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We are in the midst of a violent transformation of our communications networks which involves an immense amount of control being wrestled away from carriers and given to developers and end-users. Visit the iTunes App store or check out what is happening with free turn-by-turn GPS on an Android 2.0 device to get an idea of what I mean. The trend is not new by any means; the first time communications systems were allowed to interoperate with computer systems was in the eighties when the first Rockwell Automatic Call Distribution (ACD) systems started to communicate with IBM mainframes to give us CTI or computer telephony integration. This allowed screen pops which dipped into CRM databases allowing contact center agents to know who was calling and more than likely why. Moore's Law coupled with telephony hooks like TAPI and TSAPI from Microsoft and Novell respectively meant this capability went from costing around a million dollars to tens of thousands of a dollars just a decade later.

Enterprise communications systems have continued to open up and hosted IVR systems, application generators and APIs for DSP resource boards from companies like Dialogic and Aculab allowed greater and greater telephony transformation allowing migration from fixed-function communications systems to more open software-controlled components which could be mixed and matched in a best-of-breed fashion.

The Internet accelerated this trend with its ability to allow cloud-based solutions to be easily accessed and mashups has been a great catalyst - allowing complex data to be represented in new and more interesting ways. Today we can combine the power which we were given by companies like Dialogic and marry them with the cloud and this means anyone can now develop sophisticated applications which leverage all internet and corporate data.

And when you combine open APIs, mashups, communications and social networking in a well thought-out and integrated fashion you are able to provide levels of productivity and customer service heretofore not possible. Any corporate or government process which has friction due to communications delays between people can be lubricated by the effective use of communications technology as it intersects with APIs and rich information sets which can live anywhere.

Perhaps the most respected name in the business of voice mashups is Thomas Howe, CEO, Light and Electric. If you want to know the past, present and future of communications - especially as it pertains to the cloud, you want to speak with Thomas and get his thoughts. If you are a carrier, large enterprise, integrator or government organization, you need to pick his brain to position your organization to take advantage of the ongoing evolution of communications.

Thomas and I have spoken over the past years about how TMC would love to partner to bring his visionary thoughts (all the good stuff locked up in his grey matter) to our audience of millions of global communications and technology decision-makers.

I am happy to announce that at the next ITEXPO which takes place January 20-22, 2010 in Miami, FL you will get a chance to come and hear Thomas speak. In addition you will soon be able to benefit from webinars and screencasts which our companies will jointly participate in.

I hope to see you at the show and as always, at TMC we are looking to provide you with the absolute best information on communications and technology - allowing you to quickly learn whatever you need to further your career and meet your organization's evolving needs.

• See how British Telecom is ahead of the curve as it relates to this transformation and bought Ribbit for over $100 million to make it so.
• Here is a past podcast I had with Thomas Howe for more on his ideas.

The pace of tech acquisitions is not slowing and one area worth watching is the testing market where Ixia has recently picked up Catapult Communications to further its wireless IP performance testing strategy - especially as the company positions itself to be a leader in the LTE space. In a meeting in Ixia headquarters in southern California the company explained to me that they continue to focus on a broad range of testing areas such as Ethernet, 40/100 Gb Ethernet, devices, fiber channel, storage area networks and virtualization. And don't forget about some of the other areas the company plays in such as voice, video and data.

One area discussed by Kelly is the fact that this acquisition allows Agilent's customers to purchase a suite of complimentary testing equipment and moreover, through this move - Ixia becomes a far more international company and furthermore has a much larger focus on the carrier space. Also, Ixia Fusion allows customers to use open APIs to access Agilent and Ixia testing solutions. This by the way is pretty similar to how Oracle is integrating many of the companies it acquires - they also call their middleware Fusion.

Warning - a bit of self-promotion ahead   and a discount - Guest Blog From Carl Ford

Dear Reader,

Welcome to the next generation of regulation- the one that will be focused on the Wireless device in your hands!

The FCC, in an effort to safeguard the free and open Internet, is looking to formalize and define the principles of network openness that would apply to all platforms that access the Internet as well as the carrier's role in enabling that access.

So now the question is "Can the concept of open be governed?" Does the FCC have a role in Apple's iPhone, even if AT&T is simply a transport partner?  Does Google have to consider itself a carrier because of the use of a phone number? 

