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The Telecommunications Tycoon: Terry Matthews Takes Off
Article Overview: “The ability to communicate in broadband is a dramatic instigator of change in everything we do in life and I'm not going to miss out on it,” said Matthews recently, indicating his reluctance to retire anytime in the near future.
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The Telecommunications Tycoon: Terry Matthews Takes Off
"The ability to communicate in broadband is a dramatic instigator of change in everything we do in life and I'm not going to miss out on it," said Matthews recently, indicating his reluctance to retire anytime in the near future.
In 1972, Matthews and friend Michael Cowpland thought they had stumbled onto a unique business idea that had yet to be realized by anyone else. They decided they were going to import electric lawnmowers to Canada. But, when their transatlantic cargo got lost in the voyage, Matthews knew their idea might not have been as brilliant as it first seemed. "Our shipment of mowers was lost at sea," he said, "and while we waited, winter descended and covered our green lawns with snow."
Acknowledging that importing lawnmowers was not going to be his ticket to success, Matthews shifted Mitel's focus. Now, the company was going to make integrated circuits and private switchboards (PBX), based off of Cowpland's PhD thesis. With the introduction of the touch tone receiver, as well as the PBX call routing system, Mitel revolutionized the telecommunications industry.
"We set it up with $4,000 of borrowed money and now it's making $1.5 billion revenues," says Matthews. "It doubled its revenues every year for the first 11 years and generally in electronics a successful company can do that and remain stable. Anything above that can be unstable."
In 1982, after the breakup of AT&T, Mitel began to suffer. Matthews sold 51 percent of the company to British Telecom, but by that time he was already a multi-millionaire. Still, Matthews saw the potential growth in data networking over voice networking and wanted to take the company in that direction. BT, however, was not so sure and, with the majority stake in Mitel, effectively forced Matthews out of the very company he had founded. Ironically, Matthews would return to Mitel in 2000 and turn it into a successful broadband communications company.
Not one to waste any time, Matthews founded Newbridge Networks just a year later. Newbridge quickly went to work in becoming experts in the field of voice switching and software engineering. In 2000, Newbridge would be purchased by Alcatel for over seven billion in stock, making Matthews the single largest shareholder in Alcatel.
"In my career, I have started up around 40 companies and I have lost only two," Matthews once said, "when the normal success rate is one in 10, and some of them have had absolutely staggering success." Indeed, over the past 40 years, Matthews used a unique strategy of building up his own technology and telecommunications businesses and selling them on, on top of providing the seed money and expertise for other spin-offs and start-ups.
Now, as a British Knight as well as a billionaire, Matthews continues to serve as founder and chairman of Wesley Clover, an investment firm with investments in telecommunications, real estate and leisure, as well as being directly involved in a handful of other companies - all focused on next generation technologies that Matthews believes will give him his next success.
The Entrepreneurial Engineer: The Early Years of Terry Matthews
Lesson #1: “Persistence is the single most important thing for success"
Lesson #2: “You can’t cut grass when it’s covered with snow”
Lesson #3: “Develop a tight team relationship and a fighting spirit that wins”
Brokering Broadband: How Matthews Achieved Serial Success
Related Forum Posts
Re: Keeping up wtith the (super rich) Joneses
- [quote="OmnivoreInk":ooof1b5b]What's a guy gonna do with 4 mansions??? [/quote:ooof1b5b]
I live very close to Albemarle County, VA which is where the members of the Dave Matthews band live along with a large number of other people with a lot of money. That's convenient to the business people who cater to these residents. The reason I mentioned Dave Matthews and his band members is because they have 3 properties in one county. If you feel that you NEED 3 or 4 homes, why not buy them in different places???
I've worked on a number of these high end homes over the years and it is astounding how some people live. But, I still don't see the reasons for 4 mansions or your own island.
Chris
Building credit
- Credit is like reputations, I suppose. Takes a lifetime to build, and only a second to destroy.
Re: Job market slump is a guy thing
- Kevin, I've noticed the same thing. In fact, my own corporate experience started in reception. That's how I ended up managing reception in addition to my primary position as Telecommunications Administrator for over 700 locations. I was offered many incredible opportunities that wouldn't even have been an option if I hadn't started the way I did. Case in point!
Book: The System
- [quote:3e8ncw28]What was the name of that book -- the high finance murder mystery?[/quote:3e8ncw28]
Sorry for the delay in answering this question.
The book is:
The System: A Story of Intrigue and Market Domination
Terry Waghorn
Perseus Piblishing
2002
Jacket description:
In a world where competitive advantage is temporary at best - and illusory at worst - there is nothing more important to the business enterprise than creating a robust strategy and executing it with Steve. In The System, Terry WAghorn illustrates this universal theme through an action-packed adventure.
Re: What are some fun games for small business owners?
- I've been involved with a web-based game called Tycoon Online for some time. It is not necessarily a vehicle to gain some entrepreneurial flare, but it is a fantastic game surrounding supply and demand. Market dynamics are also fairly accuracy within the community, and they have some members that have insightful entrepreneurial discussions on the message boards. Have a look and you may be hooked!
Cheers!
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