Re: MSO Spending News in WSJ
Thread,
A couple of interesting notes from todays Wall Street Journal.
Cox Communications devoted two FULL pages to raising capital. They are raising some major bucks via three debt offerings. A $2,000,000,000 bond offering. A $650,000,000 FELINE PRIDES (??) offering, and a good old share diluting $400,000,000 or so secondary. So that's a whooping $3,000,000,000.
I'm guessing a lot of this will go to upgrading to cable telephony. I wonder how much of the ILECs revenue they hope to capture? My guess is a CONSIDERBABLE amount considering the amount they are willing to risk.
Also Bill Gates has decided to drop another chunk of change into a MSO in Brazil, Globo Cabo SA. More precisely $126 million for a 11% stake. Of course the idea is to upgrade it to two-way HFC for broadband services.
I just can't get over the figures I keep seeing everyday. When two of the most richest men in the world, AT&T, and Cox spend many billions upon billions on good old coaxial plants, that sure if enough of a vote of confidence for me to keep investing in HFC infrastructure plays.
MikeM(From Florida) |