Join us at 4GWE, January 20-22, 2010 as we discuss the very relevant topic of the next generation of net neutrality and the FCC's role in the companies, devices, networks and applications driving the 4G Evolution.

Todd Daubert of Kelley Drye, Rick Whitt of Google, Hank Hultquist of AT&T, and Glenn Richards, of Pillsbury Law join us as we discuss where the debate about Net Neutrality should end and what strategies companies should take to monetize 4G networks, applications and devices.

Register NOW For Early Bird Pricing

Don't miss this and other important discussions related to the communication industry's massive evolution to wireless broadband services. Register now for 4GWE and receive the price of $995 for a full three days of conference sessions, all meals and networking events.

Kind Regards,

Carl Ford

Co-Founder Crossfire Media

4G Wireless Evolution Community Developer

In January of this year I asked if Eric Schmidt is cozying up to President Obama to protect a Google Monopoly. I took some flak for the post but the reality is the reality - the company seems to be taking over every facet of tech from book readers to voice to video to unified communications to cloud computing to photo sharing to video serving to office applications. Should I go on? How about turn-by-turn GPS?

OK, I'll stop but that won't stop others like the Chicago Tribune from picking up where I left off and asking serious questions such as whether Google's ability to use its revenue from its monopoly position in search to wipe away competition in other industries is fair or not.

Recently I commented about how Verizon's doubling of its early termination fee to $350 makes sense as the company needs to keep investing in ensuring its network is the best in the US. I may be the only person who appreciates having a fee go up as evidenced by the noise from journalists which is not subsiding. One of my favorite writers and video producers, David Pogue of The New York Times comments today that Verizon is gouging and has a plethora of ideas the company can implement to save consumers money.

Pogue has the following and very interesting comment to share:

Why wouldn't it be a hugely profitable move to start pitching yourself as the GOOD cell company, the one that actually LIKES its customers?

Verizon has some of the best customer service in the country. It has the best network by far. Everyone seems to want to switch to Verizon if they were to carry the iPhone for example. This is because the company has made absolutely massive investments where the competition has cut corners on a relative basis.

So perhaps the most succinct question to pose is what is the cost of being on the best network, having the fastest data download speeds and the least dropped calls? For many, there is no price tag too high to pay for these features and parting with an additional $5/month for phantom data charges and even more for high termination fees is fair.

I look at Verizon Wireless like I look at BMW. Both tout relatively low prices to start. But if you purchase a 328i, metallic paint will cost you $550. Cruise control costs $2,400! Navigation (which Google now gives away) is $2,100, and 19" wheels will cost you over $5,000!

If you think BMWs make some of the best cars around, you hold your nose and pay. Ditto for Verizon Wireless.

Verizon has always been the most restrictive carrier around and they locked down Bluetooth on their devices for many years except for pairing with a headset. Likewise, GPS has been locked down on most devices unless you purchased VZ Navigator for a minimum of $9.99/month or $2.99/day.

But as a customer, these annoyances and high fees were balanced by consistent spending of billions of dollars on wireless and now fiber networks.

Users should keep in mind they can always switch to AT&T, T-Mobile or Sprint if they think Verizon Wireless service isn't worth the extra money.

In fact the massive defection away from Sprint shows consumers consider more than price when it comes to making phone/network purchase decisions. In fact, I would say from a pricing perspective, Sprint may be the most customer friendly company around. I would posit that if AT&T Mobility didn't have the iPhone, consumers would be fleeing from them as well.

The iPhone threw Verizon for a loop and as predicted it is getting clobbered because it did not have the foresight to work with Apple when it had the chance.

So now, the enemy of its enemy is Google and Verizon is allowing a number of new Android phones on its network. They will get a cut of ad revenue by doing this but they are giving up virtually all services which they used to be able to charge for. Google just gave away turn-by-turn GPS for example meaning Verizon can no longer charge $10/month for the same service.

Moreover, Google will roll out dozens of new services which will be ad supported. Verizon will not be able to launch competing services as we all know a carrier can't compete with a software company.

