Be sure to check out one of TMC's latest blogs -- Cable Content Connection written by Dave Rodriguez -- TMC VP of conferences and publications. One of Dave's entries which caught my eye was titled McCain gets better rating then the Oscars and Obama?. If you are into election primary ratings it is worth a read.



Here are some of Dave's other recent posts:

• Fox News draws 9 million viewers for Sarah Palin speech on Wednesday night
• Is TNT working on a spinoff of their hit show The Closer?
• HDNet signs agreement with Comcast
• Elections 08 on Demand Channel Available in 32 Million Homes
• Cable Rating Roundup for Week Ending August 31, 2008
• Does ESPN2 Have a Late Night Show in the Works?
• Barrack Obama scheduled to appear on the O'Reilly Factor
• Lifetime Networks Names a New Programming Chief
• The Drama at MSNBC is the Best Entertainment on Television
• Bochco's New TNT Show is a Hit.
• Cable Content in the Cloud
• Cable Ratings Breakdown for Week Ending August 24, 2008
• Dave's Remote Roundup for August 26
• SEC Strikes 15 Year deal with ESPN
• Big Ten Network and Time Warner Come to Terms
• Dave's Remote Roundup for August 21, 2008
• Did you ever wonder how Cable TV Works?
• ESPN to Broadcast the Olympics in 2016???
• Satellite versus Cable
• Latest Earnings Report Shows VoIP and ISP Marketshare Growth for Comcast
• Burn Notice & In Plain Sight Drive Summer TV Viewing
• WiFi on Delta Flights? Might be time for me to change airlines

Here is a link to the full TMC blog page as well so you can keep up with them all.

Whenever I go to a conference, I learn a tremendous amount from the people I meet at the show. I really enjoy the impromptu networking which takes place at events as it allows me to learn so much about what is happening in the market. Ironically, I generally learn things I didn't think I would learn ahead of time. Quite often, I wish I would have known more about peoples' experiences before I met with them as it would allow me to be better prepared to ask pertinent questions.

I further wish I knew who was coming to events and and moreover I wish I could get a "brain dump" from them before the event so I could have a frame of reference before our conversations take place.

Imagine how much better networking at a show would be if I had an idea what people were generally thinking about the market before I even say hello.

In less than two weeks the world with gather at ITEXPO -- The World's Communications Conference to help select products for purchase, learn about the latest events in the telecom market and network with peers.

It is this last area where this blog entry should be of maximal benefit. You see, over the past month or so I have been interviewing the telecom movers and shakers who will be coming to ITEXPO. I certainly didn't interview every mover and shaker (exactly what is a telecom shaker anyway  ;)  ) but this list should give you a good idea who some of the speakers and exhibitors will be at this year's show.

The questions each person answered below may be slightly varied but what is common is the person's thoughts on their markets and where they think things may be going. I truly hope you find these interviews useful and I hope to see you at the show September 16-18, 2008 at the Los Angeles Convention Center.

NAME	COMPANY
Don Palmer	Sip Print
Jim Beuoy	OKS
Mark Stacy	Touchstone
John Nam	Phonevite
Jim Beuoy	OKS
Barry Sher	IVR Technologies
Ari Raban	Phone.com
John Doyle	CommuniGate Systems
David Mandelstam	Sangoma
Sharone Ben Levi	AudioCodes
Rupesh Chokshi	AT&T
Jeff Gallino	Callminer
Dr. David K. Schrader	Teradata
Mark Ricca	Intellicom Analytics
Xuedong Huang (XD)	Microsoft
Rick Dell	Mitel
Mark Lepko	Altitude Software North America
Liz Amaral	Enkata
Francis Carden	OpenSpan
Kevin Murphy	NEI
Chris Gravett	Aculab
Brian Schwarz	RedSky Technologies, Inc.
John Konczal	Sterling Commerce
Stefan Winkler	Symmetricom
Eric Thomas	FreedomVoice
Albert Chu	ACCESS Systems
Bill Miller	Digium
Randy Busch	Jazinga
Jeff Hicks	NetQos
Scott Charter	WBS Connect
Jim Slaby	Acme Packet
Dean Jordan	Telesphere
Justin McLain	Endeavor Telecom
Asif Rehman	Mitel
Steve Safley	VoIPConsultants
Frank Paterno	Intelliverse
Warren Sonnen	Epygi Technologies
Jim Jenkins	IQ Services
Jonathan Christensen	Skype
Mark De Clerq	Sitel Semiconductor
Ken Kuenzel	Covergence
Chris Lyman	Fonality
Michael Hermann	Cincinnati bell
Brough Turner	NMS
Shelley Veazie	CTI Group
Abdul Kasim	Critical Links
Eran Gal	Xorcom
Robert Messer	ABP
Todd Woodstra	SpinVox
Mike Coward	Continuous Computing
Laura Serna	Dialexia
James Rafferty	Dialogic
Ken Lowe	Sigma Designs
Rob McDougall	Upstream Works Software
Mary Boyd	Intrado
Henry Danser	Aspect Software
Gregory Giagnocavo	Vitelity
Vikram Saksena	Sonus Networks
Alastair Westgarth	Tango Networks
Greg Rothman	Cbeyond
Vivek Khuller	Divitas

