Deals reinforce competitive carriers stand in market

Everybody has probably read the headlines about CenturyLink's acquisition of Qwest Communications earlier this month, but we spotted two other smaller deals that also bear notice: EarthLink completed its acquisition of One Communications Corp. (One Comm) while TelePacific Communications, a California-based CLEC, closed on its acquisition of NextWeb -- a former MegaPath subsidiary doing business as Covad Wireless. Competitive carriers continue to grow and morph as they add network assets and product portfolios, allowing them to better compete with incumbent providers.

Tech industry M&As in 2011

With its deal to acquire Covad Wireless, TelePacific Communications also gain approximately 3,500 profitable broadband fixed wireless business customers in California, Nevada and suburban Chicago. The deal grew network assets to expand TelePacific's SMB services into the fixed wireless market with a complementary network footprint, helping the CLEC to better compete with AT&T and Verizon for SMB customers in the California and Nevada markets.

The additional network also allows TelePacific to offer wireless Internet connectivity, reinforcing its business continuity solutions with both wireless and wired network paths. Existing Covad Wireless customers gained access to TelePacific's enhanced business services, including converged voice and data networks in California and Nevada.

With the close of its transaction, EarthLink will integrate One Comm into its "EarthLink Business" division, which also includes assets from Deltacom, STS Telecom, and New Edge Networks. The EarthLink Business IP network now spans over 28,000 route miles across 27 states with over 1,300 collocations, 55 switches and 71 metro fiber rings.

Commenting is a prepared statement on its latest deal, EarthLink Chairman and CEO Rolla P. Huff said "The acquisition of One Communications is a significant development in further transforming EarthLink into one of the largest IP services companies in the U.S. We now have a fiber-based IP network that covers a substantial portion of the key business markets across the eastern half of the United States. We see tremendous value in the 1.6 million customer relationships we have across the new EarthLink and future growth potential in pursuing value-added managed services over our ubiquitous IP connectivity."

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