Monday, January 25, 2010

Nuvox Folks Leaving

Nuvox leadership is leaving when Windstream takes over, according to the Charleston Biz Journal. I wonder if this means that Nuvox will finally pull up their collective pants and stop giving it away.

Nuvox has been whoring T1's out at the $400 price point for a couple of years. The underlying costs on those T1's range from $22 to $220. Plus they pay 18 points to the agent or inter-connect. There isn't much left there in the way of what I call profit.

I'm not shocked that they are leaving. Gallagher is from FDN and has been waiting to cash out. Bolcha was with FDN, too. Akerhielm and Solomon are from NewSouth. Pitts is from TriVergent.

TriVergent merged with Gabriel Comm. in 2000. Gabriel was the 3rd startup for Robert Brooks. He sold CenCom Cable to Charter and Brooks Fiber to MCI. TriVergent was founded by Charles Houser. The merger resulted in a name change to NuVox, headquartered in Greenville, SC. In 2004, NewSouth merged with NuVox. In 2007, FDN was acquired by NuVox. Now Windstream is buying the CLEC for $643M, which is probably less than the money pumped into it. NuVox had more than $500M in venture capital in it. FDN and NewSouth probably had $100M between them in VC. [source for some of this is St Louis Today]

Windstream does get a loyal channel network because it was easy to sell Nuvox -- it's cheapest, so buy it! And I get to collect my 18%. I'm interested in seeing what Windstream does with NuVox.

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