J:Com continues acquisition drive
Written by Rose Major
Tuesday, 05 January 2010 09:05
Japanese cable MSO Jupiter Telecommunications (J:Com) is continuing its expansion, concluding a “business transfer agreement†to acquire the operations of Suzuran, a small cable operator in Kobe City.
Suzuran is owned by Keihanshin Cable Vision Foundation. The operator has 77,800 homes passed and will expand the coverage area of J:Com to around 767,700 homes. However, subscriptions are low. Current Suzuran penetration is about 5% for multichannel TV (4,000 homes) compared to a 21% J:Com average, and just 4% for internet access, or 3,200 homes (J:Com 12% penetration).
“Leveraging J:COM assets of marketing capabilities, product appeal and customer support, we plan to rapidly increase these penetration rates,†a J:Com statement said.
Because the acquired area neighbours J:Com’s existing service area, the operator expects sales and marketing efficiencies. To bolster earnings potential, J:Com will introduce digital TV and value-added services such as J:Com On Demand.
The deal is expected to conclude on February 1.
J:Com had a relatively quiet 2009 acquisition-wise, following a spate of buys in the second half of 2008.