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July 01, 2008
Despite France Telecom Deal's Fate, Acquisition-Fueled Growth Remains Imperative
By Gary Kim Contributing Editor France Télécom has ended its attempt to buy TeliaSonera (News - Alert), because the two firms could not agree on a price, officials announced today.
Don’t expect France Télécom or TeliaSonera to stop hunting though. Whether on a global level or a local level, communications remains a scale business, with tough slogging to create new revenue streams to fuel growth.
So communications companies of all sizes will continue to consolidate, growing through acquisition if organic growth remains tough.
Telefónica has begun building a stake in Telecom Italia (News - Alert). Deutsche Telekom AG also has said it wants to concentrate on emerging markets.
Global communications grows about 5 percent percent year, every year. Firms that want to grow above that rate must either be fortunate enough to be in fast-growing segments or must expand out of territory.
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP  Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is The Compelling ROI Benefits of Contact Center Quality and Performance Management Technologies, brought to you by Voice Print International (News - Alert). |
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