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SureWest Sold to Consolidated Communications
$340 Million Deal For 145,700 Customers
by Karl Bode Monday 06-Feb-2012 tags: business · bandwidth · cable · consumers · SureWest Internet
Recent rumors had suggested Surewest Communications was on the verge of being acquired by Google. As it turns out, that was only half right. Surewest Communications this morning announced that the company has been acquired -- by Consolidated Communications Holdings (see our user reviews) for $340 Million. SureWest currently serves 130,000 residential subscribers and 15,700 commercial businesses in the greater Kansas City and Sacramento regions, offering a combination of cable and limited fiber to the home services. "This transaction combines our cash flow-generating business with SureWest's growth-oriented strategy, resulting in a financially strong company with a robust balance sheet and attractive dividend payout ratio," Consolidated CEO Bob Currey said in a press statement.

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mob
Moderhated
Premium
join:2000-10-07

Crap

As a Surewest customer, I hope this does not lead to higher prices and lower quality services and attempts to move to metered billing.

mob
Moderhated
Premium
join:2000-10-07
Reviews:
·SureWest Internet
·Vonage
·RoadRunner Cable

Re: Crap

said by mob:

As a Surewest customer, I hope this does not lead to higher prices and lower quality services and attempts to move to metered billing.

»User reviews - Consolidated Communications

Wow, looking pretty horrible...
--
Ich habe kein Mitleid - Me
You're a daisy if you do. - Doc Holliday
And as always, have nice day.
dishrich

join:2006-05-12
Springfield, IL

Re: Crap

said by mob:

http://www.dslreports.com/comments/2696

Wow, looking pretty horrible...

Yep, it's pretty much another U-verse; ie: FiOS half-ass done...

fAcEtIOUs
Premium
join:2002-03-03
kudos:4

1 edit
said by mob:

As a Surewest customer, I hope this does not lead to higher prices and lower quality services and attempts to move to metered billing.

I had never heard of Consolidated Communications.

»ir.consolidated.com/
quote:
Consolidated Communications (NASDAQ:CNSL) is a family of companies providing advanced communications services to both residential and business customers in Illinois, Texas and Pennsylvania.
Coverage:
»www.broadbandmap.gov/about-provi···ionwide/


Illinois and Nebraska

Pittsburgh PA

Houston Texas


--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/2012-election/

fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: Crap

Sounds very much to me like a company, I mean group of investors, that are more interested about having some properties in operation to pay off profits more than they are serious about providing communication services.

I just don't see how serious anyone can be about providing communications when they have such a small footprint as these people do in this day.. however, if they're all about advanced communications, it would be great to watch this company grow and see if they can do better at what the other big boys have been saying they'd do for decades now.

fAcEtIOUs
Premium
join:2002-03-03
kudos:4
»ir.consolidated.com/eventdetail.···d=109261

powerspec88
Premium
join:2007-03-11
Lenexa, KS
I'm not to happy right now about this. But looking at their site, looks like they only serve DSL? So this will be new to them with fibre and cable networks they have to deal with now.

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1

Noooooooo!!!

Oh Shiiiiiiiii......
Not good, not good at all..
--
The weekend is here, grab a can of beer!

Boricua65
Premium
join:2002-01-26
Sacto Sh*tty

Re: Noooooooo!!!

said by spewak:

Oh Shiiiiiiiii......
Not good, not good at all..

Yeah, you to pick between the lesser of two evils. Consolidated or Frontier for your area.
--
Illegal aliens have always been a problem in the United States. Ask any Indian. Robert Orben

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·Clear Wireless

Re: Noooooooo!!!

said by Boricua65:

said by spewak:

Oh Shiiiiiiiii......
Not good, not good at all..

Yeah, you to pick between the lesser of two evils. Consolidated or Frontier for your area.

You forgot Crapcast my friend.
--
The weekend is here, grab a can of beer!

fAcEtIOUs
Premium
join:2002-03-03
kudos:4

Presentation on acquisition by CCI

Here is the presentation material to Wall St made by CCI this morning:
cci.pdf 285375 bytes
tmc8080

join:2004-04-24
Brooklyn, NY

?

If the business is so 'profitable' why are they selling out?
Something is fishy beyond google's fiber build muscling in on the geography!
crucialcolin

join:2004-09-12
Roseville, CA

RE: Surewest

whoa this was a surprise to me. Of course it has to happen just as I was ready to ditch Comcast HSI mostly because of their capping BS for Surewest since they are supposedly installing fiber on our street within a few months. Right now Surewest's lines are still copper/DSL based with fastest speed avail being 6mbps/768k while the rest of the neighborhood already has fiber.

Not good! I can only see this resulting in higher prices, which were already a bit higher then the competition to begin with, and poor service. wouldn't be surprised to see caps coming as well to the now former Surewest. Looks like I'm now stuck with Comcast
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: RE: Surewest

Roseville Telephone, which is who "Surewest" really is was always one for caps, and for the longest time had them.. so, you're surprised that a company that you just learned about today which hasn't said anything is certain to raise prices and add caps?

I see the logic.

Why don't you (and the rest) sit back for a moment and wait to see what may or may not happen down the road here before crying that the sky is falling.. unless that is you enjoy that.
crucialcolin

join:2004-09-12
Roseville, CA

Re: RE: Surewest

Incorrect! I've always had Roseville Telephone aka "Surewest" and also dealt with their DSL product for years never with any caps as well. Meanwhile Comcast has recently implemented them as well as several price hikes in our area. In fact i know from insiders that Surewest has always been against caps and saw itself as an alternative to the big Com companies like AT&T, Comcast, etc similar to Sonic.net.

