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Seeking to increase its market share in the IP broadband access platform space, Pannaway (News - Alert) Technologies is acquiring the access division of TelStrat International, a provider of wireline access and enterprise telecommunications solutions.

The deal means Pannaway can include TelStrat’s Inteleflex broadband loop carrier (BLC) platform in its portfolio of broadband access solutions. The solution enables service providers to bridge circuit-switched and packet-based networks to deliver converged voice, video and data communication and entertainment services. TelStrat is recognized as the first company in North America to deploy next generation 2.4 G-PON based FTTH from a full-service broadband loop carrier platform.

Telstrat will now focus on its longstanding Enterprise Business Division and its CallParrot Business Call Recording product line.

Pannaway expects to be able to quickly integrate the Inteleflex platform in with its other solutions, as it shares the same underlying architecture. With Inteleflex, Pannaway will be able to deliver solutions for all sizes of central office, wire center and remote terminal environments. In addition, it will be able to help telcos quickly expand their subscriber base by leveraging the high capacity MAGNM-20 chassis, the medium capacity Inteleflex chassis, or the award-winning stackable Broadband Access Switch (BAS) family.

With Inteleflex in its arsenal, Pannaway will be able to help ILECs, CLECs and municipalities quickly roll out new IP-based services while enhancing their existing offerings, thus increasing broadband access revenue. The company can now deliver an industry leading systems approach through the combination of IP, 1-10Gigabit, SONET, TDM, FTTH 2.4 G-PON and 100/1000Mbps Active Ethernet, xDSL, T1, POTS and Special circuits. Now with even more flexibility, Pannaway can help telcos transition from SONET/ATM and TDM to a fully converged IP infrastructure at their own pace. Furthermore, the deal facilitates acceleration of technology into the MAGNM-20 platform.

The acquisition will reportedly bring Pannaway’s telco customer base from less than 100 to more than 300, thus giving it a 40 percent market share of the 800 or so Tier 2/3 ILECs.

The value of the cash and stock transaction was not disclosed. As per the deal, Bob Carroll, founder and CEO of Telstrat, has joined the Pannaway board, and Sid Schmid, former general manager of Telstrat’s telecommunications division, has joined Pannaway as an executive vice president. Schmid is reportedly heading up the integration efforts.

“Following its recently announced MAGNM-20 chassis announcement, this acquisition brings together the broadband access and transport technologies that telcos need to compete – all under one roof,” said Jeff Heynen, directing analyst, broadband and IPTV at Infonetics Research, in a press release. “Independent telcos prefer companies with products that can offer a range of access technologies—from POTS to VDSL to GPON—to support a wide range of customers and applications. The combination of Pannaway and TelStrat satisfies that demand for a common IP platform and positions Pannaway as a leading supplier to independent telcos.”

According to published reports, Pannaway plans to target customers of the Calix (News - Alert) F5 GPON OLT. The company claims that through its acquisition of the Inteleflex platform, it will be able upgrade Calix customers to an IP transport. Calix is number one in terms of market share in the broadband access space, with Pannaway now moving into second place.

For more information, visit www.pannaway.com.

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Patrick Barnard is Associate Editor for Customer Interaction Solutions magazine and Assignment Editor for TMCnet. To see more of his articles, please visit Patrick Barnard’s columnist page.