Monday, April 23, 2007

Nuvio: VoIP Roll Up

Nuvio is on a roll-out scheme, according to this article in BizJournal:

With industry leader Vonage in the legal doghouse, Nuvio Corp. plans to quietly consolidate an increasing portion of the Internet phone service industry this year. The Overland Park-based company made its first step in March, when it bought the customers and assets of South Carolina-based Ionosphere for an undisclosed price. Nuvio CEO Jason Talley said the deal added a little more than 2,000 subscribers to the company's customer base. Nuvio intends to buy two to four more companies this year. Most of those companies will serve 500 to 2,000 subscribers, Talley said. "It's a roll-up," he said. "We'll extract their customers, put them on our system and recognize that value." By 2008, the company plans to reach $10 million in sales and be profitable.

Best quote: "If Vonage folds, it could be bad news for smaller VoIP telephone providers such as Nuvio, said Jon Arnold, an independent VoIP analyst and consultant based in Ontario. "If Vonage gets forced out, it will really make people question if VoIP is a viable technology," he said. "If people think of VoIP, they think of Vonage. That's bad news for the little guys." "

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