ISP industry consolidation – who will be next to fall?
Over the past 10 years the internet service provider industry has been one of the fastest-growing on the ASX and it is entering maturity in a period of flux. The majority of Australians have access to broadband at home, with the latest figures showing 77 per cent of households have broadband connectivity. As well as taking up broadband in a major way, Australians have significantly altered the way they use the internet in the past 10 years. Online streaming and multi-device connectivity has the Australian household focused on download speed and service reliability… Bundling television, internet and telecommunications through a single provider is becoming more compelling, offering greater choice for the consumer. Bundling reflects the industry's appetite for consolidation, particularly through merger-and-acquisition activity. In June 2005 there were193 internet service providers; by June 2014 there were 71. The question now is whether there is more consolidation to come. This article, by Chris Stott, looks at two companies engaged in M&A negotiations, the role of the NBN and who else might be in line for consolidation: (VIEW LINK)
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Wilson Asset Management has a track record of making a difference for shareholders and the community for more than 20 years. As the investment manager for eight leading LICs – WAM Capital (ASX: WAM), WAM Leaders (ASX: WLE), WAM Global (ASX: WGB),...