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

economy

Were There Highlights in 2009?

November 25, 2009

Ken Camp's Year in Review prompted me to write this. It's been an interesting year. SIP, UC, Cloud, Merger. That's really how I see the blur that was 2009. I attended so many conferences this year.

Telecom Takeover Tuesday

November 4, 2009

Yesterday was a big day for The Channel. Two separate acquisitions occurred with both takeover companies expressing interest in the Channel of the company being bought.

First, we have GTT buying WBS Connect. WBSC is just a reseller of Transit and Transport with about $28M in revenue. It was bought for about $1.8M in cash and notes plus $600K in stock.

Pouring Billions

September 21, 2009

The WSJ has an article titled, "AT&T, Verizon Still Pouring Billions Into Mobile Networks". It notes that cellcos have already spent billions upgrading their networks to 2.5G and 3G -- and now will spend billions more on 4G.

In addition, both companies are also dumping billions into International routes, domestic broadband networks, and their respective triple play networks, U-Verse and FiOS. 

On top of that, both companies have been acquiring companies, like Alltel and Centennial. Ummm, how are they not toppled over in debt? 

These companies have felt intense pricing pressure from cable companies as well as T-Mobile and Sprint. Customer Acquisition and Retention costs have to be high, even as ARPU remains about the same.





People Won't Pay

August 14, 2009

If your model is free, how do you pay the bills? How do you pay for the infrastructure - the servers, switches, collocation, bandwidth, labor, etc.? How do you pay developers and engineers to scale it and keep it up?

Twitter is still free and so is Facebook. Popular too.

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.

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.

Occam Podcast about the NOFA

July 21, 2009

Whitacre Running GM

June 9, 2009

Former SBC chief Ed Whitacre is going to be the next Chairman of GM. Huh? According to Bloomberg, Whitacre is doing his patriotic duty and loves the challenge. Rich Tehrani thinks that Whitacre was a strategist.

VoIP Is Taking Off

June 7, 2009

The financial activity in the ITSP sector that I am seeing leads me to believe that the ITSP sector is taking off.
Although there have been analysts who think that IP Lines will slow down, I have to think that in the economic reality we are facing, the distributed workforce, the tele-worker, and the mobility of employees, more and more lines will move to VoIP. For cost savings as well as productivity reasons. 

If lines do slow down it will be due to the following reasons:
  • layoffs - less employees = less lines needed
  • mobility means less landlines needed
  • email, social networks, IM/chat, texting is replacing phone calls.
  • over all trend for less phone calls.
There are so many reasons for small and medium businesses (and self-employed persons) to migrate to VoIP that I don't see it being stagnant for long. 

Who to go with?
The one issue is the share number of VoIP Providers (with little differentiation) makes the decision difficult for the business owner. 

Premise versus Hosted
The premise hardware guys are selling their gear as if it was hosted at your site. Many business owners aren't familiar with having such a significant communication service outsourced (off property). It's a strange concept to wrap your head around.








When Will Level3 Pull the Trigger?

April 28, 2009

Speaking with some industry channel folks today, we got to discussing Level3. Rob Powell says it best, "The Economy Takes a Big Bite Out of Level 3". This is a company with $6B in debt compared to $4B in revenue and negative free cash flow. Everyone wondered when the BK filing woud happen.

Level3 is as much at fault as Cogent and Hurricane Electric in leading the way to pricing underwater. Plus with operational challenges they aren't creating happy customers or agents.

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