Otelco Acquires Maine Web Hosting Provider Reliable Networks to Grow VoIP, Managed Services

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Telecommunications provider Otelco announced on Monday that it has acquired Maine web hosting provider Reliable Networks.

Otelco paid $500,000 at the closing of the acquisition, according to the announcement. The balance of the purchase price will be paid in stock over the next three years, based on Reliable Networks achieving certain financial objectives.

Otelco provides wireline telecommunications services in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia. The acquisition of Reliable Networks will expand its service offerings to support VoIP, email and database hosting, helping to grow its existing IP services while expanding its market presence.

“Our business customers increasingly are turning to us to expand our hosting and managed services capabilities to be able to provide seamless, turnkey services anchored by our high-quality connectivity offerings,” Mike Weaver, CEO of Otelco said. “Over the years, we have successfully collaborated with Reliable Networks on larger, more complex VoIP telephone infrastructure deployments. Leveraging the networking and application hosting expertise of Reliable Networks by acquiring the company is a natural, evolutionary extension of our current product and services offerings to support the substantial growth of our Hosted IP Voice PBX Product.”

“We have always focused on clients who demand superior quality and high levels of client service,” Mark Stone, Managing Member and founder of Reliable Networks said in a statement. “As a high value-added provider, our ‘measure twice, cut once’ approach resonates with clients for whom downtime is expensive and disruptive. What could be better than to formalize a relationship with a company that also provides carrier-grade services complementing our own, and with whom we have successfully worked in the past?”

Reliable Networks will operate as a division of OTT Communications, Otelco’s New England competitive operating entity.

As telecommunications providers look for ways to adapt and compete with web-based communication tools like Skype, acquiring the capabilities to offer a complementary VoIP service is becoming a common approach.

Last year, Vonage acquired VoIP provider Vocalocity for $130 million, and Intermedia acquired cloud communications provider Telanetix.

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