ADC Telecommunications CEO Bob Switz appeared on CNBC this afternoon explaining his company's guidance for the full year is to be maintained. It would appear he was referring to revenue and not earnings. He also explained six weeks ago guidance was lowered. He further mentioned at the end of the second quarter, guidance was raised.

Yesterday, the company reported quarterly earnings. Apparently commodity and freight costs are to blame for pressure on earnings.

Here are the highlights from the report:

• Net Sales of $390 Million, Up 13% from 3Q07;
• Sales Outside the U.S. of $173 Million, Up 32% from 3Q07;
• $0.12 GAAP EPS In 3Q08, Which Includes Certain Expenses Totaling $0.15 EPS;
• Cash Flow Provided by Operating Activities of $56 Million in 3Q08 and $159 Million in Last 12 Months;
• 2008 Annual Sales Guidance of $1.500-$1.520 Billion, Up 13%-15% from 2007 and a 22-23% Five-year Compound Annual Growth Rate Since 2003

ADC Telecom is certainly one of the more diversified telecom companies playing in cable, copper connectivity, Ethernet, fiber, SONET, power distribution, wireless and more.

Going forward, Switz says they have a competitive transformation platform which will lower manufacturing costs. This should help offset rising prices he says and in addition the company will pass along some of the increased costs to customers through surcharges.

Regarding the global economy, Switz says 44% of their business is outside the US and since Europe has done well (up 28%) and Asia PAC is up 52% he is optimistic. Finally he mentioned he hasn't seen recessionary effects slow the telecom business as of yet.

Here is more on how the company is doing as referenced in yesterday's quarterly earnings press release:

ADC's sales for the third quarter of 2008 were $390 million, up 13% from the third quarter of 2007 and down 3% from the second quarter of 2008. Excluding sales from the LGC Wireless and Century Man Communication acquisitions of $36 million and $35 million in the third and second quarters of 2008, respectively, adjusted sales in the third quarter of 2008 were up 3% from the third quarter of 2007 and down 4% from the second quarter of 2008.

Sales outside the United States of $173 million increased 32% from the third quarter of 2007 and 3% from the second quarter of 2008. These sales were 44% of total ADC sales in the third quarter of 2008, an increase from 42% and 38% in the second quarter of 2008 and the third quarter of 2007, respectively. Comparing the third quarters of 2008 and 2007, Europe/Middle East/Africa sales of $91 million were up 28%, Asia Pacific sales of $54 million were up 52% and Latin America sales of $18 million were up 53%. Comparing the third quarter of 2008 to the second quarter of 2008, Europe/Middle East/Africa sales were approximately flat, Asia Pacific sales were up 8% and Latin America sales were up 11%. The remaining sales outside the United States were in Canada.

