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

mergers

Covad Acquiring MegaPath

March 31, 2010

Covad announced a merger with MegaPath today. That combines 2 of the 3 independent DSL transport players in the Industry. (The third would be EarthLink's New Edge Networks). Interestingly, MegaPath is a Covad customer.

Ill. Judge Only Smart One

March 12, 2010

Only a single judge in Illinois has the common sense to see that the Frontier-Verizon deal is very similar to the Fairpoint-Verizon deal that resulted in a bankruptcy within 18 months while screwing consumers in three states.

The Herald-Review has a report about "An administrative law judge ruled that the planned sale of Verizon's land-line service to Frontier Communications should not be approved by state regulators.... In her ruling, Administrative Law Judge Lisa M. Tapia says evidence presented in the case in front of the Illinois Commerce Commission doesn't support the sale, primarily because the transaction would leave Frontier too laden with debt to be able to properly manage the lines and other infrastructure."

This was exactly the deal with Fairpoint.

Is it the Regulatory Environment?

February 9, 2010

In a twitter exchange with Erik Cecil, former regulatory counsel at Level3, we were dialoging about the Fairpoint bankruptcy. (FairPoint aims to cut debt by two-thirds).

My reply stated, "Just 2 years after the deal w/VZ to create an unstable Fairpoint despite opposition, Fairpoint screws everyone." By everyone, I mean the customers, the economy, the state, the PUC who approved the deal despite being against it (And Erik, you think there is regulation?), the workers, the Union, shareholders and the debt holders. I actually don't care about the last two, because both should have known it was going to go POOF!

Comcast Buys NGT

February 3, 2010

Comcast goes deep into trunking and Hosted VoIP with the purchase of New Global Telecom (NGT). NGT has had a few business models. It started out as a wholesaler, providing the back-end softswitch for companies like AT&T and New Zealand Telecom. It then started selling partitions on the Broadsoft.

Shouldn't It Be Profitable

January 25, 2010

During my interview with PAETEC's COO, E.J. Butler, at ITEXPO East last week, some of what we talked about was the Profitability Proforma. The Profitability Proforma is a toolkit for the PAETEC sales force to use to provide a price quote to the prospective customer while still being a profitable circuit sale for the carrier.

Most telecom sales people sell on price - agents too.

Mzima and PacketExchange Merge

January 18, 2010

Windstream Grabs Another

November 25, 2009

Windstream follows up its acquisition of CLEC NUVOX with the purchase of an ILEC. Windstream Announces Acquisition of Iowa Telecommunications Services for $261M in cash, $269M in shares and $598M in debt (see Reuters).

In its latest SEC 10Q filing, it states:

"On November 2, 2009, Windstream entered into a definitive agreement to acquire all of the issued and outstanding shares of common stock of NuVox. As discussed under "Pending Transactions" above, Windstream expects to pay approximately $280.0 million in cash and assume $180.0 million in net debt in the first half of 2010 as part of the transaction, which will be financed with existing cash on hand and borrowings available under the Company's revolving line of credit.

Telecom Takeover Tuesday

November 4, 2009

Yesterday was a big day for The Channel. Two separate acquisitions occurred with both takeover companies expressing interest in the Channel of the company being bought.

First, we have GTT buying WBS Connect. WBSC is just a reseller of Transit and Transport with about $28M in revenue. It was bought for about $1.8M in cash and notes plus $600K in stock.

Equinix Buying S&D

October 22, 2009

Steve Smith, CEO of Equinix, is excited because he just bought Switch and Data. From a letter he sent:

"Today, we announced our intention to acquire Switch and Data in a transaction valued at approximately $689 million of equity value which will further extend our leadership position in North America. The transaction will allow us to serve you as the most comprehensive data center services provider for your global online business needs. </ br> The transaction will include 34 data centers in 22 markets located in the United States and Canada and will extend the company's presence to 16 new markets across North America, including Atlanta, Denver, Miami, Seattle, and Toronto. The acquisition will add more than one million gross square feet of data center capacity, bringing Equinix's total global footprint to 79 data centers in 34 markets and more than six million square feet of capacity across the North America, Europe and Asia-Pacific markets."

Consolidation. Probably a good time for it in this space with all the buzz around Cloud, Virtualization, and the need for secure, reliable, redundant data centers.

New Sprint Rumor

September 14, 2009

Engadget has a rumor that Deutsche Telekom is eyeing Sprint Nextel for acquisition. There are a number of issues here:
  1. DT owns T-Mobile.
  2. T-Mobile is GSM and Sprint is iDEN and CDMA. Not much value in mixing that many signaling protocols. No synergy.
  3. FTC and DOJ may not like that much Public Safety being foreign owned.
  4. The cost would be staggering.
By that I mean that DT isn't exactly experiencing huge growth to pay back a multi-billion dollar acquisition of a declining asset.
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