Restructuring in the sector

A deal could usher in the next chapter of restructuring in the
sector, creating a vertically integrated communications giant with a
strong presence across technologies and customer bases.

Analysts
believe this may in turn trigger another wave of consolidation as SBC’s
fellow regional telecoms such as Verizon and BellSouth also seek to
extend their reach.

The most likely targets would be MCI, the
long-distance operator recently emerging from Chapter 11 bankruptcy
proceedings, and Qwest, the struggling regional player.

America’s
telephone companies have been hit by the migration of customers to
other technologies such as wirleless and cable. These pressures have
led to a series of mergers and talks about deals. Last year, Cingular
Wireless bought AT&T Wireless for $41bn and Nextel and Sprint
agreed to a $36bn merger.
[via FT]

We all know who’s going to be the real winner in all this..the merchant bankers.

One thought on “Restructuring in the sector

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