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Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

mergers

Why Did ShoreTel Buy M5?

February 10, 2012

Recently, M5 Communications was acquired for about $160 million by ShoreTel. The premise PBX vendor had a bad quarter and caved to the pressure of Hosted PBX. Avaya, Interactive Intelligence and MITEL have hosted offerings. At some point, ShoreTel had to jump on that bandwagon - due to the big opportunity (ask any analyst) and the threat that cloud comm places on premise only sellers.

I think some of that money - now $162 M based on the stock - was for Dan and his team to stay on and continue to run the machine.

M5 Bought by Shoretel

February 2, 2012

So news at ITEXPO is that Shoretel bought M5 Networks last night for $145M, which 3x revenue. Hope shines anew in the Cloud Comm Alliance.

UPDATE:

According to the WSJ, the value of the deal is up to $162M, including $84M in cash and the rest in stock.  M5 has about 2000 customers and revenue at about $58M.

M5 Networks migrated off the Broadsoft M6 platform to its own softswitch in 2010. It is a good sign for the Industry that a premise PBX maker sees the light and buys a Hosted PBX provider.

AT&T Archive Video

January 30, 2012

From the AT&T archives: "A fascinating animated film explaining the perspective of the Bell System made during the legal challenges of the 1970s from both the government and other phone companies. "

The MackNell Quandary from 1975 about the greatness of monopoly. I guess this was propaganda before AT&T was broken up.

VoIP Branding at its Best

January 23, 2012

I was reading an article that began "specializing in telephone and network VoIP solutions for Fortune 1000 companies, government agencies, educational institutions and small and large businesses around the world." How exactly is that SPECIALIZING? That's Everyone.

Just so you understand: Avaya and Cisco are multi-billion dollar companies that still can not be all things to every business. It's is just not possible.

There was this little book by Chris Anderson called The Long Tail. The sub-title is that the future of business is to sell more of less.

Another Broadsoft Merger

January 21, 2012

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.

2 Data Center Deals and some links

January 3, 2012

Yesterday I mentioned that Gladstone is the new landlord for one of Expedient's data centers. Today, zColo (of the Zayo Group) "acquired MarquisNet's data-center business in Las Vegas, Nevada. The 28,000 square foot data center, located at 7185 Pollock Drive, will be the twelfth zColo Colocation facility," according to the release.

And the Channel dumping InterNAP buys Voxel for $30M. "Internap, the leader in intelligent IT Infrastructure solutions, has joined with Voxel, the "go to" partner for scaling demanding web applications to provide you significantly enhanced IT Infrastructure." It just adds some virtualization and apps to the mix, along with some revenue.

And So The New Year Starts

January 2, 2012

NY's Broadsoft based Hosted VoIP Provider, Stage 2 Networks, started the new year with the acquisition of the Hosted VoIP Division of Consolidated Technologies, Inc., a New York City area Avaya partner. Stage 2 needed the growth is my take from the PR comments from CEO Joe Gillette. There will be more of this in 2012, because there are too many VoIP Providers and most have very little growth. This transaction is similar to Telovations grabbing FeatureTel.

Birch is Scooping up AstroTel

December 23, 2011

AstroTel, a Sarasota, FL based CLEC,sued Verizon for anti-trust in March this year (2011). Apparently, this case is going as well as its management predicted, because AstroTel just announced:

"AstroTel has entered into a definitive agreement with Birch Communications, Inc for Birch to acquire AstroTel's operating assets, including our state-wide Florida network. You'll be receiving a formal announcement in the coming months from the two companies as we progress with regulatory approvals. ....

What is Wrong with AT&T

December 19, 2011

In recent weeks, AT&T has been hit with a blizzard of bad news.

It's 3Q2011 earnings were off estimates. It's merger with T-Mobile is looking less and less likely with the FCC report, its own smoking gun and the DOJ trial. It received horrible ratings for customer service - again. It was caught up in the CarrierIQ rootkit mess. 

The only good news was that it was able to buy the Qualcomm spectrum.

11 Top Stories in Telecom in 2011

December 15, 2011

Here's my take on the Top 11 stories in telecom of 2011.

1. Shane McNamara being named VP of the Indirect Channel at XO. It was a shock pick for many in the industry.

2. TNCI Bankruptcy! I understand that the reseller model has been taking a huge beating in the last 3 years, but when you start off hawking "Agent Equity", you need to be better fudiciary stewarts than this.

3. WIND-PAETEC merger - I just didn't see that one coming.

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