Thursday, June 6, 2013

CityWest explores expansion prospects in Houston

CityWest, the City of Prince Rupert owned communication company, is testing the consumer waters in the Houston area, seeking feedback from that Northwest Community on the prospect of expanding CityWest's line of communication and entertainment options.

At the moment, CityWest provides analog cable television services to that region, but as the newspaper Houston Today outlines, the company has some interest in providing phone, digital cable and internet service further into the Bulkley Valley.

Donovan Dias, the Director of Sales and Marketing for CityWest is quoted in the Houston Today article as stating that CityWest wants to "provide an alternative to Telus in the area".

And while competition may be beneficial to residents of Houston, with expansion will no doubt come some capital expenditures to move the CityWest brand forward.

CityWest did not disclose what the cost of expansion to Houston may be, should they move forward with their plans for 2015, nor if they would use capital reserves on hand or seek out other financing for the expansion plan.

The costs associated with growing CityWest was a fact relayed once again by Mayor Jack Mussallem in the City of Prince Rupert yearly tax notice, his observation on the prospect of CityWest growth being that dividend returns to the City may have to be deferred for years into the future.

Short term, CityWest investors (the taxpayers of Prince Rupert who received the Mayor's mailing) will we imagine, be quite interested to learn more about their investment's expansion plans and any impact that it may have on the prospect of once again return a dividend to the city.

Hopefully information relayed directly and not through the pages of a weekly paper five hours eastbound.

You can review the CityWest prospectus of sorts from the Northern View's e edition of June 5, page A12.

Our Full archive of CityWest items can be found here.

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