New Global Telecom sold its International Wholesale Termination business to the acquisitive start-up StarVox Communications this week and will concentrate on its managed voice-over-IP services strategy. StarVox will use the business to merge its domestic and international VoIP networks.

StarVox, based in San Jose, Calif., introduced its next-generation network earlier this month after acquiring a domestic voice-over-IP network with 300 points of presence and deployed softswitch and gateway technology. That network uses an IP-VPN network to connect its softswitches and an MPLS-based ATM backbone.

The IWT business from NGT is an outbound legacy TDM network.

“It was about a $25 million business last year and had a fairly large number of international carriers,” said Rich Barry, vice president of marketing at StarVox.

Along with the network facilities and customers, StarVox transferred about seven NGT employees to the new company.

StarVox will eventually transition the IWT network from NGT into a VoIP service. Existing international termination carriers can use the StarVox domestic VoIP network to lower call termination costs on traffic coming into the US. StarVox will also work with in-country partners to establish international VoIP routes to lower termination costs to these countries.

“Because the VoIP network is extensive in the U.S., we can offer our international partners pretty attractive rates,” Barry said. “We are also extending the domestic VoIP network to international locations by putting VoIP gateways into international locations.”

The company expects to announce the gateway deployments in the coming weeks. StarVox will expand the IWT business by developing new routes as well as expanding existing routes. The company has been adding new routes weekly since acquiring the IWT business, which closed in late July.

NGT will focus on its outsourced network management services, which includes its 6DegreesIP VoIP product suite, which is a turnkey solution for residential and business VoIP providers. It includes local & long-distance calling, integrated retail OSS, worldwide conferencing capability, training and other support. The company’s General Telecom brand provides outsourced switching services and network operations services.

Barry said StarVox will continue to make acquisitions, but that unlike those it has made so far, which have been technology and network acquisitions, future deals will focus on acquiring legacy customer bases.

“We needed to get the networks in place both domestically and internationally. Now that we have that, our future will be migrating people from legacy networks to VoIP,” Barry said.