Summary

Other Scenarios:

Buyer: Deutsche Telekom AG (ADR) (DT) Last Price: 16.82 Market Cap.: 73.32B
Target: Sprint Nextel Corporation (S) Last Price: 9.06 Market Cap.: 25.83B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Business and Public Services 633
Telecommunications Services 163
Consumer   952
Media   144
Technology 999
Information Technology (IT) Services 132

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 34)
  • T-Mobile HotSpots
  • T-Mobile
  • SunCom Wireless
  • T-Online Australia
Target (Total: 36)
  • DISH Network
  • Sprint Video Relay Service
  • Nextel Email Services
  • Nextel Online
Buyer
  • T-Online International AG - Scout24.com
  • T-Online International AG - Mapas.ya.com
  • T-Online International AG - Ya.com
  • T-Systems Application Management Services
Target
  • Government/Public Sector Solutions
  • Business Products and Services - Unified Messaging
  • Business Products and Services - Managed Network Services
  • Business Products and Services - Sprint Plus Services

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 87)
  • TESSCO Technologies, Inc. (TESS)
  • StarTek, Inc. (SRT)
  • VocalTec Communications Ltd. (VOCL)
  • UTStarcom, Inc. (UTSI)
Target (Total: 87)
  • Shenandoah Telecommunications Company (SHEN)
  • Sycamore Networks, Inc. (SCMR)
  • Novatel Wireless, Inc. (NVTL)
  • SBA Communications Corporation (SBAC)
Buyer (Total: 9)
  • Magyar Telekom Plc. (ADR) (MTA)
  • Virgin Media Inc. (VMED)
  • Centennial Communications Corp. (CYCL)
  • Rural Cellular Corporation (RCCC)
Target (Total: 23)
  • The Walt Disney Company (DIS)
  • Qwest Communications International Inc. (Q)
  • Verisign, Inc. (VRSN)
  • Embarq Corporation (EQ)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 237,757 60,000
Revenue Per Employee 385,739.6 623,976.2
Total Revenue 23,218.1 9,334.0
Total Expenses 19,655.9 9,832.0
Other Revenue 0.0 0.0
Cost of Revenue 12,900.3 4,223.0
SG&A Expense 7,459.3 3,188.0
Research & Development 0.0 0.0
Other Operating Expense -703.8 0.0
Operating Income 3,562.2 -498.0
Unusual Income 0.0 231.0
LT Debt to Capital 44.66 51.36
Fwd P/E 19.60 66.00
Fwd P/Rev 0.85 0.71
Book Value 63,925.0 21,769.0
Curr Portion of LTD/Cap Lease 0.0 1,330.0

Individual Company Summary

Focused

Buyer

Focused (): Business and Public Services > Telecommunications Services > Wireless Services

Target

Focused (): Business and Public Services > Telecommunications Services

Revenue/Earnings Summary

Buyer
Fiscal Year:
Quarter:
2008
*  Dec
2007
Dec
2006
Dec
Q1
Rev. (M)
EPS
23,218.1
0.33
23,954.4
0.16
23,007.3
0.39
Q2
Rev. (M)
EPS
  
24,143.5
0.22
23,453.7
0.36
Q3
Rev. (M)
EPS
  
24,326.5
0.09
23,996.3
0.69
Q4
Rev. (M)
EPS
  
24,484.6
-0.27
24,639.6
-0.31
FY
Rev. (M)
EPS
*  93,960.2
0.94
96,909.0
0.20
95,096.9
1.16
*  - Estimates
Target
Fiscal Year:
Quarter:
2008
*  Dec
2007
Dec
2006
Dec
Q1
Rev. (M)
EPS
9,334.0
-0.18
10,092.0
-0.07
10,068.0
0.14
Q2
Rev. (M)
EPS
*  9,224.7
0.05
10,163.0
0.01
20,076.0
0.26
Q3
Rev. (M)
EPS
*  9,109.6
0.04
10,044.0
0.02
10,489.0
0.09
Q4
Rev. (M)
EPS
*  9,009.7
ÿ
9,847.0
-10.36
10,438.0
0.09
FY
Rev. (M)
EPS
*  37,090.4
0.14
40,146.0
-10.31
41,003.0
0.45
*  - Estimates

Business Description

Buyer

Deutsche Telekom AG is an integrated telecommunications provider offering its customers around the world a portfolio of services in the areas of telecommunications and information technology (IT). The Company operates in four business segments: Mobile Communications Europe and Mobile Communications United States of America (T-Mobile); Broadband/Fixed Network; Business Customers, and Group Headquarters and Shared Services. During the year ended December 31, 2007, the Company sold its subsidiary T-Online France S.A.S., which was a part of the Broadband/Fixed Network segment. During 2007, Deutsche Telekom AG sold its subsidiary T-Online Spain S.A.U., which was a part of the Broadband/Fixed Network segment.

