News

Telecom woes key Orbit expansion

Toronto-based Orbit E-Commerce Inc., looking to take advantage of turmoil in the telecommunications industry to expand its voice over IP (VoIP) business in the United States, has agreed to acquire the primary network assets of NetVoice Technologies Inc.

The agreement calls for Orbit to acquire NetVoice's former Network Operating Centre in Dallas, which houses equipment that can be used to upgrade the firm's current VoIP network in Canada. Orbit also gains Points-of-Presence (''POPs'') in 30 urban U.S. centers.

Orbit officials did not disclose the purchase price, but estimated its total at about 10% of the original value, which they content allows Orbit to expand in the United States at a dramatically lower cost and much earlier than originally anticipated.

''Orbit has capitalized on the current turmoil of the telecommunications industry to acquire advanced VoIP technology at a very advantageous price and will be well positioned to build market share in the growing North American long-distance market,'' Doug Lloyd, Orbit's President and CEO said in a statement.

About the Author

Mike Bucken is former Editor-in-Chief of Application Development Trends magazine.