Wheelings & Dealings: Private Label VoIP Firms Think Two is Better than One

By Doug Barney
TMCnet Editor at Large

Partners looking to private label VoIP and broadband management now have one fewer vendor to work with, but one of these choices will soon be twice as big. That’s because two vendors in these markets, Integrated Broadband Services (IBBS) and Momentum (News - Alert), have agreed to merge.

The two claim to be the largest companies in the business, so they could conceivably exert greater market control.

Both serve MSPs, cable companies and municipalities and managed services providers, not just based in North America, but the Caribbean and Latin America as well.

Why does this matter? Market consolidation reduces partner choice, but can create stronger vendors that better serve the market.

Momentum comes out on top with current CEO Bill Fox set to run the combination. Top IBBS (News - Alert) execs will join the board of directors.

“The combination of the two leading vendors with the highest quality network and support from the best of breed providers makes for the ultimate solution,” said Fox. “IBBS has proven itself to be the undisputed leader in the OSS and broadband management space, with deep roots in the cable high speed data industry, while Momentum brings rapid growth in the advanced commercial voice sector to wholesale and VAR partners nationwide, which will allow us to create an even stronger entity together.”

Combined, the new company will handle some 400 resellers and MSOs. At the same time, the new pair will manage over 130,000 voice lines and a million modems. “Uniting the two companies brings over 25 years of collective experience and will allow the company to grow its customer base, leveraging core technology and economies of scale to the advantage of current and future customers, while continuing to build leadership in the industry,” the partners said.

The deal isn’t quite done. As a merger of market leaders, regulators must approve it before it goes through. This should take the better of 90 days.

While separate companies till the merger passes, the two have a lot of technology in common. “We both utilize similar voice feature platforms and we have a lot of shared product knowledge stemming from previous integrations between the two companies. I am fully confident that the joint solution will add value for our partners and their end users,” said current IBBS president Mike Gallagher. 

Edited by Cassandra Tucker