Light Reading
Genband cements its cable play with deal to acquire VoIP gear and app specialist Cedar Point Communications

Genband Snares Cedar Point

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
1/4/2011
50%
50%

Genband Inc. is all but taking over the cable VoIP softswitch market after inking a deal to acquire Cedar Point Communications Inc. Terms weren't disclosed, but the deal, being announced today and expected to close this month, would bring Genband a business with 7.5 million lines and additional cable customers.

Ten-year-old Cedar Point, also privately held, was generating revenues in the neighborhood of $60 million in 2009.

Genband Chief Marketing Officer Mehmet Balos says the company intends to keep a "significant number" of Cedar Point's 100 or so employees. (Genband has more than 2,200 full-timers). However, Genband plans to integrate most of Cedar Point's functions in Derry, N.H., with Genband's facility in nearby Billerica, Mass.

He says Genband intends to continue supporting Cedar Point's flagship product, the SafariC3, but also plans to port Cedar Point's new IMS- and PacketCable 2.0-focused Safari Fusion Application Platform to GENiUS, which encompasses Genband's application, call control, session border and security product lines.

Why this matters
The deal would make Genband the cable market share leader for VoIP softswitches. Genband got its first significant batch of cable customers with the $282 million bid for the Carrier VoIP and Application Solutions (CVAS) assets of Nortel Networks Ltd. Cedar Point would complement that purchase, as it generally focuses on small and mid-sized opportunities, while CVAS tends to target large deployments. (See Genband Wins Nortel's Carrier VoIP Biz.)

"For cable, they [Genband] will practically own the market," says Gartner Inc. Research Director Akshay Sharma. "This cements their cable play."

Genband doesn't publish its financial results, but Balos said 8 percent to 10 percent of the company's income comes from cable.

The purchase would pressure Metaswitch Networks , Nokia Networks and other vendors that have chewed off smaller pieces of the cable VoIP market. Cisco Systems Inc. (Nasdaq: CSCO) is also in the game, but has trimmed its VoIP softswitch investments considerably.

The deal follows persistent rumors that Cedar Point was trying to get acquired as it struggled to develop a consistent growth strategy. Over the years, Motorola Inc. (NYSE: MOT), Sonus Networks Inc. (Nasdaq: SONS) and, most recently, Genband have been identified as potential suitors for the Derry, N.H.-based company. Cedar Point had also attracted some attention from private investors.

For more
For more about Cedar Point, including speculation on its M&A prospects, please check out these stories:



— Jeff Baumgartner, Site Editor, Light Reading Cable

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
Vodafone to Ride T-Mobile Back Into US
Dan Jones, Mobile Editor, 12/12/2014
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
Like Us on Facebook
Twitter Feed
Webinar Archive