Rogers Snaps Up Call-Net Enterprises

Seeking to jumpstart its entry into the voice-over-IP (VoIP) business this summer, Rogers Communications plans to buy Call-Net Enterprises in an all-stock deal worth about $330 million. The two companies announced the deal Wed. in Toronto. The parent company of Sprint Canada, Call-Net provides home phone and local business service, IP data, long distance and wireless services to about 600,000 consumers and companies across Canada, mainly in areas served by Rogers Cable. Call-Net also owns a 14,000-kilometer fiber-optic network that stretches across Canada and the U.S., as well as more than 150 central office co-location points in Canada's largest markets. Rogers executives said the pact positions the company to offer primary line phone service to both residential and business subscibers on its cable and wireless platforms. MSO plans call for moving Call-Net customers to Rogers' new VoIP platform "when advantageous." Rogers officials also expect to realize cost savings from the deal, including reduced payments to incumbent and other telecom providers.