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Rich Tehrani
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NextPoint Analysis

December 11, 2007

If you meet David Walsh a partner with One Equity Partners, you immediately think banker. For those of you who may not frequent the tiny (and blisteringly cold when I was there) island of Manhattan, banker generally means investment banker. At a telecom conference you can always pick out the bankers because they dress nicer than most telecom types.   I recently had a chance to meet with Walsh and discuss the formation of NextPoint with him. Generally the “money people” are shielded from the communications and technology media as there are generally more technical people who are better at communicating with the “trade” media.

Security: The Best IP Topping of All

December 11, 2007

The Internet Protocol is one of the largest enablers of the last decade. It allows communications to take place wherever there is broadband connectivity. Voice over IP, video over IP, fax over IP… Just about everything runs over IP it seems. But this is old news – right?

Telecom Growing Nicely

December 5, 2007

It’s a good time to be in telecom. With all the housing gloom and doom it is nice to see that at least the telecom market is doing exceedingly well. Of course you have to pick your battles… Consumer VoIP is a rough space to be in (just ask Vonage) but companies focusing on the enterprise are as happy as pigs – well let’s keep this semi clean – Pigs in subprime mortgages.   Case in point, after a sluggish second quarter in 2007, enterprise telephony equipment manufacturers saw an 11 percent jump in worldwide sales in 3Q07 to reach $2.6 billion, according to a recent study.   “The Big Three (Avaya, Cisco, and Nortel) had excellent quarters, all growing well into the double digits,” said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.   Worldwide sales of service provider next-gen voice equipment are up 5 percent in 3Q07 from 2Q07 to $956.4 million, says Infonetics Research in its "Service Provider VoIP and IMS Equipment and Subscribers" report.   “The bump this quarter was partially due to seasonal factors, as the third quarter tends to be strong, but also because of increased demand across the board, even in the TDM segment.

NextPoint is Born

December 4, 2007

TMCnet’s Greg Galitzine announced the rumor on October 19th that NexTone and Reef Point were to merge. Today the news becomes real as the companies are combining to create NextPoint. Here are some quick facts and quotes according to the companies:  
  • Combined Companies to Deliver First Integrated Border Gateway, in Addition to Full Suite of Products Under the new NextPoint Name
  • Woody Ritchey Named CEO; David Walsh Named Chairman
  • JP Morgan Chase’s One Equity Partners Leads $20 Million Investment Round To Address Accelerating Market Demand
  “The integration of session border controllers for both fixed and mobile networks with a security gateway enabled by the merger of Reef Point and NexTone will create a powerful product family for next generation networks,” said Malcolm Wardlaw, Director, Converged Services, Intelligence and Applications, BT. “The IBG has the potential to simplify network design as well as reduce the total cost of ownership in a converged world, supporting the needs of our customers in an all-IP world.”   “The increasing demand for secured IP-based mobility services in a multi-access environment is creating a need for a new category of equipment called the multi-access convergence gateways that provides intelligent interaction with subscribers, services, and transport mechanisms,” said Stéphane Téral, Principal Analyst, Service Provider VoIP, IMS & FMC, Infonetics Research.

Podcast Interview: Oswin Eleanora, Acision

December 3, 2007

In my travels, one of the more knowledgeable players I have run across in the space of telecom – and especially wireless communications is Oswin Eleonora (Oz) the Senior VP Sales and Marketing North America for Acision. You may recall I wrote about Oz and Acision back in July of this year.   I had a chance to pick his brain again regarding Verizon’s open network announcement, the iPhone, the future of wireless, the Open Handset Alliance (OHA), Android, CDMA, GSM and more.   How will service providers differentiate themselves in the upcoming years as networks become more commoditized? Oz has the answer.

Consumer Gadgets Eclipse Business Phones

December 1, 2007

The maddening division between consumer and business mobile devices continues to grow and as the trend picks up steam it is apparent consumers are the winners and businesspeople suffer. This is not to say the problem isn’t in some ways necessary.   Case in point was the amount of time it took for Research in Motion to put cameras on their Blackberrys. Many corporate customers actually didn’t want cameras on phones it purchased and this is the reason many of these e-mail workhorses seemed so featureless for so long.   This weekend however it really hit me. Consumers are getting unbelievable products and businesspeople are left wondering why our devices are so boring and devoid of features.

XV6800: Why Verizon Wireless Opened Up

November 30, 2007

There could not be a happier person on the face of the earth than I regarding Verizon Wireless opening up its network. And while I thought I pegged some of the reasons for Verizon making this decision in a recent blog post, the actual reason is probably a great deal simpler.   My take? The XV6800 handset.   You see, the XV6700 handset while rife with problems such as slowdowns and freezes was a great product for its time. The comfortable mobile keyboard, the widescreen 320x240 view and the Microsoft Office compatible applications made this device a winner.

Google to Bid on 700 MHz Spectrum

November 30, 2007

While it is not really a surprise at this point, Google will be bidding on the 700 MHz spectrum auction and if the company wins, it will likely change the business model of many other service providers. The reason is simple. At least one service provider has expressed interest in leveraging their connections as a competitive weapon/advantage and more specifically as a way to exact a toll from Google!   As you may remember I referred to this situation in an article titled SBC Goes Trick-or-Treating which took an excerpt from a BusinessWeek article referring to an interview with SBC CEO Ed Whitacre*:

  The question posed was:   How concerned are you about Internet upstarts like Google, MSN, Vonage, and others?   And the answer was as follows:   How do you think they're going to get to customers? Through a broadband pipe.

Sprint Turns Down $5 Billion Offer

November 29, 2007

Sprint Turns Down $5 Billion Offer CNBC is reporting Sprint Nextel turned down a 5 billion dollar offer (according to It is not clear who made this offer as of yet. As you may recall I wrote a blog entry lately regarding the potential of Google purchasing the wireless carrier. Stay tuned.   Update:   According to the Wall Street Journal:  
Sprint Nextel Corp. rejected an offer by South Korea's SK Telecom and private equity firm Providence Equity Partners to invest $5 billion in the company and install its former chairman, Tim Donahue, as chief executive, according to people familiar with the matter.   Mr. Donahue and the investment consortium proposed the deal before Thanksgiving, sending its bid to Sprint's board in the form of a letter, these people say.

Android Sans SIP and IMS

November 28, 2007

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