Recently, two technology companies, Windstream (WIN) and Earthlink (ELNK) merged. This merger presents a series of potential advantages to the customers involved. The combination of these two companies benefits clients in that they receive the perks of Windstream’s scale in the Enterprise segment and Earthlink’s “successful launch of SD-WAN” (Street Insider). Since these two companies purportedly complement one another in terms of values, networks, operating philosophies, and strategy, the merger appears to be an advantageous one for customers. Of course, part of Teltek’s goal is to provide your business with the advantages and disadvantages so that you can make the most informed decision. Before we reach the advantages, let’s discuss a few other potential and notable mergers and acquisitions.
Supposedly, another merger is in the works between CenturyLink Inc. and Level 3 Communications Inc. According to the Wall Street Journal, “CenturyLink gets about two-thirds of its revenue from business customers, while Level 3’s comes entirely from that segment.” Despite the dot-com bust, Level 3 has survived and recently began refocusing its attention on small and midsize businesses. CenturyLink seeks to refocus its traditional role as a rural local-phone-service provider to offer fiber-optic lines in a play to compete with such businesses as AT&T Inc. and Verizon Communications Inc.
In the last few years, many technology companies have been making deals with one another. Semiconductor company Qualcomm Inc. made a deal to buy NXP Semiconductors NV. Dell Inc. acquired EMC Corp. AT&T Inc. plans to buy Time Warner Inc. Thus continues the trend of making deals among technology, media, and telecom companies.
Despite the advantages many of these mergers pose to these companies’ clients, disadvantages exist as well. When large mergers happen in the technology field, their existing and new clients often suffer as the two companies begin integrating their networks, processes, procedures, and etc. Fortunately, Teltek can assist our clients during this process by helping with the management of their trouble tickets, a service covered under our support offering. Additionally, Teltek can provide an objective approach to sourcing new voice and internet service providers and completing bill audits to ensure that they are not spending too much money or just make recommendations for a technology refresh.