If all was fair and good in the world, then Global Crossing should not even be here, making an announcement that it is selling off its small business to Dallas-based Matrix Telecom, a company owned by Platinum Equity for $40.3 million.
“Since our primary focus is providing converged communications services to global enterprises and carriers, the sale of SBG allows us to concentrate on our core business,” John Legere, Global Crossing’s CEO told AP.
Global Crossing wants to once again focus on large multinational customers and apparently decided that taking care of 30,000 small and medium sized customers was not really worth it. This is a long way from the days when junk bond salesman-turned telecom pundit, Gary Winnick with blow dried hair talked about world domination. Global Crossing’s Asia division is part of another company, and the company has sold off piece of its other businesses as well. AP via Business Week remind us that in the most recent qyuarter the company sank into losses again - $28 million and sales skidded 16 percent to $573 million from $679 million.
2 comments so far
4:14 AM PT
Yeah, great. Scraps for the little guys. Looks like the telecoms market will become or already is oligolistic. If I remember my economics that means a couple big companies at the top acting in a monopolistic manner. And a bottom fringe of small providers working in a purely competitive environment (no economic profits).
7:47 AM PT
that is how it is shaping up to be. unfortunately i don’t think we are going to be have much of a choice in coming years. well, lets see how it all ends. i think monopolies tend to collapase under their own weight and i think this is what might happen here as well.
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