Comments on: Rise of the Rural ‘Super’ Carrier http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/ Providing insight, analysis, and commentary on the evolving telecom competitive landscape Thu, 02 Sep 2010 23:53:09 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Windstream to Acquire Iowa Telecom | Telecompetitor http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-8828 Windstream to Acquire Iowa Telecom | Telecompetitor Tue, 24 Nov 2009 15:20:08 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-8828 [...] This M&A activity illustrates the continuing trend of consolidation in the rural telecom industry. As the rural telecom landscape evolves rapidly, companies are looking to grow scale in order to better weather possible storms, as well as better execute in the growing business lines of broadband, wireless, and entertainment, where scale matters. We call it the rise of the ‘rural super carrier.’ [...] [...] This M&A activity illustrates the continuing trend of consolidation in the rural telecom industry. As the rural telecom landscape evolves rapidly, companies are looking to grow scale in order to better weather possible storms, as well as better execute in the growing business lines of broadband, wireless, and entertainment, where scale matters. We call it the rise of the ‘rural super carrier.’ [...]

]]> By: CHR Solutions and Martin Group Merge | Telecompetitor http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-8349 CHR Solutions and Martin Group Merge | Telecompetitor Mon, 28 Sep 2009 16:38:18 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-8349 [...] and acquisition activity in the tier 2/3 telco space has picked up its pace recently, particularly among larger telcos including CenturyTel, Embarq, FairPoint, and Frontier. [...] [...] and acquisition activity in the tier 2/3 telco space has picked up its pace recently, particularly among larger telcos including CenturyTel, Embarq, FairPoint, and Frontier. [...]

]]> By: BEAR http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-7781 BEAR Sat, 11 Jul 2009 15:18:09 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-7781 Once Frontier takes control of Verizon rural wirelines will the deadline for the broadband stimulus have passed? With no stimulus and $3.3 billion of newly acquired debt how will Frontier compete and customers benefit? Much of Verizon rural assets is 20 years and older. It will cost Frontier to update or upkeep, Also in the Verizon rural areas is the new competing threat of the other local rural phone companies moving in to provide services and fiber to the curb. Once Frontier takes control of Verizon rural wirelines will the deadline for the broadband stimulus have passed? With no stimulus and $3.3 billion of newly acquired debt how will Frontier compete and customers benefit? Much of Verizon rural assets is 20 years and older. It will cost Frontier to update or upkeep, Also in the Verizon rural areas is the new competing threat of the other local rural phone companies moving in to provide services and fiber to the curb.

]]> By: DHFabian http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-7665 DHFabian Sat, 13 Jun 2009 19:50:08 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-7665 History will regard this as one of America's greatest mistakes: We killed the potential of the Internet by pricing a growing chunk of the population right offline. Those who crow the loudest about the virtues of capitalist competition are the first to crush competition. Monopolies dominate the ISPs, leaving us with the choice of a single broadband carrier in most areas. I was not surprised to see my monthly bill for internet services soar from about $11.00 per month to over $50 per month in a few short years. I don't think we're any closer to breaking up the monopolies. Can't interfere with free enterprise, you know, even if it keeps pushing the country further behind the rest of the industrialized countries. History will regard this as one of America’s greatest mistakes: We killed the potential of the Internet by pricing a growing chunk of the population right offline.
Those who crow the loudest about the virtues of capitalist competition are the first to crush competition. Monopolies dominate the ISPs, leaving us with the choice of a single broadband carrier in most areas. I was not surprised to see my monthly bill for internet services soar from about $11.00 per month to over $50 per month in a few short years. I don’t think we’re any closer to breaking up the monopolies. Can’t interfere with free enterprise, you know, even if it keeps pushing the country further behind the rest of the industrialized countries.

]]> By: clifa http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-6447 clifa Tue, 19 May 2009 17:28:25 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-6447 I know one thing for sure, the subscribers of the acquired exchanges are the benefactors. 90%++ of all of Verizon's rural exchanges (outside their original footprint) are former GTE properties. GTE quit spending capital $$ on those exchanges 10 years before they were acquired (in favor of spending their capital in urban/suburban areas)and that is exactly what Verizon has done. VZ did not buy GTE for those exchanges, they bought GTE for their large urban presence and a coast-to-coast reach. Today, if you live or own a business in a small VZ served town (less than 5K population) you can get DS-1 (1.544Mbs)and multiple DS-1s (at high prices), but don't even think about an OC-3 circuit. Schools/Hospitals/ISPs are begging for better backhaul, but DS-1 is all they get from VZ... if they're very lucky, there is a competitive broadband access carrier in town, but not likely. Frontier will change that. I know one thing for sure, the subscribers of the acquired exchanges are the benefactors. 90%++ of all of Verizon’s rural exchanges (outside their original footprint) are former GTE properties. GTE quit spending capital $$ on those exchanges 10 years before they were acquired (in favor of spending their capital in urban/suburban areas)and that is exactly what Verizon has done. VZ did not buy GTE for those exchanges, they bought GTE for their large urban presence and a coast-to-coast reach. Today, if you live or own a business in a small VZ served town (less than 5K population) you can get DS-1 (1.544Mbs)and multiple DS-1s (at high prices), but don’t even think about an OC-3 circuit. Schools/Hospitals/ISPs are begging for better backhaul, but DS-1 is all they get from VZ… if they’re very lucky, there is a competitive broadband access carrier in town, but not likely. Frontier will change that.

