TDS Telecommunications, a leading provider of telecommunications services, has recently announced its decision to shed its cable operations in Texas. The company has reached a deal to sell its cable assets to Poka Lambro Telecommunications Ltd. and Nevill Holdings, marking a significant shift in its business strategy.
The joint agreement involves the transfer of TDS‘ cable properties in Seminole, Seagraves, and Denver City to Poka Lambro, while the cable properties in Alpine and Fort Stockton will be acquired by Nevill Holdings, the parent company of Big Bend Telephone Company and Big Bend Telecom Ltd. This strategic move is aimed at streamlining TDS‘ operations and focusing on other core areas of its business.
The agreement, which was signed on Monday, is expected to close within the fourth quarter of 2024. This transition will see a total of eight local TDS Field Service associates transferring to the acquiring companies as part of the deal, ensuring a smooth transition for both employees and customers.
Poka Lambro and Nevill Holdings are well-established players in the telecommunications industry, with a strong focus on serving rural communities. Poka Lambro, founded in 1950, has a long history of providing telephone services to rural farms and ranches. Today, the company offers broadband internet and telecommunications services in a region known for its thriving residential communities and robust business climate driven by agribusiness and energy production.
Patrick Sherrill, CEO of Poka Lambro, expressed his excitement about the acquisition, stating that TDS‘ cable assets will allow the company to expand its presence in the region. He emphasized that the addition of these three communities is a natural fit for Poka Lambro’s existing service territory, highlighting the company’s commitment to serving rural areas with cutting-edge telecommunications solutions.
On the other hand, BBT, a subsidiary of Nevill Holdings, has been serving rural communities in West Texas for over 60 years. The company offers high-speed fiber internet, voice, and data center solutions to residents, institutions, and businesses in the region. The acquisition of TDS‘ cable properties will further strengthen BBT’s position in the market and enhance its service offerings to customers.
TDS‘ decision to divest its Texas cable operations is part of a broader strategy to refocus its business and allocate resources to key growth areas. The company has been actively pursuing divestitures, including agreements to sell USCellular’s wireless operations to T-Mobile and TDS’s OneNeck IT Solutions operations to US Signal Company. The proceeds from these deals will reportedly support planned investments in TDS Telecom’s fiber program, underscoring the company’s commitment to expanding its fiber network infrastructure.
In conclusion, TDS Telecommunications‘ decision to sell its Texas cable operations to Poka Lambro Telecommunications Ltd. and Nevill Holdings reflects a strategic realignment of its business priorities. The acquisition will enable Poka Lambro and BBT to enhance their service offerings in rural communities and strengthen their market presence in Texas. As the telecommunications landscape continues to evolve, partnerships and acquisitions like these will play a crucial role in driving innovation and expanding connectivity for customers across the region.