& cplSiteName &

EarthLink Back in the Game, Buys ITC

Carol Wilson
10/1/2010
50%
50%

The race to add scale in the US competitive carrier space continues. EarthLink Inc. (Nasdaq: ELNK) today announced an agreement to buy ITC^DeltaCom Inc. (Nasdaq: ITCD) for $516 million or $3 a share, and will integrate ITC's 14-state fiber optic network, focused in the southeastern US, into EarthLink's national ISP network.

The deal is the latest in a series of consolidations within the competitive carrier space and it shows new signs of life from EarthLink, which once had bold ambitions that included an investment in wireless operator Helio and a major municipal broadband initiative, both of which were terminated. (See EarthLink Cutting Wireless? and Virgin Mobile to Acquire Helio.)

The deal creates a national company with a heavy anchor in the Southeast, says Ed Gubbins, senior analyst with New Paradigm Resources Group.

“The combined company will have an interesting, asymmetrical structure -- nationwide in scope (thanks to EarthLink’s acquisition of NewEdge) but far denser in the Southeast," Gubbins says. "That will be helpful in competing for medium-sized business customers against the cable companies, which don’t have that nationwide footprint, and in winning large enterprises based in the Southeast that have locations in other markets.”

The combined company will offer Internet services, which have always been EarthLink's bread and butter, but also telecom and managed services, which EarthLink offers through NewEdge and ITC offers as well.

EarthLink chairman and CEO Rolla P. Huff, in a prepared statement, said: “The capabilities we acquire with this acquisition will be complemented by our existing New Edge Networks business as we combine our nationwide MPLS network capabilities with Deltacom’s state-of-the-art infrastructure."

EarthLink is promising to expand communications offerings from ITC's portfolio into its other service areas, to create a broader portfolio. The new company will be headquartered in Atlanta. As part of the deal, EarthLink also takes on $325 million in ITC debt.

— Carol Wilson, Chief Editor, Events, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
cnwedit
50%
50%
cnwedit,
User Rank: Light Beer
12/5/2012 | 4:22:08 PM
re: EarthLink Back in the Game, Buys ITC


Well said.


To be fair, companies like this are still doing a lot of business, just doing it quietly.

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 4:22:08 PM
re: EarthLink Back in the Game, Buys ITC


Alternative headline:


News Flash: Earthlink, ITC Still Exist

Featured Video
Flash Poll
From The Founder
After almost two decades at Light Reading, it's time for a different optical adventure.
Upcoming Live Events
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
March 12-14, 2019, Denver, Colorado
All Upcoming Live Events
Hot Topics
Apple: It's the End of the SIM as We Know It
Iain Morris, International Editor, 9/13/2018
MWCA Day 2 Recap: '5G' Rolls Out & We Roll On
Phil Harvey, US News Editor, 9/14/2018
The Mobile Network Is Becoming a Cloud Service
Phil Harvey, US News Editor, 9/18/2018
MWCA Day 1 Recap: 5G Is Here…?
Phil Harvey, US News Editor, 9/13/2018
So Long, & Good Luck With That
Steve Saunders, Founder, Light Reading, 9/14/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Partner Perspectives - content from our sponsors
One Size Doesn't Fit All – Another Look at Automation for 5G
By Stawan Kadepurkar, Business Head & EVP, Hi-Tech, L&T Technology Services
Prepare Now for the 5G Monetization Opportunity
By Yathish Nagavalli, Chief Enterprise Architect, Huawei Software
Huawei Mobile Money: Improving Lives and Accelerating Economic Growth
By Ian Martin Ravenscroft, Vice President of BSS Solutions, Huawei
Dealer Agent Cloud – Empower Your Dealer & Agent to Excel
By Natalie Dorothy Scopelitis, Director of Digital Transformation, Huawei Software
All Partner Perspectives