From The Sip Trunking Experts

[July 26, 2005]

Pannaway Technologies: Turning Copper and Fiber into Gold (Part I)

TMCnet Communications and Broadband Columnist

While baseball fans track Chicago Cubs outfielder Derek Lee as he pursues the National League Triple Crown (having the highest batting average, most homeruns and RBIs), Pannaway Technologies, Inc. announced in a press release today that the company achieved an impressive statistical triumvirate of its own in Q2 2005.

Indeed, the Portsmouth, N.H.-based company, which offers converged triple play (broadband voice, video and data) platforms primarily to rural telcos, reported that Q2 2005 yielded the following results:

A 200 percent growth in revenue over Q1 2005;

It entered into 10 new agreements with IOC and CLEC customers located throughout North America; and

A tremendously successful $15.6 million round of private funding - bringing the company's total private investment to $56.1 million - led by primary investor S. Robert Levine. According to the release, the new capital will be used to further research and develop its solutions and to expand in the U.S. and internationally.

"Q2 was truly an explosive quarter for our company and we're excited about the activity that we're seeing in the IOC market," said Mike Skubisz, CTO of Pannaway, in a prepared statement. "Analyst sources combined with our own field experience indicate that the market for Triple Play solutions will enjoy steady growth during the next 5 years and we believe we're in a great position to capitalize on this growth with our cost-effective, highly scaleable and easy-to-deploy access solutions."

Because of its solid financial foundation and its targeted market, "[Pannaway is] in an excellent position," industry analyst Matt Davis told TMCnet on Friday.

Davis, director of the broadband access technology group at Yankee Group, noted that other companies either owned the IOC market space (such as AFC) and eventually sought larger quarry (RBOCs) or offered quality solutions (such as Erickson), but at the wrong time.

"Many observers, including myself, felt as though [AFC] took their eye off the ball and it created a market opportunity for others," Davis said, adding that several companies, such as Occam and Paradigm compete with Pannaway for the IOC market.

What separates Pannaway from other companies is, among other things, that "it is well-funded and [it] rolled the dice on IP and it turned out that IP is now attractive," Davis said.

Pannaway finds itself in such a favorable position not only because its solutions deliver as advertised, but also because a few gambles paid off.

For approximately 100 years, rural telcos enjoyed geographic monopolies, which insulated them from having to compete (read: providing new services and lowering prices) for telephony consumers; they literally were the only game in town.

Within the last few years, however, cable companies started to rain on the rural telcos' parade by offering triple play services (data, video and, voice) at low prices. Furthermore, wireless carriers and independent companies offering voice over IP, such as Vonage, took a bites out of the telcos' previously untouched market share.

All of a sudden, IOCs and CLECs found themselves in the unfamiliar position of having to offer high-quality IP solutions not to mention having to market them to keep from going the way of the dodo bird.

Indeed, while RBOCs like Verizon Communications and SBC Communications had the capital to invest in such ventures, many viewed the cost for rural telcos to provide voice, data and video IP services as prohibitive. The prevailing opinion was that telcos would have to build new fiber-optic networks that would cost of thousands of dollars per consumer.

Enter Pannaway and its Service Convergence Network (SCN), a suite of products that bridges a telco's legacy infrastructure with its emerging IP packet-based network. To be clear, Pannaway is not another DSLAM vendor, Skubitz told TMCnet on a recent visit to Pannaway's headquarters.

Indeed, Pannaway offers IP solutions that not only have features that are innovative, practical and easy to use; they're also really cool.

For example, Pannaway offers a solution that enables teclos to offer primary-line VoIP that meets all federal and state regulations. In doing so, Pannaway's engineers shored up several deficits associated with VoIP, including the lifeline support problem. (More on Pannaway's voice innovations tomorrow).

Pannaway also assists its clients with what can be a rough technological transition; they even provide customers with marketing advice.

As for whether Pannaway delivers on its promises, proof is in the pudding. Ten new customers, such as Bruce Municipal Telephone Systems in Ontario, Canada; KPU Telecommunications in Ketchikan, Ala; Empire Telephone in Prattsburgh, N.Y; and Seneca Telephone in Seneca, Mo., inked deals with Pannaway in the last three months alone.

