A look at market consolidation

Citizens claims Commonwealth: Less than a week after Commonwealth Telephone announced it had retained an outside financial adviser to review strategic options, the Pennsylvania-based company agreed to be acquired by Citizens for $1.16 billion. The purchase gives Citizens, which already operates its Frontier brand in that state — though not in contiguous areas — a profitable company and a new customer base for advanced services. Citizens' Chairman and CEO Maggie Wilderotter promised $30 million in savings and much more aggressive marketing of advanced services and bundles to Commonwealth's customers. Two-thirds of the savings will come from job cuts, most at Commonwealth. Local customers may not be thrilled to lose an operation that for eight years running had the lowest justified complaint level at the Pennsylvania Public Utilities Commission

CLEC merger rumored: Neither Broadwing nor XO Communications officials are talking, but there are widespread rumors that the two companies may be merging. Broadwing has a substantial cash stockpile and has been expected to be in a merger mood. The entire competitive carrier segment is under major consolidation, although this particular merger wasn't high on the rumor board until lately. Broadwing was long thought to be a possible merger partner for Global Crossing.

Lucatel lives on: Despite rising stockholder concern, shareholders of both Alcatel and Lucent approved their recent merger. Just before the merger approval, Alcatel bought Nortel Networks's UMTS business, and just afterward, Lucent bought Mobilitec, a content hosting platform provider, proving that even a major merger doesn't slow other consolidation activity.

AT&T and BellSouth merger faces FCC vote: Word out of Washington and specifically the mouth of FCC Chairman Kevin Martin has the vote on this megamerger taking place in October. Martin told the Senate Commerce Committee that he wants to stick to a 180-day schedule for approval.

ONLINE

Editor-at-Large Carol Wilson tackles the myriad of issues involved in keeping your business going after a disaster. Stories include:

• VoIP changing business continuity
• AT&T tackles disaster recovery challenge
• Disaster recovery: Should voice mail be free
• Redefining business continuity
• A Telephony podcast
  www.telephonyonline.com/businesscontinuity