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

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How Do They Avoid Being Just the Dumb Pipe

February 11, 2010

On LinkedIn there was a question in the Telecom Executives Business Network group: "How can a Telco Service Provider value chain defend itself from the attack by the emerging "Cloud" services? My understanding is that the emerging "cloud" services remove value-add and differentiation from the Telco service providers which are cornered to act just as the bit-stream providers (especially for the retail market)."

My answer to that was as follows:

Most telco carriers worry about becoming a Dumb Pipe. Isenberg told them this would happen.

Is it the Regulatory Environment?

February 9, 2010

In a twitter exchange with Erik Cecil, former regulatory counsel at Level3, we were dialoging about the Fairpoint bankruptcy. (FairPoint aims to cut debt by two-thirds).

My reply stated, "Just 2 years after the deal w/VZ to create an unstable Fairpoint despite opposition, Fairpoint screws everyone." By everyone, I mean the customers, the economy, the state, the PUC who approved the deal despite being against it (And Erik, you think there is regulation?), the workers, the Union, shareholders and the debt holders. I actually don't care about the last two, because both should have known it was going to go POOF!

ISP Sues ILEC for $10B

February 9, 2010

Which Docket, Dave?

February 4, 2010

Dave Rusin is the CEO of American Fiber Systems. He is a self-proclaimed fiber bigot. He has a two part blog post about the Special Access fight at the FCC. 

Dave may have his dockets confused. He calls it the Special Access docket at the FCC, but he is really ranting about the UNE docket. What's the difference?

The Special Access docket was started by Sprint and T-Mobile.



Shouldn't It Be Profitable

January 25, 2010

During my interview with PAETEC's COO, E.J. Butler, at ITEXPO East last week, some of what we talked about was the Profitability Proforma. The Profitability Proforma is a toolkit for the PAETEC sales force to use to provide a price quote to the prospective customer while still being a profitable circuit sale for the carrier.

Most telecom sales people sell on price - agents too.

New Edge Drops Wholesale

January 18, 2010

New Edge Networks, an EarthLink company, cut their wholesale division this month. While volumes were good, especially with wholesale clients like Verizon, the margins were too thin for the NEN corporate strategy. That strategy would be to milk as much money as possible while this company remains afloat.

The new strategy is to double down on retail. Hire more channel managers and more direct sales people, so they can compete with each other on DSL sales.

Will Reliability Be a Factor?

January 11, 2010

I see many folks asking if SAAS (software-as-a-service) will be hurt by data center outages. So I figured I would take a shot at it.

Anything over the IP network is going to be slightly less reliable than the TDM network. The TDM network had 100 years to create the 5 nines reliability that customers have come to expect. IP networks have not had that long - 15 years max to design some kind of reliability.

One big difference is that IP networks have more points of failure. Routers and switches on each end.



Setting the Sail for Service Providers

January 4, 2010

Fostering Broadband Competition

December 29, 2009

One of the Broadband Stimulus grants (at $33M) went to North Georgia Network Cooperative. ComputerWorld is all atwitter because this grant means that NGNC will compete with Windstream, which already offers 10Mb to 100MB Internet Access in that region. And "Windstream covers about 70 percent of the area that North Georgia Network Cooperative proposes to cover using government money".

The irony is that pundits are criticizing the FCC's new National Broadband Policy precisely because it does NOT include any measures to increase competition for broadband. Now one of the few grants approved actually will increase broadband competition in Dawsonville and the surrounding area and one media outlet is upset.

Windstream Grabs Another

November 25, 2009

Windstream follows up its acquisition of CLEC NUVOX with the purchase of an ILEC. Windstream Announces Acquisition of Iowa Telecommunications Services for $261M in cash, $269M in shares and $598M in debt (see Reuters).

In its latest SEC 10Q filing, it states:

"On November 2, 2009, Windstream entered into a definitive agreement to acquire all of the issued and outstanding shares of common stock of NuVox. As discussed under "Pending Transactions" above, Windstream expects to pay approximately $280.0 million in cash and assume $180.0 million in net debt in the first half of 2010 as part of the transaction, which will be financed with existing cash on hand and borrowings available under the Company's revolving line of credit.

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