Megapath got pacmanned by Fusion.
https://newswire.telecomramblings.com/2018/05/fusion-announces-closing-birch-acquisition/
Fusion is the result of a reverse IPO for Birch with each entity spinning off parts. Single POTS line customers of Birch were sold separately. Fusion spun off its carrier business. It took on $444M in Birch debt. It now sits with about $680M in debt for FSNN with approx. $500M in revenue.
In a fire sale, Fusion grabbed MegaPath for just $71.5M. This is after MegaPath spent the last few years selling off parts.
“These days MegaPath serves a mix of UCaaS, cloud connectivity/computing, security, and SD-WAN to the SMB marketplace. A few years ago as a larger company, MegaPath sold off its wholesale division to Global Capacity for $160M (now part of GTT) and its managed services business to GTT directly for $144.8M,” as Ramblings reports.
“The purchase of MegaPath will cost Fusion some $71.5M, of which $10.0M may be in the company’s common stock with the rest in cash coming from its current credit facility. For that price they will add $70M in annual revenue and $15M in adjusted EBITDA after cost synergies. Some 8,000 SMB customers will be added to the company’s rolls along with 45 quota-bearing salesfolk,” again from Ramblings.
Now Fusion has 2 Broadsoft switches and a homebrew UC platform.
MegaPath was sliding into the space of a me-too CLEC. Offering UC, SDWAN and security — which is what all the former CLECs are offering. At CP Expo in Vegas, the main theme was the triple service offering of UC, SD-WAN and Security. It got tiresome.
Seth Godin today, “Just about everything we buy comes with a story included. And yet, most creators, sellers and marketers don’t invest enough, don’t take enough care, and don’t persist enough in making sure the story is worth what you paid for it.”
Another interesting piece of news: USTelecom (the mouthpiece for the ILECs) has petitioned the FCC for Forbearance on UNEs.
USTelecom pushes to End Unbundling (UNE access under the Telecom Act of 1996)
USTelecom Says Telecom Unbundling Regulations are Outmoded; Competitors Say They Need Those UNEs.
The UNEs are used to offer POTS, T1, PRI, any flavor of DSL and Ethernet over Copper. (This could be a gut punch to GTT that bought Global Capacity). This will affect so many consumers and businesses.
The small problem is that most CLECs have either pivoted or gone out of business (or been acquired).
The USTelecom petition is HERE.
The comment period was just published by the FCC HERE.
Comments or Oppositions Due: June 7, 2018
Reply Comments Due: June 22, 2018
Might be a good time to comment and join INCOMPAS to lobby for your UNE.