diff --git a/packages/backend/src/index.ts b/packages/backend/src/index.ts
index 0e92698230..bade028597 100644
--- a/packages/backend/src/index.ts
+++ b/packages/backend/src/index.ts
@@ -101,9 +101,7 @@ function makeCreateEnv(config: Config) {
 
   const eventBroker = new DefaultEventBroker(root.child({ type: 'plugin' }));
   const signalService = DefaultSignalService.create({
-    logger: root,
     eventBroker,
-    identity,
   });
 
   root.info(`Created UrlReader ${reader}`);
diff --git a/packages/backend/src/plugins/signals.ts b/packages/backend/src/plugins/signals.ts
index 687fcfaa33..477cea1938 100644
--- a/packages/backend/src/plugins/signals.ts
+++ b/packages/backend/src/plugins/signals.ts
@@ -22,6 +22,7 @@ export default async function createPlugin(
 ): Promise<Router> {
   return await createRouter({
     logger: env.logger,
-    service: env.signalService,
+    eventBroker: env.eventBroker,
+    identity: env.identity,
   });
 }
diff --git a/plugins/signals-backend/README.md b/plugins/signals-backend/README.md
index f9ebfb80c7..e30a0836e0 100644
--- a/plugins/signals-backend/README.md
+++ b/plugins/signals-backend/README.md
@@ -20,7 +20,8 @@ export default async function createPlugin(
 ): Promise<Router> {
   return await createRouter({
     logger: env.logger,
-    service: env.signalsService,
+    eventBroker: env.eventBroker,
+    identity: env.identity,
   });
 }
 ```
@@ -29,7 +30,7 @@ Now add the signals to `packages/backend/src/index.ts`:
 
 ```ts
 // ...
-import signals from './plugins/sonarqube';
+import signals from './plugins/signals';
 
