From the SIP Trunking Experts

August 05, 2015

Wheelings & Dealings: Onvoy Buys Broadvox, Creating Third-Largest CLEC by Rate Center

By Paula Bernier
Executive Editor, TMC


Wholesale telecommunications services provider Onvoy LLC intends to buy Broadvox (News - Alert) LLC, the companies announced on Tuesday, for an undisclosed sum. According to Onvoy, the deal will enable it become the third largest competitive local exchange carrier based on rate center coverage.

Following the close of the deal, which is expected to happen early next month, the newly expanded company will have 5,000 rate centers in place. As a result, the company’s customers will have access to more than 80 percent of U.S. households.

It will also allow Onvoy to expand its services portfolio as well as take its coverage coast to coast. The newly expanded entity, Onvoy adds, will be able to offer a broad array of services including cable TV, telecommunications, VoIP, and wireless offerings. Onvoy already provides tandem and long-distance services, call management services, database services, DIDs nationwide, SS7, toll-free, and transit services. 

Both Broadvox and Onvoy have been through a lot of changes.

Onvoy, now a subsidiary of Communications Infrastructure Investments, in August of 2007, merged with Zayo Bandwidth (News - Alert), which was on a rapid-fire M&A spree between 2007 and 2014. On June 13, 2014, Zayo completed a spin-off of Onvoy and its subsidiaries to CII.

As for Broadvox, a few years ago it was promoting itself as a SIP trunking services specialist, catering both to carriers and small and medium enterprises in the U.S. and Canada, and was broadening its portfolio to include cloud-based services like hosted IP PBX (News - Alert) that it considered complementary to SIP trunking. However, cloud company Fusion Telecommunications International Inc. in the Fall of 2013, announced plans to acquire the customer base and certain assets of Broadvox’s cloud business for $32.1 million. Fusion closed that deal in January of last year.

In announcing its Broadvox acquisition plans yesterday, Onvoy referred to Broadvox as a CLEC focused on providing wholesale VoIP services.

Edited by Stefania Viscusi