Czechs Czoose NetSpira

Data services platform startup NetSpira Networks SL has turned up the heat in its efforts to battle market leader Cisco Systems Inc. (Nasdaq: CSCO), quietly notching up another European carrier win (see Eurotel Praha Deploys Netspira).

Today’s deal with Eurotel Praha spol. s.r.o. -- the Czech Republic’s largest wireless service provider with a customer base of 4.3 million -- takes the Madrid minnow’s tally of announced carrier wins to five. Earlier deals include Optimus Telecomunicacoes in Portugal, Telefònica Mòviles SA in Spain, Verizon Wireless in Puerto Rico, and Vodafone Spain.

“We actually have eight contractually paid customers in total,” claims CEO José López.

Founded in 2001, the Spanish firm has developed what it calls an “Enhanced Charging Solution,” which sits alongside the GPRS gateway support node (GGSN) or the packet data serving node (PDSN) in wireless networks. The kit aims to enable operators to create, rate, and bill for data services without needing to upgrade their transport infrastructures (see NetSpira Cranks Up).

Following the acquisition of P-Cube Inc. by Cisco Systems last month, NetSpira is now the most successful startup operating in this space, on paper at least (see Cisco Plucks P-Cube for $200M). Rivals ProQuent Systems Corp. and Megisto Systems Inc. have kept very low profiles in recent months.

López claims to be undaunted by the prospect of facing Cisco’s newly acquired traffic-management arsenal. “We look at it as one less competitor for us. Besides, it would have been worse if a completely new player in the market had acquired P-Cube, as it would have given us another new competitor.”

The company also argues that Cisco’s $200 million acquisition could strengthen NetSpira's ability to attract future investment. To date, the startup has received “a few million” dollars of investment from Spanish VC Bullnet Capital, but López is eager to secure new funding “in the first half of next year.”

“The acquisition puts a valuation on the market,” adds Salim A. Mawji, executive VP of business development. “It gives us a benchmark. Previous experiences with Tahoe and Watercove weren’t great for the market.” (See Alcatel Swallows WaterCove and Nokia Sweeps Up Tahoe.)

— Justin Springham, Senior Editor, Europe, Unstrung

lrmobile_madcow 12/5/2012 | 1:17:05 AM
re: Czechs Czoose NetSpira
The rumor is that Netspira is actually renting/leasing the system to Eurotel for an extended period for a very nominal fee (almost zero cost). Essentially they bought the contract.
Unstrung should check this with Eurotel Praha.
lrmobile_slj 12/5/2012 | 1:16:56 AM
re: Czechs Czoose NetSpira I don't think Netspira can afford buying contracts. If they are giving away their product, with five publicly announced customers in 2 years, with only one round of financing and without anything close to the 60 million dollar funding level of their competitors, do they live on air??? But then, this could also be just the typical unfounded rumour from one of the unselected competitors...

Anyway, I don't think Eurotel would buy from a start-up that gives away its product, but I agree the best thing is to check with Eurotel.
pmolinero 12/5/2012 | 1:16:56 AM
re: Czechs Czoose NetSpira Ignore madcow!

madcow-¦s last post is yet another attempt to start a rumour without any basis.

madcow has systematically been trying to instill Fear, Uncertainty and Doubt (FUD) whenever a piece of news talked about the competition (Netspira, P-Cube, Cisco, Megisto, Volubill). It is up to you to figure out for whom the real madcow works.
S-A-M 12/5/2012 | 1:13:50 AM
re: Czechs Czoose NetSpira Wow! People in Glass Houses Will Throw Stones!

Of course by now the originality of NetSpira's Contract Win at Eurotel has not only been Proven and Valid BUT NetSpira Wins another Major customer TBA - Watch this Space!

This brings the total Contractual Customers to 8! - and Yes thses are all PAID Contracts NOT Give Aways!

And I guess this is one more "crack in the competitiors Glass roof!"
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