In a moment, Verizon went from being the most closed network in the US to perhaps the most open and there is a cost associated with this move. Again, this is all pro-consumer behavior.

In fact, it seems at this point Verizon has leapfrogged AT&T in terms of openness. Especially when you consider the restrictive policing of the App Store by Apple/AT&T. Anyone who has seen the rich applications and joyous battery-sucking multitasking available on a jailbroken iPhone understands how users are being penalized by Big Brother Apple/AT&T.

So the full question to those upset with Verizon's fees should be, would you pay more for the best network and the most open ecosystem where you can take advantage of the best applications and service values around without the worry of a nanny telling you what you can and can't do?

The author switched from Verizon to AT&T because he wanted an iPhone. For about a year he carried around a Verizon phone for voice and an AT&T phone for data but that proved cumbersome and now he experiences dropped calls and other network snafus which he didn't deal with on Verizon Wireless. He not so secretly despises the App Store Nanny.

TMC's latest gadget blog Gadget Inspector (get it?) kicks off with author Marisa Torrieri performing a video interview with a Verizon Wireless representative comparing the latest Droid phones - the Motorola Droid and the HTC Droid Eris. You can subscribe to her XML/RSS feed to stay up to date on the latest in the world of gadgets and consumer electronics.
 

HP is acquiring 3Com for $2.7 billion and there are a number of reasons for this move. First of all, it is obvious the tech market is hot and Cisco and other companies are optimistic about the future as evidenced by the pace of tech acquisitions which is reaching the pace of the glory dotcom days. Moreover, large companies with strong balance sheets are able to access capital if they need it, allowing them to more easily acquire.

3Com for its part is a company with a broad range of networking gear which HP needs to go head-to-head with Cisco. Specifically, 3Com focuses on the SMB space while the TippingPoint division focuses on Security and H3C focuses on large enterprise and is very strong in Asia. I was at 3Com's headquarters about five weeks ago and spoke with Anna Dorcey and John Vincenzo who were very high on the company's future.

You may not know this but 3Com has about 35% marketshare in China and a strong manufacturing base there, meaning their costs are low. Their go to market strategy is customer focus and value. 3Com has been a networking and communications value player for years but at the beginning of the decade, the company left enterprises hanging with a shifting strategy which enraged many resellers and customers.

Over the last few years, the company has improved its management and it seems unclear as why now was the time to sell. Perhaps HP gave an offer which was too good to refuse? Or perhaps company execs realize with the HP brand behind them, the company can raise prices and compete with Cisco and have fatter margins.

The worst part of this deal for Cisco is that we can expect the EDS division of HP to really push 3Com products at the expense of Cisco.

Also, if you are playing chess, you would imagine Dell and IBM are picking up the phone and having conference calls about purchasing Adtran and or Brocade as they are similar in product-line to Cisco and 3Com. Remember Dell just picked up a systems integration firm Perot Systems and the next step for them would be to add more products to their mix.

Other targets with substantial integration value worth watching are Plantronics, Polycom and Avaya.

While I am in the predicting mood, expect Cisco to pick up wireless backhaul vendor DragonWave or Ceragon in the near future as they build out their wireless networking strategy focused on wireless carriers.

But in the end, there are only a handful of tech companies who have shown they can acquire well. Oracle is best, Cisco is second best and IBM is good. HP is also doing pretty well in their area. It is early to predict how Dell will fare.

I am frankly surprised at the absolute pace of M&A activity but I should point out that this is great news for tech and telecom as it is a signal that companies feel confident about the future of the market and the growth in spending they anticipate in the future.

If you are interested in the Skype/Joost/eBay soap opera of recent months, be sure to check out this article from Brad Reese which shows a chain of emails between Mike Volpi and a number of other execs involved in the Skype deals as of late. You rarely if ever get a look at these sorts of communications and for that reason alone this piece is worth looking at.

First it was free WiFi on Virgin America courtesy of Google... Now it seems there is a mad rush to give WiFi away in lots of places such as airports and even Times Square. It seemed to first start with Mountain View, California - Google's hometown, where the search giant hung radios to "light up" the city with wireless internet. Then of course it was Virgin America and more recently, Google will be giving away WiFi at 47 airports for the holidays. Some of the larger airports included are Houston, Las Vegas, Miami, San Jose (no surprise), San Diego and Orlando. Sadly there are no New York airports on the list.

