Starman buys Lithuania’s KAVA to strengthen Baltic presence

Estonian cable TV company Starman, which earlier this year completed the EUR56.3 million (USD62 million) purchase of Lithuanian operator Cgates, has further strengthened its presence in the Baltic country with the acquisition of fibre-optic cable network operator KAVA. The value of the deal, which is subject to approval from Lithuania’s Competition Council and the Communications Regulatory Authority (RRT), has not been disclosed. KAVA provides telecoms services to around 20,000 customers in Vilnius, Klaipeda, Siauliai and Panevezys, with a network passing around 100,000 households.

In February 2015 Starman acquired 100% of Cgates in a deal that also saw the Estonian cableco’s owner – Swedish investment group East Capital Explorer – increase its ownership in Starman from 51% to 63%. Cgates is one of Lithuania’s largest cable network operators, providing cable and digital television, fixed telephony and fibre-optic broadband internet to around 200,000 customers in twelve cities, including Vilnius, Alytus, Marijampole, Vilkaviskis, Silute, Lentvaris and Kaunas. Its infrastructure currently passes around 300,000 homes. ‘Cgates is now becoming a nationwide operator, which is a milestone in our strategy for the company,’ commented Gert Tiivas, chairman of Starman, adding: ‘The acquisition of KAVA will increase the company’s household coverage by 30% and thereby strengthen its position in the market. Cgates is already a strong number two, but it is still a fragmented market with many growth opportunities.’

Bluesky Group Expands to Cook Islands

The Bluesky Group has welcomed Telecom Cook Islands as its newest operation.On 23 February, 2015 Bluesky’s Cook Islands subsidiary, Teleraro Ltd, completed the purchase of a 60% interest in Telecom Cook Islands from Spark New Zealand. The Cook Islands Government maintains its 40% ownership in Telecom Cook Islands. Teleraro’s ownership structure also includes participation for Cook Islands investors and Telecom Cook Islands employees.

Telecom Cook Islands Limited is a leading telecommunications services company in the South Pacific providing fixed telephony, mobile telephony and Internet services for the population of the Cook Islands.

“We are delighted to have completed this important expansionfor the Bluesky group, which is in line with our regional growth strategy and further strengthens our capability to deliver world class telecommunications services to our Pacific island markets through local partnerships.It is a significant milestone for us, as Bluesky expands its operations to cover threePacific Island territories. With the addition of Telecom Cook Islands to the Bluesky group, we expand our collaboration with our Samoan investment partners and welcome our new Cook Islands partners. ”said Bluesky Group CEO, Adolfo Montenegro.

The 60% stake in Telecom Cook Islands was purchased for approximately NZD$23 million with financing provided by a regional bank.

“We are pleased to have Telecom Cook Islands team join our Bluesky family. As we integrate the operations, we look forward to building upon the delivery of outstanding customer service and high quality telecommunications solutions to the people of the Cook Islands, in line with our vision of being #1 at connecting Pacific people.” said Mr Montenegro.

About Bluesky

Bluesky Communications was established in American Samoa in 1999 and expanded its operations to Samoa in 2011 with a sucessful bid in the privatization of SamoaTel. Bluesky acquired Pacific Island Cable in 2009 and is the sole provider of cable television services to Samoa and American Samoa through Moana TV. Bluesky’s affiliate company, American Samoa Hawaii Cable LLC, brought submarine optic fibre cable connectivity to the Samoan islands in 2009. Bluesky’s commitment to quality, coverage and service has made it a technology driver and leader in Samoa and American Samoa. Bluesky was acquired by eLandia Group in 2006 and now forms part of Amper Group.

Contact Bluesky or Bluesky Samoa

Filifotu Vaai +685-755-1089/ 684-258-1089 marketing@blueskysamoa.com marketing@bluesky.as

This press release and other statements to be made by the Company contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including but not limited to statements relating to projections and estimates of earnings, revenues, cost-savings, expenses, or other financial items; statements of management's plans, strategies, and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry, or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "believe," expect," anticipate," project," and conditional verbs such as "may," "could," and "would," and other similar expressions. Such forward-looking statements reflect management's current expectations, beliefs, estimates, and projections regarding the Company, its industry and future events, and are based upon certain assumptions made by management. These forward-looking statements are not guarantees of future performance and necessarily are subject to risks, uncertainties, and other factors (many of which are outside the control of the Company) that could cause actual results to differ materially from those anticipated.