]]> By: Bernie http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-6370 Bernie Fri, 15 May 2009 13:56:00 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-6370 Whether these are 'outmoded assets' is a debate for another day. As far as the debt load - my understanding is that Frontier's debt exposure actually improves as a result of this deal, so not sure that's the best argument against this deal. They may have an operational challenge by basically tripling their company size (and operational responsibility), but I don't think the debt issues raised by FairPoint's Verizon deal necessarily apply here. Managing Editor, Telecompetitor Whether these are ‘outmoded assets’ is a debate for another day. As far as the debt load – my understanding is that Frontier’s debt exposure actually improves as a result of this deal, so not sure that’s the best argument against this deal. They may have an operational challenge by basically tripling their company size (and operational responsibility), but I don’t think the debt issues raised by FairPoint’s Verizon deal necessarily apply here.

Managing Editor, Telecompetitor

]]> By: Mile T http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-6369 Mile T Fri, 15 May 2009 13:49:50 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-6369 so what would you do with "yesterday's technology." those lines have to be serviced by someone. frontier understands those types of markets better than verizon and actually wants to be there. that's a huge difference. they'll probably upgrade the technology faster than verizon ever would have. i guess i don't understand your logic. are you suggesting verizon should keep these lines, and do nothing with them? so what would you do with “yesterday’s technology.” those lines have to be serviced by someone. frontier understands those types of markets better than verizon and actually wants to be there. that’s a huge difference. they’ll probably upgrade the technology faster than verizon ever would have. i guess i don’t understand your logic. are you suggesting verizon should keep these lines, and do nothing with them?

]]> By: Peter Pratt http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-6368 Peter Pratt Fri, 15 May 2009 13:47:39 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-6368 We made the point yesterday, at StimulatingBroadband.com that the Frontier - Verizon deal positions Frontier particularly well to compete for "broadband stimulus" grants and loans under the federal Recovery Act. <a href="http://tiny.cc/RhPkG">StimulatingBroadband.com</a> We made the point yesterday, at StimulatingBroadband.com that the Frontier – Verizon deal positions Frontier particularly well to compete for “broadband stimulus” grants and loans under the federal Recovery Act.

StimulatingBroadband.com

]]> By: Fred Pilot http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-6351 Fred Pilot Thu, 14 May 2009 18:43:06 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-6351 Other articles today are quoting analysts expressing doubts (and pointing to Fairpoint's purchase of Verizon lines in New England) that these rural telcos can take on and service the debt incurred by acquiring these divested Tier 1 telco lines. Plus these are outmoded assets: copper-based plant often not even capable of delivering first generation DSL. Bottom line, it looks like a bad deal for the acquiring companies: taking on a lot of debt to purchase yesterday's technology. Other articles today are quoting analysts expressing doubts (and pointing to Fairpoint’s purchase of Verizon lines in New England) that these rural telcos can take on and service the debt incurred by acquiring these divested Tier 1 telco lines. Plus these are outmoded assets: copper-based plant often not even capable of delivering first generation DSL. Bottom line, it looks like a bad deal for the acquiring companies: taking on a lot of debt to purchase yesterday’s technology.

]]> By: Larry http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/comment-page-1/#comment-6350 Larry Thu, 14 May 2009 18:40:31 +0000 http://www.telecompetitor.com/rise-of-the-rural-%e2%80%98super%e2%80%99-carrier/#comment-6350 why are the super carriers so anxious to buy lines that the big companies are so anxious to sell. it looks like verizon wants nothing to do with those lines. if the super carriers can make a business out of them, why can't verizon? why are the super carriers so anxious to buy lines that the big companies are so anxious to sell. it looks like verizon wants nothing to do with those lines. if the super carriers can make a business out of them, why can’t verizon?

]]>