Inteliquent Lands a Big One

August 18th, 2015 by · 1 Comment

Since selling off its IP and Ethernet business and retreating to its voice tandem switching roots, Inteliquent has been relatively quiet.  But this morning that renewed focus on voice interconnection paid off with a big new contract with T-Mobile US.  

The two companies entered into a 3 year deal under which Inteliquent will be T-Mobile’s sole provider of voice interconnection in the US, covering all but that exchanged via direct peering arrangements etc.  T-Mobile will be using the company’s IP/SIP handoff capabilities, and Inteliquent’s traffic volumes are expected to increase materially.

Materially enough to warrant an increase in guidance and a substantial capex outlay.  The guidance range for 2015 revenue was bumped up $20M to $240-250M.  But EBITDA guidance was not raised beyond the current range of $77-81M, as there are ‘significant onboarding costs’ in the first portion of the contract with higher profibability later.  Capex for 2015 was doubled to $22-27M, suggesting the capex side of those costs to be $11-14M upfront.


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Categories: Interconnection · VoIP

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  • mhammett says:

    If they’re the sole provider, wouldn’t that require everyone also be on Intelliquent tandems?

    Maybe I don’t understand completely how Intelliquent works? I they were a bunch of voice switches that were an alternative to Bell tandems, presumably due to cost, but possibly capabilities as well. T-Mobile call passes to Intelliquent, which passes it to whatever carrier (Comcast, Sprint, Vonage) the recipient was using.

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