Tier1 Research: New Investment Opportunities Emerge as Internet Transformation Impacts the Communications Sector.New Report Analyzes the Internet Transformation and its Effect on the Communications Sector MINNEAPOLIS -- A new report by Tier1 Research (T1R) finds that the increasing utilization of the Internet as a communications platform will produce a single ecosystem in which telecommunications companies See telecom company. will be fiercely competing for customers. Customer acquisition and marketing, rather than network-building skills, will separate the winners from the losers. These findings are contained in a report released today by Minneapolis-based T1R, an independent research firm that analyzes the financial and industry implications of developments affecting public and private companies within the IT, communications and Internet sectors. "Valuations in the communications sector still reflect twentieth-century distinctions, even as convergence leads all forms of communication (voice, video, text) and access media (copper, coax, fiber, wireless) to unite in a single network," said Daniel Berninger, Senior Analyst at T1R and lead author of the report. "Communications companies face the same competitive landscape, so the valuation methodologies should similarly converge around a single set of fundamental growth and margin trend metrics." This report, titled 'Telecom Turmoil: EV Divergence in Spite of Tech Convergence,' addresses why paying attention Noun 1. paying attention - paying particular notice (as to children or helpless people); "his attentiveness to her wishes"; "he spends without heed to the consequences" attentiveness, heed, regard to valuations in the telecommunications sector at this time can yield opportunities. Some additional findings include: * Convergence of networks will drive convergence of valuation metrics: There exists relatively tight valuation ranges along the historical categories of RBOC (Regional Bell Operating Company) The Bell telephone companies that were spun off of AT&T by court order in 1984 (the Divestiture). Also known as the "Baby Bells," the initial seven RBOCs were Nynex, Bell Atlantic, BellSouth, Southwestern Bell, US West, , RLEC RLEC Rural Local Exchange Carrier RLEC Report Log Exception Condition , wireless, cable, etc., but there remain very wide differences between categories. These differences will narrow over time, if not entirely unwind Unwind 1. The closure of an investment position. 2. The reconciliation of an error previously unseen by a brokerage house. Notes: 1. Sometimes referred to as closing out a position. . * Consolidation-driven M&A produces temporary premiums. * The changes wrought by the commercial Internet completely altered the landscape in only 10 years. The pipeline looks full of additional threats/opportunities with new communication applications, as devices and computers continue to get faster and cheaper, and as connectivity becomes ubiquitous. Key Companies Covered The report covers 10 key public and private companies in the telecommunications sector, including the following: Alltel, AT&T, BLS See Bureau of Labor Statistics. , Cablevision, Comcast, Embarq, Qwest, Sprint, Verizon and Vonage. Report Orders To learn more about this report, contact Lori Larson, Business Development Manager with Tier1 Research, at 239-561-9504 or at lori@tier1research.com. About Tier1 Research Tier1 Research analyzes the financial and industry implications of developments affecting public and private companies within the IT, communications and Internet sectors. Tier1 blends traditional Wall Street investment research with industry analysis to deliver dynamic market and financial intelligence. Clients include institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and technology vendors, along with end users and venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. . These clients leverage Tier1 Research's analytical insight for idea generation, trend identification, due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and grounded opinions, as well as metrics and forecasts on companies and industries covered. Since its founding in August 2000, Tier1 Research's coverage has spanned the largest publicly held technology companies as well as smaller, pioneering public and privately held companies privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. in order to provide comprehensive assessments of all companies impacting the technology marketplace in a meaningful way. Tier1 Research, a division of The 451 Group, is headquartered in Minneapolis. For additional information on its research coverage and services, visit www.tier1research.com. |
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