 async function main() {
   // ...
diff --git a/plugins/signals-backend/api-report.md b/plugins/signals-backend/api-report.md
index e96dd2e09c..dd46778e5d 100644
--- a/plugins/signals-backend/api-report.md
+++ b/plugins/signals-backend/api-report.md
@@ -4,9 +4,10 @@
 
 ```ts
 import { BackendFeature } from '@backstage/backend-plugin-api';
+import { EventBroker } from '@backstage/plugin-events-node';
 import express from 'express';
+import { IdentityApi } from '@backstage/plugin-auth-node';
 import { LoggerService } from '@backstage/backend-plugin-api';
-import { SignalService } from '@backstage/plugin-signals-node';
 
 // @public (undocumented)
 export function createRouter(options: RouterOptions): Promise<express.Router>;
@@ -14,9 +15,11 @@ export function createRouter(options: RouterOptions): Promise<express.Router>;
 // @public (undocumented)
 export interface RouterOptions {
   // (undocumented)
-  logger: LoggerService;
+  eventBroker?: EventBroker;
   // (undocumented)
-  service: SignalService;
+  identity: IdentityApi;
+  // (undocumented)
+  logger: LoggerService;
 }
 
 // @public
diff --git a/plugins/signals-backend/src/plugin.ts b/plugins/signals-backend/src/plugin.ts
index 68bbf27377..4a9cef028f 100644
--- a/plugins/signals-backend/src/plugin.ts
+++ b/plugins/signals-backend/src/plugin.ts
@@ -18,7 +18,6 @@ import {
   createBackendPlugin,
 } from '@backstage/backend-plugin-api';
 import { createRouter } from './service/router';
-import { signalService } from '@backstage/plugin-signals-node';
 
 /**
  * Signals backend plugin
@@ -32,13 +31,15 @@ export const signalsPlugin = createBackendPlugin({
       deps: {
         httpRouter: coreServices.httpRouter,
         logger: coreServices.logger,
-        service: signalService,
+        identity: coreServices.identity,
+        // TODO: EventBroker. It is optional for now but it's actually required so waiting for the new backend system
+        //       for the events-backend for this to work.
       },
-      async init({ httpRouter, logger, service }) {
+      async init({ httpRouter, logger, identity }) {
         httpRouter.use(
           await createRouter({
             logger,
-            service,
+            identity,
           }),
         );
       },
diff --git a/plugins/signals-backend/src/service/SignalManager.ts b/plugins/signals-backend/src/service/SignalManager.ts
new file mode 100644
index 0000000000..988db47465
--- /dev/null
+++ b/plugins/signals-backend/src/service/SignalManager.ts
@@ -0,0 +1,213 @@
+/*
+ * Copyright 2023 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+import { EventBroker, EventParams } from '@backstage/plugin-events-node';
+import { SignalPayload } from '@backstage/plugin-signals-node';
+import { RawData, WebSocket, WebSocketServer } from 'ws';
+import { IncomingMessage } from 'http';
+import { v4 as uuid } from 'uuid';
+import { JsonObject } from '@backstage/types';
+import {
+  BackstageIdentityResponse,
+  IdentityApi,
+  IdentityApiGetIdentityRequest,
+} from '@backstage/plugin-auth-node';
+import { LoggerService } from '@backstage/backend-plugin-api';
+import { Duplex } from 'stream';
+
+/** @internal */
+export type ConnectionUpgradeOptions = {
+  request: IncomingMessage;
+  socket: Duplex;
+  head: Buffer;
+};
+
+/**
+ * @internal
+ */
+export type SignalConnection = {
+  id: string;
+  user: string;
+  ws: WebSocket;
+  ownershipEntityRefs: string[];
+  subscriptions: Set<string>;
+};
+
+/**
+ * @internal
+ */
+export type SignalManagerOptions = {
+  // TODO: Remove optional when events-backend can offer this service
+  eventBroker?: EventBroker;
+  logger: LoggerService;
+  identity: IdentityApi;
+};
+
+/** @internal */
+export class SignalManager {
+  private connections: Map<string, SignalConnection> = new Map<
+    string,
+    SignalConnection
+  >();
+  private eventBroker?: EventBroker;
+  private logger: LoggerService;
+  private identity: IdentityApi;
+  private server: WebSocketServer;
+
+  static create(options: SignalManagerOptions) {
+    return new SignalManager(options);
+  }
+
+  private constructor(options: SignalManagerOptions) {
+    ({
+      eventBroker: this.eventBroker,
+      logger: this.logger,
+      identity: this.identity,
+    } = options);
+
+    this.server = new WebSocketServer({
+      noServer: true,
+      clientTracking: false,
+    });
+
+    this.eventBroker?.subscribe({
+      supportsEventTopics: () => ['signals'],
+      onEvent: (params: EventParams<SignalPayload>) =>
+        this.onEventBrokerEvent(params),
+    });
+  }
+
+  /**
+   * Handles request upgrade to websocket and adds the connection to internal
+   * list for publish/subscribe functionality
+   * @param req - Request
+   */
+  async handleUpgrade(options: ConnectionUpgradeOptions) {
+    const { request, socket, head } = options;
+    let identity: BackstageIdentityResponse | undefined = undefined;
+
+    // Authentication token is passed in Sec-WebSocket-Protocol header as there
+    // is no other way to pass the token with plain websockets
+    const token = request.headers['sec-websocket-protocol'];
+    if (token) {
+      identity = await this.identity.getIdentity({
+        request: {
+          headers: { authorization: token },
+        },
+      } as IdentityApiGetIdentityRequest);
+    }
+
+    this.server.handleUpgrade(
+      request,
+      socket,
+      head,
+      (ws: WebSocket, __: IncomingMessage) => {
+        this.addConnection(ws, identity);
+      },
+    );
+  }
+
+  private addConnection(ws: WebSocket, identity?: BackstageIdentityResponse) {
+    const id = uuid();
+
+    const conn = {
+      id,
+      user: identity?.identity.userEntityRef ?? 'user:default/guest',
+      ws,
+      ownershipEntityRefs: identity?.identity.ownershipEntityRefs ?? [],
+      subscriptions: new Set<string>(),
+    };
+
+    this.connections.set(id, conn);
+
+    ws.on('error', (err: Error) => {
+      this.logger.info(
+        `Error occurred with connection ${id}: ${err}, closing connection`,
+      );
+      ws.close();
+      this.connections.delete(id);
+    });
+
+    ws.on('close', (code: number, reason: Buffer) => {
+      this.logger.info(
+        `Connection ${id} closed with code ${code}, reason: ${reason}`,
+      );
+      this.connections.delete(id);
+    });
+
+    ws.on('message', (data: RawData, isBinary: boolean) => {
+      this.logger.debug(`Received message from connection ${id}: ${data}`);
+      if (isBinary) {
+        return;
+      }
+      try {
+        const json = JSON.parse(data.toString()) as JsonObject;
+        this.handleMessage(conn, json);
+      } catch (err: any) {
+        this.logger.error(
+          `Invalid message received from connection ${id}: ${err}`,
+        );
+      }
+    });
+  }
+
+  private handleMessage(connection: SignalConnection, message: JsonObject) {
+    if (message.action === 'subscribe' && message.channel) {
+      this.logger.info(
+        `Connection ${connection.id} subscribed to ${message.channel}`,
+      );
+      connection.subscriptions.add(message.channel as string);
+    } else if (message.action === 'unsubscribe' && message.channel) {
