MetaSwitch determined to remain independent

LAS VEGAS – MetaSwitch is determined to remain an independent player and expects to be a major player in the telecom hardware and software world, MetaSwitch executives told an assemblage of its customers today at the MetaSwitch Forum 2009.

“We have been very proudly independent, and we want that to continue,” said John Lazar, who was announced today as MetaSwitch’s chief executive officer, taking over for Ian Ferguson, who remains chairman of MetaSwitch. “We intend to be a major player and stand toe-to-toe with the big guys that have been dominating the telecom industry for the last 10 years.”

Lazar also noted that both of the current divisions, Network Protocols and Carrier, will be brought under the MetaSwitch brand, eliminating the Data Connection brand that was associated with the Network Protocols division. Phil McConnell and Graeme MacArthur will continue as general managers of the Network Protocols and Carrier divisions, respectively.

MetaSwitch will be able to remain independent by seeking growth in new markets, such as cable, wireless, and with larger incumbent telcos, but will retain its service of the independent telcos and CLECs that were MetaSwitch’s earliest customers. And it will expand into the South American and Caribbean markets and “dip a toe” in markets such as Europe and Asia,  Lazar said.

“Ninety percent of our business is in North America,” Lazar said. “We see South America and the Caribbean as a natural extension of that business. The business potential we have in North America and South America is so huge, why would we dilute our efforts to embark on a major effort in Europe or Asia? It doesn’t make sense.”

MacArthur admitted that it will be hard to keep pace with MetaSwitch’s 2008 record earnings and profits and didn’t want to forecast 2009 earnings, given the economic downturn, adding that MetaSwitch has seen some telco and CLEC customers cut back some scheduled softswitch deployment projects. At the same time, however, larger customers are ordering softswitches in higher volumes, and the largest incumbents are exploring use of MetaSwitch’s MetaSphere platform to enable new IP-based services in advance of a completed TDM-to-IP transformation.

As wireless networks move to an IP core with 4G deployments of LTE technology, that space opens up to MetaSwitch, Lazar said.