Urge to Merge in the Telecom Industry

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.

Fiber Optics“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.




About the Author:

Jodi Burrows
Jodi Burrows, Vice President, manages transaction advisory and private debt and equity financing. She also conducts business development efforts for SDR Ventures. Jodi joined SDR Ventures in 2015 and has her Series 79 securities license. Jodi leads SDR’s Pet Industry Team, including the authorship of SDR’s quarterly Pet Industry Reports. She has a deep understanding of pet industry trends and value drivers and hosts ongoing discussions with strategic companies and investors in the space.