Syniverse – Time For Change and Action

Implications: With Verizon Wireless acquiring Alltel, Syniverse is facing a rough road ahead. Syniverse needs to begin building up new lines of service for itself or building up its existing lines of service.

Analysis: Syniverse is more than just a clearinghouse.  However, a substantial piece of the company’s revenue stream comes from clearinghouse work.  The company needs to consider the possibility that with change companies like Mach will begin making inroads in the USA.  There is no better time to strike but when a competitor is reeling from bad news.

I am sure that Syniverse is working on a game plan for itself.  Syniverse needs to convey to shareholders what the 2009 game plan will look like for itself.  The company has a year before it feels the impact of the Alltel merger.

My suggestion to Syniverse is that it proactively seeks a way to fill the hole left by the upcoming loss of roaming clearing and settlement revenues.  Syniverse may wish to consider acquiring Verisign’s SS7 network.  True, the SS7 business is declining but Verisign appears to be generating positive cash flow form the business.  Even better, Verisign had wanted out of the SS7 business last year, maybe the company still wants to dump the SS7 network and its IP interoperability platform.

Syniverse can add Verisign’s network to its own and actively compete for the business that is being sought after by the likes of Neutral Tandem and Equinix.

Just something to think about since companies like MACH may be just around the corner ready to snatch away their remaining settlement business.