Milestone Communications Inc. Activities 2014

Press Release

December 15, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Buford Media Group, LLC in the sale of its cable television system serving approximately 180 RGU’s in Walters, Temple and Waurika, Oklahoma to Southern Plains Cable, LLC.  Michael W. Drake of Milestone Communications represented Buford Media Group, LLC in the transaction.

Press Release

November 1, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Horizon Cable, Inc. in the sale of its cable television system serving approximately 219 RGU’s in Novato and Hamilton in Marin County, California to Sonic.net.  Michael W. Drake of Milestone Communications represented Horizon Cable, Inc. in the transaction.

Press Release

October 1, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to RB3 LLC in the sale of its cable television systems serving approximately 2,300 RGU’s in Devine, Goliad, Hondo, Kenedy, Pleasanton and Three Rivers and portions of Medina, Goliad, Karnes, Atascosa and Live Oak Counties in Texas to Coyote Cable Assets, LLC.  Michael W. Drake of Milestone Communications represented RB3 LLC in the transaction.

Press Release

August 1, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Lakeview Cable, Inc. in the sale of its cable television systems serving approximately 1,676 RGU’s in Cache, Pecan Valley, Indiahoma, Snyder, Mountain Park and Geronimo, Oklahoma and in surrounding areas in Comanche and Kiowa Counties in Oklahoma to Vyve Broadband A. LLC  Michael W. Drake of Milestone Communications represented Lakeview Cable, Inc. in the transaction.

Press Release

July 1, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to RB3 LLC  in the sale of its cable television system\s serving approximately 176 RGU’s in Van Horn, Texas to Neu Ventures, Inc., dba Mountain Zone TV Systems.  Michael W. Drake of Milestone Communications represented RB3 LLC in the transaction.

Press Release

June 2, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Haefele TV, Inc. LLC in the sale of its cable television systems serving approximately 133 RGU’s in the Towns of Smithville and Greene, New York to Time Warner Cable Northeast LLC, D/B/A Time Warner Cable.  Michael W. Drake of Milestone Communications represented Haefele TV, Inc. in the transaction.

Press Release

May 15, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor toRB3 LLC in the sale of its cable television systems serving approximately 706 RGU’s in Eufaula, McIntosh County, and Checotah Oklahoma to Vyve Broadband A, LLC.  Michael W. Drake of Milestone Communications represented RB3 LLC in the transaction.

Press Release

March 31, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Microwave Distribution Services, Inc. in the sale of its cable television systems serving approximately 210 RGU’s in Ignacio, Colorado to Cap Cable, LLC.  Michael W. Drake of Milestone Communications represented Microwave Distribution Services, Inc. in the transaction.

Press Release

February 15, 2014

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to TGN Cable in the sale of its cable television systems serving approximately 624 RGU’s in Lake Graham, Newcastle and Throckmorton, Texas to Zito Graham, LLC.  Michael W. Drake of Milestone Communications represented TGN Cable in the transaction.

Liberty Puerto Rico to buy Choice Cable for $272.5M

Liberty Cablevision of Puerto Rico LLC announced Wednesday that affiliates of its indirect majority shareholder, Liberty Global and its indirect minority shareholder, Searchlight Capital Partners, L.P., have entered into an agreement to acquire 100 percent of the parent of Puerto Rico Cable Acquisition Company Inc., which does business as Choice Cable TV.

This transaction is worth approximately $272.5 million, Liberty officials said.

Choice is the largest combined cable TV, Internet and telephony services provider in southern and western Puerto Rico. Its headquarters are located in Ponce and its network covers the municipalities of Quebradillas, Isabela, Aguadilla, Moca, Aguada, Rincón, Añasco, Las Marías, Mayagüez, Hormigueros, Cabo Rojo, San Germán, Lajas, Sabana Grande, Guánica, Yauco, Guayanilla, Adjuntas, Peñuelas, Ponce, Jayuya, Juana Díaz, Villalba, Coamo, Santa Isabel, Salinas, Guayama, Arroyo, Patillas, and Maunabo.

