& cplSiteName &

Consolidated Gains Fiber, Cloud Focus With Enventis

Jason Meyers
6/30/2014
50%
50%

Consolidated Communications continued to live up to its name Monday when it announced it would acquire Enventis for $350 million, expanding its fiber network footprint and potentially strengthening its focus on business customers.

Consolidated Communications Inc. acquired SureWest Communications in early 2012, adding Kansas City and Sacramento to its territory. Now the Illinois company is folding in Enventis (NASDAQ: ENVE) of Mankato, Minn., which has a 4,200-mile fiber network that spans Minnesota and portions of Iowa, North Dakota, South Dakota, and Wisconsin. (See Consolidated, Enventis to Merge.)

Just last week, Enventis rolled out several enterprise-focused cloud services aimed at the small and midsized business market, which is also an area of focus for Consolidated. To date, Consolidated has offered cloud-based services only through partners on a market-by-market basis, but Bob Udell, the company's president and chief operating officer, says it sees cloud offerings as a way to be more competitive in the business sector. (See Enventis Strengthens Its Cloud Position.)

"This gives us a more nicely packaged way to consider that," Udell says. The service provider believes the network of Consolidated and Enventis will be the strongest asset of the combined company. "There are some great fiber assets there, in addition to their experience in the equipment and data segment."

The expansion into cloud services could give Enventis (and now Consolidated) a stronger business focus. However, this is a hotly competitive market -- and the smaller businesses in the combined company's territories are not necessarily ready for it.

"Cloud services are more important in a multi-location world than they are to smaller businesses, and they can't really serve those companies on a nationwide basis," says Craig Clausen, executive vice president and principal analyst of New Paradigm Resources Group Inc. "What's the difference between a small business and residential users? It's more profitable, but it doesn't get you to those grand levels you need to be to achieve economies of scale and add value-added services."

The expanded fiber footprint Consolidated gains, along with employees with more experience serving the business sector, are the most interesting aspects of the merger, Clausen says.

"It's a market expansion -- though I can't say that expanding into Minnesota, northern Iowa, and part of the Dakotas is really where the money is," he says. "But it does bring together a lot of assets and give them more strength. And depending on the people who come with the deal, that could be where the real value lies."

— Jason Meyers, Utility Communications Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
MikeP688
50%
50%
MikeP688,
User Rank: Light Sabre
6/30/2014 | 11:41:44 PM
Re: Small businesses and the cloud
Any SMB (or start-up) needs an edge.   It seems from having see what they've done, they are indeed able to provide SMB's the edge especially as the "revolution" continues which we've been deliberating throughout the month.  I would be curious, though, to see how they would stack up against say" Amazon" with the free services it provides for start-ups.    
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
6/30/2014 | 3:48:44 PM
Small businesses and the cloud
I'm not sure I agree with Craig on small businesses not being ready for cloud services. There is significant thinking in the cloud world that small businesses want the same IT services and sophistication as larger companies if they can get it without capex and staffing investments and cloud services represent one option for doing that. A year ago, a Forrester survey showed more than half of SMBs were already using cloud services in some way. 

This is a market that Enventis knows well and could help Consolidated address. 

If you look at Consolidated's acquisitions -first SureWest and now Enventis - these are companies that have done some pioneering of advanced services in smaller markets. As Craig notes, if Consolidated retains that expertise, there could be significant benefits for the company and the areas it serves. 
jasonmeyers
50%
50%
jasonmeyers,
User Rank: Blogger
6/30/2014 | 3:29:35 PM
What's next
It will be interesting to see where Consolidated goes next, both geographically and strategically -- whether it will extend the cloud focus Enventis started throughout the combined network, extend more of its fiber network to homes and businesses to combat Google and potential competition from municipal and utility networks in certain markets, or maybe all of the above.  
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
The Urgency of Commercial 5G Services

4|26|17   |     |   (0) comments


The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
Women in Comms Introduction Videos
How Diversity Helps Comcast Mirror Its Customer Base

4|26|17   |   2:55   |   (0) comments


Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Surprise! AT&T Markets 4G Advances as '5G Evolution'
Dan Jones, Mobile Editor, 4/25/2017
Did Verizon Outbid AT&T for Straight Path?
Dan Jones, Mobile Editor, 4/25/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Verizon: Small Biz in Cybercrooks' Crosshairs
Carol Wilson, Editor-at-large, 4/27/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.