Source: Sonus Has BellSouth Deal
JUNE 09, 2005
CHICAGO � Supercomm 2005 � BellSouth Corp. (NYSE: BLS - message board) is ramping up for a residential VOIP service launch within the next 12 months and has selected Sonus Networks Inc. (Nasdaq: SONS - message board) as its softswitch supplier, according to an industry source with inside knowledge of negotiations.
The source, who requested anonymity, says Sonus landed the deal ahead of Siemens Communications Group. Sonus says there is no news to report at BellSouth, noting that the RBOC is already a customer.
But Sonus's initial engagement at BellSouth was four years ago, when the RBOC announced it would use Sonus technology to offload dialup Internet traffic from its circuit-switched network to reduce the traffic loads building in its Class 5 switches.
Now, following last year's launch of hosted business VOIP services using a gateway bolt-on system from Lucent Technologies Inc. (NYSE: LU - message board), the carrier is believed to be gearing up for a broader VOIP service launch, and might even resell services from a specialist VOIP service provider such as 8x8 Inc. (Nasdaq: EGHT - message board) to launch a service quickly while it deploys the Sonus gear.
BellSouth, which named Sonus as the Charity Sponsor of its Classic annual golf tournament in March this year, had not returned calls seeking comment as this article was published.
The deal would give Sonus a very strong position with the major U.S. operators. Qwest Communications International Inc. (NYSE: Q - message board) is a long-time customer; Verizon Communications Inc. (NYSE: VZ - message board) is a customer; and AT&T Corp.'s (NYSE: T - message board) extensive use of Sonus technology could give the softswitch vendor a big chance of extending into SBC Communications Inc. (NYSE: SBC - message board) once the two operators merge (see Sonus Details Verizon Deal, Q2 Results and SBC/AT&T: Possible Winners & Losers).
Sonus, which this week expanded on the IMS strategy outlined in a recent in-depth interview given by CTO Mike Hluchyj, has already been on the right side of the news this week (see Sonus Supports IMS and Mike Hluchyj, CTO, Sonus Networks). Its stock rose 6 percent yesterday to close at $4.64 as the Securities and Exchange Commission (SEC) ended its formal investigation into the company following its accounting issues during the past year or so (see Sonus Cleared by SEC, Stock Jumps).
Also this week, Sonus announced a micro version of its softswitch and named a Japanese cable company as a new customer (see Sonus Shrinks Its Softswitch and Japan's Jupiter Wants Sonus).
� Ray Le Maistre, International News Editor, Light Reading"
..."The source, who requested anonymity, says Sonus landed the deal ahead of Siemens Communications Group."...
I wonder if it was Waitingtables?? LOL!
GSX4000, IMS, new cable deal, and now Bell South!
Wow! Everything that so many of you in here said was going to happen sure panned out!
Give it time. Analysts are still reamed about the moves Sonus put on them in the past. SuperComm was clearly what Sonus was waiting for. Additionally, the news about Bellsouth is still not publically released so traders aren't going to act on it until it's real. Most are still in the "show me the money" stages. Sonus will, give them time.
now call me crazy ... but eventhough BLS was already a "customer", it was minor.
And I don't know about you ... but this souds like the Tier 1 waitingtables was hearing about. J:COM was nice ... but its no Tier 1.
Damn this week just gets better and better!
bls has been using sons gateways for many years. sounds like sonus got the access part. this is gravy because we are all expecting the cingular/sbc/t deal to be the big one. tack on aol's voice portal and I call that traction.
Well, that "rumor" ;-) explains the ~2pm explosion in upside for SONS. I'd stepped away but had stopped my short....so only made a few pennies...but so it goes.
Anyway...I can only think of one caution regarding this Lightread rumor. Wasn't it them that waxed so enthusiastically over Marconi?
seems like a little off topic guys. but while you're at it:
I'm shorting PDCO and XOM. might get stopped out of XOM pretty quicly though..technicals were primed for drop, I still think it will.
anyways I'm making plenty of money on SONS.