M&A Madness in Telco Land

Business 2.0: It’s not just carriers on the most-wanted list, but network security firms and equipment makers too.

It’s been just two weeks since we speculated that 2005 could bring a rapid consolidation in the telecom sector. The industry’s chief executives proved to be more impatient than frat boys and have started the mergers-and-acquisitions party early. This buy-and-grow frenzy is only going to pick up pace. continue reading my column over at Business 2.0…

Here are some scenarios: Big acquires would include Cisco, Juniper and Andrew Corp. Nortel and Foundry might look to do the handshake aka partnerships. Cisco will be constantly adding security and VoIP players to its portfolio, mostly small. Juniper would like to go after the enterprise market and my bet it that they could go after Extreme, Foundry, Force 10 Networks and perhaps even a storage player like Brocade. RBC Capital Markets analyst Mark Sue notes that in the wireless arena, “Andrew may look to expand its RF footprint by acquiring REMEC or may even evaluate complimentary markets such as wireless backhaul via companies such as Airspan, Carrier Access, and Ceragon.” I think both Motorola and Alcatel will be hungry again and get into a buying mode soon.