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This analysis of the buy vs. build question facing telcos includes a mention of how the potential of future wireless technologies may be affecting the value of long distance companies: The author argues that there’s a debate among telcos over whether to buy long distance businesses as an entrée into the enterprise market or use other technologies to target other high-growth market segments. WiMax and 3G are big unknowns at the moment but have the potential to generate significant revenues for operators that choose to deploy them to target new markets.
A Lehman Brothers analyst suggests that Verizon’s planned MCI acquisition means the company will deviate from its aggressive wireless strategy, which will put a damper on potential growth. It’s hard to say if the acquisition will actually affect Verizon’s wireless strategy. On a side note, Verizon Avenue has also been a user of broadband fixed wireless. It’s certainly possible that Verizon can contine to focus on aggressive growth in its mobile business, while pursuing other broadband wireless as well as enterprise opportunities.
Posted by nancyg at February 14, 2005 4:52 PM
Categories: mergers and acquisitions
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