Upon completion of the transaction — expected to in the first half of 2015 — the combined network will reach more than 80 percent of Puerto Rican homes, and the combined business will serve more than 700,000 revenue generating units and generate more than $380 million of annual revenue, Liberty executives said.

“Choice customers will benefit from the Liberty brand, which will provide them access to cutting edge technology and services on par with other markets around the world,” said Naji Khoury, president of Liberty Puerto Rico. “This will also place us in a better position to face our competition on an island-wide basis.”

Mauricio Ramos, president of Liberty Global Latin America said, “The acquisition is a renewed indication of our commitment to Puerto Rico. Our investments since our last acquisition in Puerto Rico have clearly benefited the public, particularly in data speed performance.”

“If the transaction is approved by applicable regulatory agencies and completed, Choice customers will be able to enjoy Liberty Puerto Rico’s product offerings, which include Internet speeds of up to 100 Mbps to download and 4Mbps to upload, [more than] 100 High Definition channels, up to 300 digital channels, an attractive balance of English and Spanish-language programming, plus video, Internet and telephony bundles at competitive prices,” he said.

This transaction is subject to customary closing conditions, including regulatory approvals, including obtaining franchise rights from the Puerto Rico Telecommunications Regulatory Board.

In the meantime, both companies will operate independently. Once the transaction is completed, the new combined business will operate as Liberty Puerto Rico and will launch an educational campaign for Choice customers to keep them informed of the integration process.

If consummated, Liberty would compete head-on with Claro’s IPTV service, and satellite service providers Dish Network and DirecTV.

Milestone Communications Inc. Activities 2013

Press Release

December 31, 2013

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Full Choice Communications, Inc. in the sale of its cable television systems serving approximately 350 RGU’s in Boswell, Indiana and Bismark, Illinois to Benton County Cable, Inc., Inc.  Michael W. Drake of Milestone Communications represented Full Choice Communications, Inc. in the transaction.

Press Release

July 31, 2013

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Baja Broadband Operating Company, LLC in the sale of its cable television systems serving approximately 2,500 EBU’s in Espanola, Chama, Dixon and Penasco, New Mexico and Springfield and Las Animas, Colorado to Satview Broadband, Inc.  Michael W. Drake of Milestone Communications represented Baja Broadband Operating Company, LLC in the transaction.

Press Release

May 1, 2013

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Princetown Cable Co., Inc. in the sale of its cable television system serving approximately 1,050 RGU’s in the Towns of Princetown, Duanesburg and Rotterdam, New York to Time Warner Cable Northeast, LLC.  Michael W. Drake of Milestone Communications represented Princetown Cable Co., Inc. in the transaction.

Press Release

March 15, 2013

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Baja Broadband Operating Company, LLC in the sale of its cable television systems serving approximately 1500 EBU’s in West Odessa, Iraan, McCarney, Rankin, Sanderson and Van Horn, Texas to RB3 LLC. Michael W. Drake of Milestone Communications represented Baja Broadband Operating Company, LLC in the transaction.

Press Release

February 1, 2013

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm serving the cable telecommunications industry, served as advisor to Full Choice Communications, Inc. in their sale and exchange with Telecommunications Management, LLC (dba New Wave Communications) of the Full Choice cable television systems serving 322 EBU’s in the communities of Montezuma, Newport, Perrysville and Worthington, Indiana and the New Wave system serving 322 EBU’s in the community of Fowler, Indiana. Michael W. Drake of Milestone Communications represented Full Choice Communications, Inc. in the transaction.

KKR buys SBB for EUR1bn

Kohlberg Kravis Roberts has agreed to acquire East European cable operator SBB/Telemach in a deal valued at around EUR1 billion.

According to reports, KKR beat competition from Liberty Global and private equity rivals Providence and Cinven to buy Belgrade-based SBB/Telemach from another private equity company, Mid Europa, who acquired SBB in 2007.

Regional operator SBB/Telemach Group operates in the former Yugoslab markets of Serbia, Slovenia, Bosnia, Croatia, Montenegro and Macedonia and has around 1.7 million cable and satellite TV, broadband, fixed and mobile customers. These markets have low broadband payTV and broadband penetration with high growth potential.