+      this.logger.info(
+        `Connection ${connection.id} unsubscribed from ${message.channel}`,
+      );
+      connection.subscriptions.delete(message.channel as string);
+    }
+  }
+
+  private async onEventBrokerEvent(
+    params: EventParams<SignalPayload>,
+  ): Promise<void> {
+    const { eventPayload } = params;
+    if (!eventPayload.channel || !eventPayload.message) {
+      return;
+    }
+
+    const { channel, recipients, message } = eventPayload;
+    const jsonMessage = JSON.stringify({ channel, message });
+
+    // Actual websocket message sending
+    this.connections.forEach(conn => {
+      if (!conn.subscriptions.has(channel)) {
+        return;
+      }
+      // Sending to all users can be done with null
+      if (
+        recipients !== null &&
+        !conn.ownershipEntityRefs.some((ref: string) =>
+          recipients.includes(ref),
+        )
+      ) {
+        return;
+      }
+
+      if (conn.ws.readyState !== WebSocket.OPEN) {
+        return;
+      }
+
+      conn.ws.send(jsonMessage);
+    });
+  }
+}
diff --git a/plugins/signals-backend/src/service/router.test.ts b/plugins/signals-backend/src/service/router.test.ts
index 281d6ed4a5..ecf2ad4aa6 100644
--- a/plugins/signals-backend/src/service/router.test.ts
+++ b/plugins/signals-backend/src/service/router.test.ts
@@ -18,9 +18,17 @@ import express from 'express';
 import request from 'supertest';
 
 import { createRouter } from './router';
-import { DefaultSignalService } from '@backstage/plugin-signals-node';
+import { EventBroker } from '@backstage/plugin-events-node';
+import { IdentityApi } from '@backstage/plugin-auth-node';
 
-const signalsServiceMock: jest.Mocked<DefaultSignalService> = {} as any;
+const eventBrokerMock: jest.Mocked<EventBroker> = {
+  subscribe: jest.fn(),
+  publish: jest.fn(),
+};
+
+const identityApiMock: jest.Mocked<IdentityApi> = {
+  getIdentity: jest.fn(),
+};
 
 describe('createRouter', () => {
   let app: express.Express;
@@ -28,7 +36,8 @@ describe('createRouter', () => {
   beforeAll(async () => {
     const router = await createRouter({
       logger: getVoidLogger(),
-      service: signalsServiceMock,
+      identity: identityApiMock,
+      eventBroker: eventBrokerMock,
     });
     app = express().use(router);
   });
diff --git a/plugins/signals-backend/src/service/router.ts b/plugins/signals-backend/src/service/router.ts
index 28bafce14a..ec56860bf3 100644
--- a/plugins/signals-backend/src/service/router.ts
+++ b/plugins/signals-backend/src/service/router.ts
@@ -17,22 +17,27 @@ import { errorHandler } from '@backstage/backend-common';
 import express, { NextFunction, Request, Response } from 'express';
 import Router from 'express-promise-router';
 import { LoggerService } from '@backstage/backend-plugin-api';
-import { SignalService } from '@backstage/plugin-signals-node';
 import * as https from 'https';
 import http from 'http';
+import { SignalManager } from './SignalManager';
+import { IdentityApi } from '@backstage/plugin-auth-node';
+import { EventBroker } from '@backstage/plugin-events-node';
 
 /** @public */
 export interface RouterOptions {
   logger: LoggerService;
-  service: SignalService;
+  eventBroker?: EventBroker;
+  identity: IdentityApi;
 }
 
 /** @public */
 export async function createRouter(
   options: RouterOptions,
 ): Promise<express.Router> {
-  const { logger, service } = options;
+  const { logger } = options;
+  const manager = SignalManager.create(options);
   let subscribed = false;
+
   const upgradeMiddleware = (req: Request, _: Response, next: NextFunction) => {
     const server: https.Server | http.Server = (req.socket as any)?.server;
     if (
@@ -50,7 +55,7 @@ export async function createRouter(
       server.on('upgrade', async (request, socket, head) => {
         // TODO: Find a way to make this more generic
         if (request.url === '/api/signals') {
-          await service.handleUpgrade({ server, request, socket, head });
+          await manager.handleUpgrade({ request, socket, head });
         }
       });
     }
diff --git a/plugins/signals-backend/src/service/standaloneServer.ts b/plugins/signals-backend/src/service/standaloneServer.ts
index e1ce27aee4..278de8621e 100644
--- a/plugins/signals-backend/src/service/standaloneServer.ts
+++ b/plugins/signals-backend/src/service/standaloneServer.ts
@@ -23,6 +23,11 @@ import { Logger } from 'winston';
 import { createRouter } from './router';
 import { DefaultSignalService } from '@backstage/plugin-signals-node';
 import { DefaultIdentityClient } from '@backstage/plugin-auth-node';
+import {
+  EventBroker,
+  EventParams,
+  EventSubscriber,
+} from '@backstage/plugin-events-node';
 
 export interface ServerOptions {
   port: number;
@@ -43,14 +48,26 @@ export async function startStandaloneServer(
     issuer: await discovery.getExternalBaseUrl('auth'),
   });
 
+  const mockSubscribers: EventSubscriber[] = [];
+  const eventBroker: EventBroker = {
+    async publish(params: EventParams): Promise<void> {
+      mockSubscribers.forEach(sub => sub.onEvent(params));
+    },
+    subscribe(...subscribers: EventSubscriber[]) {
+      subscribers.flat().forEach(subscriber => {
+        mockSubscribers.push(subscriber);
+      });
+    },
+  };
+
   const signals = DefaultSignalService.create({
-    logger: logger,
-    identity,
+    eventBroker,
   });
 
   const router = await createRouter({
     logger,
-    service: signals,
+    identity,
+    eventBroker,
   });
 
   let service = createServiceBuilder(module)
@@ -60,10 +77,22 @@ export async function startStandaloneServer(
     service = service.enableCors({ origin: 'http://localhost:3000' });
   }
 
-  return await service.start().catch(err => {
+  let server: Promise<Server>;
+  try {
+    server = service.start();
+
+    setInterval(() => {
+      signals.publish({
+        recipients: null,
+        channel: 'test',
+        message: { hello: 'world' },
+      });
+    }, 5000);
+  } catch (err) {
     logger.error(err);
     process.exit(1);
-  });
+  }
+  return server;
 }
 
 module.hot?.accept();
diff --git a/plugins/signals-node/README.md b/plugins/signals-node/README.md
index 14c9332dc1..5e738a849d 100644
--- a/plugins/signals-node/README.md
+++ b/plugins/signals-node/README.md
@@ -27,10 +27,8 @@ function makeCreateEnv(config: Config) {
   // ...
 
   const eventBroker = new DefaultEventBroker(root.child({ type: 'plugin' }));
-  const signalService = SignalService.create({
-    logger: root,
-    eventBroker, // EventBroker is optional
-    identity,
+  const signalService = DefaultSignalService.create({
+    eventBroker,
   });
 
   return (plugin: string): PluginEnvironment => {
@@ -51,16 +49,38 @@ To allow connections from the frontend, you should also install the `@backstage/
 
 Once you have both of the backend plugins installed, you can utilize the signal service by calling the
 `publish` method. This will publish the message to all subscribers in the frontend. To send message to
-all subscribers, you can use `*` as `to` parameter.
+all subscribers, you can use `null` as `recipients` parameter.
 
