Moody’s: Telecom M&A to Continue

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Credit rating agency Moody’s Investors Service predicts that mergers & acquisitions activity among telecommunication companies will continue as the industry seeks to offset low revenue potential and intensifying competition with deals. Already the sector has seen AT&T announce a $108.7 billion deal with Time Warner in October and Century Link make a $34 billion offer for Level 3 Communications.

Moody’s sees more deals ahead. “Market saturation and tough competition have produced a stagnant US telecom market,” Moody’s said in its report. “Yet regulators remain unlikely to approve consolidation within the traditional telecom sector, especially for large incumbents, so they must look elsewhere for growth.” Moody’s predicts that in the wake of those deals, Verizon Communications will likely accelerate its 5G mobile video strategy either through large scale M&A or partnerships.


Moody’s: Telecom M&A to Continue