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| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

July 2009

You are browsing the archive for July 2009.

Verizon Profits Down

July 27, 2009

After dumping New England on Fairpoint and cashing in on that garage sale, Verizon bought Alltel. Now it is dumping more rural lines on Frontier. All of this is just Verizon's way of shoring up its stock report. Without the kickers from the Fairpoint transaction and the spurt from Alltel, my bet is that the company would be showing a loss.

Is Cbeyond in Trouble?

July 27, 2009

On Andrew Left's blog, he points to a 100+ page FTC complaint from customers of Cbeyond. Maybe he isn't familiar with telecom, because most carriers have numerous complaints at the FCC. LNP (porting numbers) is a growing concern which the FCC addressed "Simple Ports" in May. If he thinks, CBEY has a thick file maybe he should check out the consumer complaints against wireless companies on LNP, fees, and contracts.

Left also alleges that CBEY is under a law enforcement investigation. Then he makes a comment about how this should be in an 8-k filing.

Nortel Being Sold Off

July 27, 2009

For those of you who missed it, Nortel is being sold off in pieces.

"Ericsson announced its interest in Nortel's wireless assets late, but it came home the winner, paying $1.13 billion for Nortel's LTE and legacy CDMA business." [Doug]

The Enterprise unit was sold to rival Avaya for $475M. [Reuters]

Radware had previously purchased Nortel Alteon business.

Having sat in a session with Nortel last week, it can't be fun to work there. Worse, it can't be fun to be a Channel Partner. Any residuals are likely gone.







It's an AT&T Monday

July 27, 2009

This week starts with AT&T being sued and boycotted.

First up is STS Telecom's FCC complaint alleging fraud, discrimination, and unfair competitive practices by AT&T. Apparently, the FTC nor DOJ won't accept any anti-trust complaints against the LEC Giants. We don't want to rewind to 1984 do we?

STS Telecom alleges in the complaint that AT&T failed to comply with Congress's much embattled Telecommunications Act of 1996 in refusing to provide STS fair and reasonable access to various telecommunication services. As a result, AT&T severely restricted STS' access to Florida's profitable residential and small business markets.




Is Zer01 Crashing?

July 23, 2009

The deal that was supposed to save VOX Corp. (parent company is Pervasip). After Networld World questioned whether the mobile VoIP service could actually work, the company stripped data from its website (as reported by both PC World and Network World).

PC World further reported, "Earlier this week IDG News Service reported that it's unlikely that Zer01 could be technically able to offer the unlimited mobile voice and data service that it is advertising. The service, originally targeted for a July 1 launch, does not appear to be available yet. In addition, it's being marketed through a multilevel marketing program run by a company called Global Verge whose founder, Mark Petschel, in 2005 pleaded guilty to securities fraud.

The Stimulus Spend is Opportunity

July 23, 2009

I talk with many CLEC's and ISP's that are looking at the BTOP and BIP programs to see if there is opportunity for them. As I said in the podcast with Occam Networks, most of the funds are earmarked for companies already collecting USF funds. Why do I think that? Because it is a safe bet and politics is about safe bets.

I'm attending Tech Data's Technology Solutions Tour. This morning started with TD SVP Pete Peterson discussing how to translate the stimulus spending into technology opportunity.

Add Voice Apps in Minutes

July 22, 2009

Occam Podcast about the NOFA

July 21, 2009

Alphabet Soup in Broadband

July 18, 2009

If you have been even slightly following the Broadband Stimulus program, you will notice that there is an increasing amount of acronyms to keep track of - ARRA, BIP, BTOP, etc. Luckily, here's a glossary from the Knight Center of Digital Excellence.

The key words to know are Unserved and Underserved because that is where the money is earmarked to go. But you have to decide if you will apply for the RUS Broadband Initiatives Program (BIP) for broadband projects in rural areas or for the NTIA Broadband Technology Opportunities Program (BTOP) for broadband projects in unserved and underserved areas of the United States.

Each program has separate criteria. On a soon to be released podcast with Occam Networks, we discussed much of this.



Grande Communications is being Acquired

July 15, 2009

Is Cellular the new Crack?

