TMCnet News
NTelos finishes purchase of FiberNet [Charleston Daily Mail, W.Va.](Charleston Daily Mail (WV) Via Acquire Media NewsEdge) Dec. 03--NTelos Holdings Corp. announced it has completed the purchase of FiberNet from One Communications Corp. The deal creates the second-largest telecommunications company in the state. NTelos is now second only to Frontier Communications Corp., which acquired Verizon's wire line business in West Virginia in July. Frank Berry, president of nTelos' wire line business, said the purchase was effective Wednesday evening. "It's an exciting time for nTelos and FiberNet, the coming together of these two teams," he said. "Our mission is to enhance the lives of our customers by providing telecommunications services with excellence and integrity. Our key value is, the customer comes first." NTelos is based in Waynesboro, Va. The company traces its roots to 1897. NTelos has a major presence in the Old Dominion and has been operating in many parts of West Virginia since 1997. With the FiberNet deal, nTelos adds a 3,500 route-mile fiber optic network and about 30,000 customer accounts in West Virginia, Ohio, Maryland, Pennsylvania, Virginia and Kentucky. Before the deal closed, nTelos had about 1,350 employees, including about 142 in West Virginia. FiberNet, which was headquartered in Charleston, had 240 employees. Berry said nTelos now has about 400 employees in West Virginia. The nearly 200 non-commission FiberNet employees who became nTelos employees Wednesday evening received a pay raise, an improved benefits package and new computers, Berry said. Keith Collins, nTelos' director of wireless sales, said the company has invested $257 million in its network during the last four years. "We are very committed to bringing the best value in wireless to the marketplace," he said. "Our FiberNet investment is a further indication of our commitment to customers in West Virginia." Other nTelos executives flanked Berry and Collins as they spoke at a press conference at the Capitol. But Dave Armentrout, FiberNet's president and chief operating officer, was not present. Asked about Armentrout's employment, Berry said the question should be directed to One Communications Corp. Terry Smarr, FiberNet's vice president of operations and wholesale, also was not at the press conference. Asked about her employment, Berry said she is now an nTelos employee. As reported on Thursday, 13 FiberNet employees apparently were not offered jobs with nTelos. The sales agreement nTelos and FiberNet signed doesn't allow nTelos executives to make negative statements about FiberNet. Berry declined to characterize the condition of the FiberNet network, which suffered two outages in October. "It's an excellent set of assets," he said. "We have a committed team to support it. We have the resources to take it to the next level. Really where the opportunity lies is in making the investment to stabilize, integrate and grow that network." NTelos has pledged to invest $40 million in the state over the next three years. "It will take a number of months to integrate the operations," Berry said. "Bringing the billing platforms together, the operational support systems together -- various pieces take different amounts of time. We'll be working on this throughout 2011. Some pieces will be done in three months, others in six months. It's not a flash cut." The nTelos customer service number is 800-320-6144. NTelos Chief Executive Officer James Hyde and Chief Financial Officer Michael Moneymaker did not attend the press conference. Berry said they had to remain at nTelos' headquarters in Waynesboro -- a 3 1/2 -hour drive from Charleston -- to finish the paperwork required by the deal. NTelos originally offered $170 million for FiberNet. NTelos ended up paying $169 million, less working capital and other adjustments that brought the final total to $163 million. Contact writer George Hohmann at [email protected] or 304-348-4836. To see more of the Charleston Daily Mail, or to subscribe to the newspaper, go to http://www.dailymail.com. Copyright (c) 2010, Charleston Daily Mail, W.Va. Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail [email protected], or call 866-280-5210 (outside the United States, call +1 312-222-4544) |