Target

Sprint Nextel Corporation (Sprint Nextel) is a global communication company offering a range of wireless and wireline communications products and services for individual consumers, businesses and government customers. The Company conducts its operations through two segments: Wireless and Wireline. The Company, together with three third party affiliates (PCS Affiliates) offers digital wireless service in all 50 states, Puerto Rico and the United States Virgin Islands under the Sprint brand name utilizing wireless code division multiple access (CDMA) technology. The Company offers digital wireless services under its Nextel brand name using integrated digital enhanced network (iDEN) technology. It also offers wireless services that focus on the youth market, including its Boost Mobile prepaid wireless service on its iDEN network and Boost Unlimited, a local calling prepaid service on its CDMA network. On August 1, 2007, the Company acquired Northern PCS Services, LLC.

Deal Summary

Scenario 1:
Buyer's Share Price: 16.82; Target's Share Price: 9.06; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 2:
Buyer's Share Price: 16.82; Target's Share Price: 9.97; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 3:
Buyer's Share Price: 16.82; Target's Share Price: 10.87; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 4:
Buyer's Share Price: 16.82; Target's Share Price: 11.78; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;

Deal Scenarios Analytics

  Scenario 1 Scenario 2 Scenario 3 Scenario 4
Financial Analysis
Financing Value 25.79B 28.37B 30.95B 33.53B
Required for deal
Stock 25.79B 28.37B 30.95B 33.53B
Cash 0 0 0 0
Debt 0 0 0 0
Shares
New Shares to be Issued 1.53B 1.69B 1.84B 1.99B
New Shares Outstanding F.D 5.87B 6.03B 6.18B 6.33B
Taxes
New Tax Rate 0.48 0.48 0.48 0.48
EPS
Old FD EPS 0.37 0.37 0.37 0.37
New FD EPS -2.40 -2.34 -2.28 -2.23
Goodwill and Synergy
Goodwill/Intangibles 4.02B 6.60B 9.18B 11.76B
Total Synergy Required for Accretion 31.52B 31.63B 31.74B 31.85B
Pro Forma % Ownership
Buyer's 73.90% 72.02% 70.23% 68.53%
Seller's 26.10% 27.98% 29.77% 31.47%
Accretion/Dilution
Per Share -2.77 -2.71 -2.65 -2.60
% Change -750.12% -733.58% -717.86% -702.90%
Total Consideration
Cash as % of Total Consideration to increase $0.01 EPS ÿ ÿ ÿ ÿ
Synergy to increase $0.01 EPS 113.80M 116.78M 119.75M 122.72M

Key Ratios

  Buyer Target Scenario 1 Scenario 2 Scenario 3 Scenario 4
Gross Margin % 43.52 56.78 47.37 47.37 47.37 47.37
Operating Margin % 9.33 -74.66 -15.07 -15.07 -15.07 -15.07
Quick Ratio 0.43 0.97 0.54 0.54 0.54 0.54
Current Ratio 0.72 1.18 0.81 0.81 0.81 0.81
Coverage Ratio -0.41 0.04 -0.24 -0.24 -0.24 -0.24
Total Assets 183,473.9 65,463.0 248,936.9 248,936.9 248,936.9 248,936.9
Return on Equity % 3.79 -137.23 -16.45 -16.45 -16.45 -16.45
Return on Assets % 1.32 -45.63 -5.34 -5.34 -5.34 -5.34
Cash+ ST Inv. Per Share 0.81 1.64 1.29 1.29 1.29 1.29
Total Debt 51,584.3 24,317.0 74,571.3 74,571.3 74,571.3 74,571.3
Total Debt to Equity % 80.7 111.7 87.02 87.02 87.02 87.02
Total Debt to Tangible Equity % n/a n/a -237.08 -237.08 -237.08 -237.08
Debt to Asset % 28.12 37.15 29.96 29.96 29.96 29.96

Product Details

Sector Buyer Target
Business and Public Services
Telecommunications Services
Satellite Services
Communications service provided over a satellite network that is used for data uplink/downlink, video broadcast, data transport, telephone, and internet access services.
  
