Nobody has been able to miss the buzz around WiFi the last 12 months. Large investments have dominated the deal flow and a mass of WiFi-related startups have launched new services or technologies. With recent cycles like the "Dot-com" era fresh in our memories, Gerbsman Partners has grown increasingly convinced that the US WiFi industry is a market segment that will look very different in just 6-12 months.
Early indicators are telling a tale of larger corporations buying the best of breed and incorporating their offerings into existing portfolios. With multiple providers in each segment, and an increasingly competitive market place, M&A activity is becoming a viable exit strategy for investors and founders alike. This white paper (click here for the complete version) examines the current "hot zones" of the US WiFi market and offers a point of view on what segments represent the first wave of US WiFi mergers.
WiFi consists of related segments spanning from service to technology, therefore Gerbsman Partners has looked closer at this market and concentrated on two areas of significant interest - Hotspots (Service providers) and Access technology. By looking closer at both, we hope to provide a clear and compelling argument for Gerbsman Partner's ability to assess your current portfolio or analyze potential future investments.
- Consolidation ahead - As the margin game has entered the marketplace, major players have the muscle to survive. Smaller companies will have to look at alternative ways to survive.
- Wholesale WiFi - Branded hotspots are changing their business models towards the independent wholesaler market.
- Low profit margins - Do not count on significant revenues from hotspots, customer loyalty and churn reduction might be wireless carriers argument for including hotspots into their offerings.
As the US WiFi market forms into a clear eco system and larger entities are packaging and bundling services, US WiFi will continue to grow. Whether it will be offered by independent service providers or consolidated aggregators, the ubiquitous nature of access will enable profit and success by utilizing economies of scale. Also, as location is at the core of the issue, revenues will probably flex between premium locations or free access at obscure places. Companies offering roaming and neutral access will prosper. Smaller, independent providers will, on the other hand, have a hard time ahead with limited ability to provide roaming or offer connection outside their primary coverage zones.
Gerbsman Partners has the unique ability to maximize shareholder value by fostering a merger or acquisition process within the US WiFi market. Our extensive experience and specific domain expertise enables us to assist our clients in a rapid and structured manner.
About Gerbsman Partners
As a result of Gerbsman Partners' 23 years of maximizing enterprise value and specific domain expertise in technology related intellectual property, we have developed an established, proven and responsive distribution channel for our clients. Our channel reaches International and US institutional investors, venture capital funds, investment bankers, executives, lawyers and accountants, as well as leveraging Gerbsman Partners' direct relationships with major wireless and technology companies.
Gerbsman Partners, supported by its International Board of Intellectual Capital, has been involved in over $1 billion of transactions worldwide and has assisted in M&A, restructuring, licensing, partnership and capital formation for numerous companies and their Intellectual Property.
Our international business and technical team, which includes European and Israeli based sales and technical personnel, looks forward to earning the right to be a resource to you.
The complete "White Paper" mentioned above can be found at:
- WiFi - Mergers Ahead!
Our earlier White Papers can be found at:
- Premium SMS
- Wireless Entertainment