Follow the Consumer, Convergence for Signs of the Next Telecom Deal

Consumers want access to content and telecom services anytime, anywhere, and from any device.

Consumers want access to content and telecom services anytime, anywhere, and from any device. And that has been a major factor driving merger activity in the telecom sector over the past few years, said Marc Leaf, partner in the Corporate and Securities Practice of Drinker Biddle & Reath. Leaf said success in the industry increasingly comes down to scale and the ability of a player to make large investments in technology and infrastructure. For those that can’t grow organically, Leaf said acquisitions are a way for telecoms to acquire new technologies, move into new markets, and enhance their talent pool. So-called 'convergence,' or the ability to access video, data, and telecommunications services interchangeably from any device, is here to stay, according to Leaf. He added that convergence also means the ability to move seamlessly from one type of network to another, without changing devices. He said both types of convergence drive deal making as providers seek to strengthen their relationship with customers by meeting all their telecom needs.