& cplSiteName &

Six Cable Deals We Might See in 2013

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/21/2012
50%
50%

System swaps. Equipment buys. Market-altering moves. A change atop the U.S. cable MSO rankings. Those are some of the types of cable-related deals that could hit the headlines sometime in 2013.

We've come up with six total, including a two-fer involving Charter Communications Inc., which we think is going to have one heck of an interesting 2013. And that's only if part of what we think might happen actually happens.

Oh, and we've declined to put TiVo Inc. on this year's list of acquisition potentials. We realize that it's been fashionable to put TiVo on these kinds of lists for the last eight years or so, so perhaps keeping them off this one means something will actually pop this time.

Or did we just mess that up by mentioning them in the intro? Hard to tell. Anyway, on to our list:

1. Comcast Buys ADT
Comcast Corp. is one of several major service providers trying to wedge itself into the fragmented U.S. home monitoring and security market. While its new, broadband-fueled platform does add stickiness to an operator's overall service package, turning home security and monitoring into a material business could take a while through organic growth.

Comcast's alternative: a play for the market leader, ADT Corp., which has about 6.5 million customers in North America and only recently became a standalone company. ADT's CEO says the company intends to go it alone, though, what else is the guy supposed to say?

Still, ADT's departure from the Tyco International Ltd. mother ship would make an acquisition less messy, and possibly open the door to Comcast … or maybe another service provider with big home security aspirations, such as Verizon Communications Inc.

2. Charter & TW Cable Swap Some Systems
Toward the end of the year, there was a lot of chatter to "expect" Charter and Time Warner Cable Inc. to swap some systems that would make operational sense on both sides. Much of that talk centered on seeing Charter swap its Los Angeles properties for TW Cable's in Dallas. We haven't found any fire to go with the smoke, but such a deal would finally unify much of the L.A. region for TW Cable, and give Charter a cluster to complement its systems in Ft. Worth. Such a deal might also require some cash to change hands, too, since the TW Cable Dallas system has about 350,000 subscribers, while Charter's L.A. property serves about 230,000.

3. & 4. Charter Goes On a Buying Spree (If two buys count as a spree)
Growth has been the the mantra at Charter ever since former Cablevision Systems Corp. exec Tom Rutledge took the helm in February. Charter will look to get some of that growth organically by being aggressive in its own footprint, where its service penetration levels trail most of its peers.

But we also expect to see Charter pump things up through some M&A action. Charter's already rumored to be in the running for Cablevision's Optimum West properties (the former Bresnan Communications systems), which serve about 360,000 customers.

But does Rutledge have something even bigger (make that much bigger) in mind? The other rumor is that Charter, the fourth-largest incumbent MSO, wants to make a play for Cox Communications Inc., the nation's third-largest incumbent cable op. Of course, this presumes that Cox would even be open to a sale. But it would be a shrewd move by Rutledge if he can pull it off. If Rutledge's plan is to not just to transform Charter into a massive and highly-influential cable operator but also to help him get out of the shadow of Cablevision and the Dolan family and establish his legacy, swinging a deal for Cox would certainly fit the bill.

5. CommScope Buys a CMTS
CommScope Inc. already has good edge QAM technology, but it needs a Docsis piece to complete its development of a fully integrated Converged Cable Access Platform (CCAP), a high-density system that will combine the functions of the edgeQAM and a cable modem termination system. CommScope is working with a partner to fill in the CMTS/Docsis element, but there's another possible option that could present itself.

It so happens that Arris Group Inc. is in the process of buying Motorola's Home unit, and, as a result, Arris could soon find itself with a redundant CMTS product line alongside Motorola's CCAP-in-progress. Rather than keeping it or chucking it, Arris might find a willing buyer in CommScope. Or, possibly, in multiple interested parties, such as Aurora Networks Inc. and Juniper Networks Inc., that happen to be looking for ways to amp up their cable access game.

6. Cisco and ActiveVideo Tie the Knot
We've hinted at it before, and we still think this deal would just make a lot of sense. ActiveVideo Networks Inc. and its video cloud technology fit well into Cisco Systems Inc.'s platform (Cisco's licensing ActiveVideo's software, anyway) and ActiveVideo has some big customers, led by Cablevision, and a strong patent portfolio. It wouldn't cost Cisco a king's ransom to land it.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
torivar
50%
50%
torivar,
User Rank: Light Beer
1/5/2013 | 2:03:19 AM
re: Six Cable Deals We Might See in 2013


Charter making a play for Cox sounds fairly rediculous at this point.  Charter is still saddled with $10+B (with a B) in debt, how would they make a play for an entity they would have to pay another $10+B for?  


A merger of the two would be a huge undertaking.  Charter does have a few of the top engineering resources from Cox's past.  

From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    Telecom Innovators Video Showcase
    Atrinet's NetACE – Migration to NFV & SDN With NetOps-Driven LSO

    5|4|16   |     |   (0) comments


    At Atrinet's headquarters, Ray Le Maistre sits down with Roy Silon to get an in-depth look into the company's focus and the secret recipe for their success.
    LRTV Huawei Video Resource Center
    Amsterdam ArenA, Powered by Huawei

    5|4|16   |     |   (0) comments


    Huawei's ICT solutions power the state-of-the-art Amsterdam ArenA, turning it into a smart stadium.
    LRTV Interviews
    Testing When There's No 'There' There

    5|4|16   |     |   (0) comments


    The benefits of SDN/NFV are well known, but the transition comes with some challenges, prominent among them is: how do you test a network that has been abstracted and has the potential to be endlessly reconfigurable? Light Reading was at NFV World Congress in Santa Clara, Calif., where we bumped into Mats Nordlund, CEO and co-founder of Netrounds, a Swedish ...
    LRTV Interviews
    Ditching the Slash & the Orchestration Wars

    5|3|16   |     |   (2) comments


    SDN and NFV have been inextricably bound with each other for so long that on a conceptual level, smooshing them together into one catch-all phrase – SDNFV – is now justifiable, according to Dan Pitt, executive director of the Open Networking Foundation (ONF). Light Reading spoke to Pitt at the NFV World Congress, where he explained that the next ...
    LRTV Custom TV
    ZTE TV Connect Highlights

    5|3|16   |     |   (0) comments


    ZTE gives us a tour of its booth and new products at TV Connect in London.
    LRTV Custom TV
    Deluxe's Unified Delivery Solution

    5|3|16   |     |   (0) comments


    Join Alan Breznick of Light Reading and visit the Deluxe booth at NAB! Here you'll find Deluxe's Unified Delivery Solution, OTT video, virtual reality, HDR, 4K and much more!
    LRTV Interviews
    Verizon Puts Gray Boxes in the Shade

    5|2|16   |   04:33   |   (1) comment


    When it comes to the white box trend, "gray" boxes, which have a slight proprietary twist, don't give service providers and end users the advantages they're seeking, according to Verizon's Vice President of Product and New Business Innovation Shawn Hakl.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    Sprint CEO: Our Spectrum Is for 5G
    Dan Jones, Mobile Editor, 5/3/2016
    Amazon & Other 'Big 4' Cloud Providers Crushing Competitors
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/29/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Sloth Mail Click Here
    Sloth mail -- somehow even slower than snail mail.
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.