Sonus Networks to buy Telecom Technologies Inc.
 
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Sonus Networks Thursday announced it's buying Telecom Technologies Inc., another softswitch vendor, to add interoperability to its own products and to put about 150 new telecom software engineers on its payroll.
The softswitches will be used in carrier voice networks instead of in traditional circuit-switched voice gear that costs as much as 10 times more. The switches are capable of translating traffic between circuit-switched and packet-switched service provider networks.
Interoperability between Sonus equipment and other vendors' gear means Sonus will fit into multi-vendor networks, which is typically the way service-provider networks are built. Telecom Technologies' products can interoperate with other vendors' access devices, media gateways and other softswitches.
Sonus currently offers the capability to trunk phone traffic across packet networks and to divert Internet access traffic off traditional voice networks and onto packet networks, freeing up those traditional voice switches for voice calls.
Telecom Technologies will add the ability to deliver voice access lines directly to business customers. Sonus was working on this capability, but the acquisition of Telecom Technologies "bolsters dramatically our ability to deliver this access capability," says Sonus CEO Hassan Ahmed.
Sonus is working toward being able to replace traditional local voice switches at the network edge leading to enterprises, not just switches terminating carrier trunks. Ahmed says this deal will accelerate that work.
The deal is expected to close early next year and is worth an initial $440 million in stock. If Telecom Technologies meets certain specified business goals over the next two years, Sonus will issue more stock to Telecom Technologies.
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