Who Stirred the Pot?
Today we learn that service provider Windstream buys Paetec for $891 million.
Now what equipment are they going to sell?
Paetec claims to sell:
- Avaya – Platinum Partner
- Cisco – Silver Partner
- Nortel – Certified Reseller
- ADTRAN – Authorized Partner
- Allworx – Authorized Partner
Though I am not sure how neutral they are as Paetec owns Allworx.
When complete, Windstream will have become a national CLEC. It had been moving in this direction for years with the purchases of Nuvox and KDL, but until now those revenues had been relatively small next to the ILEC business. PAETEC, however, has revenues now of about $2B annually, following the purchases of Cavalier late last year and XETA this spring. And if you go further back, there are a plethora more deals that have brought quite a roll up of CLEC-type assets into Windstream’s camp. Add all of them up and the CLEC business will contribute as much as 70% of Windstream’s $6B in run-rate annual revenue. The company’s enterprise business overall will clearly be their primary focus from here on out, and they obviously haven’t run into any big problems being both an ILEC and a CLEC thus far.