“This is our first direct investment in Southern Eastern Europe. It adds to our investments in more than 40 European companies across 12 countries and it is a sign of our confidence in the prospects of SBB/Telemach Group, led by Dragan [Šolak, Founder and Executive Chairman of the SBB-Telemach Group] and his talented team, and in the region,” said KKR's co-founder and co-CEO Henry Kravis.

The transaction is subject to customary approvals and is expected to close around year-end 2013.

Estonia's largest cable TV operator Starman acquired by East Capital Explorer

Swedish investment group East Capital Explorer has agreed to buy 51 per cent of Estonia's largest pay TV player, Starman, for €24m. At the same time Starman's co-founders increased their shares in the company after investing an additional €5m: Peter Kern-owned OU Com Holding increased its stake to 34.3 per cent (from 20.9 per cent), while Indrek Kuyvallik's OU Polaris Invest increased its stake to 14.7 per cent (from 11.3). The transaction is now subject to approval by the Competition Office. The shares were sold by Starman's former owner, Xalto CDO II BV owned by Bancroft Group.

Straman is Estonia's largest cable TV operator, with about 130,000 cable TV and about 60,0000 broadband subscribers. Since 2006 it has also been providing a pay DTT service, Zoom TV. In 2012 the company made €28m revenues with EBITDA €13m. East Capital Explorer is listed on Stockholm Stock Exchange. The company was established in 2007 and it focuses on Eastern European markets, investing primarily in the financial, utility, and industrial sectors.

According to Starman's 2008 annual report, which was the last report it published while still listed on the Tallinn Stock Exchange, it ended 2008 with 137,000 cable TV and 54,000 Internet subscribers. Since then the operator's TV subscriber base has shrunk, and the number of Internet customers has grown only slowly. Moreover, in spite of investments rolling out digital TV on cable, a considerable part of Starman's cable subscriber still prefer analogue TV.

These rather unimpressive results are primarily due to fierce competition in the Estonian TV and telecommunications markets. Starman competes with the incumbent telco, TeliaSonera-owned Elion, providing telephony, Internet and a growing IPTV service, as well as Viasat's satellite TV platform, its only competitor in rural areas, as well as other cable TV operators, with country's second largest cable TV player, STV.

As the pay TV market in Estonia is close to saturation, the competition is getting even fiercer. After switching off analogue terrestrial TV in 2010, pay TV continued to grow, but during 2012 it increased only about one per cent, exceeding 90 per cent of homes.

Under such circumstances, with the growth in terms of subscribers becoming much more difficult, the pay TV players will be focusing on strengthening their offers,lowering churn and increasing ARPU. Funds from the new investor should help Starman to move all of its subscribers to the digital service and make its offer more competitive. Among the likely developments are the launch of more HD channels (currently 10), extending the VOD offer and adding multiscreen service to its portfolio.

The transaction is another example of the interest that International investment groups are showing in Eastern European cable TV.  Recently Warburg Pincus acquired a minority stake in Poland's sixth largest cable TV player, Inea; in March this year, Mid Europa Partners, owing among others Serbia's largest cable TV service, SBB, and a cable operation in Bosnia (both under the brand Telemach) continued acquisitions in Bosnia by buying a local service called Art-Net. Other investment groups active in the region include: Advanced Broadband, Argus Capital, AXA, BKS Capital Partners, Contaq and EQT.

Slovenia’s Telemach joins Mid Europa’s United Group

Slovenian cableco Telemach has joined the United Group, which includes a number of telecoms operators across eastern Europe. The United Group, which is majority owned by Mid Europa Partners (MEP) and the European Bank for Reconstruction and Development (EBRD), already includes Serbia Broadband (SBB), Telemach Bosnia & Herzegovina, DTH platform Total TV (which covers Slovenia, Croatia, Bosnia & Herzegovina, Serbia, Montenegro and Macedonia) and a further 15 small operators, including Absolut OK, KDS NS, Jet TV, Beogrid, Telekabel, VI-NET, and ArtNet. Commenting on the development, Telemach director Marko Ster said that sharing best practice and seeking synergies would help improve services.

