360, OpenRange and Hosting.com

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

360, OpenRange and Hosting.com

It looks like Zayo Group is going to buy 360 Networks. Back in May, Zayo and 360 entered into a long-term dark fiber deal that must have set off talks of an acquisition. (It explains why 360 was too busy to keynote this week.) Zayo, backed by M/C Ventures,  reported sales of $77.8 million and a profit of $11 million in 4Q11.  Instead of being acquired, Zayo is grabbing its 17th sale.

Hosting.com acquired Neospire, a Dallas based mission critical, managed hosting provider. It adds higher margin services to its portfolio.

OpenRange went bankrupt, Gary Kim reports. GigaOm's Stacey has been reporting on OpenRange since 2008 when they filed an application for a broadband stimulus grant. Now they leave the taxpayers hanging. The numbers look kind of bleak. A few of these broadband stimulus winners will turn sour. It's bound to happen because of many factors: the cost of accounting and reporting the grant is huge. It's been almost 3 years since the application and the landscape in telecom has changed a lot. In fact, some LEC's and cablecos used the apps to find underserved areas to serve before the app winner even got his first dollar. Then there is the whole "Bit off more than I could chew" effect as well.

We are going to see a lot more M&A and a lot more BK in the next 24 months. No shock and awe, just an industry that is chewing itself to pieces for short term gains and too much long term uncertainty. CFO's can only perform magic until they blink.

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