Peter Radizeski is Founder and President of RAD-INFO INC. He is an accomplished blogalyst, speaker, author and consultant. He has helped many service providers with sales training, marketing, channel development and business strategy. He is a trusted source of knowledge about the telecom sector. His honest and direct approach make him a refreshing speaker.

Look for his innovative ideas and analysis of current technology on his blogs.

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M&A

So many mergers this year.

  • Charter has swallowed both TWC and Bright House Networks to become third largest MSO (after AT&T and Comcast).
  • Ma Bell swallowed DirecTV – and is now launching OTT cable service with zero rating on its cell service. Now AT+T wants to buy TimeWarner for $109B with debt included. TW owns movies and TV, but not Time, Inc. The magazine division was spun out.
  • Zayo bought Allstream to go big in Canada; then bought ELI for $1.42B to fill in the Western US.
  • Birch bought Primus to enter Canada as well.
  • CenturyLink wants to get big in Enterprise, so they are buying Level3. The combined carrier will get 76% of its revenue from the enterprise and wholesale market.
  • Windstream is buying EarthLink.
  • Verizon got the OK to buy XO. Verizon bought AOL and is trying to buy Yahoo, but those hacks have it looking for a discount.
  • IN the Master Agent space: ScanSource and Intelysis. Sandler Partners and X4.
  • Ingram Micro bought NETXUSA after it was acquired by HNA in China.
  • Microsoft is buying LinkedIn for $26B!
  • VTech bought snom.
  • Polycom did not get bought by Mitel. They went with a PE firm.
  • Avaya is in trouble.
  • GTT is buying Hibernia.
  • Fairpoint just got scooped up by Consolidated.
  • You need a chalk board for data center ownership.
____ Peter Radizeski is a telecommunications consultant and analyst with RAD-INFO INC. Service Providers have called on RAD-INFO INC for assistance improving sales, managing online marketing efforts, channel sales enablement and overall company strategy. Contact RAD-INFO INC at 813-963-5884 or https://rad-info.net
December 5, 2016 , NSP Strategist

Fairpoint Merging!

Three pieces of news in the industry today. One involves Cisco Partner. [Presidio is filing for an IPO. MSPs rejoice. It could be valued at $3B.] One is a data center player. [Cologix, which I will cover in a separate post]. The third one is just Consolidation.

Consolidated Communications to Acquire FairPoint Communications, Inc.. Fairpoint used to be a small RLEC (rural incumbant telephone company) before it bought Verizon assets in 2007.
“In that year, Verizon Communications announced plans to sell its landline operations in Maine, New Hampshire, and Vermont (Northern New England Spinco) to FairPoint .”[wikipedia = source]

The deal actually got done for $2.4 Billion as everyone – and I mean everyone – had worries about Fairpoint buckling under the acquisition. Not even 2 years later, FairPoint filed for Chapter 11 bankruptcy protection.

Now Consolidated, which bought SureWest and Eventis, is acquiring Fairpoint “in an all-stock merger transaction valued at approximately $1.5 billion, including debt.” The press release says the usual dribble: “Creates a stronger business and broadband communications provider to better serve its customers.” NEVER has that actually happened! And this is also standard wording, “Doubles revenue, adjusted EBITDA and provides significant scale and resources.” The facts are that it increases fiber route miles to 35,100 across 24 states and adds more than 3,000 lit buildings and an extensive fiber-to-the-tower footprint.

On the podcast this week, I talk about the industry consolidation with a trio of agents. One commented after, “As significant as we [agents] think we are in a large providers eyes, we are not. As a whole we are but individually we are not. These are turbulent waters we are in, just got to make sure we are getting in the right life raft.” I agree but many people in the industry don’t even know what raft will be afloat in a year or who will be rowing it! The agent added, “Correct. There will be lots of boats out there, some with pirate in them, some sinking, and some that will remain afloat.” Choose wisely.

Copper needs scale, I guess. This is bigger for the sake of bigger. But RLECs have their own special issues due to a significant change in USF monies and the CAPEX expected from CAF monies. All while cable is kicking their ass. They came to the Change Party a little too late.

Tags: , , , ,
Related tags: , , ,

Related Entries

  • The M&A Picks Up Steam – Jan 14, 2015
    mergers-ma.jpg
  • The Next Two Revenue Streams – Nov 23, 2016
  • Windstream Complains About XO-VZ Deal – May 19, 2016
  • Telco Troubles, Clec Version – Jan 06, 2016
  • News Tidbits Part 2923 – Nov 30, 2015
    newstidbits.jpg
  • Things That May Interest You – Apr 24, 2014
  • Why Agents Should Be Pro-Copper – Oct 11, 2013
  • So Much Stuff I Can’t Get To – Jun 04, 2012
    news-clipart.jpg
  • Has Verizon Stopped Repairing Copper? – Feb 17, 2012
    copper-tubing.jpg
  • Are They Reading from the Same Playbook? – Aug 01, 2011
    toad-swallow-snake-picture.jpg

    • TrackBacks
    | Comments | Tag with del.icio.us | On Rad’s Radar? Home | Permalink: Fairpoint Merging!


    Copyright On Rad’s Radar?

    Apex Technology Services
    Sponsored by Apex Technology Services, a leading IT Services company

    December 5, 2016 , On Rad's Radar

    Fairpoint Merging!

    Three pieces of news in the industry today. One involves Cisco Partner. [Presidio is filing for an IPO. MSPs rejoice. It could be valued at $3B.] One is a data center player. [Cologix, which I will cover in a separate post]. The third one is just Consolidation.

