Level 3 announced the acquisition of ICG, which owns quality assets in Colorado and Ohio. This comes on the back of Progress Telecom which is focused in the southeast and the acquisition of Wiltel in 2005.
SBC acquired AT&T’s long distance business and Verizon has purchased MCI. Supply is becoming less and less as demand for capacity increases and increases.
Telecom reminds me of the housing industry in the 1990s. After the savings and loan crisis of the late 1980s, all the major home builders were on the verge of bankruptcy. Those who survived consolidated the industry during the next decade, making some 30x to 40x investor’s money by the middle part of this decade.
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