 ```ts
 // Periodic sending example
 setInterval(async () => {
-  await signalService.publish('*', 'plugin:topic', {
-    message: 'hello world',
+  await signalService.publish({
+    recipients: null,
+    channel: 'my_plugin',
+    message: {
+      message: 'hello world',
+    },
   });
 }, 5000);
 ```
 
 To receive this message in the frontend, check the documentation of `@backstage/plugin-signals` and
 `@backstage/plugin-signals-react`.
+
+## Using event broker directly
+
+Other way to send signals is to utilize the `EventBroker` directly. This requires that the payload is correct for it
+to work:
+
+```ts
+eventBroker.publish({
+  topic: 'signals',
+  eventPayload: {
+    recipients: ['user:default/user1'],
+    message: {
+      message: 'hello world',
+    },
+    channel: 'my_plugin',
+  },
+});
+```
diff --git a/plugins/signals-node/api-report.md b/plugins/signals-node/api-report.md
index d85163040b..00d099f7db 100644
--- a/plugins/signals-node/api-report.md
+++ b/plugins/signals-node/api-report.md
@@ -3,63 +3,35 @@
 > Do not edit this file. It is a report generated by [API Extractor](https://api-extractor.com/).
 
 ```ts
-/// <reference types="node" />
-
-import { Duplex } from 'stream';
 import { EventBroker } from '@backstage/plugin-events-node';
-import http from 'http';
-import https from 'https';
-import { IdentityApi } from '@backstage/plugin-auth-node';
-import { IncomingMessage } from 'http';
 import { JsonObject } from '@backstage/types';
-import { LoggerService } from '@backstage/backend-plugin-api';
 import { ServiceRef } from '@backstage/backend-plugin-api';
 
 // @public (undocumented)
 export class DefaultSignalService implements SignalService {
   // (undocumented)
-  static create(options: ServiceOptions): DefaultSignalService;
-  handleUpgrade(options: SignalServiceUpgradeOptions): Promise<void>;
-  publish(
-    to: string | string[],
-    topic: string,
-    message: JsonObject,
-  ): Promise<void>;
+  static create(options: SignalServiceOptions): DefaultSignalService;
+  publish(signal: SignalPayload): Promise<void>;
 }
 
 // @public (undocumented)
-export type ServiceOptions = {
-  eventBroker?: EventBroker;
-  logger: LoggerService;
-  identity: IdentityApi;
-};
-
-// @public (undocumented)
-export type SignalEventBrokerPayload = {
-  recipients?: string[];
-  topic?: string;
-  message?: JsonObject;
+export type SignalPayload = {
+  recipients: string[] | null;
+  channel: string;
+  message: JsonObject;
 };
 
 // @public (undocumented)
 export type SignalService = {
-  publish(
-    to: string | string[],
-    topic: string,
-    message: JsonObject,
-  ): Promise<void>;
-  handleUpgrade(options: SignalServiceUpgradeOptions): Promise<void>;
+  publish(signal: SignalPayload): Promise<void>;
 };
 
 // @public (undocumented)
 export const signalService: ServiceRef<SignalService, 'plugin'>;
 
 // @public (undocumented)
-export type SignalServiceUpgradeOptions = {
-  server: https.Server | http.Server;
-  request: IncomingMessage;
-  socket: Duplex;
-  head: Buffer;
+export type SignalServiceOptions = {
+  eventBroker?: EventBroker;
 };
 
 // (No @packageDocumentation comment for this package)
diff --git a/plugins/signals-node/src/DefaultSignalService.ts b/plugins/signals-node/src/DefaultSignalService.ts
index cab6e83c81..1fba96b8bc 100644
--- a/plugins/signals-node/src/DefaultSignalService.ts
+++ b/plugins/signals-node/src/DefaultSignalService.ts
@@ -13,226 +13,38 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
-import { EventBroker, EventParams } from '@backstage/plugin-events-node';
-import {
-  ServiceOptions,
-  SignalConnection,
-  SignalEventBrokerPayload,
-} from './types';
-import { RawData, WebSocket, WebSocketServer } from 'ws';
-import { IncomingMessage } from 'http';
-import { v4 as uuid } from 'uuid';
-import { JsonObject } from '@backstage/types';
-import {
-  BackstageIdentityResponse,
-  IdentityApi,
-  IdentityApiGetIdentityRequest,
-} from '@backstage/plugin-auth-node';
-import { LoggerService } from '@backstage/backend-plugin-api';
-import { SignalService, SignalServiceUpgradeOptions } from './SignalService';
+import { EventBroker } from '@backstage/plugin-events-node';
+import { SignalPayload, SignalServiceOptions } from './types';
+import { SignalService } from './SignalService';
 