Global Connectivity Solutions (GCS)

GCS sales of $293 million in the third quarter of 2008 increased 9% from $268 million in the same quarter in 2007. GCS generated a 7% increase in sales of global fiber connectivity solutions due to growth in central office, data center and outside plant deployments. Customers worldwide are building and deploying fiber network solutions to increase network speed and capacity. The increase in fiber sales was accompanied by a 15% increase in global copper connectivity shipments and a 4% increase in sales of global enterprise connectivity products. Global copper connectivity sales in the third quarter of 2008 and the nine months ended August 1, 2008 included $10 million and $20 million, respectively, as a result of the Century Man acquisition that closed during January 2008. Excluding the Century Man acquisition, the increase in global copper connectivity sales was primarily in other emerging world markets. Global enterprise connectivity sales grew primarily in the Asia/Pacific region.

GCS sales in the third quarter of 2008 decreased 2% from $298 million in the second quarter of 2008. Sales of global fiber connectivity products decreased 14% primarily due to lower sales of central office and data center products and to a smaller degree from lower sales of outside plant products. Sequentially, third quarter 2008 sales of global copper connectivity products increased 6%, while enterprise connectivity product sales increased 8%. Global copper connectivity sales in the third and second quarters of 2008 included sales of $10 million and $8 million, respectively, as a result of the Century Man acquisition. Excluding the Century Man acquisition, global copper connectivity sales increased primarily in other emerging world markets. Global enterprise connectivity sales grew primarily in the Asia/Pacific and Americas regions.

Network Solutions

Network Solutions' wireless sales of $32 million in the third quarter of 2008 nearly tripled from $11 million in the same quarter in 2007, but declined 8% compared to the second quarter of 2008. Wireless sales in the third quarter of 2008, the second quarter of 2008 and the nine months ended August 1, 2008 included $25 million, $27 million and $75 million, respectively, as a result of the LGC Wireless acquisition that closed in December 2007.

Network Solutions' wireline sales of $12 million in the third quarter of 2008 compared to $13 million in the same quarter in 2007 and $12 million in the second quarter of 2008. Wireline product sales are impacted by a long-term, industry-wide product substitution trend resulting in a decline in market demand for high-bit-rate digital subscriber line products as carriers deliver fiber and Internet Protocol services closer to end-user premises.

Professional Services

Professional Services' third quarter 2008 sales of $54 million were approximately flat compared to the same quarter in 2007. Third quarter 2008 sales were 7% lower than the second quarter of 2008 due largely to project timing and a decision not to renew unprofitable business in Europe.

2008 Guidance

On a continuing operations basis, ADC currently expects its 2008 sales to be in the range of $1.500-$1.520 billion, an increase of 13%-15% compared to 2007 and a 22-23% five-year compound annual growth rate since 2003. This guidance includes the results of the LGC Wireless and Century Man acquisitions that closed in the first quarter of 2008.

Based on our 2008 third quarter sales, ADC now expects fourth quarter 2008 sales to be lower than third quarter 2008 as customers' capital spending nears the end of the calendar year. For full year 2008, gross margins are expected to be around 35%; however, they are expected to rise and decline with sales volume levels and mix from quarter to quarter. Looking ahead and generally consistent with its historical seasonality, ADC anticipates that sales in the first quarter of 2009 will be lower than the fourth quarter of 2008. Sequential sales declines from the prior-year fourth quarter were 7% and 3% and in the first quarters of 2006 and 2007, respectively. Excluding the Century Man and LGC Wireless acquisitions that closed in the first quarter of 2008, sales in the first quarter of 2008 decreased 5% from the fourth quarter of 2007. ADC will provide annual financial guidance for 2009 when it reports in December 2008 its fourth quarter results for the period ending October 31, 2008.

In less than two weeks something extraordinary will happen. Not only will the global communications industry convene in Los Angeles for ITEXPO but there will be over 100 members of the media, analysts, etc meeting with the world's leading vendors in the communications and technology space.

In addition, well over a dozen TMC editors will be on-hand at the show for the first ever TMC Editor's Week. Close to 100 meetings have been set up by my team so far and counting.

If you are interested in having a meeting at the show with a TMC editor be sure to email Todd Keefe ASAP.

