VoIP Blog - Tehrani.com

November 10, 2007

It is obvious to me the cable companies are getting the short end of the FCC stick. In fact I am not sure the FCC will be giving any sort of stick to the cable companies this Christmas. Even the lump of coal Time Warner Cable, Cablevision and Comcast were expecting may not be in the stocking – don’t they know how bad coal is for the environment?

The cable companies are in deep trouble because FCC Chairman Kevin Martin has decided to regulate cable and in so doing ensure there is more competition. They will for example make sure access to spare channels by other content providers is done at a reasonable cost.

 

There is an arcane law on the books called the 70/70 rule which is being used as the basis for the FCC to get involved in regulating this market.

 

The rule says that if 70% of households in the US have cable access and 70% of those that do use cable, the agency can step in and regulate it.

 

This is great for consumers in my opinion but is also coming at a time which is incomprehensible to me.

 

If you want true cable competition, it seems to make more sense to ensure network neutrality is enforced. If this is done then any broadcaster from around the world can compete with the cable companies.

 

Getting involved in the nitty gritty of broadcasting and programming makes almost no sense, is counterproductive and a waste of taxpayers money. The better decision may be to just open up the pipes so that any company can provide programming at maximum speed.

 

I respectfully ask Chairman Martin to consider ensuring Network Neutrality on all broadband connections as a way to ensure the cable companies (or any other companies for that matter) do not get too powerful.

November 10, 2007

Apparently today is “Write about Google” day as I thought it worth sharing that the company is facing a patent infringement lawsuit due to the database technology the company employs. Who is suing you wonder? Northeastern University and a start-up company cofounded by an associate professor.

 

According to an article on boston.com, "This particular patent has to do with the fundamental database architecture, which they use to serve up every single result they serve to you," said Michael Belanger, president of Jarg Corp. in Waltham. Jarg is a privately funded developer of advanced search technology. The company was cofounded by Northeastern associate professor Kenneth P. Baclawski and holds an exclusive license to the patent, which is owned by Northeastern.

The patent covers a method for chopping up database queries into multiple portions and having each part processed by a different computer. This allows for much faster searching of huge databases, like Google's vast index of Web pages on the Internet.

 

Lawsuits get filed every day and I am sure Google is a target of more than its fair share due to its deep pockets. Whether this lawsuit has more merit than others will be decided soon enough by the courts.

November 10, 2007

Recent news that Sprint is not going to work with Clearwire to build out a WiMAX network only added to the rumors I have been hearing about Google acquiring Sprint Nextel. On the surface it seems like this would be a bad move for Google but in reality the world’s leading search engine has become so much more than just a website to go to when you want to find a trinket of information… The company now needs a wireless network to allow it to grow in the mobile search and related spaces such as watching YouTube videos on the subway.

 

Let’s look at Google from a philosophical level. The company has built almost everything from scratch in its past and present. Computers, operating system, web server software and more. Google likes to have complete control. In a way this is not unlike Apple.

 

So one wonders if the mobile search market is so crucial to the company’s future, can it rely solely on the Open Handset Alliance to get into the mobile search market?

 

Look at it this way... When Google decided it was serious about the video space it launched a new tab titled video on its home page. At a certain point the company realized YouTube was too strong a competitor and Google threw in the towel and purchased the video competitor.

 

So one wonders if history may indeed repeat itself and Google will start with the OHA and decide soon they need an acquisition to boost their presence in the space.

 

Of course one problem with a Sprint Nextel purchase is that the company’s network isn’t GSM-based meaning devices will have to have multiple radios to be used around the world. But this is a minor problem; let’s look at the more serious issues such a transaction would pose.

 

1)      Google gets into the messy business of telecommunications. I don’t mean to say Google’s day job is easy but the telecom market gets it involved with government agencies like the FCC on a more regular basis. Like many other large telcos the company will have to spend more and more money lobbying and technology differentiation may be less important than government regulations in ensuring future success.

2)      Getting seriously into the telco business and having a corporate motto “Don’t be Evil,” may be tough to pull off.

3)      Retail stores. Google’s investors love the fact that Google has a massively scaleable business model which can grow with the addition of servers. Imagine if Google had a slew of retail stores to deal with around the country (or world?). Google’s valuation would likely take a major hit.

4)      Open Handset Alliance: One would imagine if Google owns its own network, other network operators would not be too happy to be part of the OHA. This could slow progress for Google getting on the handsets of other wireless service providers.

5)      A purchase of Sprint Nextel would make Verizon and AT&T go crazy and they would make life even more difficult for the search leader. Could they make life any more difficult than they do today? Maybe.

