: Another one bites the dust

said by dynodb:

Yet another Muni bites the dust. Is there a list somewhere of failed municipal broadband initiatives, or would it be too long to fit on one page?

Of course the next time a state or local government proposes becoming a broadband provider, most on BBR will think it's a great idea.
And how many telecommunication companies have failed over the years?

•••••••

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17
Reviews:
·Comcast

1 edit

Found this....

I found these 2 links at their website:

»www.alamedapt.com/aboutus/agenda···7_R.html

»www.alamedapt.com/aboutus/PUB%20···1208.pdf

The 2nd link gives somewhat of a history.
--
TH ~ NE ~ EPN ~ NC ~ TD
granny42
Premium
join:2005-06-06
Portland, OR

yeah, but what about the PEOPLE

economy...

sashwa
Premium,Mod
join:2001-01-29
Alcatraz
kudos:17
Reviews:
·Comcast

City Council Authoriszes sale of AP&T Telcom Business

ALAMEDA, Calif., November 19, 2008 –At its meeting Tuesday night, following a recommendation made by Alameda's Public Utilities Board the previous evening, the City Council authorized the sale of Alameda Power & Telecom's telecommunications business line to Comcast.

The actions, adopted unanimously by both bodies, allow the sale of telecommunications assets to Comcast to proceed. "The sale of the telecommunications system brings certainty and eliminates future financial risk to Alameda Power & Telecom and the City from continued operation of the telecommunications system," said Public Utilities Board President Ann McCormick. "Selling now also enables us to focus on our core electric business."

Full Press Release here:

»www.alamedapt.com/newsroom/press···ale.html
--
TH ~ NE ~ EPN ~ NC ~ TD