Time Warner Cable Inc. (TWC), the second-largest cable operator in the U.S. after Comcast Corporation (CMCSA), is planning to acquire cable operation from NewWave Communications. The transaction is expected to cost Time Warner $260 million and will be closed by the end of 2011, subject to regulatory approvals. The acquisition will help the company in two ways. First, it will allow Time Warner to expand its footprint to non-urban areas where NewWave mainly operates. Second, Time Warner will cumulate 70,000 basic cable customers, 42,000 Internet users and 26,000 telecom subscribers of NewWave Communications. The urban areas are becoming highly competitive as big telecom giants like Verizon Wireless Communication (VZ) and AT&T, Inc (T) are offering cable services through Fiber to the Node (FTTN) or Fiber to the Premises (FTTP) communications
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