Subscribe
PCL Cable's logo and website appear behind the times
Knology, the company that competes with other cable and phone companies by overbuilding their service areas, has purchased the assets of Private Cable Co. LLC, which serves Athens and Decatur, Alabama for $7.5 million, creating new competitive headaches for bankrupt Charter Cable, which serves both communities. The company said it expects to close the deal by the end of 2009.
Acquiring PCL Cable, which serves areas adjacent to existing Knology service areas, would seem a natural fit.
Decatur City Councilman Gary Hammon said he expects the acquisition to benefit Decatur residents, especially because PCL Cable appears to have frozen operations in place and not expanded their reach.
“PCL hasn’t put any money into Decatur in the last five years,” Decatur City Councilman Gary Hammon told The Decatur Daily. “There are a lot of places in the city where you have Charter cable or no cable. I think competition sharpens the sword.”
PCL Cable’s website appears outdated, outlining a service package that offers fewer channels than many larger cable systems, and a broadband service promoting unlimited access for 5Mbps and 10Mbps tiers of service. The “full package” includes about 100 channels with no need for a set top box for $93 a month (or $73 if bundled with telephone and/or broadband service). The last status updates were published in August 2008.
The incumbent cable operator in PCL Cable’s service area is Charter Cable, which also competes with Knology in several southeastern cities. The buyout, and eventual conversion of PCL Cable into Knology’s family of services, means additional competition for Charter Cable in the two Georgia cities.
Knology Vice President of Communications Tony Palermo talked with The News about the purchase:
Decatur, Alabama
Palermo said it was premature to predict whether the company would expand PCL’s limited footprint in Decatur.
“It’s pretty early on,” Palermo said. “Coming out of the chute, we’re looking at bringing the (existing) PCL footprint into our fold.”
He said Knology already has optical fiber running to PCL, which provides data services.
“Within a relatively short period of time, we’ll be able to bring up products and services to the level of what we’re offering in Huntsville,” Palermo said, to businesses and residents already within PCL’s footprint.
He said the acquisition gives Knology the ability to increase its revenue with investments already made in Huntsville.
“The first step for us is to get the deal done,” Palermo said. “The second step is to transition over to our network and our method and our ways of doing business. That will include checking on the integrity of the distribution network.”
Only after that, Palermo said, will Knology look at expansion in Decatur.
“We will not go in immediately and do any kind of construction work,” he said.
AT&T provides telephone service in Decatur and is on the list for U-verse service at some point in the future, but like Knology, has no immediate plans to roll out service. AT&T received a video franchise from the city of Decatur to provide service.
Even with immediate service expansion still out of reach in many parts of the community, Palermo is still excited about the prospects for the future.
“Anytime there is good strong competition,” Palermo said, “that always results in goodness for the consumer.”
[Correction: Article adjusted to reflect Decatur and Athens are in Alabama.]
Other stories of interest:
- Auburn, Alabama Approves Knology Application to Build Competing Cable Company
- Bankrupt Charter Cable Throws Money Party for CEO: $7.4 Million = Double Pay for Trip to Bankruptcy Court
- Charter Cable to Bankers, Business Owners, a Former State Senator & 55 Others: Pay $1,850 Each for Internet
- Comcast $hopping $pree: What To Buy First? — The Coming Cable Consolidation
- Verizon FiOS TV/Broadband Arrives in Suburban Syracuse: Incumbent Time Warner Cable Says “No Price War” Coming
Knology *should* check PCL’s network before rolling out any more new services. It would be a bad idea to just add new plant while upping speeds if the network is on the verge of congestion, which might be the case since it sounds like PCL is big on analog channels.
By the way, what are Knology’s broadband tiers these days? I don’t think they’re any faster than PCL’s, though the company has expressed intentions of rolling out DOCSIS 3 soonish. Still, I’ve seen much worse than 10 Mbps for $60 and 5 Mbps for $50 internet service. Take any Comcast pre-D3 market for example; 8/2 broadband is $65.
Just FYI…the PCL to which you are referring serves Athens and Decatur, ALABAMA, not Georgia. Just to clarify.
Thanks for the clarification, and the article has been adjusted accordingly!
Are you off the air now or has our tv been hit ?
Internet out here in Decatur, AL & all the PCL Cable phone lines are busy! Way to go Knology – bought out PCL & killed it?!
We’re covering this story. Stand by for an update on our home page shortly.
Hey Phillip,
What’s the latest scoop on the conversion from PCL to Knology? The latest estimate I read (Decatur Daily) was the end of June, 2010. Well, it is now the end of June, with nothing announced. Those of us that are not satisfied with Charter want to know! (Is anyone satisfied with Charter?) Google has failed me in finding the answer to this.
60srocker in Athens/Tanner (with connections to Charter and PCL in my house)