U.S Telecommunication

U.S Telco Ltd. is looking for both inorganic and organic opportunities that could facilitate its growth in domestic and the overseas market. The company has shortlisted four firms from telecom sector, operating in different geographical regions and providing a diverse spectrum of services for future collaboration. Deloitte has been approached by U.S Telco Ltd to assist them with their strategy for growth. The firm is looking to expand its market through a suitable Merger & Acquisition strategy, It is also looking to expand its current range of offerings by including new technologies such as IOT(Internet of things), cloud services and information support to its portfolio. Upon a detailed analysis of the business environment, technological infrastructure and technological advancement in different regions, it is advisable for U.S Telco to go for a collaboration with Nzone Communication and ASA Towers, Inc. It would provide them the benefit of strengthening their presence in the domestic as well as the emerging international markets. It would also help them in diversifying their offerings by adding new technology services to their portfolio.

Threat of new entrants (LOW) –

REIT communications real estate is considered as bad income due to the rules governing contained in section 856 and 857 of the Internal Revenue Code.

Threat of substitute products (MODERATE) –

US has a mature wireless industry which depends on technological innovations to improve customer experience

Scope for new solutions for the market to increase capacity of the carriers

Bargaining power of suppliers (LOW) -

Supplier focus is on retaining the tenants by providing better infrastructure and services by adding features of network of voice, data communications