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

August 2010

You are browsing the archive for August 2010.

Google is Not Killing Voice

August 31, 2010

Everywhere you look, people are aghast that Google added free calling to Gmail. Big deal. (Although you should read Jon Arnold's piece on it.) Most people aren't going to strap a microphone and headset to their computer to make PC-to-phone calls.

Isn't Skype the only one that this really affects?

I Don't Understand M&A

August 30, 2010

HP and Dell are in a bidding war for 3Par. HP (at this writing) is at $30 per share - 3x the original share price for this stock! That's almost $2B!

One thing is that all these companies - in fact, most American companies - lack R&D. That's right: We don't have R&D in America.

Sales Effectiveness Review

August 27, 2010

According to a study of IT executives by Forrester, only 15% of executives believe that their meetings with salespeople are valuable and live up to their expectations. Reasons given according to the report:

Business leaders (24%) don't believe salespeople are knowledgeable about their specific business.

Only 34% of buying executives said salespeople understand their roles and responsibilities.

How Long Can It Take?

August 26, 2010

My Negative Outlook

August 26, 2010

It has been pointed out that I tend to have a negative outlook. I don't know how fair that statement is but I'll give you my view of the world.

I'm an American. This is the greatest country in the world.

What's the SCORE?

August 25, 2010

Global Capacity Bankruptcy Notes

August 25, 2010

Bloomberg has the story on the bankruptcy of Global Capacity.

Global Capacity Files in Delaware for Debt Conversion

Capital Growth Systems Inc., known as Global Capacity, filed a Chapter 11 petition on July 23 in Delaware to convert debt into equity.

The Chicago-based provider of systems to integrate networks had revenue of $64.4 million in 2009, resulting in a $52.8 million net loss including $12.5 million in charges for impairment of goodwill.

Startup Camp Announces Keynote

August 25, 2010

Last ITEXPO, Larry Lisser ran his first Startup Camp for Communications companies. It was a unique idea for our industry - and especially for an industry conference. Thomas Howe and Andy Abramson were two of the 4 judges who gave quality feedback to the 4 presenting companies.

This time round, Larry has brought in another excellent keynote: Jeff Bonforte

So Happy

August 24, 2010

Some Unsettling Numbers

August 24, 2010

"The American economy lost 131,000 net jobs in July, about 70,000 worse than expected.  The loss of 143,000 temporary Census jobs, which was expected by economists, pushed the
"headline" number into the red."  How many jobs have the merged telecom companies dropped?


The INC 5000 list is out with 100 telecom companies on it including many Hosted VoIP companies like Callis Comm., Stage2, VoIP Logic, Telovations, Bandwidth, M5, Aptela, and Geckotech.

3 Reasons I Get a Rash from my Industry

August 23, 2010

Actually, I don't get a rash from the Industry but from a large portion of the people in my Industry.

There are so many changes happening right now - every where. Our Industry is experiencing so many factors: declining prices, hyper-competition, anti-competitive actions, forbearance, Net Neutrality, and so much more.

Agents are locked in their business model and don't want to step outside the comfort zone.

Who Will Own the Home Gateway?

August 21, 2010

In the article about the Intel-McAfee merger, I mentioned that Cisco's acquisitions have not actually resulted in any great innovation. The Flip is still the same old camera. The cable box is certainly cheaper, but less reliable. (I have gone through 3 HD DVR set-top boxes with BrightHouse Networks in less than a year.)

Not a Political Piece

August 20, 2010

This isn't meant to be political but more like here are some thoughts for digestion.

This first is from FCC Commish Copps (thanks to Benton Foundation):

"I think most of you understand how important the Internet and access to high-speed broadband are to the future of our country. This incredible technology intersects with just about every great challenge confronting our nation-whether it's jobs, education, energy, climate change and the environment, news, international competitiveness, health care or equal opportunity.

Wireless Combo is Merger 3

August 20, 2010

This week has been awash with mergers - the Intel-McAfee merger and the Windstream-Q-Comm merger are the big two. The third interesting merger involves two fixed wireless companies. Airband and Sparkplug announced that they merged and grabbed $20M in financing.

