Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

CLEC

CLEC Therapy III

March 24, 2009

I'm in Orlando today speaking all morning, starting with CLEC Therapy III. I have moderated three other CLEC sessions that discussed such things as collocation, gear, and technical details. Today, we will be pulling 2 ISP's out of the audience to give them a makeover. In other words, we will sketch what they do versus what they should do.
  • Why become a CLEC?
  • What is the process to become a CLEC?
  • What are you going to offer?
  • Who will you target?
  • Is there enough margin?
  • DIY or Outsource?
  • Other streams of Income
  • How will you Market it?
After that 2 hours, I will be moderating a panel of ITSP's on How to Sell VoIP.

Dear Small Customers

May 4, 2009

Windstream Buys ICP

May 11, 2009

 Thanks to the Arkansas Democratic Gazette for the chart.

Despite a big drop in earnings and revenue for the first quarter 2009, Windstream still managed to buy some more lines and customers by snatching up D&E Comm.

D&E Communications is an ICP, an  integrated communications provider, offering residential Voice, Video, Broadband and On-Site Computer Support services as well as business-class Networking, Business Continuity, IT, Security, Voice and Training solutions. D&E is an ILEC and a CLEC.

This stock-and-cash deal (worth about $330M)  "nearly doubles the company's operating presence in Pennsylvania with the addition of approximately 165,000 access lines and about 44,000 high-speed Internet customers."  That's about $2000 per subscriber.

"D&E Communications generated $148 million in revenue and $64 million in operating income before depreciation and amortization (OIBDA) in the twelve months ended March 31, 2009."  So the buy is about 2x Annual Revenue for those hoping to play at home.

"The transaction also includes six wireless licenses for 700 MHz spectrum covering a population of approximately 1.3 million in central Pennsylvania," according to the press release

While Windstream isn't having a strong quarter with dipping revenue, it is doing okay selling Internet and TV.







Level3 Needs Your Help

May 11, 2009

"Level3 is expanding is expanding its operations in key local markets throughout the United States. These actions are designed to provide a world class customer experience for mid-market business customers in these markets. Level 3 is launching the first phase of this initiative in the Nashville, Seattle and Washington, D.C., areas, as well as upstate New York (Buffalo, Syracuse and Rome/Utica) and Colorado (Denver, northern Colorado and Colorado Springs)." [press release]

Level3 has gone back to the Type II CLEC strategy of offering service to everyone they can touch via their own network and UNE / Special Access from the ILEC. It is pouring personnel into these markets to take on as much revenue as fast as it can.

Birch Ownership

June 1, 2009

From an FCC Filing by Birch:

On May 11, 2009, Birch Communications, Inc. (f/k/a Access Integrated Networks, Inc.), Birch Telecom, Inc. (BTI), and BTI's certificated subsidiaries, and Cleartel Communications, Inc. and its subsidiaries, Cleartel Telecommunications, Inc., IDS Telcom Corp., nii communications, ltd., Now Communications, Inc., Supra Telecommunications and Information Systems, Inc., and Telecon Communications Corporation, filed an application pursuant to section 63.03 of the Commission's rules seeking approval to complete a proposed transaction whereby Assignees will acquire substantially all of the customers, customer accounts, and telecommunications assets of Assignors.

The interesting part is this statement: "BTI is a Delaware corporation, and together with its subsidiaries, is wholly-owned by BCI, a Georgia corporation. .. The following U.S.

XO at the Tech Data Expo

June 19, 2009

I received an invite yesterday from XO to come down to the Tech Data Expo at the Don Cesar Hotel in St. Petersburg FL. ADTRAN shared the booth with XO at this event. Surprisedly, the other two carriers that distribute through Tech Data had assigned booth space, but were absent. 

XO is a good fit for Tech Data. While I think the XO catalog is too large to know well - wireless, hosting, IP, VOIP, transport, collocation and more - the VAR's at Tech Data vary so much in what they do and what would complement their business that the wide selection helps - IF you can get in front of them and remind them throughout the year how they can take advantage of the additional revenue stream. 

For many VAR's the advantage of XO through Tech Data is that there's no contract (especially for those VAR's already under contract with Ma or Pa Bell) and with Tech Data as the "master agency", it isn't likely you need to worry about your residual check.  (And now that XO has converted their debt, it is in a good position going forward, which other debt laden CLEC's can't say).

Many VAR's are already in the PBX space and were asking about SIP. I wasn't sure if they actually grasp the concept of SIP or that they just know enough to be dangerous. The biggest difference between a PRI and a SIP Trunk is Inter-Operability.





The UC Conversation Continues with XO

June 19, 2009

Tech Data's Senior Product Sales Champion for UC was at the event last night. I spent a few minutes chatting with him about his position, but couldn't really get a definition of UC out of him. Polycom and tele-presence are what he pushes - to me that's not really UC. HD Voice?

Grande Communications is being Acquired

July 15, 2009

CLEC Strategy Thoughts

September 1, 2009

Talking with a mutual fund manager today about CLEC Strategy. The interesting point that was made is that if you don't own your own facilities is your business model short term?

Interestingly, if you own your own facilities - whether that is fiber, MTU, or wireless - then you certainly have an advantage. To get there, you need to sell Dense. Then convert to facilities from rented plant.

Can You Scale?

September 1, 2009

I've been talking about Scale and Culture a lot lately. As companies hit revenue plateaus, the growth is difficult.

How do you hire the right employees that will fit in your corporate culture? Especially if your culture is what is one of your differentiators like Paetec likes to say (or Zappos). 

How do you manage the growth?

We have had a $1B CLEC before - Intermedia. It imploded under its own weight.





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