Page 2

By Ian Betteridge  |  Posted 2004-11-10 Print this article Print

However, in the case of Infonet, although there is potential for other global telecom players to make a late bid for the company, Hewitt described this prospect as "unlikely. Certainly all the other global networking players would find Infonet attractive, but none of them stands out as ready to jump into the bidding." And, unlike the MCI deal, the acquisition of Infonet is clearly not just about gaining a foothold in the lucrative U.S. market. According to IDC, only 20 percent of Infonets revenues come from the United States, and its customer networks are among the most multinational in the industry.
Ultimately, although the deal looks like an excellent match, much will depend on how the integration of the two companies is executed over the coming years. BT has estimated it will take between 18 months and two years to integrate the operations of the two companies, and both companies have taken great pains to point out that they have no intention of rushing this integration.
BT is not without experience in this area, having already reintegrated BT Ignite and Concert. If the two companies can manage this transition period well, it will likely mean that BT will gain a stronger position in the market without causing any pain to existing customers. Check out eWEEK.coms for the latest news, views and analysis on voice over IP and telephony.


Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel