Cableco Eastlink has bought Bruce County, Ontario-based quadruple-play telco Bruce Telecom from Kincardine municipal council for CAD26.5 million (USD24.1 million). Bruce Telecom provides fixed line, internet, TV and mobile services to customers in Kincardine, Port Elgin, Paisley, Tiverton, Southampton, Owen Sound and surrounding areas. The deal is expected to take effect later this year, with Bruce Telecom’s assets and operations including 80 employees being handed over to Atlantic Canadian-based Eastlink, which operates cable networks in eight provinces – Nova Scotia, Prince Edward Island, Newfoundland & Labrador, Quebec, Ontario, Alberta, British Columbia and New Brunswick – and is the fifth largest Canadian cable TV provider by subscribers, according to TeleGeography’s GlobalComms Database. In the Bruce County area, Eastlink already serves customers in Port Elgin and Paisley.
‘Given the advances and competition in the industry, it no longer made sense for the municipality to operate a telecom company,’ said Kincardine mayor Larry Kraemer, who added that the council was advised it would cost millions of dollars in debt financing to keep Bruce Telecom competitive in the face of rapidly evolving technology and stiff competition.