Fusion To Assume Broadvox Partner Contracts; Broadvox To Focus on Wholesale

By Khali Henderson

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in Q2 2013.**

Cloud provider Fusion Telecommunications International Inc. told Channel Partners that it will acquire the agent agreements along with other assets of Dallas-based Broadvox LLC’s retail cloud business. Meanwhile, Broadvox confirmed that its post-sale plans are to be a wholesale-only provider.

Fusion announced last week that it would pay $32.1 million for the Broadvox assets, which it plans to integrate with its NBS Business Services division, which was formed following its acquisition of Network Billing Systems in fall 2012.

Fusion CEO Matthew Rosen said NBS and Broadvox assets will be combined into one entity, but the final branding has yet to be determined. Fusion, the parent company, will continue to focus on wholesale carrier services internationally, he said.

As part of the transaction, Fusion will acquire Broadvox’s Genband (Nortel) and Broadsoft hosted UC platforms as well as its proprietary SIP trunking platform. These will be added to NBS’s existing proprietary platforms for hosted VoIP and SIP trunking services.

In addition, Fusion will acquire 5,800 Broadvox customers, for a combined retail customer base of more than 10,000, Rosen said.  It also will be bringing on Broadvox’s retail-focused employees, which Rosen estimated to be more than 100 people.

Finally, the company expects to assume  all of Broadvox’s agency agreements. He was uncertain of the total number, but said about 300 are active agents. NBS has more than 200 active agents, and Rosen estimated the cross-over to be minimal — less than 5 percent.

Rosen said between Fusion and NBS, the company has more than 20 years of experience in the channel as well as the systems and processes needed to support indirect sales. He expects Broadvox partners will operate under their existing agreements until the combined company determines what will work best for the channel going forward.

Rosen told Channel Partners that his goal is to make sure the integration goes well and counted the channel among his top three priorities along with customers and employees.

Fusion/NBS does have a direct sales force, but Rosen said these representatives primarily are focused on specific verticals, such as health care. With Broadvox assets and expertise, he said the company can add legal to its vertical specializations.

With its retail business sold to Fusion, Broadvox intends to return to its wholesale roots, serving carriers, MVNOs, web companies and others in need of IP communications services, said Broadvox CMO Arnaud Gautier in an interview with Channel Partners.

Broadvox launched in 2001 as a provider of wholesale VoIP services to telecommunications carriers. It established a nationwide IP network and became one of the go-to carriers carriers for VoIP origination and termination services. It began offering commercial SIP trunking services in 2007. It later added hosted VoIP and then acquired cloud communications company Cypress Communications in 2011.