(Pannaway's voice and video innovations will be highlighted in tomorrow's installment.)

Ted Glanzer is assistant editor for TMCnet. For more articles by Ted Glanzer, please visit:

[ Back To SIP Trunking Home's Homepage ]

Subscribe here for your FREE
SIP TRUNKING enewslettter.

Featured Partner

Featured Whitepapers

SIP Security for the Enterprise
Voice over IP (VoIP) is incorporated into a variety of computer networks, both public and private, and used for everyday transactions and communications among carriers, businesses, government agencies...

Voice-Optimized Network Delivers Premier Call Experience
Customers equate call quality with business quality. Real-time communication, interpersonal interaction, and the cordial tone of a call center representative can create a positive impression of your business that no email can match.

Featured Datasheets

Ingate SIParator E-SBCs
Adopting SIP is a simple process with the Ingate SIParator, the secure enterprise session border controller (E-SBC). The SIParator makes secure SIP communications - including VoIP,SIP trunking and more - possible while working seamlessly with your existing network firewall.

Ingate Firewalls
Everyone is talking about enterprise usage of VoIP, instant messaging and other types of realtime communications including presence and conferencing.

SIP Trunk Solutions for Service Providers
The award-winning Ingate Firewall and Ingate SIParator deliver a high quality, reliable SIP trunk connection between the customer's IP-PBX and the service provider network, and solve interoperability issues to simplify deployments and support for remote diagnosis of reported issues.

Featured Case Studies

Case Study - Haiti
With this solution our doctors were able to reach anywhere in the world quickly and easily, to get consults from colleagues, facilitate treatment, order supplies 'on the fly' and also help victims report back to families. The solution from Business Mobility Systems and Ingate worked immediately.

Case Study - Turkish Petroleum
"With one Ingate at the customer headquarters, all of their remote workers can enjoy the benefits of Turkish Petroleum's IP-PBX from anywhere in the world.

Case Study - GCM
"The Ingate solution overcomes the NAT traversal hurdle and makes it possible to connect customers to our VoIP service, without the need of costly leased lines or support intensive VPN tunnels.

Case Study - Kool Smiles
"Ingate's solutions provide the advanced level of security necessary for this medical environment and the tools to make the interface to the service provider hassle-free."

Case Study - NMSAS
"This solution really saved the day for us," said Paul Mercier, IT Administrator, NMSAS. "We needed to leverage SIP trunks to reduce costs, and they had to work with our existing Microsoft OCS investment."

Discover Leisure Connects Remote Users to its IP-PBX
Discover Leisure is one of the largest resellers of caravans and motor homes in the UK. With 15 branch of?

Featured eBOOKS

Internet+: The Way Toward Global Unified Communication
Connecting the telephony of the enterprise PBX or Unified Communications (UC) system using SIP trunks instead of conventional telephone lines has been very successful in recent years.

What is SIP Trunking? Edition 2
SIP trunking is becoming more of a focus for service providers. One key issue many service providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

What is SIP Trunking? Edition 1
A vast resource for information about all things SIP - including SIP, security, VoIP, SIP trunking and Unified Communications.

Featured Videos

E-SBCs AS The Demarcation Point:
Ingate's Steve Johnson talks to Erik Linask about the role session border controller plays as the demarcation point at...

Demystifying DPI
How can deep packet inspection protect your SIP traffic as well as your entire network?

Featured Resources

What's New

Presenting the New Ingate/Intertex Website:
Internet+ is an extended Internet access allowing high quality SIP (Session Initiation Protocol) based real-time person-to-person communication, everywhere and for any application. It applies to both fixed and mobile networks ...

Featured Blogs

Featured Webinars

Secure SIP Trunking:
What You Need to Know

Successfully Deploying Enterprise SIP Trunking:
Tools and Techniques for Overcoming Common Roadblocks

Featured Podcasts

Getting the Most Out of Your SIP Trunks:
Ingate's Steve Johnson and TMC's Erik Linask discuss how best practices forgetting the most out of SIP Trunking services and common pitfalls to avoid.