Embarq Keeps an Eye Out for Rural Telecom Acquisition Targets

No Author (6.12.2007)

http://www.teleclick.ca/2007/06/embarq-keeps-an-eye-out-for-rural-telecom-acquisition-targets/

Embarq looking to advance their competitive position

Regional telephone provider, Embarq Corp., is positioning itself to acquire smaller competitors in the months and years to come, as the telecommunications sector continues to consolidate.

Buying up small rural phone carriers would help Embarq to slash costs and increase efficiency, said the company’s CEO, Daniel Hesse, in an interview late last week.

“Today you have roughly 800 local exchange carriers in the U.S., and we’re competing with much larger competitors — the wireless companies, the cable companies,” Hesse said. He acknowledging, however, that Embarq had yet to find any specific deals where cost benefits outweighed the likely premiums.

“We’re very well positioned to be an acquirer,” he explained, “but in today’s market, a lot of the prices are too high. And we have a very disciplined approach to looking at acquisitions.”

Embarq — which was spun off by wireless giant, Sprint Nextel in May 2006 — has experienced significant growth in the past year, with its stock price rising over 20% since debuting on the market. Hesse believes that a further increase in value could help his company put together an attractive acquisition proposal.

“The stock has moved up a lot in the past year, not only in absolute terms but relative to the industry. If we continue to perform that well, then all of a sudden our equity can become a currency,” the CEO said, referring to the possibility of an all-stock deal.

Embarq offers local, long distance, and broadband internet services in 18 states, primarily in rural areas, and faces strong competition from major cable and wireless providers.

Don’t Don't Apply 1968 Telecom Rule to Wireless, Says AT&T

Drew Clark (2.26.07)
http://www.drewclark.com/2007/02/dont-go-back-to-1968-telecom-rules-says.shtml

AT&T and Verizon talk about national broadband and wireless regulation while speaking at the Technology Policy Summit.

This is the beginning of a potential push toward national broadband, which if instituted would force changes in legislation, and shift the focus of municipal wireless projects.

AT&T’s Senior Vice President Jim Ciconni has acknowledged a need for national broadband. “We don’t have a national broadband policy, we have never had a broadband policy, and, given the importance of competitiveness, we should have one,” said Ciconni.

However, Tom Tauke, Verizon Communications Executive Vice President countered by saying “a national broadband policy would do more harm than good." But he encouraged government-private sector collaboration to obtain more data about broadband deployment.

Tauke referred positively to KetuckyConnect, an effort to compile statistics about regional broadband deployment. The government could provide subsidies and loans for deploying broadband in rural areas that enjoy a lesser degree of broadband deployment, he said.

They also discussed wireless regulation, with Ciconni claiming that things have changed since the carterphone, saying “there are a plethora of carriers and a wide variety of devices that are available” on wireless networks, thus any rule that hearkens back to 1968 will be rejected.