Telecom consolidation is driven largely by the need for scale efficiencies , made more urgent as telecom players increasingly compete on price. Size and scale give telecom companies a larger geographic coverage plus expanded offerings, which can serve to hedge against a downturn in any specific service segment. At the same time, mergers remove competitors, leaving players with the opportunity to cut costs with less fear that competitors will spend more or cut prices to steal away customers. (Strategic acquisition is becoming a part of doing business. Meet the key players in M&A Competition Is Cutthroat For Acquirers .)

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