Here are a few of the TMC editors present and depending on scheduling, you can meet with them:

• Greg Galitzine
• Rich Grigonis
• Bob Emmerson (European Editor)
• Peter Radizeski (Reseller Channel)
• David Yedwab (Unified Communications)
• Tom Keating (New Product Reviews)
• Brendan Read (CRM/Call Center)
• Erik Linask
• Michael Dinan
• Tim Gray

Remember when I said the GUI would become the gesture-based user interface or GBUI? I mentioned Apple's patents in the blog entry and now a new patent application shows Apple is looking to fuse gestures, voice, the camera and motion sensors together to create a brand new interface.

Ironically last night I was showing some young relatives some photos on an iPhone and within a moment each of them took the phone and started to flip backwards and forwards through photos. This was the first time I remember not having to show someone how do what I had just done on a computer or phone. Apple's new GBUI is so easy, a 3 year-old and a 4 3/4 year-old were able to intuitively understand how to do what they wanted with no help from me at all.



It occurs to me the power of combining gestures and the above technologies if done correctly will transform how we interact with computers and as a result, at least two things will happen:

1. We will use computers in brand new ways. Just as we use an iPhone as a web browser and portable picture viewer when we didn't do this with prior phones.
2. We will see productivity skyrocket. I am convinced that when computers can communicate with us in the same manner we communicate with one another (this seems to be what the interface 2.0 is going), we will get more done than ever.

Of course the ball is in Apple's court and I am really interested in learning more about how new Apple products will take advantage of such interfaces. Speaking of which there has been minimal talk of Apple making an acquisition with their cash hoard... Should they pick up Nintendo to get the Wii motion-sensing technology?

But onto grander questions -- What is Microsoft doing to combat Apple's increasing dominance in the user interface game? After all, since the mouse and GUI, I don't remember Apple making a new interface leaving others in the dust. They seem to be on the verge of doing so again. Shouldn't Microsoft be worried. Last time it took about 11 years for Microsoft to catch up with Apple. If it takes that long this time along the company should just stick a fork in it's desktop OS business.

Moreover, although I was a reluctant Vista user at first and have gotten used to the new OS, it seems the majority of users are rebelling. Microsoft has never been so vulnerable and if Apple keeps making interface leaps and patents them, how will Microsoft catch up?

Fonality just received a $12 million financing round by Draper Fisher Jurvetson Growth Fund. This is a powerful statement by this top fund that they really beleive in the open source communications story and to be quite honest, it is tough to disagree that this is a great space to be in as most every vendor in the space is doing well.

I have covered Fonality before -- the company makes quality PBX products and I have had a chance to test the Trixbox PBX for a number of months and remain impressed.

Getting back to Draper -- the fund has had some great investments including Hotmail, Baidu, Focus Media (advertising in China), Skype, Overture, Divx and many others. Some of the lesser known, current investments include Jobfox in the recruitment space, Kajeet -- in mobile services and Visto in wireless email.

But getting back to Fonality, the company has employed an interesting twist in the communications space as their PBX has taken some of the best parts of open-source and fused this with a hosted model -- allowing for example the recording of phone calls on Fonality servers which do not reside in your office.



At this point it should be obvious the open source communications market remains one of the most exciting spaces in telecom.

If you are interested in the open source market be sure to come to ITEXPO in two weeks in Los Angeles where you will see all the open-source leaders such as Digium/Asterisk, Pika, Sangoma and of course Fonality. You can also take advantage of Fonality/Trixbox certifications which will be held at the show.

See Also: trixbox Pro 2.0 review

I missed John Chambers on CNBC this morning. I wanted to hear what he had to say but unfortunately I was being interviewed about ITEXPO at the exact same time Chambers was on TV. Thankfully, Michael Dinan, a TMCnet editor was on hand to listen to Chambers and write up what he had to say.

Chambers seems relatively bullish on technology and anticipates growth between 12-17% for the long-term. In addition, the world's largest networking company announced a net of over 10 billion dollars for the fourth quarter. This is the first time the company has exceeded the $10 billion bogey.

Chambers also spent a good deal of time focusing on visual networking and the growth of this market. Since 1997 the company has predicted a CAGR of 46 percent growth rate in visual networking based upon their Visual Networking Index or VNI.