According to the United Group, Telemach customers will be able to see the first benefits from 1 May, when the group’s operators will start to offer free calls between Slovenia, Serbia and Bosnia & Herzegovina. MEP has been active in the region since 2007, initially through its investment in SBB and later through its acquisition of Telemach, which was previously owned by Liberty Global Inc (LGI). The United Group currently claims 1.65 million revenue generating units (RGUs) and presides over a unique infrastructure that covers a large part of Slovenia, Serbia and Bosnia & Herzegovina and includes over 10,000km of fibre-optic networks, connecting to Belgrade, Zagreb, Ljubljana and Sarajevo. In the twelve months ended 31 December 2012 the United Group generated revenues of EUR180 million (USD234.4 million), with capital expenditure exceeding EUR50 million.

Milestone Communications Inc. Activities 2012

Press Release

April 2, 2012

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm service the cable telecommunications industry, served as advisor to Inside Connect, LP in their purchase from Crystal Broadband Networks, Inc. of its cable television systems serving portions of Breckinridge and Hancock Counties in Kentucky. Michael W. Drake of Milestone Communications represented Inside Connect, LP in the transaction.

Press Release

March 30, 2012

Castle Pines, CO – Milestone Communications, Inc., a leading brokerage firm service the cable telecommunications industry, served as advisor to Atlantic Broadband Finance, LLC in their purchase from Mapleton Community TV Antenna Corporation of its cable television system serving 158 EBU’s serving the community of Mapleton, Pennsylvania. Michael W. Drake of Milestone Communications represented Atlantic Broadband Finance, LLC in the transaction.

Volia continues consolidation of Ukrainian cable TV

Ukraine's Competition Office gave the country's largest cable TV operator, Volia, the green light to buy a majority stake in Ukraine's third largest cable TV player, PPF-controlled, Odeko Group. According to local sources, Volia paid $14m for the stake in Odeko.

In 2008 PPF Partners acquired 25 small cable TV players in Ukraine, creating Odeko Group. As of mid-2012 the operator provided triple play and digital TV services to about 200,000 RGUs in 11 cities in Western Ukraine.

Volia is one of the assets of UGF III and SGFII, private equity funds managed by SigmaBlayzer. The operator's shareholders include Providence Equity Partners.

In the fourth quarter of 2012 there are still about 550 cable TV operators in Ukraine. The vast majority are small players, typically providing only up to 50 analogue channels. Cable TV penetration has been stuck at the same level - around 20 per cent of homes - for the last few years. Cable operators have cut their investments in network roll-out, primarily due to the unfavourable economic situation. On the other hand, difficult economic conditions are accelerating consolidation in the market, with many players looking to sell.

Volia acquisitions-based strategy has itself been a major driver of consolidation. The operator has grown from about 500,000 TV subscribers in 2008 to over 1.3m in mid 2012. The acquisition of Odeko Group will extend Volia's network to about 3.4m homes passed, pushing its TV subscriber figure to 1.5m and its share of the cable TV market to well over 40 per cent in terms of subscribers.

In practically every Central Eastern European country there are a great number of cable TV providers, with the top three to four players holding over 50 per cent of subscribers and gradually increasing their shares of cable TV. There are also many other investment groups active in the cable TV market in central and eastern Europe. Some of them are pursue a similar strategy to PPF, purchasing a number of smaller players - for example, BKS Capital Partners in the Czech Republic. Most of them, however, prefer a strategy similar to Volia's investors: backing up a large player, with which they keep acquiring other, primarily big, operators: for example, AXA in Latvia, EQT in Bulgaria and Macedonia, or Liberty Global in Poland. Liberty's UPC, having bought Poland's fourth largest player, Aster, in 2011, is now likely to acquire the country's third largest operator, Multimedia Polska, which was put on the block by its owner, Emerging Ventures Limited, a few months ago.

A recent decision by the Ukrainian broadcasting regulator may accelerate the process of consolidation of the cable platform in the country. The regulator gave must-carry status to all free-to-air DTT channels broadcasting in the country. As Ukraine launched digital terrestrial TV in DVB-T2 standard there are now over 30 such channels, mostly small once. Broadcasting such a high number of free to air channel will considerably limit channel-line up of small players, most of which will find upgrading to digital too expensive.