COVID-19 has forced so many businesses to examine their business goals and streamline operations – and telecom companies are no different.
Instead of slowing telecommunications mergers and acquisitions activity, the pandemic appears to have accelerated telecom M&As, with some major ones in the U.S. in the last couple of years.
How Telecom Mergers and Acquisitions Can Impact Your Business
Telecommunications mergers can have a substantial impact on your business. The new entity may offer different terms of service or change its pricing structure for its communications solutions – both of which have the potential to impact your business.
Your business may face other effects too, such as:
- Changes in services can affect workflows
- Impact on latency can impact the quality of service
- Change in pricing models or service packages that may raise costs
It’s why staying abreast of recent developments is vitally important to protecting your channels of communication.
Notable Telecommunications Mergers and Acquisitions
Here are five recent telecom mergers involving some of the biggest service providers.
1.Ziply Fiber and Frontier Communications
If you have a business presence in Washington, Oregon, Idaho, or Montana, you’ve likely heard about Frontier Communications being acquired by Ziply Fiber. After all, Frontier has been around for almost 90 years and offers service in 25 states.
Ziply acquiring Frontier can be a positive development for new and old Frontier customers alike, with Ziply’s plan to expand fiber to as many customers as possible in the coming years. The new entity also plans to spend $500 million improving its network.
2. EQT and Zayo
Zayo is no stranger to acquisitions; with 43 acquisitions since 2007, Zayo continues to grow in both size and power. Now, it has been acquired by a consortium of EQT and Digital Colony Partners affiliates.
At $14.3 billion, this acquisition comprises the largest syndicated private equity investment. One notable feature of the EQT and Zayo telecom acquisition is that Zayo has gone from being a publicly listed company to private ownership.
Zayo provides some of the most critical bandwidth across the U.S., Canada, and Western Europe, so the effects of this acquisition will probably be felt worldwide.
3. FirstLight and KINBER
FirstLight, a major communications and data center provider in Northeast and mid-Atlantic USA, acquired KINBER, a company assisting underserved communities. The goal – to become the leading broadband technology services provider in Pennsylvania.
The acquisition was announced Fall of 2020. FirstLight services are expected to expand to new regions, as it leverages KINBER’s 1,800 miles of fiber optic cabling.
4. Telarus and Chorus Communications
In 2021, Telarus, the largest private technology services distributor in the US, acquired Chorus Communications, a technology consulting firm. Telarus operates out of Utah, while Chorus is based in Philadelphia.
The acquisition is expected to increase the range of tools and services Telarus offers customers, benefiting from Chorus’s technology partnerships.
5. T-Mobile and Sprint
We couldn’t finish the list without at least mentioning one of the most talked-about telecom mergers out there. Although the companies have been trying (and failing) to merge for the last few years, Sprint has officially become part of T-Mobile.
What this partnering means for most people is a streamlining of operations and improved 5G service. With their combined resources, it will be interesting to see how T-Mobile stacks up against Verizon and AT&T in the coming years.
Make Sure You Are Best Positioned to Take Advantage… With Select Communications
These are just five out of hundreds of telecom mergers and telecom acquisitions that could affect your business.
Telecom mergers and acquisitions can offer great opportunities, as the new entity looks to bolster existing customer relationships and reach out to new customers.
When you work alongside communications veterans like Select Communications, you don’t just get long-term guidance, we help you take advantage of new offerings.
We stay up to date with the latest mergers and acquisitions and products in the market to find the best solutions in the ever-changing world of communication tech.
Discuss your requirements with experienced communications consultants today.