New CLEC to Enter Western Markets
Champion Broadband California and CBC Broadband Holdings filed an application on October 24, 2008 for CBC to acquire Champion’s operating assets. This deal comes one week after CBC had been certified by the FCC to operate an open video system. CBC had not engaged in carrier operations or had any affiliations with any carriers prior to certification.
According to the application filed with the FCC, “Pursuant to an Asset Purchase Agreement, CBC will acquire, subject to certain limited exceptions, the customer base, network facilities, licenses, franchises, goodwill, and other tangible and intangible assets that are used by Champion for the delivery of local exchange and interexchange telecommunications services.”
Champion, which was formed in February 2003, is a competitive local exchange company that offers telephone, broadband Internet, and Cable TV services to customers in parts of Los Angeles, California, as well as several rural markets in Colorado and Wyoming.
CBC is a Delaware LLC that does not currently engage in carrier operations or have any affiliations with a telecommunications carrier. CBC is a joint venture by several equity groups, led by Scorpion Capital Partners, LP, Greenwoods Capital Partners I, LP, and IG US Telecom, LLC.
JSICA Observations: While the financial terms and the subscriber counts of Champion have not been specified, the company appears to be a strong competitor in the markets it serves. It has approximately 25% market share of cable and satellite video services and approximately 30% market share of high-speed Internet...at least according to its website. Over 60% of its customers have bundled services.