& cplSiteName &

Citel Raises $15M, Sets for IPO

Ray Le Maistre

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        ADD A COMMENT
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
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Friday, October 28, 1:00PM EDT
Security: The Plusses and Minuses of Open Source Software
Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
Wednesday, November 16, 1:00PM EST
SDN 101
John Isch, Practice Director, Network & Voice, Orange Business Services
Friday, November 18, 1:00PM EST
SDN & Open Source
Christopher W. Rice, Senior Vice President of AT&T Labs, Domain 2.0 Architecture and Design
Wednesday, November 30, 1:00PM EST
SDN & the Software Defined Data Center
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
OneAccess NFV Solutions

10|26|16   |   5:30   |   (0) comments

Antoine Clerget, CTO of OneAccess, discusses how his company has expanded its product line from enterprise-class routers to include a universal virtualized CPE as well as a suite of VNFs to help telco customers evolve to an NFV future.
LRTV Custom TV
The Journey Toward Carrier-Grade WiFi

10|26|16   |   3:39   |   (0) comments

In this Light Reading interview, Dave Sperling, CTO at Smith Micro Software and active participant of the WBA's policy working group, discusses the need for carrier-grade WiFi. Technical and business challenges slowing the fulfillment of this goal are addressed, as well as management strategies that will enable communication service providers to optimize end user ...
LRTV Custom TV
ZTE BBWF Highlights

10|26|16   |     |   (0) comments

At BBWF 2016, ZTE showed a broad range of innovative technologies that are kick-starting an ultrafast broadband journey.
LRTV Custom TV
Next-Generation Technology Beyond DOCSIS 3.1

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Hybrid Video Solutions to Change TV, Change Future

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei Future-Oriented Giga Coax Network

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei at SCTE 2016

10|20|16   |     |   (0) comments

Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
LRTV Custom TV
Assuring Network Quality in a Rapidly Changing Environment

10|20|16   |     |   (0) comments

As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
Telecom Innovators Video Showcase
A10 Networks on Service Providers' Industry Needs

10|20|16   |     |   (0) comments

Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
LRTV Custom TV
New NFV Use Cases for Cable TV

10|19|16   |     |   (0) comments

A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
Women in Comms Introduction Videos
Meet the Future Workforce: New Faces, Expectations & Motivations

10|19|16   |   5:33   |   (1) comment

Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
LRTV Custom TV
ZTE Global Services User Congress 2016 Highlights

10|19|16   |     |   (0) comments

ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Attacks Have Major Internet Sites on the Ropes
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/21/2016
Trump: Dump AT&T/TW & Comcast/NBC
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/24/2016
T-Mobile: AT&T & TW Means Ma Bell Not Focused on Mobile
Dan Jones, Mobile Editor, 10/24/2016
Layer3 TV Comes to Town, Hints at Future
Mari Silbey, Senior Editor, Cable/Video, 10/21/2016
Verizon Wants More Data on Yahoo Breach
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
'Oh, Were You Looking for This?' Click Here
'I was just playing some games...'
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.