TDS Telecom seeks business market growth through TEAM acquisition

Tier 2 and 3 telcos traditionally have skewed more toward the residential side of the business—and with their traditional landline network business eroding, many of them are getting serious about the business market. Telephone and Data Systems, which owns Tier 2 telco TDS Telecommunications, took a step in that direction yesterday with its announcement that it had acquired TEAM Technologies, a fast growing data center services provider serving the upper Midwest.

TEAM operates three data centers in Iowa and Wisconsin, which support colocation, disaster recovery and data security services. In the announcement, TDS Telecommunications CEO Dave Wittwer praised TEAM’s “expertise in power and cooling delivery, physical security and incident response.” By combining those assets with TDS’ networking expertise and transport capabilities, he said TDS should be well positioned to grow the TEAM business.

TEAM is the second data center operator TDS has acquired this year. In March, the company acquired VISI Incorporated, a Minnesota-based data center services and managed hosting provider.

TDS’ strategy is similar to what we have seen from some other Tier 2 and Tier 3 telcos in recent months. Windstream made a similar move last month when it acquired hosting provider Hosted Solution. And in May Cincinnati Bell pursued similar goals and synergies when it acquired CyrusOne.