Light Reading

Citel Raises $15M, Sets for IPO

Ray Le Maistre
7/5/2006
50%
50%

VOIP systems vendor Citel Technologies Ltd. has raised £8.2 million (US$15.1 million) from the sale of shares to institutional investors and is set to become a publicly traded company from next Monday, following the success of its vendor and carrier channel partner strategy.

The specialist vendor, which enables companies to migrate to IP PBXs or IP Centrex services without having to replace their legacy handsets, is set to list its shares on the London Stock Exchange 's Alternative Investment Market (AIM) next Monday (July 10) with a launch share price of 95 pence, valuing the company at £20.6 million ($38 million). Its ticker will be CITE.L.

The company's main message -– that enterprises can benefit from VOIP without having to replace their desktop equipment or incur training costs -– has attracted big-name partners on both sides of the Atlantic, where Citel's technology is sold to end-user companies by larger vendors, including Alcatel (NYSE: ALA; Paris: CGEP:PA), Avaya Inc. , Ericsson AB (Nasdaq: ERIC), Lucent Technologies Inc. (NYSE: LU), Mitel Networks Corp. , NEC Corp. (Tokyo: 6701), and 3Com Corp. (Nasdaq: COMS); and Tier 1 operators such as AT&T Inc. (NYSE: T), BellSouth Corp. (NYSE: BLS), BCE Inc. (Bell Canada) (NYSE/Toronto: BCE), and Verizon Communications Inc. (NYSE: VZ).

Now the company has added Sprint Corp. (NYSE: S) to its list of channel partners. The carrier is reselling Citel's products to customers that sign up for its IP Voice Connect service. And Citel's VP of marketing, Leigh Fatzinger, says "several household-name carriers in Europe" are engaged in talks about similar deals. (See Sprint, Lucent Intro IP Voice.)

Citel's SIP-based handset gateway sits alongside an IP PBX or works with IP Centrex systems from partners such as BroadSoft Inc. and Sylantro Systems Corp. , and enables enterprises to introduce IP telephony services without having to replace their handsets or train staff how to use new terminals. And market research statistics suggests that IP PBX deployments are growing fast. (See Citel, Sylantro Team Up and IP PBX Revenue Up 23%.)

The vendor has also developed products that enable enterprises to extend their IP PBX services to remote locations and mobile phones without the need for equipment upgrades at those locations.

Citel, which has more than 50 staff based in offices in the U.K. city of Nottingham, Seattle and Boston in the U.S., and Calgary in Canada, has found success in North America despite butting up against enterprise equipment giant Cisco Systems Inc. (Nasdaq: CSCO). "Cisco spends a lot of money marketing the 'rip and replace' solution, but there are thousands of companies that have invested millions of dollars in voice systems and handsets that they don't want to throw away," says Citel's Fatzinger.

Citel cites research statistics from Access Intelligence LLC that estimates there are more than 375 million legacy digital PBX handsets deployed worldwide, representing $100 billion worth of investment. And with new desktop IP phones costing upwards of $80 each (with many costing significantly more), replacing handsets as part of a migration to IP-based services can be a costly affair.

That cost-saving message has so far generated only low levels of sales, but they're growing significantly as distributor and OEM channel relationships take hold. In the year to March 31, 2006, Citel recorded revenues of £4 million ($7.4 million) and a pre-tax loss of £3.3 million ($6.1 million), up from revenues of just £1.1 million ($2 million), and a pre-tax loss of £3.1 million ($5.7 million) a year earlier. Citel wouldn't comment on its previous funding, but it is believed to have raised about $20 million from VCs such as Advent Ventures and Hexagon Investments .

— Ray Le Maistre, International News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
materialgirl
50%
50%
materialgirl,
User Rank: Light Beer
12/5/2012 | 3:49:32 AM
re: Citel Raises $15M, Sets for IPO
If much of the voip pay-off is from new functions, like unified messaging or integration into apps, can the old phones act as a usable interface to all this?
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Huawei Video Resource Center
Huawei Intros Smart Device for eLTE

3|30|15   |   05:25   |   (0) comments


Huawei has developed a secure, location-aware multimedia smartphone for its eLTE trunked radio solution, says Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Win Video, Win All

3|30|15   |   06:44   |   (0) comments


Video is going to be the next main source of revenue for operators. Operators have big opportunities and advantages to monetize video services. Globally, Huawei has helped more than 70 operators achieve over 30 million video subscribers. Watch this video for more.
LRTV Custom TV
The Benefits of HyperScale Clouds for NFV

3|27|15   |   01:50   |   (0) comments


Hyperscale cloud has been developed by the Internet giants to support the creation and delivery of software-based services at blistering speeds, and at the lowest possible cost. The original ETSI NFV vision was to adopt hyperscale cloud architecture and practices. This vision has become somewhat obscured along the way, due to misunderstandings about the hyperscale ...
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (9) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
All Upcoming Live Events
Hot Topics
AT&T Woos SMBs With Small-Scale WiFi
Sarah Thomas, Editorial Operations Director, 3/26/2015
Just Don't Say IBM Is 'Relaunching' Networking Business
Mitch Wagner, West Coast Bureau Chief, Light Reading, 3/26/2015
TV Everywhere Nears Mainstream Adoption
Mari Silbey, Independent Technology Editor, 3/27/2015
Carriers Are Bright Spot in BlackBerry Q4
Sarah Thomas, Editorial Operations Director, 3/27/2015
Comcast Says TWC Deal Will Close Later
Mari Silbey, Independent Technology Editor, 3/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.