The cash pile makes the company not just a predator in the tumultuous telecom arena, some investors argue, but also possible prey for bigger rivals in search of attractively priced data-network operations. And the outlook for the next six months is grim. If the company's performance is in doubt, it doesn't make sense to keep all that cash around for acquisitions.
Most telecom companies spend all of their money and then try to raise cash afterward.
We'd be crazy to give up the flexibility that our net cash situation provides. As financial markets have contracted, major telecom operators and start-ups alike are finding themselves strapped for cash, unable to execute optimistic business plans. There are now more managers that see the value in being part of a larger company. There are great opportunities for us out there. It's not all talk.