SDR Vice President Jodi Burrows discusses recent M&A activity in the Telecom Industry
In an article published on TelecomEngine, Jodi Burrows helps identify what is driving recent M&A activity in the telecom industry. She points out that the high market saturation of smart phones has companies looking to keep existing customers rather than focusing solely on attaining new customers. In order to do so, they are looking to expand their service offerings.
“The number of telecom players is dwindling, but industry consolidation is still robust between mobile and fixed line/cable operators, resulting in bigger players occupying more dominant positions,” Jodi says.
Companies are building more one-stop-shops that offer landline, broadband, TV and mobile services, which has been termed “quad-play.” “Quad-play can help streamline and improve the overall customer experience, while reducing customer churn and thereby reducing new customer acquisition costs,” Jodi says.
Jodi also identifies a trend toward companies making acquisitions in completely different markets in order to offer more unique services to their customers. By tapping into new markets through newly acquired companies, the acquirer gains happy existing customers and the ability to provide broader services.
Similarly, this can be seen in the fiber optic space. As customers demand faster connectivity, “fiber optic providers have made for attractive acquisition targets,” Jodi says. “Deals that allow providers to enhance their infrastructure by tapping fiber optics experts are becoming quite common.”
Jodi expects these consolidation trends to continue throughout 2016 as consumer demand and evolving technologies continue.
To read Jodi’s full article on TelecomEngine, please click here.