Comcast Buys NGT

Peter : On Rad's Radar?
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| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Comcast Buys NGT

Comcast goes deep into trunking and Hosted VoIP with the purchase of New Global Telecom (NGT). NGT has had a few business models. It started out as a wholesaler, providing the back-end softswitch for companies like AT&T and New Zealand Telecom. It then started selling partitions on the Broadsoft. It dabbled in retail (if I recall correctly). Lately, it is in the white-label hosted VoIP business, including deals with American Broadband and NationsLine.

Comcast bought Cimco, a medium sized regional B2B CLEC last year. With the NGT purchase, it looks more and more like Comcast's VoIP (digital voice) strategy will be to target the heart of the ILEC margin in the B2B space. 

Landline revenues are already declining for ILEC's. I'm thinking that Windstream's purchase of Nuvox and Comcast's purchase of NGT means more competition in the SMB space for business voice services. It means less revenue for ILEC's.

Throw in Comcast's acquisition of NBC Universal - and the pressure is on, because the RBOC's have to buy content from their bigger competitor. How does that feel, Ivan? Randall? Now you know how all the ISP's felt all these years when you were selling them circuits at wholesale and retail was the same or lower. This will be interesting to watch. I may actual live to see the Bells topple under the weight of their own greed and lack of vision and innovation. When you only look at Wall Street, you miss your customers.


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