Small Business VoIP

SinglePipe Communications, a provider of wholesale Digital Voice services to the cable and other broadband industries, has announced that it secured $5.1 million in new equity. The company plans to use the new funding to support its aggressive growth plans as it continues to expand its network and customer base of cable and other broadband operators.  

 

A managed service provider delivering turnkey Digital Voice solutions to cable operators and other broadband providers, SinglePipe provides the tools necessary to deliver digital voice services to small and medium businesses (SMBs) and residential customers over broadband connections. To ensure competitive integrity, these solutions are offered with the reliability, ease and service levels that meet or exceed their current offerings.

SinglePipe offers everything from customized product solutions, to marketing and sales support, to provisioning, installation and end customer support. As a result, the company is able to empower cable and other broadband customers to maximize revenues through simplified and accelerated Digital Voice rollouts.

To achieve differentiation in the market, SinglePipe has its own network. As a result, the company can provide higher quality at a lower price as compared to other providers who must rely solely on third party networks.

The company also offers a platform with the most advanced calling features on the market. With these features, enterprise and residential customers can enjoy the latest in technology offerings, as well as state-of-the-art back office systems and customer support.

Matt Phillips, CEO of SinglePipe Communications (News - Alert), said in a Wednesday statement: "SinglePipe stands alone in the unique position to deploy and deliver customized and scalable Digital Voice solutions to cable and other broadband providers. Our services require minimal investment and create consistent streams of additional revenue for our customers, and at the same time, meet the complex demands of today's telecommunications marketplace.”

 

“In an industry where our competitors are funded by groups of individual investors, SinglePipe has the institutional backing which allows us to take a longer-term approach," Phillips added.

Customers relying on SinglePipe for cable and broadband support are in fact experiencing accelerated growth in the “triple play” bundle, which offers TV, Internet, and phone service combined. This growth is a result of consumers demanding greater value in the slowing economy.

Steve Tanabe, Operations Manager at Northland Cable Television, noted in the Wednesday statement, "Combined with Northland's local service and support, customers are adopting the "triple play" with TV, unlimited phone, and Internet at a faster rate than ever before.  SinglePipe's products and exceptional service are critical for cable operators like Northland to provide a product that meets our customer's expectations."

"We are pleased with SinglePipe's continued and consistent growth from both its current customer base and news sales opportunities," said Wright Steenrod, Chrysalis Ventures Principal, in Wednesday’s statement.

 

"Industry analysts agree that VoIP service will remain among the top 10 growth sectors for 2009 and beyond, with global revenues exceeding $3 billion. We believe the company's ability to provide managed turnkey solutions for different components of cable operators' voice services will continue to be a strong point of differentiation and sales growth."

The new financing was led by existing investor, Chrysalis Ventures, a source of equity capital for young growth companies in the Midwest and South. London, Kentucky-based Meritus Ventures, a Rural Business Investment Company (RBIC) which focuses on investing in expansion-stage companies in central and southern Appalachia and existing SinglePipe investor, also participated in the financing. The Kentucky Science and Technology Corporation joined as a co-investor.

As surprising as it may seem, in this slumping economy, many broadband and cable providers are enjoying growth as consumers are staying in more, spending their entertainment dollars on services they can get at home. At the same time, SMBs are focusing on streamlining their internal communications, turning to broadband and cable for their ease of installation and integration.

With this growing demand, opportunities are emerging for companies such as SinglePipe. As the company continues to demonstrate its strength in the market and its ability to position itself well against the competition, investors are likely to see great return.