 

But for a company that craves control as much as Google there may still be a way to acquire Sprint without destroying their relationship with other providers.

 

You see, Google doesn’t really need the messy wireless phone business. What they really need is platforms which will allow them to display ads embedded in their services such as maps, videos, etc.

 

Google could buy Sprint Nextel and in a complicated maneuver spin it back out as a different company (perhaps a nonprofit) which agrees to work more closely with Google to display ads and distribute its applications. This would allow Google to stay somewhat independent and work with other service providers worldwide.

 

Another more drastic move would be to buy the beleaguered wireless phone company and start giving all service away for free. In addition the company could reinitiate the ClearWire talks and work with this company and others to blanket the world with a free (or at least ad-subsidized) WiMax network.

 

This sort of move is logical from a local search perspective. Imagine Google being able to light up your phone with information relative to where you happen to be. Think about the phone as a virtual tour guide. When you get a phone call from someone, the phone could pull up a MySpace or orkut page before the phone even rings. If the caller ID is blocked when receiving a call, you could see the results of a web search of the phone number as the phone rings. When you are walking past a coffee shop a coupon for 10% off any drink with a European sounding name could be displayed on your phone.

 

It gets better… McDonalds could flash ads for $2-off any meal with more than 1,000 calories in total. Of course I am kind of kidding about this last point but we should all realize the web is beginning to have more of our preferences stored in it somewhere and Google could indeed ferret out our likes and dislikes and match them up with ads from relevant companies in a way we never thought imaginable.

 

I for one would be very excited to see what a Google phone might look like five years from now. Sure Apple is the reigning king of design but Google is the same in the world of information organization. I do wish someone would cross the chasm between my desires and my surroundings. I think Google with a cell phone provider under its wing can be the company to pull this off.

 

So do I think Google will make such an acquisition? Maybe. If the search leader is going to bid on wireless spectrum it may make more sense to just buy a service provider and rapidly accelerate their mobile initiatives. If they were to make this purchase, I would see them rapidly rolling out free service or at least heavily-subsidized service and making life extremely difficult for the likes of AT&T and Verizon Wireless.

November 10, 2007

Oftentimes companies in the communications space ask me how they are doing compared to their competition in the areas of marketing and PR. They generally do this by asking me to take surveys about their company’s standing in the market. In addition, I often get calls from organizations on Wall Street asking about specific companies. These analysts typically want to know if target companies are worth investing in, etc.

 

While I am not a financial analyst myself I feel I am in a pretty good position to discuss a communications and or technology company’s standing in a market. Sometimes I even offer up my advice when it isn’t asked for. Recently I told a company they weren’t well known in the communications space and they subsequently disagreed.

 

I started to think about this situation as it doesn’t make logical sense to me. After all, a company should know if it is well-known or not, right?

 

So I figured it made sense to highlight a company that has gained immense PR and marketing traction in the past year so others can see what I consider to be a successful branding campaign coupled with successful execution. This particular organization plays in the SMB space and is called Allworx. The company has done some smart things to stay ahead of the competition and you can apply their successful techniques to any market you like… Not just communications or technology.

 

The company has literally caught fire in the market these past months. Their name is everywhere and their team seems to be omnipresent. For example I heard a company representative at the latest IP Sizzles event in Dallas speak about just how well things are going. In addition the resellers at the show seemed to be very enthusiastic about the Rochester, NY-based PBX company’s products.

 

On top of that the company is proactive in seeking press. They are smart and aggressive. They know to set up meetings with journalists and analysts at every communications event they can. While this may seem like common sense, most companies in the communications space do not do this.

 

They also blanket the market with positive PR. They are active... Very active. They put out announcement after announcement and the press can hardly keep up with it all.

 

In addition their entire team overflows with passion and enthusiasm.

 

Last month, Erik Linask, the Associate Editor of Internet Telephony Magazine had this to say in an article about the company, “Everything coming out of Allworx lately has been positive — it’s partnerships, the growth if its channel, enhancements to its product line, all point to a successful operation.”

 

In the same article Linask mentions the company was purchased for 25 million dollars (details) but in my mind they exude the PR and marketing of a company more than twenty times larger.

 

So in the future, rather than criticize any company for being unknown, I am thinking of not answering anymore of those surveys that come across my inbox and instead just start referring companies to Allworx. If you are doing all the things Allworx is then you are doing your job and the press and lots of potential buyers know about you.

 

If not, you have room for improvement.

 

Here just a few of the recent articles about the company. They seem to always be in the news:

 

November 10, 2007