Look for telecom M&A to be on hold until the 2016 conclusion of a government auction of radio spectrum now owned by TV broadcasters, which could raise up to $60 billion if cable TV firms or Google (GOOGL) take part, says Moody’s Investors Service. Telecom acquisitions will die down after a busy 2015, in which AT&T (T) acquired DirecTV Group, Verizon Communications (VZ) sold wireline assets to Frontier Communications (FTR) and regulators thwarted
Telecom network operator Level 3 Communications ‘ (LVLT) profit margin outlook has improved while demand for Cogent Communications’ network services could re-accelerate, says RBC Capital, which initiated coverage on both companies with outperform ratings. RBC Capital started coverage of phone companies CenturyLink (CTL) and Frontier Communications (FTR) with hold ratings. RBC Capital separately downgraded DuPont Fabros Technology (DFT), which
The Federal Communications Commission, following the preference of phone companies, on Thursday unanimously awarded a major telecom database contract to Ericsson’s Telcordia Technologies, which the agency said easily outbid incumbent Neustar. Industry trade group USTelecom — whose members include AT&T (T), Verizon Communications (VZ), CenturyLink (CTL) and Frontier (FTR) — hailed the FCC’s vote. Neustar (NSR) had fought fiercely for contract