It’s a bird, It’s a plane, It’s super LEC! : A new breed of rural mega-carriers Is rising

The FCC is expected to approve the merger between Tier 2 telcos CenturyTel and EMBARQ later this week, which will create the fourth-largest ILEC in the nation, with 7.7 million access lines in 33 states. The deal is part of a bigger mergers and acquisitions wave that is creating a breed of rural super-LECs — and it’s a trend that has big ramifications for customers and competition.

“Clearly there is movement in the Tier 2s to consolidate, corresponding on the other side with the RBOCs jettisoning some of their rural properties,” said John Celentano, president of research group Skyline Marketing Group. “The big phone companies, as they move on to grander schemes via fiber to the x, haven't put money into rural properties — only to the extent they're told they have to. And the IOCs are often contiguous to the Bell footprint, making taking that business an easy addition...”