 /** @public */
 export class DefaultSignalService implements SignalService {
-  private connections: Map<string, SignalConnection> = new Map<
-    string,
-    SignalConnection
-  >();
+  // TODO: Remove this to be optional when events-backend has eventBroker as service
   private eventBroker?: EventBroker;
-  private logger: LoggerService;
-  private identity: IdentityApi;
-  private server: WebSocketServer;
 
-  static create(options: ServiceOptions) {
+  static create(options: SignalServiceOptions) {
     return new DefaultSignalService(options);
   }
 
-  private constructor(options: ServiceOptions) {
-    ({
-      eventBroker: this.eventBroker,
-      logger: this.logger,
-      identity: this.identity,
-    } = options);
-
-    this.server = new WebSocketServer({
-      noServer: true,
-      clientTracking: false,
-    });
-
-    this.eventBroker?.subscribe({
-      supportsEventTopics: () => ['signals'],
-      onEvent: (params: EventParams<SignalEventBrokerPayload>) =>
-        this.onEventBrokerEvent(params),
-    });
-  }
-
-  /**
-   * Handles request upgrade to websocket and adds the connection to internal
-   * list for publish/subscribe functionality
-   * @param req - Request
-   */
-  async handleUpgrade(options: SignalServiceUpgradeOptions) {
-    const { request, socket, head } = options;
-    let identity: BackstageIdentityResponse | undefined = undefined;
-
-    // Authentication token is passed in Sec-WebSocket-Protocol header as there
-    // is no other way to pass the token with plain websockets
-    const token = request.headers['sec-websocket-protocol'];
-    if (token) {
-      identity = await this.identity.getIdentity({
-        request: {
-          headers: { authorization: token },
-        },
-      } as IdentityApiGetIdentityRequest);
-    }
-
-    this.server.handleUpgrade(
-      request,
-      socket,
-      head,
-      (ws: WebSocket, __: IncomingMessage) => {
-        this.addConnection(ws, identity);
-      },
-    );
-  }
-
-  private addConnection(ws: WebSocket, identity?: BackstageIdentityResponse) {
-    const id = uuid();
-
-    const conn = {
-      id,
-      user: identity?.identity.userEntityRef ?? 'user:default/guest',
-      ws,
-      ownershipEntityRefs: identity?.identity.ownershipEntityRefs ?? [],
-      subscriptions: new Set<string>(),
-    };
-
-    this.connections.set(id, conn);
-
-    ws.on('error', (err: Error) => {
-      this.logger.info(
-        `Error occurred with connection ${id}: ${err}, closing connection`,
-      );
-      ws.close();
-      this.connections.delete(id);
-    });
-
-    ws.on('close', (code: number, reason: Buffer) => {
-      this.logger.info(
-        `Connection ${id} closed with code ${code}, reason: ${reason}`,
-      );
-      this.connections.delete(id);
-    });
-
-    ws.on('message', (data: RawData, isBinary: boolean) => {
-      this.logger.debug(`Received message from connection ${id}: ${data}`);
-      if (isBinary) {
-        return;
-      }
-      try {
-        const json = JSON.parse(data.toString()) as JsonObject;
-        this.handleMessage(conn, json);
-      } catch (err: any) {
-        this.logger.error(
-          `Invalid message received from connection ${id}: ${err}`,
-        );
-      }
-    });
-  }
-
-  private handleMessage(connection: SignalConnection, message: JsonObject) {
-    if (message.action === 'subscribe' && message.topic) {
-      this.logger.info(
-        `Connection ${connection.id} subscribed to ${message.topic}`,
-      );
-      connection.subscriptions.add(message.topic as string);
-    }
-
-    if (message.action === 'unsubscribe' && message.topic) {
-      this.logger.info(
-        `Connection ${connection.id} unsubscribed from ${message.topic}`,
-      );
-      connection.subscriptions.delete(message.topic as string);
-    }
+  private constructor(options: SignalServiceOptions) {
+    ({ eventBroker: this.eventBroker } = options);
   }
 
