ICG Pacts with New Global Telecom for IP Centrex

In a swing away from its current IP Centrex platform, based on software by VocalData, now a division of Tekelec Inc., ICG Communications Inc. announced it has made a strategic agreement with New Global Telecom Inc. (NGT) to use that companys IP Centrex system, which is based on BroadSoft Inc. software.

Under the deal, ICG Communications says it will make a significant investment in New Global Telecom during 2005. ICG will receive a minority equity interest in NGT and have two participatory seats on NGT’s board of directors. The dollar amounts and the details of these agreements were not available at press time.

Although the ICG has not revealed details about its service and customers, there have been persistent rumors in the industry that the company was struggling to sell the service, though it was not clear whether the issues were with the underlying technology or other aspects of ICGs delivery of the service.

According to ICG, its current 5,600 VoicePipe enterprise end users will continue to be served by ICG, which still will provide account management, provisioning and service support. ICG also will keep providing telephone numbers, long-distance services and IP addresses, none of which will change.

However, the companys statement goes on to say that NGT will become ICG’s VoIP platform provider.

About the New Global Telecom service, the statement says, ICG will migrate our customers to the NGT BroadSoft portal and IP switching infrastructure. Dan Caruso, ICG president and CEO, says in the statement, “We believe BroadSoft offers the market-leading IP Centrex platform, and that NGT has done an excellent job in operating a platform based on BroadSoft’s product. We are excited about the additional capabilities and features that ICG will be able to offer to its VoicePipe customers.”

The switch is a high-profile win for BroadSoft, which has come to dominate the IP Centrex space. Vocal Data is not the only BroadSoft competitor to have negative news. Recently, Level 3 Communications Inc. exited the wholesale IP Centrex business, abandoning the platform it had acquired with the assets of Telverse. That was based on another BroadSoft competitor, Sylantro Systems Corp.

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