Rogers communications takes over Ontario network operator Atria
06 Oct 2010
Rogers Communications Inc's successful bid for privately held Ontario network operator Atria Networks LP, has given the telecom giant a much needed boost in the small to medium-sized business and enterprise markets, analysts said today.
However, according to some analysts, the more "compelling" result of yesterday's announcement was the deal probably putting more pressure on smaller cable rival Cogeco Inc to sell itself to the Toronto-based telecom giant, given a key acquisition target for both is not in the picture.
Rogers would have to pay $425-million in cash for Atria, a major fibre-optic asset operating Canada's biggest province by population. Kitchener, Ontario-based Atria has a client base of 1,100 comprising enterprise, public-sector and small to medium-sized business customers - all key focus areas for the firm as subscriber flags in Rogers' traditional residential cable and internet markets.
According to Rogers chief executive Nadir Mohamed, the business-to-business market represents a significant opportunity and the acquisition of Atira fitted with the firm's enterprise strategy.
Analysts say that with tying up its network with Atria's so-called "metro ethernet" network Rogers would be positioned well to expand capacity as data loads from both wireless and wireline users accelerate.
They add that in combination with other moves over the past year or so, the Atria deal brought the spectre of Rogers taking aim at acquisition of Cogeco into focus.
