Reunert expands with ECN

Reunert says ECN's existing portfolio of IP-based telecommunications services will add converged voice and data capabilities to Nashua. ECN will remain a standalone business, now will report into Nashua Mobile as this is where Reunert sees the biggest strategic fit.

The deal is an important milestone

Reunert CEO Nick Wentzel says the deal is an important milestone and will complement the products offered by Nashua Mobile and the larger Nashua group. One of Nashua's aims is to “offer total solutions comprising office automation, telecommunications and information innovation services to its business clients,” says Wentzel.

“With the migration from least-cost routing to VoIP (Voice over Internet Protocol), this addition positions us perfectly to capitalise on the possibility to manage the migration and continue to reduce communication costs for our clients,” says Baker.

ECN CEO John Holdsworth says the deal will help Nashua drive towards offering a full suite of converged offerings based on IP research. He says a revolution is coming in the telecoms sector as IP-based offerings will gain traction.

The fixed telecoms space

ECN plays in the fixed telecoms space, says Holdsworth, and he is looking forward to being part of the team that grows Nashua, a mobile and office automation player, into the converged space. Holdsworth will stay on with ECN until he has achieved his objectives, as he has “unfinished business”.

Least-cost routers have been hard hit by the cut in mobile termination rates and the business model is dead as more cuts will trim margins to unacceptable levels.

Several players in the sector, including Altech Autopage, Vox and Nashua Mobile, have been migrating LCR clients onto voice over IP networks to claw back lost margins. Nashua has recently expanded its product offering with the introduction of a VOIP offering, EasiVoice.