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Quad-Play Telecoms don’t Need Wireless Networks, Says SureWest CEO

Quadruple-play telecom providers don’t necessarily need to own their own wireless networks, according to Steve Oldham, the president and CEO of SureWest Communications, at an investor conference last week.

Oldham says that it was this realization which caused California-based SureWest to sell its small mobile phone division to Verizon Wireless in January.

SureWest liquidated its wireless business – which consisted of airwaves licenses, storefronts, and more than 50,000 customers – for $69 million, using the extra cash to help finance its recent acquisition of Kansas City-based internet provider, Everest Broadband.

“We used to think we had to own [the wireless business],” Oldham said. “We no longer think that. Turning that into cash and using that cash to build out the network and acquire additional assets like Everest wasclearly the right decision for us.”

Oldham says that he prefers the MVNO business model of reselling other operators’ wireless services,arguing that wireless network owners are already predisposed to such a model.

“AT&T is the primary company besides ourselves, so if Verizon has a wireless product that dovetails with landline products, they have every reason to want it to dovetail with our landline products too,” Oldham explained. “We think we’re going to have the availability of the convergence of wireless and landline because there are a lot of wireless providers who do not own landline networks where we serve, and they’re going to want to take those customers too for the wireless product.”

Source:
http://www.teleclick.ca/2008/02/quad-play-telecoms-dont-need-wireless-networks-says-surewest-ceo/

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