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Communications News March 7, 2008

March 7, 2008

My editorial team has selected the following stories as some of the most important ones of the week. Hopefully some or all of these news items will be useful to my readers.

Some of my favorite ones are how green Sony-Ericsson is, new patents for i2 Telecom and 8x8/Packet8, RingCentral's $12 million funding and Broadvox and The Amanda Company partnering.





Hunter Newby Leaves Telx

March 7, 2008

For those of you who know Hunter Newby, you are aware is one of the more knowledgeable people in our industry. Hunter is especially well-versed in areas like net neutrality, fiber deployment and not surprisingly carrier hotels.

I know many of the customers of Telx and they tell me frequently that Hunter is the main reason they enjoyed (and even started) working with the company.

Over time of course the various Telx facilities in New York, Atlanta and other areas grew not just because of the personality of the Telx team but because they offered carrier hotel space where the majority of providers were located.

As Hunter has said in the past... Carrier hotels with access to massive amounts of fiber are like waterfront property.

Hunter recently informed me he will no longer be at Telx and soon in fact he will be starting a new venture. Here is an excerpt of a letter I received last night:

Ten years is a long time to be with one company in this industry.










Fred Goldstein on Net Neutrality

March 6, 2008

Just when you thought you knew everything you need to know about the net neutrality debate and the controversy involving the FCC, Comcast and BitTorrent... There is more. A fantastic article from Fred Goldstein of ionary Consulting sums up what you need to know.

Here is an excerpt:

This sounds like a motherhood-and-apple-pie kind of debate. Who wants their ISP to tell them what they can and cannot do?




AT&T's Bullish Investment

March 5, 2008


AT&T is making a major telecom investment in many areas of its business. The telecom giant cites the explosion of high-speed networks, data consuming devices and the move to IP as the reason for this investment.

The money is being spent to become a larger global player as well as a big provider of utility computing services.

Where will the company be spending money?

  • Subsea Fiber: Expect the company to expand capacity to area of the world experiencing economic growth such as Asia and the Middle East.
  • MPLS Routers: The company will add a number of these throughout the world in order to ensure there is proper capacity in areas of rapid business growth.
  • Metro Ethernet: The company will invest in a manner which allows it to have such services available in 39 countries.
  • DSL: Investments will allow AT&T to provide this service in 21 countries.
  • Data Center Increase: AT&T will add 180,000 square feet of global capacity by mid 2009 throughout its 28 data centers.
  • Unified Communications: Integrating and developing recently acquired Interwise - a web conferencing company into AT&T's network.
  • Expanding Audio Conferencing: Expect IP-based conferencing in more than 140 countries with native language support.

Here is my analysis of this news:

As AT&T gets more involved in the utility computing market, I expect them to butt heads with Sun, Amazon and Google. Google is a past foe - Amazon and Sun are new ones.

While a year ago the cable companies were eating the lunch of AT&T and Verizon, there has been a rapid about-face in the market which has been fueled by the wireless arms of both LECS, IPTV and well as international expansion.

I believe the cable companies will have to do something soon to be able to compete effectively in emerging markets.

In all, this news is fantastic for the telecom market as AT&T is spending 33 percent more than last year and double what they spent in 2006.

It will be great to see these investments allow AT&T to can overseas and whether it can compete effectively against other utility computing players in the market.

















TMCnet's New Vertical Communities

March 4, 2008

Over the past decade, TMCnet has become the accepted resource for news, product research and analysis in communications and technology markets - including telecom, VoIP, and contact centers. Moreover, the site has become the defacto location online where companies build loyal communities of interest on a variety of topics. Since 2004, TMCnet has built close to one hundred and fifty communities of various sizes (current communities, channels/microcommunities) for our partners.

These communities have proven time and again to be one of the most successful products TMC has ever launched in conjunction with our advertisers and sponsors. With an astronomical renewal rate of 70% year-over-year, TMCnet communities drive tremendous traffic to our partner's Web sites and help them achieve higher levels of search prominence.In fact, we receive numerous testimonials from companies whose TMCnet communities actually attract more visitors than their own Web sites.

Siemens Business Communications to be Sold

March 4, 2008

Siemens has put its Enterprise Communications division up for sale and it seems potential acquirers are Alcatel-Lucent, Nortel Networks and hedge fund Cerberus Capital Management.

Alcatel-Lucent would be an interesting partner as Lucent spun off its enterprise division into Avaya about seven years ago and as I have said repeatedly, having an enterprise division allows a company to offset weak service provider sales and vice versa. The Siemens customer base would be a nice addition to the former Alcatel enterprise communications division and in theory this purchase would allow the Paris/New Jersey-based company to have a broader spectrum of customers to help contribute to its revenue.

Nortel Networks has been committed to the enterprise as well as service provider markets. Nortel is a strong technology company and so is Siemens. Both companies were early to work closely with Microsoft.



TMCnet Services

March 3, 2008

Building IMS Applications

March 1, 2008

Bain and Huawei Resubmit Bid

February 29, 2008

Bain and Huawei are changing their bid for 3COM in a manner that does not change the financial elements of the deal but it minimizes Huawei's access to certain Ethernet technologies.

Last week, the parties pulled their application with the Committee on Foreign Investment in the U.S., or CFIUS, a 12-agency government panel amid concerns it would be rejected. A number of members of Congress had expressed concern about the security implications of allowing a Chinese-owned entity to exercise influence over the technology company.

If this transaction does go through, I believe it will increase the number of Chinese companies investing in US-based companies.

This may lead to more consolidation in the market but just as important, it is possible the Chinese will have the deep pockets needed to help grow a number of US-based technology companies at a time when capital may be more difficult to come by.

More from the AP and Wall Street Journal







David Yedwab Live on TMCnet

February 29, 2008

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