Connecting the Dots - Here's What May (or May Not) Happen in 2019.

This is the first year I am writing a prediction post.

I am doing this for myself more than anything and am curious to see how the year unfolds when I look back in 11 months.

These predictions will focus largely around connectivity - broadband, wireless, interconnection, ip, etc.

Everstream Makes an Acquisition or Two

They have been quietly developing fiber in the midwest from Youngstown, OH, to Minneapolis, MN, and ex-Zayo executive Chris Morley to their Board in 2018.

Also, in Q2-2018 AMP Capital acquired Everstream and have been open about this being the foundation for future consolidation.

“Everstream plans to utilize the investment from AMP Capital for acquisitions, greenfield network builds and to fund organic network growth and development in its existing markets.”

“Everstream will serve as AMP Capital’s platform for the consolidation of telecom assets in North America.”

Source: https://everstream.net/amp-capital-completes-purchase-of-everstream/

Frontier Communications Files for Bankruptcy

The situation at Frontier is not looking good. There is always the chance they make some surprise changes and things begin to move in the right direction but at this point they may be in too deep.

Internet Exchange Points continue to further evolve into Interconnection Platforms

We’ve seen this get started a few years ago with France-IX introducing a marketplace and DE-CIX is well underway executing on this strategy. I’ve talked about this a lot, and I believe there are two paths Internet Exchange Points can take.

One is to maintain the utilitarian functionality with low costs, and the other is to exploit the platform for what it can be and allow additional services to be consumed through marketplace functionality.

Marketing Dollars Continue to be Burned by “Edge” companies.

We’re still climbing to the peak of inflated expectations here, not quite over the top yet.

Crown Castle Acquires Metro and Regional Fiber Assets

I think this is inevitable as they look to fill gaps. There are plenty of small options out there that won’t break the bank.

Rural activity will ramp up

On the heels of spectrum auctions, government handouts, and quite simply, frustration. I believe we will see an increase in connectivity solutions in rural areas.

PE acquires Zayo, Company Splits. EnterpriseCo is sold to GTT, and Zayo re-enters the public market as a REIT with InfraCo in 2020.

There is a lot going on with Zayo, and I have a hard time figuring out what will happen, so here is my crazy scenario.

I have a lot of other ideas and thoughts as there are a bunch of interesting plays out there, but I’ll keep this short.

Lets see what happens.