Light Reading
Consolidated spends $350 million to expand its network reach and give the combined carrier more business services savvy.

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
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.  
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed