Consolidation after Ascemd completed its acquisition of Cascade at the end of July is set to cause changes in the UK channel.
Phil Holcroft, country manager at Ascend UK, said today that he will make an announcement in mid-September that will reveal the shape of the revamped company, with an estimated joint turnover of $1 billion. He refused to be drawn on details of the changes, which will involve the creation of a unified channel strategy.
Cascade sells direct while Ascend has a mixed model, including two-tier distribution through Data Connectivity, Azlan and Unity. The first of these also distributes Newbridge kit, causing a potential product conflict.
Holcroft said: ?Cascade?s model has been largely direct sales. Ascend sells direct to the top ISPs and to carriers like BT and Mercury.? He said two-tier distribution applied to its third tranche, the corporate market, and that was where the three distributors came in.
Neil Ledger, managing director of Data Connectivity, said that Ascend was integrating Cascade technology into its product range and that would be very attractive to his company. But, he said, discussions with Ascend were in their early stages and he refused to comment on a possible conflict of interest.
A source at another of the three distributors, who declined to be named, said: ?If Ascend puts Cascade through two-tier distribution and it conflicts with Newbridge, Data Connectivity would be unlikely to do it.?
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