Boldyn Networks’ strategy is shifting to focus on organic growth rather than through mergers and acquisitions
In previous conversations with Boldyn Networks, and after following their growth, I have seen an aggressive, young company focused on growth through acquisitions. Now, their strategy is shifting, with a focus on organic growth rather than through mergers and acquisitions. So, let’s take a closer look at the company, the private wireless sector and what to expect next from both.
We all expected this would happen — after all, you can only acquire customers and see that type of growth for so long. Every company must sort through all the resulting chaos and squeeze a unified and profitable company out of the tube of toothpaste.
What can we expect next from Boldyn in the private wireless space?
Growth comes from a variety of sources. One is organic growth. Growing the company, revenues and customer base through good performance. Another is through M&A. If done right, this let’s a company leapfrog their growth trajectory and get larger, faster.
This is where sometimes senior level management gets lost in the shuffle. That being said, companies need to do both.
The next question is, do they have the executives they need to make this dream come true?
As an example, let’s look at AT&T
AT&T is no longer the same company that has been with us forever. In the end, it was ultimately dying on the vine. Then around 2004, the tiny Baby Bell SBC out of San Antonio Texas acquired them, along with BellSouth and Cingular, which changed its name after a few years to AT&T Mobility.
Both were clients of mine and I could see the tossing and turning of executives who wanted to keep their jobs.
You see, merging often makes sense from a business perspective, but the new company only needs one of each kind of executive.
That means there is plenty of job loss along with change during nearly every merger and acquisition.
Consider how SBC acquired AT&T, BellSouth and Cingular
Back then, AT&T senior executives called on me to share my opinion on how to name the company going forward. The choice was either to keep the SBC name or switch to AT&T.
Even though AT&T had been through the ringer and was barely still in business, I told them it was still the strongest brand in telecom in 2004. If they could reinvigorate the company and the brand, AT&T was the best choice.
AT&T is what they ultimately chose.
After these major acquisitions, they spent years sorting through the massive new company trying to make sense of it all. SBC was the smallest of the Baby Bells, now suddenly the largest. The management was used to running a smaller company, not this behemoth.
The new AT&T spent years sorting through the chaos it created
So, it took a while for the senior level management to wrap their arms around successfully running, growing and building what they now had.
After several years they finally sorted through everything and ended up being one of the top two companies in wireless, telecom and broadband alongside Verizon.
Next, having to produce more than ever before, this new company called AT&T tried the next, big deal.
So, starting around 2015 they started their next acquisition spree. They acquired DirecTV then what would become Warner Media with companies like Warner Bros. Studios, CNN and more.
I recall they held an annual Industry Analyst Briefing at Warner Brothers Studio. That was an impressive experience.
Next, AT&T acquired DirecTV, WarnerMedia, CNN, Warner Bros. Studio
At the same time, we saw Verizon acquire Yahoo! and AOL.
This time, things did not work out. So, after years, both AT&T and Verizon pulled the plug and went back to traditional wireless and wire line growth.
What that means is one giant transformation worked, and the next missed. Why?
And what can we learn and apply to other companies, like in this case Boldyn Networks?
The point I am making is there are no guarantees. It depends on the CEO, CMO and more. It also depends on how well this new vision is portrayed in the marketplace. It also depends on other things like performance and perception in the marketplace.
Private Wireless is a new growth area in telecom
Like with T-Mobile, depending on where a company is, a CEO can be perfect or a complete disaster. Companies need different leaders at different times.
So, the next question with regard to Boldyn Networks is, do they have the right senior level management team in place for this time?
We have seen the telecom and wireless space reinvent itself time and time again. Private Wireless seems to be one of the next growth waves.
There are countless companies trying to lead this sector and to build. Some are traditional, public wireless carriers like AT&T, T-Mobile and Verizon offering a private wireless version.
Others are full service and mid-level service providers from larger and smaller competitors. They are not all showing the same kind of results. Some are stronger while others are not.
Fortunately, Private Wireless is still a young category. It will go through different levels of change and transformation. Some years will be stronger and others weaker. That’s part of the process.
HPE and Juniper Networks, AT&T, T-Mobile, Verizon in Private Wireless
Still others cannot go it alone. Like how HPE is trying to acquire Juniper Networks, as one of many we will see.
Companies like Boldyn Networks have shown how aggressive they can be with growth through acquisitions. Next, they will now likely go through several years of digesting what they have acquired.
As when SBC acquired AT&T, BellSouth and Cingular, it was a chaotic mess for quite a few years. Then they finally brought order to the chaos.
That’s what I expect from Boldyn Networks as well. I expect things to be chaotic for a while.
This is where they need to stay on track for the customer, the workers, the executives and the investors.
Growth wave has three sectors: growth; cresting; decline
So far, Private Wireless is a solid new idea. The players are mostly small companies. Some of these will continue to grow organically. Others will grow through acquisitions.
Expect plenty of chaos and growth as the industry continues to change and grow moving forward.
Sometimes M&A is to combine weakening companies like with cable TV. Expect to see more mergers along the way. But this is not a sign of growth. Rather is it a sign of trying to better manage and slow down the decline.
As for Boldyn Networks, I see them a one of the leaders in the new Private Wireless space.
Remember the growth-wave, companies are either climbing, or have crested, or are now on the decline.
So, where does Boldyn Networks and the entire Private Wireless stand? In my opinion, today they appear to be on the rising side of the growth-curve.