Telecommunications Relay Service
An operator-facilitated service that assist people who are hearing impaired in making calls to standard telephone users.

Target Products:

  • Sprint Video Relay Service
  
Wireless Services
Any terrestrial-based communications transmission which can be received through microwave or radio frequencies without the use of a cable connection for reception.
Wireline Services
Communications service which requires a physical connection to transport voice, video, and data.
Consumer  
Media  
Electronic Media
The Electronic Media sector focuses on content delivered electronically, primarily over the Internet, and comprises both online publishing intended for end users, and services providing data feeds for other electronic publishers and Web sites. (The online presences of companies delivering content primarily via Television, Radio, and Print are generally not included.) Does not include tradename delivered via mobile devices, if this content is also offered primarily via the internet.
  
Technology
Information Technology (IT) Services
Enterprise and Technology Consulting
Information technology related to consulting services designed to improve a client company's operating efficiency, and business capabilities through the expert application of information technology resources and best practices. These services can be delivered on a project-by-project basis, or via an on-going relationship.
Internet/Online Services
The Internet/Online Services subsector is comprised primarily of outsourced services that help companies do business or establish a presence on the Internet. The sector includes services such as website development, Internet strategy consulting, ecommerce, marketing, security, and hosting.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Business and Public Services
Telecommunications Services
Satellite Services  
Fixed  
Domestic  
Direct to Home Service (DTH)
Video and data content delivered to consumers homes. DTH Operator uplinks programming content to satellites, allowing it to be transmitted to DTH subscribers homes. Also known as Direct Broadcast Service (DBS).

Target Products:

  • DISH Network
  
Telecommunications Relay Service
An operator-facilitated service that assist people who are hearing impaired in making calls to standard telephone users.

Target Products:

  • Sprint Video Relay Service
  
Wireless Services
Domestic
Data Services
Internet Service Provider  
Caribbean Territories
Puerto Rico and/or US Virgin Islands

Target Products:

  • Nextel Email Services
  • Nextel Online
  
East
Region comprising the following states: CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV

Target Products:

  • Nextel Email Services
  • Nextel Online
  
Midwest
Region comprising the following states: IA, IL, IN, MI, MN, ND, NE, OH, SD, WI

Target Products:

  • Nextel Online
  • Nextel Email Services
  
South
Region comprising the following states: AL, AR, FL, GA, KS, KY, LA, MO, MS, NC, OK, SC, TN, TX

Target Products:

  • Nextel Email Services
  • Nextel Online
  
West
Region comprising the following states: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA and WY

Target Products:

  • Nextel Online
  • Nextel Email Services
  • Boost Mobile
  
Wireless Network
Service providing wireless data network connectivity.

Buyer Products:

  • T-Mobile HotSpots

Target Products:

  • PCS Wi-Fi Access
  • PCS Data Link
Mobile Telephony Services
Voice Services
National Carriers
Wireless Voice Carriers which provide service throughout the US.

Buyer Products:

  • T-Mobile

Target Products:

  • Nextel Nationwide Direct Connect
  • Boost Mobile
  • PCS Wireless
Regional Carriers
Caribbean Territories
Puerto Rico and/or US Virgin Islands.

Buyer Products:

  • SunCom Wireless
  
Midwest
Region comprising the following states: IA, IL, IN, MI, MN, ND, NE, OH, SD, WI

Target Products:

  • Alamosa Holdings - Sprint PCS Network
  
South
Region comprising the following states: AL, AR, FL, GA, KS, KY, LA, MO, MS, NC, OK, SC, TN, TX

Buyer Products:

  • SunCom Wireless

Target Products:

  • Alamosa Holdings - Sprint PCS Network
West
Region comprising the following states: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, and WY

Target Products:

  • Alamosa Holdings - Sprint PCS Network
  
International
Americas  
Canada  
Data Services
Data Services transmitted using Wireless technology. Service is offered in Canada.

Target Products:

  • Nextel Worldwide
  • Nextel Online
  
Central and South America  
Data Services
Data Services transmitted using Wireless technology. Service is offered in Central and South America, excluding Mexico.