"Fixed-wireless companies Airband Communications and Sparkplug Communications today announced they have merged, creating the largest fixed-wireless company for businesses in the U.S., providing a full suite of voice and data services in 17 markets."

More Mergers

August 19, 2010

Cricket Brought Dave

August 16, 2010

Debt and Finances

August 16, 2010

I'll readily admit that I am not a financial wizard. I am risk adverse and think that playing the stock market is like a casino (the deck is stacked against you). Then I read The Big Short by Michael Lewis and I was amazed that most of the Players on The Street don't know more than me, except they know when the rats are bailing a ship, so they can too.

That being said, I wonder how we have developed such an over leveraged Industry.

Over 50 Ideas This Week

August 15, 2010

An Interview With Level3

August 11, 2010

As a founding member of the Technology Channel Association, I get to interface with some of the channel execs. One that I have a lot of respect for is Craig Schlagbaum, VP Indirect Channels, Level 3. Craig let me interview him about changes in the channel.

1.

Broadsoft's First Public Quarter

August 10, 2010

So Monday morning I was on the very short investor call for Broadsoft's first quarter being public since it's IPO. Marketwatch has the 2Q2010 results here.

  • "Total revenue was $19.8 million in the second quarter of 2010, compared to $17.7 million in the second quarter of 2009"
  • Net loss for the second quarter of 2010 was $1.8 million
  • Net loss for the first six months of 2010 was $4.4 million

"During the second quarter, our license revenue increased 20%, to $10.6 million, compared to the first quarter of this year, reflecting service providers' demand, as they transition from TDM to IP-based communications, for our flagship product, BroadWorks, which enables carriers to deliver feature-rich IP-based communications services to their enterprise and consumer customers."

More than 50% of revenue is coming from licenses.

Do You Compete With Your Channel Manager?

August 10, 2010

Lately, I have been seeing some crazy things out of Channel Managers. Do they not understand that everything comes out since we operate in a small world?

I have seen this twice this month, where someone is a channel manager for a VoIP Provider and also runs a VoIP Provider. You read that correctly.

Mergers Only Mask the Truth

August 10, 2010

I have a firm belief that most mergers are just ways to make the books look better by clouding the numbers. Take this headline from the Morning Journal, "CenturyLink has profitable second quarter, primarily due to acquisition". I agree with that.

The telling number is the revenue or income or EBITA, but this metric: "CenturyLink added more than 29,000 high-speed Internet customers in the second quarter, compared to 28,000 in the second quarter of 2009, the company reported." HUH?

Tele-Pacific Acquires Some O1

August 4, 2010

"TelePacific Communications, the largest CLEC providing integrated voice and data telecommunications services to the small and medium-sized business ("SMB") customer segment in California and Nevada, today announced a definitive agreement to acquire the SMB customer base and network of O1 Communications ("O1"). TelePacific will also acquire a SAS 70 Type II certified data center located in Sacramento, California. ... Under the terms of the agreement, TelePacific Communications will gain approximately 1000 business customers in California.

Channel a HyperOffice

August 2, 2010

TCA Adds MegaPath and Star2Star

August 2, 2010

The Technology Channel Association (TCA) announced the addition of two new carrier members in July: MegaPath Inc. and Star2Star Communications LLC. TCA was launched in August 2008 as a non-profit trade association for channel organizations selling any technology solutions.TCA membership is open to both agents and vendors.

As vendor members, MegaPath and Star2Star will collaborate with TCA on the development of industrywide standards and best practices.

Is Broadband a Utility Now?

August 2, 2010

The way the FCC is examining, re-classifying and inquirying broadband, has it become a utility now?

There are many studies that show that cities with broadband do better economically than cities without broadband. The Iowa City study done about 5 years ago (that I read in Broadband Properties magazine) was one of the first studies that showed the economic benefit of FTTX. But it wasn't the last.

The American economy is in a slump (to put it mildly). We are competing globally against everyone in the world for a job.



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