Another Broadsoft Merger

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

Another Broadsoft Merger

In a surprise move (to me anyway), Megapath acquired IP5280 Communications, a Colorado ITSP. Both Megapath and IP5280 utilize Broadsoft, so that will make some of the transition easy. (And likely was a factor in the acquisition decision.) IP5280 had 1000 customers. Megapath, a combination of Speakeasy, Covad and Megapath, has 62,000. IP5280 has a dozen employees, all of whom were offered jobs with Megapath's 1,000 employees.

Megapath offers Hosted PBX service, but the Megapath portfolio has mainly been about transport and transit, including DSL, Ethernet and T1 in 4200 Central Offices. After the combo, Megapath did try to re-brand as a managed services provider. However, I think they are still mainly looked upon as a DSL shop. This merger will add some more voice cred and voice revenue. 

A little speculation: There are way too many VoIP Providers. Most do wholesale and retail - anything to drive revenue. Most are barely eking out a living. Most deliver poor service because they don't stick to doing one thing really well. More consolidation is needed. I wonder how that consolidation helps Broadsoft. It has to mean less licenses being sold in the short term and in the long term less licensing due to volume discounts, but I may be wrong.  


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