Bresnan gets $110 million facility

The company is not likely to use the facility, however, to finance telecom activities if it wins a license for a fixed-phone network in Warsaw, an official with Aster said.
"If we win the (telecom) license, we have other financial means secured," said Michal Duszak, a member of Aster City's managing board. But he refused to elaborate.
He added that the credit facility would be used for the company's current operations. In addition to a need for zl. 1.5 million-zl. 2 million ($434,000-$578,000) a month to cover fixed costs, the company also needs capital for organic growth of its cable network.
Bresnan would not disclose the duration of the facility or the interest rate it will pay, saying the terms were still under negotiation. The company said the facility was secured by Chase Manhattan, BT Alex Brown International and MeesPierson Capital.
Aster would possibly need even more capital than the facility provides if it wins the telecom license for Warsaw's telephone services, the most lucrative telecom market in the country. Telecom industry players estimate that the fees for the Warsaw license will cost $100 million-$300 million.
Four other companies are vying with Aster to compete with Telekomunikacja Polska (TPSA) - Telefonia Poludnie POTEL, Netia Telekom Warszawa, Telefonia Lokalna and Regionalne Sieci Telekomunikacyjne El-Net. The Communications Ministry was expected to announce a winner last week, but has delayed its decision to this week.
Aster, which has the largest cable television network in the capital is confident that it will win the tender. Duszak said this stems from the need to use the company's cables to run a new telecom network.
"Digging under Warsaw streets would be insane," he said. "Without our cables it is practically impossible to build the network."
Although Aster City serves 275,000 Warsaw households and passes another 560,000 homes, it is not the only cable operator here. Polska Telewizja Kablowa (PTK) boasts approximately 900,000 clients of its cable Poland-wide, including more than 120,000 consumers served and 250,000 homes passed in Warsaw.
PTK has not bid for the pricey license, saying instead it wants to team up with the winner. But Aster believes it stands a chance to grab the whole pie through the tender.
"We hope the Communications Ministry does the math and sees that our offer is the best," Duszak said.
Except for providing cable services in Warsaw, Aster City Cable also operates in Krakow and Katowice serving approximately 365,000 clients in the country. In addition to cable television services Aster City has recently started offering high-speed internet services in Warsaw.
Its sister-company and another Bresnan affiliate, Telefonia Polska Zachod (TPZ), has already started offering telecom services in the voivodships of Gorzow Wielkopolski and Szczecin under local licenses issued by the Communications Ministry.
Aster City has also recently become involved in the creation of the country's second digital television platform, Cyfra+, created together with Canal+ Polska, Polsat and Telewizja Polska. (See related story, page 5)