Mitel
Encyclopedia
Mitel Networks, is a high-tech company providing unified communications
Unified communications
Unified communications is the integration of real-time communication services such as instant messaging , presence information, telephony , video conferencing, data sharing , call control and speech recognition with non-real-time communication services such as unified...

  solutions for business. The company previously produced TDM PBX systems and applications but after a change in ownership in 2001 now focuses almost entirely on Voice-over-IP (VoIP) products.

Mitel is headquartered in Ottawa, Ontario, Canada, with offices, partners and resellers worldwide.

Product lineup

  • Mobility and wireless solutions
  • Conferencing and collaboration (voice/video/data) applications
  • Contact center/call center applications
  • Messaging and voicemail applications
  • Enterprise management applications
  • IP-PBX systems and software
  • IP business telephones

Corporate history

Michael Cowpland
Michael Cowpland
Michael Cowpland is a British-born entrepreneur, businessman, and the founder and one-time president, chairman and CEO of Corel, a Canadian software company.-Early life:...

 and Terry Matthews
Terry Matthews
Sir Terence Hedley Matthews OBE, FIEE, FREng is a Welsh business magnate, serial high tech entrepreneur, and Wales's first billionaire....

 founded Mitel in 1973 (officially on June 8, 1973). Conventionally, its name is regarded as a combination of the founders’ first names and their first product - MIke and TErry's Lawnmowers. However, Cowpland is quoted as stating that it stands for MIke and Terry's Electronics. Whereas Matthews confirmed the lawnmower acronym during an interview on BBC Radio 4's "The Bottom Line" in May 2011.
The pair originally intended to sell cordless electric lawnmowers. Their first shipment of three lawnmowers was lost in shipping so they quickly adjusted to produce a telephony tone receiver product (a tone-to-pulse converter for central office use based on Cowpland's Ph.D. thesis). Cowpland has also stated that the lawnmowers were not suited to Canadian lawns.

Following the great success of the tone receiver, the founders extended their interest in the telecommunications industry. Early on they realized the possibilities of the then new technology of microprocessors to change how office telephone equipment was built. With this insight, they introduced the SX200 PBX to an astonishing success. The company grew exponentially at a rate of over 100% per year for several years. They reached the $100 million dollar annual revenue mark by 1981.

In 1976, the company expanded into the semiconductor field with the acquisition of Siltex, a bankrupt ISO-CMOS foundry in Bromont Québec. This evolved into a semiconductor division that specialized in mixed signal and thick film hybrid devices.

The next major product was a large digital PBX called the SX2000. This was an early attempt to integrate the voice and data functions of office systems. It was conceived as moving beyond the PBX to become an Office Controller
Office Controller
The office controller was a networking concept of the early to mid-1980s. The concept was used by PABX manufacturers as the basis of families of products in which the PBX would supply data connectivity and applications along with its traditional voice services....

 which would handle both voice and data applications within an organization.

In 1985, due to a financial crisis in the company, the board of directors created enough new shares to sell a controlling interest (51%) to British Telecom
BT Group
BT Group plc is a global telecommunications services company headquartered in London, United Kingdom. It is one of the largest telecommunications services companies in the world and has operations in more than 170 countries. Through its BT Global Services division it is a major supplier of...

. British Telecom left the equipment business a few years later and sold its controlling interest in Mitel to an investment company called Schroeder Ventures. Schroeder Ventures installed new management which revitalized the company.

In the meantime, Mitel continued to diversify its product line, introducing the successful SUPERSET line of phone terminals, the GX5000 Central Office, and the SMART-1 call controller, among others. Additionally Mitel developed and marketed a line of telecom-focussed semiconductor products.

In 2001, Mitel was split into two parts. The PBX division and the company name were sold to co-founder Matthews, who took it private. Matthews purchased 90% of the PBX division for $300 million Canadian with the original company retaining 10%. The PBX division then began a new chapter, under the name Mitel Networks, by developing a family of PBXs based on Internet standards for Voice over IP (VoIP).

The original company retained the semiconductor division. It was renamed Zarlink
Zarlink
Zarlink Semiconductor was a virtually fabless semiconductor company specializing in the design and manufacture of communication and medical semiconductor integrated circuits, modules, and other devices. In 2011, Microsemi acquired Zarlink in a hostile takeover and merged it it into its own operations...

 (Tsar of Links) Semiconductor to reflect its interest in networking.

The intellectual property of Mitel Networks was spun out in 2001 and placed in a company called Mitel Knowledge Corporation. This company evolved into MKC Networks which makes a family of SIP-based IP PBX systems.

An additional split took place in 2002 when the manufacturing arm was spun off out of Mitel Networks to become a contract manufacturer called BreconRidge
Breconridge
BreconRidge was a contract manufacturer of electronic and especially telecommunications systems headquartered in Ottawa, Canada. BreconRidge acquired Ridgeway Research Corporation, the manufacturing division of Mitel Networks and 4test....

. With these developments, the original Mitel Corporation has been split into three companies: Zarlink (which though renamed is the original corporate entity), Mitel Networks, and BreconRidge
Breconridge
BreconRidge was a contract manufacturer of electronic and especially telecommunications systems headquartered in Ottawa, Canada. BreconRidge acquired Ridgeway Research Corporation, the manufacturing division of Mitel Networks and 4test....

.

On May 10, 2006, the new company announced its intention to IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

. No detailed information was released but the press indicated that the company hoped to raise $150 million.

In April 2007, Mitel announced an agreement with Inter-Tel to purchase that company. This purchase would amount to a merger of equals with the merged company being twice the size of the original Mitel. This acquisition was completed in August 2007. Management had announced that the companies will carry on under the name Mitel. As a result of the merger, Mitel withdrew from the IPO registration process.

Mitel Networks reverted to calling itself Mitel in product branding and marketing materials in 2004.

Note that the separate company known first as "Mitel Knowledge" and now as MKC Networks
MKC Networks
MKC Networks was a privately owned supplier of VoIP equipment and software components headquartered in Ottawa, Ontario, Canada. It designed and sold a family of SIP-based products including advanced SIP Enterprise Application Servers and scalable communication platforms.MKC Networks bought certain...

 was never actually a part of Mitel Networks, but was rather a company producing a product intended for sale through Mitel Networks. Both companies were and are ultimately controlled by Terry Matthews
Terry Matthews
Sir Terence Hedley Matthews OBE, FIEE, FREng is a Welsh business magnate, serial high tech entrepreneur, and Wales's first billionaire....

.

On April 22, 2010, Mitel became a public company. The company was listed on Nasdaq with the symbol MITL and its initial offering stood at $14 per share. The stock is now trading at less than $5, and was described by CNBC's Cramer as one of the worst IPOs of the year.

During the company's Q1 conference call, Don Smith (CEO) announced his retirement from the company once the board of directors is able to find a suitable replacement. Smith said he would remain on the board, even after retirement.

Litigation

In 2011 Mitel launched litigation against at least 2 Australian businesses for infringing on Mitel's trademark and the businesses for engaging in misleading or deceptive conduct under Australian consumer law. The first case against Melbourne telecommunications company Mytel was resolved, while the second case brought against a chain of mobile phone accessory and repair stores under the MyTel and HappyTel name was still waiting to be heard.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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