Windstream is putting Infinera’s DTN-X and its 500G super-channels to work on a new long-haul backbone deployment. The expanded intercity capacity will help Windstream keep pace with growth in mobile data, cloud services, and of course all that video traffic hitting broadband networks.
Despite all the metro and regional fiber Windstream acquired east of the Rockies, they had really tried to stitch it all together with their own fiber and DWDM backbone until now. The former fiber footprints of KDL, McLeodUSA, Intellifiber, and the rest cover a lot of mostly adjacent ground though, and now they’ll come closer to reaching their full potential.
Windstream’s aspirations to complete its footprint with some west coast assets is well known, but they haven’t seemed to be in much of a hurry. Integra or TelePacific would be logical ways to do that. But with former XO CTO Randy Nicklas driving the buildout at Windstream and using the same gear to do it that he did at XO, a bid for XO makes more and more sense.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!
Categories: Metro fiber · Telecom Equipment
Join Our LinkedIn Group
Is a company desperately holding on the Dividends for stockholders a match for Carl Icahn. Seems very disruptive personality for windstream to deal with unless they buy him out completely. no merger with Icahn taking an ownership stake in future company. Very difficult to value XO these days but may be an expensive proposition for windstream. XO value and conduit in Tier 1 markets is The best asset out there , may not be right time to sell unless he feels there is no way to increase XO value by internlly fixing
Oh I seriously doubt Windstream would make a stock bid for XO, if in fact they even ever contemplate such a thing. As for the price, the assets may be right but in the absence of evidence that the ‘internal fixing’ they’ve done already has helped, I rather doubt Icahn is in a position to name his price.
Icahn has his price in mind and he won’t sell it unless he gets what he wants for it. To him its a waiting game. You see Icahn believes if someone wants to buy something you own hold onto to it b/c that person or persons will be back to offer more. Carl will not sell XO to Windstream unless its for a substantial price.
Icahn will not sell until the shareholder lawsuits are behind him. He would have already sold this turd.
I don’t disagree Icahn hasn’t had the appetite to sell XO thus far. But make no mistake about it he’s focused on value creation and so far no one has presented him an offer that finds a path to the type of value he is expecting. That said if he were to receive the number tomorrow that he has penciled on the back of an envelope he would move this asset quickly as there is no legal argument why he could not. And to be clear he’s not worried about the R2 litigation as in his mind he’s already won.
how has he won? hard to sell an asset with lawsuit attached.
Ask yourself what the court will do after all this time? I would suggest not as much as what the plaintiffs would require.
possibly, who knows these days, but they did have the chance to dismiss it so CI has to ask the same.
Would it be fair to say concern for Windstream is Dividend payout and sustainability. Seems like a solid ~800 Million FCF company yet alot of concern and negaitive perception. Understanding traditional RBOC type revenue are in jeopardy and will continuet o decline but seems they have tunred corner and will continue with significant FCF.
Cisco is gonna take it in the shorts. Most the former KDL backbone is Cisco ONS 15454. It should be interesting to see how sales fall this quarter.
Are they? 15454 is MD’d.