There's been some heavy consolidation in the telecommunications space recently.
Vocus Communications Limited (ASX: VOC) gobbled up Amcom Telecommunications and has also announced a plan to merge with internet service provider (ISP) M2 Group Ltd (ASX: MTU).
TPG Telecom Limited (ASX: TPM) swallowed fellow ISP iiNet Limited (ASX: IIN) while at the same time trying to prevent Vocus and Amcom tying the knot.
With massive tailwinds driving strong growth over the past several years, and likely to continue at least over the next few, chances are more players in the telecommunications space could end up as dessert for TPG Telecom, the combined Vocus/M2 group or even the sector gorilla Telstra Corporation Ltd (ASX: TLS).
Here's my list of contenders…
Speedcast International Ltd (ASX: SDA)
Speedcast provides satellite communication networks and services to remote regions and to ocean-going vessels, including remote mine operations, shipping vessels and oil rigs. With more than 1,000 customers over 3,000 land locations and another 1,700 offshore, Speedcast could be a welcome acquisition for Telstra, as it looks to expand further into Asia. The company is headquartered in Hong Kong and offers global access for maritime customers. 14% of revenues come from parts of Asia (outside of Australia and Pacific Islands), with 4% coming from Europe, the Middle East and Africa.
My Net Fone Limited (ASX: MNF)
My Net Fone says it is Australia's largest provider of hosted voice and data communication services, including VOIP and DSL internet for residential, business and government end users. Vocus/M2 could the most likely company interested in My Net Fone while Telstra could face competition concerns if it wanted the business.
Amaysim Australia Ltd (ASX: AYS)
Amaysim is more of a telco, offering mobile handset plans, but if TPG Telecom or Vocus/M2 wanted to move further into the mobile space, Amaysim could be a target. TPG has inked a deal already with Vodafone, with TPG mobile users transferring over to Vodafone's network. Amaysim currently uses the Optus network (like Virgin Mobile), but acquiring Amaysim could be an easy way of growing mobile customers.
BigAir Group Limited (ASX: BGL)
BigAir provides a similar service to Speedcast – wireless networking and communications, although BigAir uses microwave wireless rather than satellite-based networks. That means all BigAir's customers are on Terra firma.
Superloop Ltd (ASX: SLC)
Superloop (what a cool name!) provides dark fibre (basically unequipped fibre optic cable) connecting a number of key data centres across several networks in Australia and Singapore. Focusing on capital cities Sydney, Melbourne and Brisbane, customers are likely to be the data centre owners and operators as well as the companies making use of those data centres. Vocus already has an extensive data centre and fibre network in Australia, but Superloop might be a competitor best off owned.