   /**
    * Publishes a message to user refs to specific topic
-   * @param to - string or array of user ref strings to publish message to
+   * @param recipients - string or array of user ref strings to publish message to
    * @param topic - message topic
    * @param message - message to publish
    */
-  async publish(to: string | string[], topic: string, message: JsonObject) {
-    await this.publishInternal(
-      Array.isArray(to) ? to : [to],
-      topic,
-      message,
-      false,
-    );
-  }
-
-  private async publishInternal(
-    recipients: string[],
-    topic: string,
-    message: JsonObject,
-    brokedEvent: boolean,
-  ) {
-    const jsonMessage = JSON.stringify({ topic, message });
-    if (jsonMessage.length === 0) {
-      return;
-    }
-
-    // If there is event broker, use that to publish the message to
-    // all signal services, including this one.
-    if (this.eventBroker && !brokedEvent) {
-      await this.eventBroker.publish({
-        topic: 'signals',
-        eventPayload: {
-          recipients,
-          message,
-          topic,
-        },
-      });
-      return;
-    }
-
-    // Actual websocket message sending
-    this.connections.forEach(conn => {
-      if (!conn.subscriptions.has(topic)) {
-        return;
-      }
-      // Sending to all users can be done with '*'
-      if (
-        !recipients.includes('*') &&
-        !conn.ownershipEntityRefs.some(ref => recipients.includes(ref))
-      ) {
-        return;
-      }
-
-      if (conn.ws.readyState !== WebSocket.OPEN) {
-        return;
-      }
-
-      conn.ws.send(jsonMessage);
+  async publish(signal: SignalPayload) {
+    const { recipients, channel, message } = signal;
+    await this.eventBroker?.publish({
+      topic: 'signals',
+      eventPayload: {
+        recipients,
+        message,
+        channel,
+      },
     });
   }
-
-  private async onEventBrokerEvent(
-    params: EventParams<SignalEventBrokerPayload>,
-  ): Promise<void> {
-    const { eventPayload } = params;
-    if (
-      !eventPayload?.recipients ||
-      !eventPayload.topic ||
-      !eventPayload.message
-    ) {
-      return;
-    }
-
-    await this.publishInternal(
-      eventPayload.recipients,
-      eventPayload.topic,
-      eventPayload.message,
-      true,
-    );
-  }
 }
diff --git a/plugins/signals-node/src/SignalService.ts b/plugins/signals-node/src/SignalService.ts
index 7095c29858..f08a12661f 100644
--- a/plugins/signals-node/src/SignalService.ts
+++ b/plugins/signals-node/src/SignalService.ts
@@ -13,32 +13,12 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
-import { JsonObject } from '@backstage/types';
-import http, { IncomingMessage } from 'http';
-import { Duplex } from 'stream';
-import https from 'https';
-
-/** @public */
-export type SignalServiceUpgradeOptions = {
-  server: https.Server | http.Server;
-  request: IncomingMessage;
-  socket: Duplex;
-  head: Buffer;
-};
+import { SignalPayload } from './types';
 
 /** @public */
 export type SignalService = {
   /**
    * Publishes a message to user refs to specific topic
    */
-  publish(
-    to: string | string[],
-    topic: string,
-    message: JsonObject,
-  ): Promise<void>;
-
-  /**
-   * Handles request upgrade
-   */
-  handleUpgrade(options: SignalServiceUpgradeOptions): Promise<void>;
+  publish(signal: SignalPayload): Promise<void>;
 };
diff --git a/plugins/signals-node/src/lib.ts b/plugins/signals-node/src/lib.ts
index c7e7c4a6ae..095a2f085d 100644
--- a/plugins/signals-node/src/lib.ts
+++ b/plugins/signals-node/src/lib.ts
@@ -14,7 +14,6 @@
  * limitations under the License.
  */
 import {
-  coreServices,
   createServiceFactory,
   createServiceRef,
 } from '@backstage/backend-plugin-api';
@@ -29,12 +28,11 @@ export const signalService = createServiceRef<SignalService>({
     createServiceFactory({
       service,
       deps: {
-        logger: coreServices.logger,
-        identity: coreServices.identity,
-        // TODO: EventBroker
+        // TODO: EventBroker. It is optional for now but it's actually required so waiting for the new backend system
+        //       for the events-backend for this to work.
       },
-      factory({ logger, identity }) {
-        return DefaultSignalService.create({ identity, logger });
+      factory({}) {
+        return DefaultSignalService.create({});
       },
     }),
 });
diff --git a/plugins/signals-node/src/types.ts b/plugins/signals-node/src/types.ts
index 6bfafae0b2..0220a196aa 100644
--- a/plugins/signals-node/src/types.ts
+++ b/plugins/signals-node/src/types.ts
@@ -13,35 +13,19 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
-import { IdentityApi } from '@backstage/plugin-auth-node';
 import { EventBroker } from '@backstage/plugin-events-node';
-import { WebSocket } from 'ws';
 import { JsonObject } from '@backstage/types';
-import { LoggerService } from '@backstage/backend-plugin-api';
 
 /**
  * @public
  */
-export type ServiceOptions = {
+export type SignalServiceOptions = {
   eventBroker?: EventBroker;
-  logger: LoggerService;
-  identity: IdentityApi;
 };
 
 /** @public */
-export type SignalEventBrokerPayload = {
-  recipients?: string[];
-  topic?: string;
-  message?: JsonObject;
-};
-
-/**
- * @internal
- */
-export type SignalConnection = {
-  id: string;
-  user: string;
-  ws: WebSocket;
-  ownershipEntityRefs: string[];
-  subscriptions: Set<string>;
+export type SignalPayload = {
+  recipients: string[] | null;
+  channel: string;
+  message: JsonObject;
 };
diff --git a/plugins/signals-react/README.md b/plugins/signals-react/README.md
index 244a4ec43d..4da9338866 100644
--- a/plugins/signals-react/README.md
+++ b/plugins/signals-react/README.md
@@ -22,10 +22,15 @@ Example of using the hook:
 ```ts
 import { useSignal } from '@backstage/plugin-signals-react';
 
-const { lastSignal } = useSignal('myplugin:topic');
+const { lastSignal } = useSignal('myplugin:channel');
+
+useEffect(() => {
+  console.log(lastSignal);
+}, [lastSignal]);
 ```
 
-Whenever backend publishes new message to the topic `myplugin:topic`, the lastSignal is changed.
+Whenever backend publishes new message to the channel `myplugin:channel`, the `lastSignal` is changed. The `lastSignal`
+is always initiated with null value before any messages are received from the backend.
 
