Consolidation in the Market to Continue

Rob Sims, daisy Sales and Marketing Director, told Comms Business Magazine that the trend towards market consolidation, particularly in the Carrier space, shows no sign of stopping.

“As Carriers increasingly only want to deal with Resellers billing in excess of £100K per month, smaller Resellers continue to feel the squeeze as the market remains very competitive and customers are even savvier. A handful of large Service Providers are already on the acquisition path and throughout 2007 we’ll see even more acquisitions as Reseller consolidation gain momentum. Importantly some of the people making a lot of noise at the start of the year have now gone quiet. daisy has made clear their plans to grow aggressively over the next 12/18 months through both organic growth and acquisitions with new recruitment to support this strategy.
BT are fighting back with even more competitive pricing following the removal of price controls earlier this year, and we’re already seeing signs that their marketing tactics are becoming more aggressive with a direct assault on Service Providers. In order to take advantage of change and benefit from new and emerging technology, Resellers need to partner with a supplier who can provide a full product portfolio, including future product opportunities such as LLU and VoIP.”