Target Products:

  • Nextel Online
  • Nextel Worldwide
  
Mexico  
Data Services
Data Services transmitted using Wireless technology. Service is offered in Mexico.

Target Products:

  • Nextel Worldwide
  
Asia/Pacific
Asia (excluding China)  
Data Services
Data Services transmitted using Wireless technology. Service is offered in Asia, excluding China.

Target Products:

  • Nextel Worldwide
  
Australia/New Zealand
Data Services
Data Services transmitted using Wireless technology. Service is offered in Australia and New Zealand.

Buyer Products:

  • T-Online Australia

Target Products:

  • Nextel Worldwide
China  
Data Services
Data Services transmitted using Wireless technology offered in China.

Target Products:

  • Nextel Worldwide
  
Europe
Central and Eastern Europe
Data Services
Data Services transmitted using Wireless technology. Service is offered in Central and Eastern Europe. Region includes countries occupying the former Soviet bloc, including Russia, Hungary, Czech Republic, and Poland.

Buyer Products:

  • T-Mobile HotSpots

Target Products:

  • Nextel Worldwide
Voice Services
Wireless Voice Service, transmitted using Cellular, PCS, or iDEN protocols. Typically, these services include advanced features such as voicemail, and messaging capabilities. As the industry adopts 2.5G and 3G standards, features offered will include games, and advanced WAP (Wireless Application Protocol) capabilities. Service is offered in Central and Eastern Europe. Region includes countries occupying the former Soviet bloc, including Russia, Hungary, Czech Republic, and Poland.

Buyer Products:

  • T-Mobile
  
Western Europe
Data Services
Data Services transmitted using Wireless technology. Service is offered in Western Europe. Region includes countries west of Poland, Czech Republic, Slovakia, and Slovenia. Western Europe also includes Norway, Sweden, Finland, and Greece.

Buyer Products:

  • T-Mobile HotSpots

Target Products:

  • Nextel Worldwide
Voice Services
Wireless Voice Service, transmitted using Cellular, PCS, or iDEN protocols. Typically, these services include advanced features such as voicemail, and messaging capabilities. As the industry adopts 2.5G and 3G standards, features offered will include games, and advanced WAP (Wireless Application Protocol) capabilities. Service is offered in Western Europe. Region includes European countries west of Poland, Czech Republic, Slovakia, and Slovenia. Western Europe also includes Norway, Sweden, Finland, and Greece.

Buyer Products:

  • T-Mobile
  
Middle East/Africa  
Data Services
Data Services transmitted using Wireless technology. Service is offered in Africa, Arabian peninsula, and the Middle East, including Turkey.

Target Products:

  • Nextel Worldwide
  
Wireline Services
Domestic  
Converged Voice/Data Services  
Audio/Video Conferencing
Service which enables several users to meet from remote locations, using audio, video, web/based presentations, or a combination of all three.

Target Products:

  • Business Products and Services - Conferencing - Audio Conferencing
  • Business Products and Services - Conferencing - Video Conferencing
  
Data Services  
Internet Service Providers (ISP)  
DSL
Digital Subscriber Line. Accessed via a phone line, but which, in most cases, allows calls to be made using the same phone line while connected to the internet. While speeds are dependant on the distance of the connection to the providers central office, speeds are typically far greater than Dial-Up, and range from 1.5 Mbps upwards.

Target Products:

  • Personal Products and Services - High-speed Internet
  • Business Products and Services - DSL Internet Access
  
Dial-up
Internet service provided over an analog modem. Speeds are limited to 56 Kbps.

Target Products:

  • Business Products and Services - Dial Internet Access
  • Personal Products and Services - Dial-Up Internet
  
ISDN Dedicated
Integrated Services Digital Network. Type of digital service accessed over an analog phone line. Similar to DSL, in that the phone line can be used to make and receive calls while remaining connected to the internet. Speeds are limited to 128 Kbps.

Target Products:

  • Business Products and Services - ISDN
  
T1 Dedicated
Digital service targeted toward businesses using a dedicated line. Speeds start at 1.5 Mbps (T1) , and go as high as 2.488 Gbps (OC-48).

Target Products:

  • Business Products and Services - Dedicated Internet Access
  
Transport Services  
Data Transport
Service provided to business and other organizations which require dedicated connections to local and wide area networks. Includes ATM, Frame Relay, SONET, Ethernet, Private Line, and VPN data services.

