Alpheus purchases Net Star Telecommunications

Broadens CLEC's customer base and data center reach in DASH market
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Alpheus Communications, a Texas-based CLEC focused on the Dallas, Austin, San Antonio, and Houston (DASH) area, on Wednesday acquired Net Star Telecommunications, a Houston-based data center service provider.

This acquisition brings benefits to both Alpheus and Net Star.

The deal enables Alpheus to immediately expand its customer base in Texas, something it has been doing through a mix both organic and inorganic growth activities to build network facilities into more locations.

Upon completing the integration of Net Star operations into its fold, Net Star customers will gain access to a growing portfolio of data center facilities in addition to a growing base of next-gen IP services such as Ethernet and cloud.

When the deal is completed, Net Star customers will benefit from an extended Ethernet footprint that includes a mix of both fiber-based Ethernet and Ethernet over Copper (EoC).

Ethernet has been a big growth engine for Alpheus. As of October, the service provider extended its copper and fiber-based Ethernet footprint to 94,000 buildings.

Already available in 123 central offices (COs), Scott Widham, CEO of Alpheus Communications, said in a previous interview with FierceTelecom that it will enable EoC in more COs in the South Texas region. Likewise, Alpheus is in the process of connecting another 100 buildings in Dallas and Houston to its fiber network.

"We're putting in Overture's EoC gear into area AT&T (NYSE: T) COs so we now have enabled another 10,000 buildings with Ethernet service," he said.

This acquisition represents a larger move by Alpheus to increase its market share and network presence in Texas through its own internal efforts and through targeted acquisitions that complement its own network footprint and focus.

In July, it announced plans to invest over $10 million in 2012 to simultaneously expand its workforce by 30 percent and its fiber network.

"While the core of our expansion strategy in 2012 is through organic growth of the enterprise market, we are committed to making opportunistic acquisitions that create network and infrastructure synergies for Alpheus," Widham said.

For more:
- see the release

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