Net2Phone Snags Atlantic Broadband


Net2Phone might not have a lot of big customers for its wholesale VoIP telephony products, but it seems it is having some success with smaller and medium sized operators. The latest, one being Atlantic Broadband, the sixteenth largest cable company in the US with over 400,000 customers. This deal has not been announced. Scrolling through their latest 10-Q filing, I found that Net2Phone had awarded Atlantic a warrant to purchase 1.08 million shares at a $3.80 a share. As part of the deal, 10 shares vest for each subscriber Atlantic puts on Net2Phone’s cable telephony service. In the past few months Net2Phone has awarded warrants to customers like Bresnan Communications, Millennium Digital Media Systems and Altice One, and couple of them have publicly announced their deals. These four deals gives Net2Phone access to about two million homes.

We expect revenue generated by Net2Phone Cable Telephony to represent a growing percentage of our total revenue over the next few years. Net2Phone Cable Telephony signed its first contract with Liberty Cablevision of Puerto Rico on October 22, 2003, and in November 2004 signed definitive cable telephony service agreements with three Altice One entities, Coditel Luxembourg, Coditel Belgium, and EST Videocommunication and thereafter with Bresnan Communications, LLC, Millennium Digital Media Systems, LLC and Atlantic Broadband Finance LLC.

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