I will admit to being out of my realm in discussing the whims of private equity firms, but according to recent analysis by Ovum and others, many private equity firms have funds to spend, and they want to spend it in the telecom industry. We've seen some high-profile private equity moves in telecom in the recent past, including the buyouts of Covad Communications and Bell Canada.
In 2008, there will be more to come. With the economy teetering, P.E. firms will look to telecom carriers and vendors who have high cash flow and manageable debt as new investment opportunities. Look for at least one well-known vendor and one international carrier to be taken over in a P.E.-driven deal this year. In addition, look for two or three more high-ranking telecom execs to join private equity firms.