As many of us know Cisco cites the tremendous growth in wikis, blogs, social networking and video sites like YouTube as reasons for the explosion in the VNI.

For more check out this TMCnet article.

One of the most fascinating advances in political systems worldwide is the advent of technology like blogs and other web 2.0 initiatives such as social networking and video. But even the old technologies like SMS are coming into play as candidates look for any and every advantage to distance themselves from one another.

As you can imagine, with so much technology swirling around, making candidates more productive and efficient, we at TMC became mezmerized by it all. It got so interesting to us in fact we decided to categorize all of the stories we ran having to do with election technology. Afer a while we realized we had developed an entire website focusing exclusively on election technology and how it transforms poltics. I hope you enjoy it.

election-2008.tmcnet.com

It is worth mentioning that call centers are a vital part of of the election process and now that the government has more or less outlawed telemarketing for everyone but themselves, call centers continue to be a vibrant part of the election process. We will of course continue to chart the progress of this segment of the market as well -- as you may recall, TMC has been covering the call center space since 1982 -- before the term call center was even coined. :)

The financial news networks seem to thrive on giving us the negative news regarding the economy. Jobs being lost; wages decreasing and all sorts of other negative bits and pieces.

Well there is something you won't hear about if you focus all your time and attention on the network news. It seems in fact that there is some great economic news in the world of IP communications. In fact, VoIP jobs are rising in salary at a time when so many other jobs are not.

OnForce Inc., is an online jobs mart where employers and workers meet on the Internet and agree on an hourly rate and a recent report from the company shows growth in VoIP rates have increased from 1.5 to 1.95 between Q1 and Q2. This basically means VoIP jobs are now paying twice the average of all IT jobs.

Get this... Jobs in the field of printers and point of sale systems (cash registers, etc) command 1/3 the salary of those in VoIP!

If you are in the VoIP space, your time is now. Sure these salary levels may not be this high forever but it is great to see demand and salaries increase so rapidly in a time where news in other markets is generally not as good.

If you are looking to get into the VoIP market or enhance your skills, the time is now. Don't wait... Don't delay.

There are many certifications you can look into and many are very good but only one is offered by TMC -- the company which publishes the only VoIP-related magazine -- Internet Telephony and puts on the world's only IP Communications event ITEXPO...

And of course that would be TMC University. Frankly, you cannot find a better certification anywhere IMHO and as you may have noticed it is tough to be humble when you think your product is so great.

Below is a list of VoIP-related courses and certifications which will be available to you September 16-18, 2008 in Los Angeles, CA. By the way, these courses come with a satisfaction guarantee and I have heard many times that resellers and others have found the certifications at past events valuable and responsible for increased business and rates.

I hope to see you at the show.

	Date	Course	Hosted by
Tuesday, September 16, 2008 Microsoft OCS Tuesday, September 16, 2008 FMC/Mobility   Tuesday, September 16, 2008 Open Source   Tuesday, September 16, 2008 SIP in the Contact Center   Wednesday, September 17, 2008 IP Network Security   Wednesday, September 17, 2008 SaaS Thursday, September 18, 2008 Unified Communications   Thursday, September 18, 2008 SIP: The Foundation for Building Enhanced Services Thursday, September 18, 2008 Next-Generation Call Center Management

I made a logical leap in my headline -- inferring you can get famous -- in this case, written up in Popular Science Magazine if you come to TMC's Los Angeles ITEXPO conference in just over two weeks. Let me explain.

About a year and a half ago, Ari Zoldan, CEO of Launch 3 Communications -- a company installing global WiMAX networks came to ITEXPO and won an Toyota FJ Cruiser at the show. Now he seems to be popping up everywhere.

I just read an article in Popular Science Magazine (a great pub BTW) where Zoldan in his new capacity as CEO of Quantum Networks, LLC explains to inventors the best way to go about getting VC money from a firm like his. A few points to consider are -- call the CEO directly and don't give up majority interest.

Here is the article (look to the right side of the page).

Oh, and in just over two weeks, ITEXPO will be in full force and this year we are giving away a Toyota Prius to one lucky winner. Will it be you? Perhaps. Come to the show and find out.