RCN unloads New Jersey systems

By Susan Rush
From The August 28, 2002 Edition Of CED Broadband Direct

RCN Corp. takes an expected step to shed some non-core cable systems in New Jersey to focus on its bundling service strategy.

The $245 million cash deal will give control of the Central New Jersey systems and its 80,000 subscribers to private equity firm Spectrum Equity Investors and former cable executive Steve Simmons. Once the deal closes, Simmons will become chairman and CEO of a newly formed company Patriot Media and Communications.

RCN acquired the New Jersey systems as part of its spin off from C-TEC Corp. in Oct. 1997, but they never fit right in the company's plan to serve major metropolitan markets.

In May, RCN rolled out its Essentials package, which bundles RCN's basic video package and one set-top, one phone-line with unlimited local calling and high-speed data service with the cable modem included. The company offers the package in Boston, New York, Philadelphia, San Francisco, Los Angeles and Washington, D.C.

A few weeks ago, the company debuted an international version of Essentials in Queens, N.Y., San Francisco, Los Angeles and Lehigh, Pa.