Target Products:

  • Business Products and Services - SprintLink Virtual LAN
  • Business Products and Services - ATM
  • Business Products and Services - Private Line
  • Business Products and Services - SprintLink Frame Relay
  • Business Products and Services - Sprint MPLS VPN
  
Voice Services  
Calling Card Services
Services which offer prepaid calling using a card, available independently of a regular phone service.

Target Products:

  • Business Products and Services - Long Distance - Calling Cards
  
Long Distance
Long distance services offered within the United States and with other countries.

Target Products:

  • Business Products and Services - Long Distance - Domestic
  • Business Products and Services - Long Distance - International
  
Voice Over IP Telephony (VoIP)
Telephone service which employs a users high-speed internet connection to make calls, rather than the conventional 'Circuit switching' method employed by traditional long distance carriers.

Target Products:

  • Business Products and Services - VoIP
  
International  
Europe  
Central and Eastern Europe  
Data Services
Service by which data is transported over various networks. Data services can also integrate voice and video communications. Service is offered in countries occupying the former Soviet bloc, including Russia, Hungary, Czech Republic, and Poland.

Buyer Products:

  • T-Com
  • Slovak Telekom
  • Magyar Telekom
  • T-Hrvatski Telekom
  
Western Europe  
Data Services
Service by which data is transported over various networks. Data services can also integrate voice and video communications. Includes TV over IP Service. Service is offered in European countries west of Poland, Czech Republic, Slovakia, and Slovenia. Western Europe also includes Norway, Sweden, Finland, and Greece.

Buyer Products:

  • T-Online
  • T-Online International AG
  • T-Com
  • T-Systems T-VPN
  • T-Systems Leased Links / Dedicated Lines
  • T-Systems LAN Solutions
  • T-Systems Ethernet WAN Solutions
  • T-Systems Internet Services
  • T-Systems IP-VPN (MPLS)
  
Voice Services
Voice communications services or POTS (Plain Old Telephone Service) offered in European countries west of Poland, Czech Republic, Slovakia, and Slovenia. Western Europe also includes Norway, Sweden, Finland, and Greece. Includes basic ISP connectivity (i.e. Dial-up) services offered by most phone companies.

Buyer Products:

  • T-Systems Voice Solutions
  • T-Systems Managed VoIP Networks
  
Consumer  
Media  
Electronic Media  
Consumer Content  
Information and News  
Classifieds and Directories  
Automotive
Websites which feature automotives, along with additional resources, such as financing assistance and reviews.

Buyer Products:

  • T-Online International AG - Scout24.com
  
Career
Resource which allows job seekers to find suitable employment positions.

Buyer Products:

  • T-Online International AG - Scout24.com
  
Personals
Websites which serve to pair individuals seeking romantic relationships.

Buyer Products:

  • T-Online International AG - Scout24.com
  
Real Estate
Websites which advertise rental properties and related information, as well as properties for sale. Includes moving referral services.

Buyer Products:

  • T-Online International AG - Scout24.com
  
Maps
Web sites that provide online maps and driving directions.

Buyer Products:

  • T-Online International AG - Mapas.ya.com
  
Web Navigation  
Portal
Portals are destination sites that aid users in navigating the World Wide Web. Incorporating both Search Engines and Directories, these sites act as all-inclusive starting points for the web, usually offering additional services such as news, shopping, e-mail/instant messaging, online games, and clubs/groups.

Buyer Products:

  • T-Online International AG - Ya.com
  
Technology
Information Technology (IT) Services
Enterprise and Technology Consulting
Industry-Specific IT Services  
Government
IT solutions tailored and marketed for the public sector.

Target Products:

  • Government/Public Sector Solutions
  
Information Technology (IT) Consulting
Enterprise Solutions  
Application Management
Services involving the customized development, installation, integration, and ongoing maintenance of enterpise applications.

Buyer Products:

  • T-Systems Application Management Services
  
Business Intelligence/Data Warehousing
Creating and maintaining a repository of integrated information, available for queries and analysis. Data and information are obtained from different sources and combined and stored in a single, centralized location, and can then be queried and analyzed by key desion makers.

Buyer Products:

  • T-Systems Corporate Performance Management
  
Customer Relationship Management (CRM)
Design/Implementation of application-based solutions that help an enterprise manage customer relationships in an organized manner.

