Jun 15, 2011 12:24 PM,

KeyOn acquires business VOIP provider CommX

By Joan Engebretson

Deal expands the rural broadband wireless provider's service portfolio

KeyOn Communications, a company that has acquired 13 broadband wireless providers in rural parts of the U.S., today announced it has made a different type of acquisition. It has purchased the assets of business VOIP provider CommX.

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“We always felt that our strategy should be a vertically integrated one,” said KeyOn CEO Jonathan Snyder, in an interview. “In the marketplace we’re seeing demand for value added services and higher bandwidth. We have been proactive in getting our cost structure in line so we can provide those services.”

KeyOn delivers broadband services using a variety of technologies, including WiMax, unlicensed 2.4 GHz equipment and the Motorola Canopy offering.

The acquisition of the CommX assets brings the company new customers as well as cloud service infrastructure to support hosted PBX and other business VOIP services. KeyOn plans to use the cloud service infrastructure to also support VOIP services to its existing customer base, which measures about 20,000.

KeyOn has hinted that it expects to expand its offerings to include other value-added services in the future.

“Our controlling investor is looking to use advanced technologies to improve healthcare in the U.S. from a provider and patient standpoint,” said Snyder. While declining to provide details, Snyder said offerings might involve mobile medicine and clinics.

In the meantime, Snyder said KeyOn continues to be “very active” in pursuing new broadband wireless acquisitions.

Stimulus winner
The CommX acquisition is expected to bring KeyOn more than $3 million in annualized revenues. CommX has experienced strong annual growth, averaging 15% in 2010.

KeyOn’s network footprint covers approximately 62,000 square miles with more than 2.7 millioin people in 11 western and Midwestern states. The company primarily targets underserved markets--usually with populations less than 50,000.

KeyOn applied for broadband stimulus funding for multiple broadband wireless projects, but won only a single award—for $10.2 million.