As I land at ITEXPO, the news hits my phone that Telarus is buying TCG.
This is the second Broker that yelled loud and often that they would not take PE Money, but they would sell. That seems disingenuous to me, but then South Florida telecom – and I will leave it at that.
My peers say that Sandler and TBI are next. I would agree. This will have to happen fast as money is drying up.
This doesn’t really leave a safe haven for partners and their commissions.
I spoke with an investment banker today about the channel. We couldn’t identify how the PE money will ever be returned with interest.
On LinkedIn, people are cheering this merger just like they did the Avant-PlanetOne transaction. When vendors were consolidating, it scared partners. Then CLECs started disappearing – and partners had limited choices for network, voice and other telecom services that they had been selling. This isn’t much different. The choices are limited.
The brokers are consolidated and owe a debt of $650M!!!
I’ll just leave that there. The people who collect your commission owe $650M!!!
And Bigger is never Better in telecom. Not ever.