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Telecommunications equipment industry

Mid-Com Communications Enters Facilities-Based Telecommunications Services through Acquisition of ATN Assets

Strategic Insights

— 2 min read

Mid-Com Communications, the nation's largest and fastest-growing long-distance reseller, has made a significant move into facilities-based telecommunications services by acquiring the assets of American Telephone Network Inc. (ATN) and committing to purchase additional switches from Digital Telecommunications Inc. (DTI). This strategic acquisition will enable Mid-Com to expand its product and value-added service offerings, including voice mail, fax mail, fax broadcast, and local access, in addition to its current range of long-distance services. With this purchase, Mid-Com aims to integrate seamlessly with small- and medium-sized business customers, offering a broader and more flexible range of calling plans and pricing options.

Key Takeaways:

  • The acquisition of ATN's assets by Mid-Com will increase its product and value-added service offerings to its nationwide customer base.
  • The purchase of ATN's customer base of $16 million in annual revenue and eight operating properties will enable Mid-Com to expand its services in 14 key markets.
  • Ashok Rao, president and CEO of Mid-Com, stated that owning switches will allow customers to have a broader and more flexible range of calling plans and pricing options.
  • The acquisitions will significantly improve the time to turn up and provision customers, as Mid-Com will eliminate the middleman in the process.
  • Richard Graves, vice president of ATN, will join Mid-Com as vice president and general manager of the newly formed Mid-Com Network Division (MCND).
  • The purchase of ATN's assets is subject to regulatory approval, and financial terms of the transaction were not released.
  • This is Mid-Com's second announcement of an acquisition within the last few weeks, following the agreement for the stock acquisition of PacNet Inc.
  • Mid-Com provides a broad range of telecommunications services to small- and medium-sized businesses, with annual revenues of over $700 million and employing over 300 people.

Statistics:

  • Mid-Com's acquisition of ATN's assets will increase its product and value-added service offerings to its nationwide customer base.
  • The purchase of ATN's customer base of $16 million in annual revenue will expand Mid-Com's services in 14 key markets.
  • Mid-Com employs over 300 people and serves more than 25,000 customers, including dozens of Fortune 500 companies.
  • With international operations in New Zealand and the Russian Far East, Mid-Com provides telecommunications services globally.
  • ATN's customer base represents 8 operating properties and $16 million in annual revenue.
  • Mid-Com will increase its offering of voice mail, fax mail, fax broadcast, and local access services.

Sources:

  • "Mid-Com Communications Inc. Purchases ATN Assets." Business Wire, 7 Nov. 1994.
  • Mid-Com Communications Inc. press release, 7 Nov. 1994.

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