 ## Using API directly
 
@@ -37,7 +42,7 @@ import { signalsApiRef } from '@backstage/plugin-signals-react';
 
 const signals = useApi(signalsApiRef);
 const { unsubscribe } = signals.subscribe(
-  'myplugin:topic',
+  'myplugin:channel',
   (message: JsonObject) => {
     console.log(message);
   },
diff --git a/plugins/signals-react/api-report.md b/plugins/signals-react/api-report.md
index 8ad0c06fbe..2df2e4f1ce 100644
--- a/plugins/signals-react/api-report.md
+++ b/plugins/signals-react/api-report.md
@@ -9,7 +9,7 @@ import { JsonObject } from '@backstage/types';
 // @public (undocumented)
 export type SignalApi = {
   subscribe(
-    topic: string,
+    channel: string,
     onMessage: (message: JsonObject) => void,
   ): {
     unsubscribe: () => void;
@@ -20,7 +20,7 @@ export type SignalApi = {
 export const signalApiRef: ApiRef<SignalApi>;
 
 // @public (undocumented)
-export const useSignal: (topic: string) => {
+export const useSignal: (channel: string) => {
   lastSignal: JsonObject | null;
 };
 
diff --git a/plugins/signals-react/src/api/SignalApi.ts b/plugins/signals-react/src/api/SignalApi.ts
index 09eacafa4d..b37b3ae2f5 100644
--- a/plugins/signals-react/src/api/SignalApi.ts
+++ b/plugins/signals-react/src/api/SignalApi.ts
@@ -24,7 +24,7 @@ export const signalApiRef = createApiRef<SignalApi>({
 /** @public */
 export type SignalApi = {
   subscribe(
-    topic: string,
+    channel: string,
     onMessage: (message: JsonObject) => void,
   ): { unsubscribe: () => void };
 };
diff --git a/plugins/signals-react/src/hooks/useSignal.ts b/plugins/signals-react/src/hooks/useSignal.ts
index 1176769a06..a7d50fbe3b 100644
--- a/plugins/signals-react/src/hooks/useSignal.ts
+++ b/plugins/signals-react/src/hooks/useSignal.ts
@@ -19,7 +19,7 @@ import { JsonObject } from '@backstage/types';
 import { useEffect, useState } from 'react';
 
 /** @public */
-export const useSignal = (topic: string) => {
+export const useSignal = (channel: string) => {
   const apiHolder = useApiHolder();
   // Use apiHolder instead useApi in case signalApi is not available in the
   // backstage instance this is used
@@ -28,7 +28,7 @@ export const useSignal = (topic: string) => {
   useEffect(() => {
     let unsub: null | (() => void) = null;
     if (signals) {
-      const { unsubscribe } = signals.subscribe(topic, (msg: JsonObject) => {
+      const { unsubscribe } = signals.subscribe(channel, (msg: JsonObject) => {
         setLastSignal(msg);
       });
       unsub = unsubscribe;
@@ -38,7 +38,7 @@ export const useSignal = (topic: string) => {
         unsub();
       }
     };
-  }, [signals, topic]);
+  }, [signals, channel]);
 
   return { lastSignal };
 };
diff --git a/plugins/signals/api-report.md b/plugins/signals/api-report.md
index 97c882dda4..398d5fbfe6 100644
--- a/plugins/signals/api-report.md
+++ b/plugins/signals/api-report.md
@@ -24,7 +24,7 @@ export class SignalClient implements SignalApi {
   static readonly DEFAULT_RECONNECT_TIMEOUT_MS: number;
   // (undocumented)
   subscribe(
-    topic: string,
+    channel: string,
     onMessage: (message: JsonObject) => void,
   ): {
     unsubscribe: () => void;
diff --git a/plugins/signals/src/api/SignalClient.ts b/plugins/signals/src/api/SignalClient.ts
index 24a38a49e3..ee4ed8756b 100644
--- a/plugins/signals/src/api/SignalClient.ts
+++ b/plugins/signals/src/api/SignalClient.ts
@@ -19,7 +19,7 @@ import { DiscoveryApi, IdentityApi } from '@backstage/core-plugin-api';
 import { v4 as uuid } from 'uuid';
 
 type Subscription = {
-  topic: string;
+  channel: string;
   callback: (message: JsonObject) => void;
 };
 