Not to be outdone, Yahoo! has announced that as of today it will provide free WiFi throughout Times Square for the holidays.

The trend is clear... Internet advertising giants are looking to extend their reach and they realize that the next frontier for growth is the mobile web. The best way to reach mobile web users of course is by providing something users really want. And free wireless broadband is likely at the top of the list.

For the record, Google Guide is not a product or service developed by Google. To learn what I believe this service can become, please keep reading.

I spent some time with the new Motorola Droid this weekend and I interviewed customers and employees of the store and came away fairly impressed with what I heard and saw. Certainly my outing at the Verizon store was better than my recent experience checking out the Blackberry Storm 2. The Droid is about the same size and weight of an iPhone but has a full keyboard which slides out from the side of the device. Typing on it was a satisfying experience and although some have complained it is thin and does not provide adequate tactile response, I believe the compromise between size and feedback to be good.

In terms of device speed, the iPhone 3G S and the Droid render web pages about exactly as fast as one another. I tested both using the native 3G networks each device utilizes by browsing numerous Global Online Communities on TMCnet and other websites which are graphically rich. Although the Droid boasts double the number of pixels as the iPhone, in typical web browsing it is difficult if not impossible to see the difference. Perhaps a photo editing program or advanced game would be better able to take advantage of these pixels.

The benefits of Motorola's Droid over the iPhone are that it allows for multitasking, has free turn-by-turn navigation, a full keyboard, has tight integration with Google services and works on the Verizon Wireless network. The downside to the device is it still not as slick or as charming as the iPhone and doesn't sync with iTunes. Its software is more Microsoft-like than Apple. I did however notice that each Android update seems to imitate the iPhone more closely and aside from software patent issues, it seems Google knows it needs to basically duplicate the iPhone experience to make the phone as desirable as Apple's device.

The challenge for Google is the ecosystem issue and whether it can get developers (currently Android has one tenth the number of applications - meaning 10,000 to Apple's 100,000) to take its products seriously enough to program for them. Verizon Wireless staff members told me sales for this device were strong and prospective customers I spoke with seemed very happy. Ironically, I walked to the nearby Apple store and saw less people there than at any time in the past few years. I asked a salesperson if this was normal and he said no, it is light. Certainly my mall visit does not make a trend but nonetheless it is ironic to see light traffic at the Apple store on the day Droids are selling briskly.

Another Android phone came out this past Friday as well, the HTC Droid Eris and it is a pure touchscreen device (no keyboard) with hardware which is inferior to the Motorola device. Sales of this phone were slower than that of its more powerful sibling I was told.

A number of people in the telecom industry who played with the Motorola Droid these past few days told me they weren't so impressed with the device and from a UI perspective this is understandable. The challenge for Google now is to rapidly improve this phone to the point where it is enjoyable to use. Yes, you read that right. People like to pick up the iPhone and they expect to like the way phones work. Even though the Droid hardware is not as slick as the iPhone, we can forgive this transgression because at least it gets the Verizon network. Users however won't forgive a substandard UI and poor hardware. If this thing is supposed to kill the iPhone, it needs to get users to say "wow" when they pick it up. Until I start hearing "wows" I am not declaring it an iPhone killer by any means.

But let's not leave it there as Google has done a masterful job of changing the rules of the game by giving away turn-by-turn GPS and other services such as Gmail. You see, Google is a machine of doling out free services which customers once had to pay for. We can expect Google to compete viciously by providing free service after service which is optimized for mobile devices. Unified communications, Google Wave, Google Voice, etc. The company is uniquely positioned in fact to provide you with a service which uses your browsing habits to determine your local interests. Meaning if you often search for the phone number of a local sushi restaurant, Google can use that information to let you know when you are near other sushi restaurants in unfamiliar areas. Let's call this forthcoming service which for now is imaginary, Google Guide.

Is this a service which may make users switch cell phones? Perhaps, but not immediately. In the mean time, Google will devote its significant resources to filling application holes with its own services in the hopes of developing killer apps which can't easily be duplicated on the iPhone or anywhere else.