Master Agent Featured Articles

Lightower-Sidera Merger Highlights Need for a Master Agent

January 04, 2013

By Susan J. Campbell, TMCnet Contributing Editor

The competition in the fiber and bandwidth-provisioning space is taking a new turn as Sidera Networks (News - Alert) and Lightower Fiber Networks revealed plans to merge in a transaction reportedly worth $2 billion. Private equity firms back both companies and the deal will require regulatory approval before it can be finalized in the second quarter. For the master agent offering the best in the industry, the newly combined entity is expected to shake up the space quite a bit.

According to a report, Lightower CEO, Rob Shanahan will lead the newly formed entity, which will be guided by a strategy to provide more services and additional access points across a greater number of routes. The new company, which does not yet have a name, will operate across 20,000 miles of communications route and 6,000 on-net locations through the Midwest, Northeast and Mid-Atlantic regions.

Berkshire Partners, a Boston-based investment firm, is leading the Lightower-Sidera merger. As part of the transaction, the firm is purchasing the two companies from their respective investors before completing the merger. Pamlico Capital, M/C Partners and Ridgemont Equity Partners currently back Lightower, while Spectrum (News - Alert) Equity and ABRY Partners support Sidera. ARBY Partners and Pamlico Capital are expected to remain as investors in the new business.

Such movement in the market can put companies, especially customers, on edge; yet mergers and acquisitions in the telecommunications space occur at a pace that renders the activity nearly as common as provisioning a new application, service or network. For the master agent, it simply means access to quality collaboration partners that bring added value to the market and supporting businesses.

A recent TMC (News - Alert) post highlighted the benefits associated with working with a master agent, especially when that agent has access to a full range of solutions providers. The market continues to expand, which means the range of demands among a base of complex business clients also grows and makes it more difficult to meet increasing needs. As technologies also continue to evolve and unify, the learning curve for all users intensifies. For the company trying to meet and support these needs, the challenge can be difficult.

Fortunately, working with a master agent to manage the needs and the relationship can deliver measurable benefits for both the provider and the customer. This is especially true when a merger is taking place as catering to the needs of the customers on both sides of the transaction can be nothing short of a challenge. With a master agent to bridge the gap in communications and service, no one is left out in the cold and the value of the new brand is protected. The master agent works alongside the IT service provider to ensure the complete delivery of unified communications.

As Lightower and Sidera complete the final stages of their merger and a new entity emerges, it is not to different to the moves in which Telarus (News - Alert) partners are making. For example, MegaPath and Windstream are both continuing to make strategic acquisitions in order to offer the most innovative technologies in the industry.

To view the master agent’s full list of carriers, click here.

To find out more about Telarus, visit the company at ITEXPO Miami 2013. Taking place Jan. 29- Feb 1, in Miami, Florida, be sure to visit Telarus in booth # 1023. For more information on ITEXPO (News - Alert) Miami 2013, click here.

Edited by Jamie Epstein

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