Trends & Opportunities
The telecommunication’s industry is ripe for industry consolidation as interest in the space continues to intensify. Driven by the shift towards high-margin data services, the adoption of 5G networks is taking center stage in the telecom environment, as the industry begins to move away from traditional products, such as voice connectivity. Significant demand coupled with the U.S. Department of Agriculture announcing it will be spending $759 million to expand broadband access to communities across the U.S. is stimulating the increased necessity of telecom services.
So, how fast will the industry grow? According to the GSMA, the world’s largest mobile industry organization in North America, mobile data traffic growth is forecasted to more than triple from 2025 to 2027. Add all these factors together and it’s clear to see: the telecom industry won’t be slowing down anytime soon.
Telecom Market Insights
- The global telecommunications services market was valued at $1.8 trillion in 2022 and is expected to expand at a CAGR of 6.2%, reaching $2.4 trillion by 2027.
- 55% of total transaction volume in the telecom services sector in 2022 was attributable to infrastructure deals due to the investment appetite surrounding tower companies specifically.
- Telecom services grew evermore important during lockdowns and proved to be a “pandemic-proof” industry for investors. The same type of market reaction is expected with the sector as the economy heads into a potential recessionary state.
For more insights and observations, a select M&A transaction history, and more, please view our recent Telecom Market Insights Report.
Our Latest Transaction
In December 2022, Hyde Park Capital advised Ascend Wireless Networks on acquisition by Sovereign’s Capital. Founded in 2013, Ascend Wireless Networks provides design-build services to the telecommunications industry. Providing a single source design, manage, construct, and optimize service offering, the Company’s expertise includes, raw land, existing structure “buildouts,” tower, rooftop and stealth as well as small cells and DAS sites that can be completed fully turnkey or modular, depending on customer desires. Customers can efficiently meet the goals of ubiquitous high-speed wireless broadband using the innovative methodologies and resources Ascend Wireless Networks offers to complete each project. For additional information, please visit www.ascendwirelessnetworks.com.
You can read more about the deal here
How HPC Can Help You
M&A transactions require in-depth analysis, careful evaluation and a thorough understanding of valuation methods and regulatory implications. Only by working with experienced M&A professionals can you ensure your firm secures the best fit at the best price.
If your company is entertaining a transaction, give our team a call at 813-383-0202, or contact us via our website. We’d love to show what Hyde Park Capital can do for you.