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Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

mergers

So We Have These Mergers

September 22, 2010

So we have all these mergers taking place, then I'm reading Consulting magazine to find a book review about John Hagel's The Power of Pull. We are in an era of declining ROA from Big Business, so they have to keep buying assets to stave it off.

"to support that proposition we muster a set of evidence around performance trends over long periods of time for all public companies in the United States. In particular, we show that return on assets (ROA) for all public companies in the U.S. has eroded in a very substantial and sustained rate since 1965.

A Few Days of News

September 20, 2010

The FCC has written a protectic order for Inter-Carrier Compensation finally! "Developing a Unified Inter-Carrier Compensation Regime, establishing just and reasonable rates, Connect America, high-cost universal Service Support and the National broadband Plan for Our Future. Adopted a Protective Order in this proceeding." (Dkt No. 10-90 01-92 05-337 07-135 09-51)  Just means that you can provide data redacted for privacy. But it does mean that the FCC is moving forward.

Knology Buys Sunflower

September 20, 2010

Paetec acquiring Cavalier

September 13, 2010

PAETEC announced that it is merging with Cavalier Telephone this morning. The transaction is worth about $796M if I read between the lines correctly - $336M in debt and $460M in financing. So PAETEC gets about $800M in additional revenue for $796M.

CavTel will be a wholly-owned subsidiary of PAETEC.

What's Up with the New MegaPath

September 7, 2010

MegaPath just completed its three-way merger with Covad and Speakeasy. I had some questions for the company and Rich Sabin, Director of Marketing, was nice enough of answer them.

 

1. Now that Speakeasy, Covad and MegaPath are one organization, how will this affect the Channel (Agents)?

The New MegaPath remains committed to serving our partners, and we are in the process of rolling out an exciting new Channel Partner Program later this year.

I Don't Understand M&A

August 30, 2010

HP and Dell are in a bidding war for 3Par. HP (at this writing) is at $30 per share - 3x the original share price for this stock! That's almost $2B!

One thing is that all these companies - in fact, most American companies - lack R&D. That's right: We don't have R&D in America.

Wireless Combo is Merger 3

August 20, 2010

This week has been awash with mergers - the Intel-McAfee merger and the Windstream-Q-Comm merger are the big two. The third interesting merger involves two fixed wireless companies. Airband and Sparkplug announced that they merged and grabbed $20M in financing.

"Fixed-wireless companies Airband Communications and Sparkplug Communications today announced they have merged, creating the largest fixed-wireless company for businesses in the U.S., providing a full suite of voice and data services in 17 markets."

More Mergers

August 19, 2010

Mergers Only Mask the Truth

August 10, 2010

I have a firm belief that most mergers are just ways to make the books look better by clouding the numbers. Take this headline from the Morning Journal, "CenturyLink has profitable second quarter, primarily due to acquisition". I agree with that.

The telling number is the revenue or income or EBITA, but this metric: "CenturyLink added more than 29,000 high-speed Internet customers in the second quarter, compared to 28,000 in the second quarter of 2009, the company reported." HUH?

Tele-Pacific Acquires Some O1

August 4, 2010

"TelePacific Communications, the largest CLEC providing integrated voice and data telecommunications services to the small and medium-sized business ("SMB") customer segment in California and Nevada, today announced a definitive agreement to acquire the SMB customer base and network of O1 Communications ("O1"). TelePacific will also acquire a SAS 70 Type II certified data center located in Sacramento, California. ... Under the terms of the agreement, TelePacific Communications will gain approximately 1000 business customers in California.

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