July 13, 2009

Stacey at GigaOm writes about the data problem for cellular companies. On the one hand, data revenue of $40 to $60 more per month from an account seems pretty good; on the other hand, 70% of the traffic on a tower is from data cards (about 3-4% of subscribers). This seems like they should have known this.

Voice calls take up less than 10K per stream. 3G data takes up to 3MB.

UCF Should be like Speeding

July 9, 2009

A New Breed of VAR in the Cloud

July 9, 2009

On the LinkedIN Group for the Channel Partners Network, Heather Margolis wrote, "Cloud Computing has spurred the need for a new type of VAR and/or partnership elements. Read more here and tell me your thoughts." (That's one way to get traffic to your blog).

My thoughts:

It's not about saving a client money any more. It's about saving them time, making their employees more productive, and adding business efficiency - without the technology getting in the way (which isn't always easy). 

Being the Trusted Advisor today means being able to add Business Intelligence to the solution. Systems Integrators were valuable because they could provision, implement and glue all the parts and pieces of hardware and software together.





Google Giving Voice to Startups

July 8, 2009

In a short article in INC magazine, one entrepreneur explains how he uses Google Voice for his startup business. He is a straddler - he has a full-time job while launching his own business. 

As noted by Ring Central, many of the features in Google Voice have been available for a while from VoIP Providers. However, it's partially the brand (it's Google) and partially the price (um, free). Once Google allows number portability, it will be tough to beat. Why?

For one thing, Raving Fans. Google has a lot of Raving Fans. And those fans tell stories about the service - even better than a testimonial.



Verizon's Forbearance Strategy

July 8, 2009

Doug Mohney tweeted this morning that Verizon has a 7-day repair window which may be why they are losing landlines. I would suggest that the RBOC have been lobbying since 282 Relief for Forbearance relief as well - at both the state and federal level. For the most part they have won. 

Gone is the regulation for most telecom services in most states, which means the state PUC cannot deem that POTS lines be fixed in 24 hours (the old standard), especially when Digital Voice (VOIP) is dependent on broadband that does not have an SLA or mean-time-to-repair.

After VZ's 6-city forbearance petition was struck down in 2007, VZ legal took it to the court system and won a review by the FCC.

By letting landlines go, the majority of the existing POTS type service will go to cable or other providers, which would almost insure that VZ would get forbearance on a new review. Slick and devious.





Global Capacity Maxes Out Capital

July 7, 2009

As per the press release, you would think that the last bunch of transactions had just crippled the accounting firm.

As previously announced in its Form 8-K filings with the SEC, the Company has been delayed in filing financial reports pending completion of its 2008 audit. The Company's change in independent registered public accountants and the complexity of the technical accounting treatment required with respect to the embedded derivatives resulting from the sophisticated financial instruments used in several of the Company's financing transactions were factors in the delay, which has resulted in the suspension of trading from the OTC Bulletin Board. Completion of the audit and filing of financials with the SEC is expected during July, at which point the Company plans to apply for reinstatement of trading of its common stock on the OTC Bulletin Board.

But a document mailed to me today states that Global Capacity, Inc. is experiencing "an unplanned cash constriction".

USF and Rural Reform

July 4, 2009

In a recent conversation with a buddy of mine at a state PUC, we were discussing small rural ILEC's. Many are cash strapped which makes providing advanced services difficult - no cash to buy a head-end (half a million or more). 

RLEC's can get RUS loans for the upgrade to fiber, but OPEX and labor for installation are not covered by the loan. That creates a quandry.

Why are the RLEC's cash strapped? They get all that Universal Service funding (both state and federal).



Bells Giving Up on Landlines?

July 2, 2009

We see the consolidation in the rural landline business. Verizon has dumped unwanted regions on Hawaii Telecom, Fairport (New England), Alltel (old GTE areas like Eastern KY), and soon the Frontier deal.  

Centurytel and Embarq just merger. It was May, 2006 that Sprint spun off its wireline business into Embarq. Alltel followed suit with a spin-off of its landline business to Windstream which was a merger of Valor and Alltel. 

The RBOC's have tried to staunch the landline slide, but I think now that they have declared themselves wireless companies, have given up the ghost. Verizon is now advertising to consumers to cut the cord.



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