TWC Surprises Everyone by Buying DukeNet

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

TWC Surprises Everyone by Buying DukeNet

TW Cable surprised everyone by buying DukeNet for $600 million in cash to gain access to the 8,700 mile fiber network which will help TWC hit more businesses.

All cablecos realize that growth will come from the business market. The consumer side - long the hallmark of cable - is declining. Cord cutting has reached 9% of households.

A few reports mention that Gigabit broadband was a prompt for this, but I'm not buying that. I think there were a bunch of factors. One, DukeNet gives TWC access to fiber to the business. Two, TWC doesn't have the same relationship with tw telecom that it used to - so it lacks the acces to twt fiber.

Also, when you consider that the cable companies don't play nice with wholesale customers like CLECs and cloud comm companies, this helps TWC get access to more business locations without building out and without using competitors. It also takes 8700 miles of fiber away from competitors.

I'm surprised that TWC hasn't acquired 8x8. Maybe they had a big deal in the Carolinas that they needed the DukeNet fiber for. Maybe they just needed revenue.

Related Articles to 'TWC Surprises Everyone by Buying DukeNet'
Featured Events