Windstream Bites Again

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

Windstream Bites Again

Windstream just finished the paperwork on closing EarthLink. Now they are buying Broadview Networks in an all cash deal for $227M, of which $161M is to pay debt. [WIND gets $183M in NOLs though and 4.6x 2016 OIBDA, for you accounting geeks.] This will be WIND's 6th UC platform - Broadsoft, Metaswitch, Allworx, Avaya, Mitel. Broadview's OfficeSuiteUC is home built, just like Fuze, 8x8, RC, Broadvoice, Jive and many others.

The surprise was that Broadview only had 20K business customers, of which 7,300 utilize their cloud based services! The ARPU was about $1000. There is about $239M in revenue but not profitable revenue.

You can tell that most people have no idea about the channel at all. The investor deck says Broadview has 300+ master agents. RC had a slide that its 8 master agents provided access to 200K sub-agents. At best, this is naivete; at worst, it is lying to investors.

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