At any rate I agree on the wait and see what happens thing. Who knows it could turn out be a good thing reducing both current pricing and improving the quality of service that both Consolidated Comunications and Surewest customers currently see.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: RE: Surewest

Umm... if you're going to sit here and be that sure that Surewest never had a cap, you're only going to sit here and look the fool. Surewest ABSOLUTELY had a cap on fiber service for a long time.. they later loosened up on their top tier of service by removing that cap before they continued loosening up even more where they are today.

Sorry to tell you but you're ABSOLUTELY incorrect.

In short.. you're wrong. Dead wrong. So is your "insider"..
Kigosama

join:2011-11-20

The scoop

Here is what I know. Consolidated communications has a long history as being a family run company, much like surewest. Surewest really came into it's own under the leadership of Bob Doyle during the Roseville telephone company days and the Doyles have and continue to be a part of the company to this day.

Consolidated Communications was founded in 1894, 20 years prior to Roseville Telco, by Iverson A. Lumpkin. The Lumpkin's continue to be involved in the company to this day. Iverson's great grandson Richard A. Lumpkin is the current CEO.

It would seem that both companies have similar, family-business oriented roots.

This may not be telling in terms of what may come as far as services are concerned, but I believe that a similar origin and history can be strong indicators as far as what to expect in terms of corporate philosophy. Personally this bodes well.

On the plus side, Surewest has an amazing network, with fiber buried deep in the network. The FTTH network will continue to be able to deliver a superior suite of services. With fiber being carried to an ever increasing number of their DSLAMs through out their copper service areas, I only expect copper service to improve where it may be infeasible to bring fiber to the home.

I'd imagine that a part of a larger company, Consolidated can bring more cap ex into the picture, possibly allowing for improvements to the network. Maybe this new company will be able to pony up the necessary money to complete a costly network overbuild in those areas currently serviced on copper.

Also consider the following. Changes are not going to suddenly happen over night. For all intents and purposes, the Surewest brand is likely to remain for sometime, during what will likely be a protracted transition period. Also keep in mind that network infrastructure cannot be changed over night. Surewest has relationships and contracts with suppliers and vendors like Microsoft (their Mediaroom Platform) and Cicso that are not going to magically go away or be replaced. Chances are that Consolidated will do what Surewest did with Everest Broadband in Kansas City. The two companies will operate two unique platforms (hybrid fiber coaxial in KS and FTTH and copper POTS in CA) for many years to come. New expansion and growth may favor the current system or may favor another, but I do not expect to see much change in the short to middle run.

Also, for those worried about price increases and policy changes, consider a few things. It is very unlikely, after spending 340+ million dollars to buy Surewest, that Consolidated is going to come out and take actions to alienate the customer base they just acquired. Surewest was actually a very well performing company. Consolidated will likely increase their annual revenues by about 35-40% based on their respective performances this year. Also, Consolidated is going to increase their customer base from 422,000 customers to about 704,000 customers with those acquired by their purchase. That's a 67% increase in customer base. It stands to reason that consolidated is going to be very interested in maintaining these incredible numbers and alienating customers will simply be counter intuitive.

I really do not see this as a "sky is falling" event. I really do not see this as a "now they are just another Comcrap" event either. I think everyone needs to chill for a minute and wait to see what happens. I'm sure the outcome will be positive.
crucialcolin

join:2004-09-12
Roseville, CA

Re: The scoop

Well said. It may very well work out to be a good thing. I jumped the gun myself at first judging by the previous negative reaction here. The extra capital from Consolidated and expanded combined size should help as well. I can see this helping expand service/improve network and possibly allow for increased speed offerings on Surewests current fiber network to further put pressure on the Competition(particularly cable providers). Right now the fastest res tier they offer is 50/50. I now think its best to wait see what will happen going forward.

Although one thing is for sure Consolidated Communications is a terrible name Seems ripe for a company renaming later on. Maybe they should have taken the Surewest name lol.

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·Clear Wireless
said by Kigosama:

I really do not see this as a "sky is falling" event. I really do not see this as a "now they are just another Comcrap" event either. I think everyone needs to chill for a minute and wait to see what happens. I'm sure the outcome will be positive.

Thanks for the calming post. Now, be a good lad and hand me my cocoa and a blanky! I have been depressed since learning of this. I am ready for a nap!
--
The weekend is here, grab a can of beer!
cyberbeing

join:2005-02-18
Sacramento, CA

Investigation of Surewest Board of Directors

Looks like we now have 8 law firms (and growing) investigating the Surewest Board of Directors for breaking their fiduciary duty to investors and the law by selling the company:

Levi & Korsinsky, LLP
Pomerantz Haudek Grossman & Gross LLP
Law Offices of Howard G. Smith
Harwood Feffer LLP
Glancy Binkow & Goldberg LLP
Law Firm Brower Piven
Faruqi & Faruqi, LLP
Robbins Umeda LLP

Not exactly a good start...
Kigosama

join:2011-11-20

Re: Investigation of Surewest Board of Directors

Bah! These guys always pop up whenever there is a significant securities transaction all in hopes of making a quick buck.

I think one of these firms is described as a boutique firm specializing in securities class action suits.

I doubt there is anything to it. I'd be willing to stake my life on it.

The fact is that Surewest has been shopping around for a buyer for sometime and Google being one possible buyer, never ponied up a reasonable offer.

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