NEW YORK, Dec. 6 -- Consolidated Edison Inc. (Con Edison) announced today it will sell its telecommunications subsidiary, Consolidated Edison Communications Holding Company Inc., to RCN Corp. for $32 million in cash.
Con Edison Communications (CEC) builds and operates a fiber optic network providing managed data transport services, custom networks, local and long-distance voice services and Internet services. The company services Fortune 500 corporations, local and long-distance carriers, small and medium businesses, and Internet, cable, wireless and video companies.
Con Edison said it concluded, after a comprehensive review, that the business would have more value and serve its customers more effectively in a broader telecom business environment. RCN is a Herndon, Va.-based provider of cable, phone and Internet services.
The purchase of CEC more than doubles RCN's network capacity in metropolitan New York, North Jersey an Connecticut, expanding its residential business and complementing its presence in the small and medium business segment. RCN said the acquisition of CEC will also enable its Business Solutions Group to market a route diverse from Verizon and ECS (Empire City Subway) ducts used by most other telecommunications companies and will expand its footprint by adding ten river crossings, thus broadening its customer base.
The sale, which is expected to close in the first quarter of 2006, is subject to review or approval by the City of New York, the NYS Public Service Commission and various federal, state and local regulators
For more information, visit: www.conedison.com