Yahoo Finance Cogent (CCOI) Aims to Focus More on Legacy Wireline Business
Cogent Communications Holdings, Inc. CCOI is aiming to strengthen its legacy wireline business by acquiring T-Mobile US Inc. TMUS network assets for an undisclosed amount. These are likely to complement and gradually replace its own leased network assets. The transaction is expected to close in the second half of 2023, subject to mandatory closing conditions and regulatory approvals.
Of late, T-Mobile has been mostly concentrating on its wireless businesses, and the vast wireline network it acquired from the Sprint merger is largely considered a non-core asset. The strategic sale will facilitate T-Mobile to focus more on its core businesses.
Being a leading provider of high-speed Internet access, Cogent benefits from cost-effective operations. The company offers a streamlined set of products, which helps eliminate redundant costs and gives greater pricing flexibility. It incurs relatively lower costs compared with competitors owing to the usage of Internet routers without additional legacy equipment.
Backed by efficient network expansion, it offers high-quality Internet service due to the highly economical metro and intercity network infrastructure. Its seamless network delivers high throughput, which reduces the frequency of data packets dropped during transmission compared with traditional circuit-switched networks, thereby creating more reliable and robust network infrastructure.
Operating as one of the world’s most interconnected Tier 1 networks, Cogent provides efficient on-network and off-network connectivity solutions to various Enterprise segments, including financial companies, educational institutions and law firms, at affordable costs. The company offers state-of-the-art colocation data center services that provide continuous power supply and backup generators, making it ideal for disaster recovery and data backup.
Its pervasive and interconnected network gives a competitive edge over its rivals, which helps augment its revenue opportunities and margins. Its end-to-end optical transport network and advanced routing technology provide reliable and scalable network services and connect its significant markets throughout North America, Europe and Asia.
Cogent’s data centers are popularly known for providing a conducive environment for coherent connectivity, security, availability and performance to its end customers. The wireline network assets will further offer a compelling opportunity to augment its market position.
Other notable stocks in the industry are Cambium Networks Corporation CMBM and ATN International, Inc. ATNI.
Headquartered in Rolling Meadows, IL, Cambium operates as a wireless solutions provider, connecting people with a flexible network infrastructure. Backed by dynamic business fundamentals, the company has a broad portfolio of fixed wireless broadband and Wi-Fi networking solutions. Cambium delivered an earnings surprise of 100.9%, on average, in the trailing four quarters.
Headquartered in Beverly, MA, ATN is a leading telecommunications services provider. It primarily focuses on rural and remote markets with a growing demand for infrastructure investments. ATN’s affiliate Alaska Communications offers broadband and managed IT services for businesses and consumers in Alaska.
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ATN International, Inc. (ATNI) : Free Stock Analysis Report
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
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