@@ -63,20 +63,23 @@ export class SignalClient implements SignalApi {
   ) {}
 
   subscribe(
-    topic: string,
+    channel: string,
     onMessage: (message: JsonObject) => void,
   ): { unsubscribe: () => void } {
     const subscriptionId = uuid();
     const exists = [...this.subscriptions.values()].find(
-      sub => sub.topic === topic,
+      sub => sub.channel === channel,
     );
-    this.subscriptions.set(subscriptionId, { topic, callback: onMessage });
+    this.subscriptions.set(subscriptionId, {
+      channel: channel,
+      callback: onMessage,
+    });
 
     this.connect()
       .then(() => {
-        // Do not subscribe twice to same topic even there is multiple callbacks
+        // Do not subscribe twice to same channel even there is multiple callbacks
         if (!exists) {
-          this.send({ action: 'subscribe', topic });
+          this.send({ action: 'subscribe', channel });
         }
       })
       .catch(() => {
@@ -90,12 +93,12 @@ export class SignalClient implements SignalApi {
       }
       this.subscriptions.delete(subscriptionId);
       const multipleExists = [...this.subscriptions.values()].find(
-        s => s.topic === topic,
+        s => s.channel === channel,
       );
-      // If there are subscriptions still listening to this topic, do not
+      // If there are subscriptions still listening to this channel, do not
       // unsubscribe from the server
       if (!multipleExists) {
-        this.send({ action: 'unsubscribe', topic: sub.topic });
+        this.send({ action: 'unsubscribe', channel: sub.channel });
       }
 
       // If there are no subscriptions, close the connection
@@ -176,9 +179,9 @@ export class SignalClient implements SignalApi {
   private handleMessage(data: MessageEvent) {
     try {
       const json = JSON.parse(data.data) as JsonObject;
-      if (json.topic) {
+      if (json.channel) {
         for (const sub of this.subscriptions.values()) {
-          if (sub.topic === json.topic) {
+          if (sub.channel === json.channel) {
             sub.callback(json.message as JsonObject);
           }
         }
@@ -201,9 +204,9 @@ export class SignalClient implements SignalApi {
       this.ws = null;
       this.connect()
         .then(() => {
-          // Resubscribe to existing topics in case we lost connection
+          // Resubscribe to existing channels in case we lost connection
           for (const sub of this.subscriptions.values()) {
-            this.send({ action: 'subscribe', topic: sub.topic });
+            this.send({ action: 'subscribe', channel: sub.channel });
           }
         })
         .catch(() => {
diff --git a/plugins/signals/src/api/SignalsClient.test.ts b/plugins/signals/src/api/SignalsClient.test.ts
index ec202e2703..2e93cd69f1 100644
--- a/plugins/signals/src/api/SignalsClient.test.ts
+++ b/plugins/signals/src/api/SignalsClient.test.ts
@@ -44,21 +44,21 @@ describe('SignalsClient', () => {
   it('should handle single subscription correctly', async () => {
     const messageMock = jest.fn();
     const client = SignalClient.create({ discoveryApi, identity });
-    const { unsubscribe } = client.subscribe('topic', messageMock);
+    const { unsubscribe } = client.subscribe('channel', messageMock);
     await server.connected;
 
     await expect(server).toReceiveMessage({
       action: 'subscribe',
-      topic: 'topic',
+      channel: 'channel',
     });
-    server.send({ topic: 'topic', message: { hello: 'world' } });
+    server.send({ channel: 'channel', message: { hello: 'world' } });
     expect(messageMock).toHaveBeenCalledWith({ hello: 'world' });
 
     await unsubscribe();
 
     await expect(server).toReceiveMessage({
       action: 'unsubscribe',
-      topic: 'topic',
+      channel: 'channel',
     });
   });
 
@@ -68,11 +68,11 @@ describe('SignalsClient', () => {
     const client1 = SignalClient.create({ discoveryApi, identity });
     const client2 = SignalClient.create({ discoveryApi, identity });
     const { unsubscribe: unsubscribe1 } = client1.subscribe(
-      'topic',
+      'channel',
       messageMock1,
     );
     const { unsubscribe: unsubscribe2 } = client2.subscribe(
-      'topic',
+      'channel',
       messageMock2,
     );
 
@@ -80,22 +80,22 @@ describe('SignalsClient', () => {
 
     await expect(server).toReceiveMessage({
       action: 'subscribe',
-      topic: 'topic',
+      channel: 'channel',
     });
-    server.send({ topic: 'topic', message: { hello: 'world' } });
+    server.send({ channel: 'channel', message: { hello: 'world' } });
     expect(messageMock1).toHaveBeenCalledWith({ hello: 'world' });
     expect(messageMock2).toHaveBeenCalledWith({ hello: 'world' });
 
     await unsubscribe1();
     await expect(server).not.toReceiveMessage({
       action: 'unsubscribe',
-      topic: 'topic',
+      channel: 'channel',
     });
 
     await unsubscribe2();
     await expect(server).toReceiveMessage({
       action: 'unsubscribe',
-      topic: 'topic',
+      channel: 'channel',
     });
   });
 
@@ -108,11 +108,11 @@ describe('SignalsClient', () => {
       connectTimeout: 100,
     });
 
-    client.subscribe('topic', messageMock);
+    client.subscribe('channel', messageMock);
     await server.connected;
     await expect(server).toReceiveMessage({
       action: 'subscribe',
-      topic: 'topic',
+      channel: 'channel',
     });
 
     await server.server.emit('error', null);
@@ -120,7 +120,7 @@ describe('SignalsClient', () => {
     await new Promise(r => setTimeout(r, 50));
     await expect(server).toReceiveMessage({
       action: 'subscribe',
-      topic: 'topic',
+      channel: 'channel',
     });
   });
 });