Over the past six years, Language Line has adopted a concerted strategy of reclaiming lost telephone interpretation (TI) market share through strategic acquisitions, mergers, and alliances. We say “reclaiming” because most of the large accounts in the marketplace were first introduced to over-the-phone interpreting by Language Line, then switched to other companies. In buying up these companies, Language Line buys back many of its old customers. First came the purchase of Online Interpreters back in 2002. Then it bought the eponymously named, U.K.-based Language Line Limited. More recently, in early 2008, Teleinterpreters entered the Monterey-based company’s fold. Last week, Language Line announced that the TI accounts of NetworkOmni are the latest to be added to its growing collection.

Telephone interpreting suppliers and buyers began telling us a couple of weeks ago that NetworkOmni, whose founder recently passed away, would no longer be doing any telephone interpreting business, and that Language Line would now be taking over its accounts. Yet, in the press release issued last Friday, neither company made any direct reference to who would actually be delivering the telephone interpreting services. NetworkOmni CEO Laura Raville did cite the “rising costs associated with technology requirements of the interpretation industry” as a reason for partnering with Language Line. However, the announcement was void of specific details about the service that represents the largest percentage of revenue for both companies — telephone interpreting.

The press release did mention that NetworkOmni customers would be able to avail themselves of a “new suite of language products,” such as video interpreting, as well as training and testing services for bilingual staff — services that NetworkOmni already offered to its customers, according to its website.  Looking past the spin, the company is not really giving its customers anything new — this appears to be just an attempt to soften the blow for those NetworkOmni customers who may not be pleased about the announcement.

Perhaps the most telling part of the press release is where NetworkOmni lauds Language Line for having “the most advanced over-the-phone interpretation network and highly trained and certified interpreters available across the language services industry.” Up until recently, NetworkOmni was making those exact same statements — about itself, not about its arch-nemesis.  The fact that NetworkOmni went on record with such a complimentary statement about its rival, combined with its comments about its financial barriers, is a clear indication that it does not intend to compete any more in the telephone interpreting space.

This announcement results in a restructuring of the TI market. See our latest Quick Take for more analysis of the implications for the industry.