    Consolidated Communications to Acquire FairPoint Communications, Inc.. Fairpoint used to be a small RLEC (rural incumbant telephone company) before it bought Verizon assets in 2007.
    “In that year, Verizon Communications announced plans to sell its landline operations in Maine, New Hampshire, and Vermont (Northern New England Spinco) to FairPoint .”[wikipedia = source]

    The deal actually got done for $2.4 Billion as everyone – and I mean everyone – had worries about Fairpoint buckling under the acquisition. Not even 2 years later, FairPoint filed for Chapter 11 bankruptcy protection.

    Now Consolidated, which bought SureWest and Eventis, is acquiring Fairpoint “in an all-stock merger transaction valued at approximately $1.5 billion, including debt.” The press release says the usual dribble: “Creates a stronger business and broadband communications provider to better serve its customers.” NEVER has that actually happened! And this is also standard wording, “Doubles revenue, adjusted EBITDA and provides significant scale and resources.” The facts are that it increases fiber route miles to 35,100 across 24 states and adds more than 3,000 lit buildings and an extensive fiber-to-the-tower footprint.

    On the podcast this week, I talk about the industry consolidation with a trio of agents. One commented after, “As significant as we [agents] think we are in a large providers eyes, we are not. As a whole we are but individually we are not. These are turbulent waters we are in, just got to make sure we are getting in the right life raft.” I agree but many people in the industry don’t even know what raft will be afloat in a year or who will be rowing it! The agent added, “Correct. There will be lots of boats out there, some with pirate in them, some sinking, and some that will remain afloat.” Choose wisely.

    Copper needs scale, I guess. This is bigger for the sake of bigger. But RLECs have their own special issues due to a significant change in USF monies and the CAPEX expected from CAF monies. All while cable is kicking their ass. They came to the Change Party a little too late.

    Tags: , , , ,
    Related tags: , , ,

    Related Entries

  • The M&A Picks Up Steam – Jan 14, 2015
    mergers-ma.jpg
  • The Next Two Revenue Streams – Nov 23, 2016
  • Windstream Complains About XO-VZ Deal – May 19, 2016
  • Telco Troubles, Clec Version – Jan 06, 2016
  • News Tidbits Part 2923 – Nov 30, 2015
    newstidbits.jpg
  • Things That May Interest You – Apr 24, 2014
  • Why Agents Should Be Pro-Copper – Oct 11, 2013
  • So Much Stuff I Can’t Get To – Jun 04, 2012
    news-clipart.jpg
  • Has Verizon Stopped Repairing Copper? – Feb 17, 2012
    copper-tubing.jpg
  • Are They Reading from the Same Playbook? – Aug 01, 2011
    toad-swallow-snake-picture.jpg

    • TrackBacks
    | Comments | Tag with del.icio.us | On Rad’s Radar? Home | Permalink: Fairpoint Merging!


    Copyright On Rad’s Radar?

    Apex Technology Services
    Sponsored by Apex Technology Services, a leading IT Services company

    December 5, 2016 , On Rad's Radar

    How Much Did SMB Spend on IT?

    IDC research says that by the close of 2016, SMBs (under 500 employees) will have collectively spent $564 Billion on IT hardware, software and services. (That includes SAAS like Salesforce and Office365 and managed services like RMM).

    Amazon announced that they are getting in the Virtual Server space at $5 per month. They are starting selling cable-voice bundles for Comcast and Frontier. There is a heavy rumor that Amazon will be offering Hosted VoIP soon (possibly powered by BroadCloud).

    You have to start thinking value-add, retention, customer satisfaction and upselling. I have been chanting outcomes and bundles for a long time. Going forward selling product just won’t work — they can buy that via a click on Amazon.

    ____ Peter Radizeski is a telecommunications consultant and analyst with RAD-INFO INC. Service Providers have called on RAD-INFO INC for assistance improving sales, managing online marketing efforts, channel sales enablement and overall company strategy. Contact RAD-INFO INC at 813-963-5884 or https://rad-info.net
    December 1, 2016 , NSP Strategist

    Employee Turnover

    I have been helping a friend with some issues pertaining to “an employee exodus” (4 out 15 people are leaving in a month). Surprisingly, there is a bunch of writing on this topic.

    Fred Wilson has written about it twice recently. In the first post, he writes about getting employees back to shipping and coding. He also mentions that most of these companies are mission driven.

    He even writes, “And if you don’t work in a company that is mission driven, or if you don’t connect with your company’s mission, then I would encourage you to quit and join a company that you are inspired to work for and then throw yourself at that work.” Well, in sales without belief in product or company, it is a challenge to sell. In many positions, it is probably somewhat similar: if you think the company sucks, it is hard to do your best work. You want employees who believe in the company.

    “Take Care Of Your Employees And They’ll Take Care Of Your Business,” Says Richard Branson.

    In the second post, “The number one cause of employee unhappiness and unwanted departures is “I don’t understand where we are going.” That is a failure of leadership on the CEO’s part.

    The CEO’s main job is to set culture, vision, mission. Next it is to sell. But as Hugh MacLeod points out,
    All campaigns are ultimately internal. In other words, selling to your employees comes first. Selling them on vision, mission, culture. (I won’t quote Simon Sinek here because I have done it too often.)

    People leave for a number of reasons:

    • # 1 People leave Managers, not jobs. 
    • Bored or unchallenged.
    • Co-workers
    • No Recognition.
    • Not Meaningfully Contributing (not meaningful work).
    • Lack of or a Change in Culture or Vision.

    This was a great article about why people leave and how to change that culture. Worth the read!

    ____ Peter Radizeski is a telecommunications consultant and analyst with RAD-INFO INC. Service Providers have called on RAD-INFO INC for assistance improving sales, managing online marketing efforts, channel sales enablement and overall company strategy. Contact RAD-INFO INC at 813-963-5884 or https://rad-info.net
    November 30, 2016 , NSP Strategist
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