Buyer Products:

  • T-Systems Customer Relationship Management (e-CRM)
  
Enterprise Resource Planning (ERP)
Design/Implementation of application-based solutions that facilitate the flow of information between all functions within a company such as manufacturing, logistics, enterprise content/document management, finance, and human resources.

Buyer Products:

  • T-Systems ECM Solutions
  
Infrastructure and Network Services
Design, Integration, and Implementation
Messaging and Telephony
The design, installation, and maintenance of infrastructure to handle an enterprise's messaging and telephony needs.

Buyer Products:

  • T-Systems Corporate Networks
  • T-Systems Network Services

Target Products:

  • Business Products and Services - Unified Messaging
  • Business Products and Services - Managed Network Services
Networks and Servers
The design, installation, and legacy integration of network and server infrastructure.

Buyer Products:

  • T-Systems Detecon International
  • T-Systems Service Oriented Architecture Services
  • T-Systems Innovation Management Systems
  • T-Systems Network Services
  • T-Systems Systems Integration
  • T-Systems Corporate Networks

Target Products:

  • Business Products and Services - Managed Network Services
  • Business Products and Services - Sprint Plus Services
Software Design/Engineering
Services encompassing the development and maintenance of infrastructure, systems, and embedded software.

Buyer Products:

  • T-Systems Systems Integration
  
Security and Management
Desktop Support Services
Providing Help Desk service and support, and logistics services (Install, Add, Move, Change Services).

Buyer Products:

  • T-Systems Managed Desktop Services
  
Disaster Recovery/Planning Services
Developing policies and procedures to ensure rapid restoration of computer systems and resumption of computer-based operations in the event of a systems disruption. Includes backing up and maintenance of files for clients from offsite locations.

Target Products:

  • Business Products and Services - Business Continuity
  
Network Monitoring
Network services which constantly monitor a company's network 24 hours a day, 7 days a week, and which notify the client of network outages while resolving them as they occur. Also includes performance testing and general network maintenance services.

Target Products:

  • Business Products and Services - IP Enablement
  • Business Products and Services - Managed Network Services
  
Network Security
Network services which revolve around managing the security of a company's network and preventing unauthorized access.

Buyer Products:

  • T-Systems Network Services
  • T-Systems ITC Security

Target Products:

  • Business Products and Services - Security Services
  • Business Products and Services - IP Enablement
Internet/Online Services
Hosting Services
Online Meeting Place
Services in which the provider provides the virtual facilities necessary for online meetings.

Target Products:

  • Business Products and Services - Conferencing - Web Conferencing
  
Web Hosting Services  
Content Delivery (Cache Services)
Outsourced private network services in which bandwidth-intensive Web content is stored on and delivered by the service provider's servers, which are spaced geographically in order to minimize the distance between the server and the Web site visitor. This level also includes complementary services that enhance content delivery performance.

Buyer Products:

  • T-Systems Network Services
  
Network Security Services
Access Control
Outsourced security services that ensure protection for a company's Web site, intranet, or extranet. Includes services which screen Web sites for undesirable content, such as pornography, criminal activity, and hate groups.

Buyer Products:

  • T-Systems Security Services - Identity and Access Management

Target Products:

  • Business Products and Services - IP Enablement
Message Filtering
Outsourced security services that filter e-mail and other incoming messages for viruses or other unwanted content.

Target Products:

  • Business Products and Services - IP Enablement
  • Business Products and Services - Security Services
  

