What a terrible quarter.
The FCC is playing around with Broadband - plans, definitions and classifications. The NTIA took the summer off from its task on the broadband stimulus.
Meanwhile, VZ releases its quarterly numbers as a loss due to pension payments and layoffs. It is planning more layoffs, because it has to cut head count in its wireline business to reflect the declining revenue. The spin was that VZW was counter-balancing any revenue losses, but with wholesale (pre-paid) cellular subs, not direct, contract ones. Less profit. Less ARPU.
The one thing (I repeat often) is that most of these markets are flat - cellular, TV, consumer broadband, consumer voice, wholesale voice. It's a zero sum, take-away game. That is expensive.
"The race to the bottom makes sense when you consider two other numbers: Despite improved enterprise sales and better FiOS penetration, both global enterprise revenues and mass market revenues were essentially flat. On the global enterprise side, declining wholesale revenues were at fault while on the mass-market side, access lines continue to decline." [source]
The good news is that the Duopoly has gotten into a price war. VZ reports healthy ARPU of $145 per FiOS customer and $81 for others. Because customer acquisition costs are so high - advertising, direct mail, special offers, installations, equipment, discounts, referral fees - the Duopoly has not lowered its MRC.
I don't know the impact that Satellite TV (DirecTV and DISH) are having because in some cases the TV part of the ILEC bundle is one of these two.
Level3 didn't have a great quarter either. Year-to-year quarterly revenue fell to $908 million from $942 million.
I don't know how that isn't expected across the board in telecom. Prices are dropping every where. Qwest is cutting local loop costs in some markets. AT&T is dropping MIS rates. Cogent is giving away ... oh, never mind, they always do that.
Thnk about it this way: Many business customers are in three year deals. So customers coming out of contract now were signed up in 2007 when pricing was (my best guess) 20% higher. Today, you almost get 10MB of IP for what a T1 cost in 2000. There are markets where 10MB is $800 including loop.
Meanwhile, we have the SIP trunking situation, whereby every carrier is offering SIP Trunks as a low cost replacement for one or more PRI's. The total telecom spend is shrinking.
agents apps att broadband broadsoft cable cableco cellular channel partners clec cloud communications cloud computing commissions data center FCC fcc fiber financials hosted pbx internet itexpo marketing master agency mergers politics sales security sellecom selling strategy TCA telecom is broken UC unified messaging VAR voip vz vzw wireless wireline
- AI (4)
- Add category (2)
- BPI (10)
- BPaaS (10)
- CALEA (2)
- CLEC (250)
- FCC (200)
- FTC (10)
- IOT (17)
- IPTV (14)
- ISP (60)
- Internet (248)
- Marketing (283)
- PBX (180)
- PR (27)
- SDN (46)
- TCA (72)
- TEM (16)
- TMC (26)
- VAD (9)
- VAR (149)
- VDI (10)
- Web 2.0 (48)
- Yahoo (9)
- agents (446)
- amazon (23)
- apps (122)
- backup (41)
- bandwidth (70)
- bellsouth agent (22)
- books (15)
- broadband (235)
- broadsoft (124)
- cableco (200)
- cellular (243)
- certification (17)
- channel (432)
- cloud computing (286)
- colocation (43)
- commissions (103)
- communications (66)
- compliance (22)
- comptia (5)
- conferences (66)
- conferencing (68)
- crm (8)
- cybersecurity (2)
- data center (128)
- disaster recovery (35)
- duopoly (71)
- e-book (4)
- economy (129)
- email (27)
- ethernet (23)
- expo (117)
- fiber (124)
- glossary (2)
- hosted uc (266)
- im/chat (28)
- jobs (32)
- linkedin (38)
- managed services (54)
- master agency (68)
- mergers (395)
- metaswitch (12)
- mobile (57)
- mpls (55)
- msp (50)
- off topic (48)
- organizations (82)
- outage (19)
- politics (136)
- privacy (41)
- saas (92)
- sales and selling (271)
- satellite (17)
- sdn (28)
- security (94)
- sip trunking (83)
- smb (65)
- social network (76)
- spectrum (68)
- startup (27)
- technology (134)
- telco (253)
- tele-presence (22)
- telecommunications (229)
- training (42)
- twitter (44)
- unified communications (258)
- vc (9)
- video (86)
- voip (436)
- webRTC (16)
- wi-fi (29)
- wimax (33)
- wireless (167)
- wireline (179)
- xmpp (5)
- xo (54)
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
Featured Videos