NEW YORK— Telecom as a segment has evolved throughout the past few years as vendors recognize they have to go beyond the traditional offerings to grab market share, but that evolution has also led to some consolidation on the supplier side as a means of gaining an edge. In April, two competitors joined forces when Urbana, IL-based Scitec, Inc. merged with Colorado Springs, CO-based Telematrix. According to Jose Quiros, vp, sales and marketing of Scitec, the driving force behind the collaboration is the companies’ complementary product offerings. Scitec serves the economy brands and Telematrix serves the three- to five-star/national account market. “It made perfect sense for both companies and the industry,” he said. Quiros noted that with respect to the merger “things were moving according to plan,” and that there would not be any fundamental change to either company’s product in terms of branding or what is currently offered. Scitec’s product line— which includes its Aegis line of guestroom phones as well as VoIP gateways— is designed to serve what Quiros described as “one- to three-star” hotels. Meanwhile, Telematrix and its lineup of high-end phones with amenities caters to primarily four- and five-star hotels. According to Quiros, Scitec also benefits from a number of national accounts that Telematrix had previously established. Dale Pelletier, former founder and CEO of Telematrix, who is now on the board of directors, offered his perspective on the partnership. “From the Telematrix side, we did not have the economy segment addressed,” he said, adding, “we’re now postured as being the number one provider in terms of units and revenues in the industry.” Nevertheless, even a primary competitor for these companies, Teledex, which supplies phones and technology services to the high end of the market, felt the deal was ultimately a win-win for hotels. “Telematrix and Scitec have their own suites of products. It’s [the merger]good for the industry and good for Teledex. They may win sales from us but they’re going to be competing at the low end to middle, we’ll have the higher end,” said Dean Compoginis, director of marketing communications for Teledex. Some Consolidation Ahead Quiros noted that it had not yet been decided just where its main headquarters would reside, whether it would be either of the company’s respective home bases, or possibly even a third site. He added there would likely be some consolidation of its employee base, which now numbers about 60 to 65 people, not including Scitec’s overseas factory. That factory, which the company owns in the Far East, is another potential benefit of the deal, according to Quiros. “We can now deliver a level of engineering, accountability and flexibility the industry has not had in some time.” From a research and development side, Quiros noted the staff has quadrupled. He added the fact the company owns a factory gives it the ability to custom design and engineer products, which can be a distinct advantage in hospitality. “We can deliver products around any concept to a hotel chain and ask them what they want,” he said. Scitec sells approximately 700,000 guestroom sets a year, servicing an estimated 27,000 hotels, according to the company. However, moving forward, Quiros summed up today’s telecom market by adding, “the days of the telephones generating revenue are over. It’s about proving you can develop product that can generate revenue,” he said. Compogonis, while confident his company’s business would be unaffected, liked the dynamics of the deal. “It’s a fairly small market in scope, these are smaller companies than the Cisco’s of the world. Consolidation has both positive and negative effects. They [Scitec and Telematrix] see a significant opportunity in the market; it’s a strong entity,” he said. Quiros again summed up the impetus for the deal. “The companies complemented each other very well,” Quiros said.