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  AT&T Inc. n/a 233,243.656 18.56 12.50 1.93 1.85 n/a
Vodafone Group Plc (ADR) n/a 169,107.800 n/a 13.45 2.66 2.40 11.74
Verizon Communications Inc. n/a 108,637.430 19.17 14.42 1.15 1.11 n/a
Verisign, Inc. n/a 7,521.493 n/a 48.67 5.09 7.08 n/a
MetroPCS Communications, Inc. n/a 6,952.499 68.16 37.88 2.94 2.45 n/a
United States Cellular Corporation n/a 5,193.554 16.71 16.87 1.28 1.14 5.30
Telephone & Data Systems n/a 4,940.050 20.56 15.40 1.00 0.94 3.43
Level 3 Communications, Inc. n/a 4,857.513 n/a -8.03 1.13 1.12 n/a
Leap Wireless International, Inc. n/a 3,793.568 n/a -135.20 2.22 1.92 n/a
NTELOS Holdings Corp. n/a 1,215.729 38.94 32.00 2.38 2.25 n/a
Cincinnati Bell Inc. n/a 1,081.158 20.37 11.25 0.78 0.77 n/a
Hughes Communications Inc. n/a 970.394 23.52 58.82 0.99 0.93 4.67
Centennial Communications Corp. n/a 770.470 44.42 32.27 0.79 0.77 n/a
Rural Cellular Corporation n/a 703.802 n/a 21.38 1.11 1.07 n/a
iPCS, Inc. n/a 495.099 n/a -20.18 0.91 0.95 n/a
Cbeyond, Inc. n/a 483.814 24.47 79.41 1.63 1.42 3.69
TerreStar Corporation n/a 409.397 n/a n/a n/a n/a 1.92
Vonage Holdings Corp. n/a 284.072 n/a -8.81 0.34 0.31 n/a
USA Mobility, Inc. n/a 212.138 n/a n/a 0.52 n/a 1.30
Virgin Mobile USA, Inc. n/a 161.886 38.36 11.21 0.12 0.13 n/a
LodgeNet Interactive Corp. n/a 137.018 n/a -4.61 0.25 0.23 n/a
Buyer
  AT&T Inc. n/a 233,243.656 18.56 12.50 1.93 1.85 n/a
International Business Machines Corp. n/a 173,854.966 15.96 14.67 1.72 1.61 24.89
Target
  AT&T Inc. n/a 233,243.656 18.56 12.50 1.93 1.85 n/a
Vodafone Group Plc (ADR) n/a 169,107.800 n/a 13.45 2.66 2.40 11.74

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  UTStarcom, Inc. 15.00% 541.679 n/a -4.78 0.22 0.21 0.91
FiberTower Corp. 13.00% 272.384 n/a -1.70 8.67 5.94 n/a
Superconductor Technologies, Inc. 10.00% 53.396 n/a n/a 2.98 n/a 7.68
Crown Castle International Corp. 8.60% 11,682.687 n/a -216.16 8.11 7.75 n/a
GoAmerica, Inc. 4.00% 58.160 n/a n/a 3.12 n/a 16.37
Cisco Systems, Inc. n/a 154,330.218 19.37 18.33 4.00 3.90 8.33
Motorola, Inc. n/a 22,033.539 n/a 198.00 0.64 0.68 2.07
American Tower Corporation n/a 17,770.459 233.12 96.74 11.96 11.20 n/a
Amdocs Limited n/a 6,602.825 17.38 14.90 2.23 2.11 6.94
Affiliated Computer Services, Inc. n/a 5,350.617 19.97 15.43 0.88 0.85 n/a
SBA Communications Corporation n/a 3,803.156 n/a -101.62 9.01 8.01 n/a
Comverse Technology, Inc. n/a 3,686.589 31.13 27.05 3.30 1.94 1.90
Equinix, Inc. n/a 3,255.414 694.53 115.82 6.61 4.72 10.54
Tellabs, Inc. n/a 2,161.962 38.54 36.33 1.12 1.20 1.30
Nice Systems Ltd. (ADR) n/a 1,855.683 49.64 22.18 3.59 3.03 6.22
ADC Telecommunications n/a 1,799.457 23.86 13.04 1.32 1.19 4.01
Syniverse Holdings, Inc. n/a 1,472.288 24.47 17.95 3.60 3.21 n/a
CyberSource Corporation n/a 1,186.490 533.09 34.24 8.00 5.29 18.24
RealNetworks, Inc. n/a 1,055.800 97.89 -366.00 1.80 1.64 2.46
Sapient Corporation n/a 857.014 56.34 21.30 1.51 1.36 3.99
Brightpoint, Inc. n/a 844.778 17.83 11.61 0.20 0.15 7.30
Buyer
  TESSCO Technologies, Inc. 26.50% 70.365 14.60 10.70 0.14 n/a 1.31
StarTek, Inc. 21.80% 123.339 n/a 207.00 0.49 0.45 1.05
Target
  Shenandoah Telecommunications Company 68.20% 352.951 18.08 16.95 2.44 2.21 2.26
Sycamore Networks, Inc. 53.00% 927.639 53.65 25.15 5.76 5.98 0.95

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Virgin Media Inc.