Canada-based Cogeco Cable is acquiring Toronto Hydro Telecom. Cogeco has expanded in the past by buying up local telecom-related assets in cities where Cogeco offers video services. The acquisition isn't perhaps the important development. Toronto Hydro Telecom is the first significant asset located "out of region."

 

The significance of that move: most cable, telecom and mobile operators are finding internal, organic growth tough sledding these days. So growth increasingly is coming from out of region expansion. The alternative in this case might have been a move further a field into the European market, which also is consolidating.

 

There is nothing wrong with an acquisition-fueled growth strategy. Lots of companies have chosen to grow in that way, often quite successfully. You can start with AT&T and Verizon (News - Alert) and work down the list from there. A move into the Toronto market likely means closer-to-home assets, in existing markets, are not available or not attractive.