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Telecom Asia

Stat snap – First Mile – merger and acquisition activity in the telecoms industry – Brief Article

Stat snap – First Mile – merger and acquisition activity in the telecoms industry – Brief Article – Polling Data

John C. Tanner

The number of M&As in the telecoms industry has risen significantly worldwide over the last two years, although 2001 was considerably slower compared to 2000. The main motivations? To increase scale, market share and geographic scope, says a telecoms study conducted by the University of Southern California’s Marshal School of Business and published by the International Engineering Consortium. According to the report, which surveyed senior-level executives from different telecoms sectors in the US, Asia and Europe, service provider M&As are more about size and cost savings than product synergies and R&D. However, the report also notes the low level of successful M&As since 2000, which the report chalks up to “an absence of strong leadership and flexible strategies”. The report also lists cable companies as the most likely acquisition targets over the next three years, though at a probability of 20%, the chances aren’t too high.

COPYRIGHT 2002 Advanstar Communications, Inc.

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