Australia - Telecoms Industry - Mergers and Acquisitions

Synopsis

Slowly but steadily consolidation has occurred over the 2003-2005 period. The first round was driven by the collapse of infrastructure companies such as Nextgen, IP1 and FlowCom. While Telstra and Optus do participate in this process, PowerTel, SP Telemedia and iiNet have emerged as the major consolidators in this market. 2006 had a slow start as companies became wary of an industry that is severely struggling. In May 2007 Telecom New Zealand officially acquired 100% of PowerTel.

Table of Contents

• 1. Synopsis
• 2. Introduction
• 3. More industry consolidation is needed in 2008
  • 3.1 Financial expectations are too high
  • 3.2 Traditional telco assets declining in value
  • 3.3 Telstra ahead of the telco game
• 4. Alliances
  • 4.1 Virtual Network Operators, the new trend
  • 4.2 Wholesale Industry Group
  • 4.3 Optus-led industry initiative
  • 4.4 AUSalliance
  • 4.5 Big Red - Elders
• 5. Consolidation continues – 2008
  • 5.1 Nextgen acquires Silk Telecom
  • 5.2 Soul acquires TPG and Chariot
  • 5.3 PowerTel and Amcom take share in iiNet
  • 5.4 Seven moves towards Unwired
• 6. Key mergers and acquisitions - 2005
  • 6.1 Overview of mergers and acquisitions
  • 6.2 SP Telemedia
    • 6.2.1 Comindico taken over by SP Telemedia
    • 6.2.2 SPT consolidation alliance
  • 6.3 Swiftel merged with People Telecom
  • 6.4 PowerTel
    • 6.4.1 Telecom New Zealand acquires PowerTel and PowerTel combines with AAPT
    • 6.4.2 Historical background
  • 6.5 iiNet acquired OzEmail
  • 6.6 ntl acquired Macrocom
  • 6.7 Horizontal telco model for Nextgen
  • 6.8 Chariot and datafast merger is off again
• 7. Consolidation – facts and fantasies
  • 7.1 Buzz word
  • 7.2 Retreat to niche markets
  • 7.3 Obstacles to consolidation
  • 7.4 Lack of industry leadership
  • 7.5 Where are the opportunities?
• 8. Infrastructure consolidation
  • 8.1 Key market for M&As
  • 8.2 Trends in new infrastructure developments
  • 8.3 Australian leaders
• 9. Customer perspective
  • 9.1 Corporate market
  • 9.2 SME market
• 10. Related reports

• Exhibit 1 – Consolidation – cooperation