Communications
We are gaining momentum serving the dynamic communications industry.
Quanta reentered the U.S. communications infrastructure services market in 2017. In 2018 we added 13 new customers, which more than doubled our U.S. customer count and contributed to a 20% increase in overall communications infrastructure services backlog. Those achievements validate our focus on selecting the right projects and executing well for our customers. While our focus is to grow our operations organically, we opportunistically acquired two quality companies in 2018 to strategically bolster key regional markets.
Communications Long-Term Outlook
We continued to reestablish our U.S. operations and expand our presence in 2018. With a solid roster of new clients and strong backlog in place, we believe we have the momentum to grow our communications operations into a $1 billion annual revenue business in the medium-term. Our solid execution is allowing us to gain traction and more deeply collaborate with customers.
The communications industry is pushing fiber deeper into their networks and closer to the consumer. New 5G wireless technologies and services require significant fiber backhaul and dense cell site networks, which provide significant opportunity.
Goals and Growth Strategy
+/– 10% Operating Income Margins
Primarily organic growth and greenfield expansion
Select strategic acquisitions may play a role, but not a roll-up approach
Leverage existing U.S. field operations, people, equipment and property
Provide wireline and wireless services – heavier on wireline
Increasing convergence of wireless and wireline due to fiber requirements of both
Project-centric, nimble approach versus MSA focused. EPC service to differentiate
Less capital intensive with better margin opportunity
Source: Cisco VNI Global IP Traffic Forecast
