This IDC Perspective provides an overview and analysis of telecom and cable service provider network M&A deals, joint ventures (JVs), and IPOs disclosed in 2017. The document is limited to M&A deals in which the acquirer would take operational control of the target company and 50:50 JV deals.
According to Ragupathy Vellappa, senior analyst, Worldwide Telecommunications Research, "The year 2017 was somewhat good for M&As in telecom and cable service provider networks in terms of deal volume. There were only 12 billion-dollar deals disclosed in 2017 that accounted for 75% ($32.7 billion) of total deal value. The rest of 76 deals disclosed were million-dollar deals as CSPs focused primarily on tier 2, tier 3, and start-ups for their network and nonnetwork investments. The recent M&A trend also shows that carriers are no longer merely a bandwidth provider but will also be an enabler of digital services. So CSPs are increasing their presence in the digital ecosystem through potential acquisitions or investments. Overall, M&A activity in telecom and cable service provider networks will remain healthy in 2018 as carriers drive for additional scale and converged assets and add vertically integrated assets such as digital media, financial services, OTT video, IoT, cloud computing, and other IT-related business."