EarthLink wraps up ITC^Deltacom acquisition

With its acquisition of ITC^Deltacom complete, EarthLink (Nasdaq: ELNK) has put another piece of its "Super CLEC" puzzle in place.

While EarthLink has yet to reveal details of its business channel programs, the company will integrate ITC^Deltacom's fiber assets in the Southeast with the IP/MPLS assets it bought from the former New Edge Networks to form its Earthlink Business unit.

Through the combined EarthLink Business unit, the CLEC will offer a suite of data, voice, mobile and equipment services.

"We've acquired a business that has meaningful revenue streams, strong gross margins and unlevered free cash flow that positions EarthLink for future strategic value creation," said EarthLink chairman and chief executive officer Rolla P. Huff in a release. "Our new EarthLink Business division will offer a full complement of voice, data, mobile, and equipment services over a nationwide IP network with regional fiber density and favorable economics for any customer that has concentration in the Southeast region."

Now, the question is whether or not it will purchase One Communications? By acquiring One, EarthLink would instantly gain expanded network footprint that would extend up into the Northeast.

Yesterday, rumors emerged that EarthLink and CLEC Paetec were going to make a bid on One Communications, but nothing has officially been announced as of yet.

For more:
- see the release
- von|xchange has this article
- and see this story

Related articles:
Earthlink, Paetec rumored to make bids on One Communications
Earthlink ups business ante with deal to acquire ITC Deltacom
One Communications considers its next move
NTELOS buys FiberNet from One Communications
FiberNet could be heading to the auction block
Fibertech sold to Court Square for $500 million

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