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“Peter possesses a keen sense and insight for turning telecom services and products into customers and dollars. He is passionate about this industry, his work and the people he serves. Visit his site, read his blog and sign up for his newsletter at marketingideaguy.com and you will discover what makes Peter a sought after marketing consultant.”

Cynthia de Lorenzi, CEO, Patriot Computer Group

The Cellular Battle
On Rad's Radar
Monday, 28 November 2011 08:56

I don't mean the AT&T-T-Mobile merger, although that is just one battle in the war for cellular supremacy. (Other battles are Sprint with Clearwire, Sprint with the cablecos and the MVNO model.)

"Former T-Mobile CMO Denny Post says carriers should focus on retention, rather than relentless promotions aimed at new sign-ups." Post says that it is the end of the New-to-Wireless Customer Era and that cellcos must re-think customer care.

Post continues, "It is going to become an absolute competitive scrap battle, [because] any customer is going to have to come from somewhere else."

This isn't just the cellular market. Look at broadband, landlines, cable TV, voice - all flat.

While VoIP revenues are increasing, it is because TDM revenue is decreasing. Hosted UC or Hosted PBX sales are more than voice sales, but functionality, productivity, efficiency, collaboration and one-inbox. (At least, in my humble opinion).

And while the FCC has a $4B fund to get more broadband deployed, those sales will go to the first network operator that provides it IF the price is right. Although even in rural, it is a battle between satellite, local wi-fi, dial-up, and 3G/4G data cards - which isn't exactly a slam dunk customer acquisition market. Everywhere else, it is

The nice thing is that Channel churn numbers are better than direct sales. Now if the Channel could just cross-sell and upsell better....

Read more... [The Cellular Battle]
 
L3 Sells Coal Mine
On Rad's Radar
Monday, 28 November 2011 07:50
Not many people knew that Level3 owned a coal mining operation. It was sold off last week. I do not know if L3 still owns the software integration business. (I can't find any indications in the earnings reports.)

According to the earnings, it looks like L3 is bringing less than $4B in revenue at $927M in 3Q2011 and $913M in 2Q2011. L3 closed its acquisition of Global Crossing on October 4, 2011. L3 refinanced approximately $1.36 Billion of GC debt. GC also had notes for $430M, $750M and $150M (at 9% and 12%). It was a $3B transaction that was supposed to have just $1.1B in debt attached. Looks like more. VentureBeat wrote, "Both companies are losing money. Level 3 lost $622 million last year and has been unprofitable since 1998. Global Crossing lost $172 million in 2010 and last turned an annual profit in 2003."

Most of the L3 revenue is wholesale business like being the back office for most of the VoIP Providers out there - directly and indirectly through resellers. L3 says that very little - maybe 1% of total revenue - comes in from the Channel, which is likely since, again, most of the revenue is in wholesale, which the channel doesn't sell. L3 is hoping the channel will sell some CDN, Vyvx Broadcast and website optimization services. Meanwhile, also selling big bandwidth, transport and voice.

By its own numbers, L3 should be doing better. It has 27,000 metro route miles with 100K enterprise buildings within 500 feet of its fiber. It has over 200 data center facilities with over 2 million square feet of space. It has a unique video broadcast platform and optimization services (Vyvx, CDN and similar offerings). Combined it should be doing more revenue, but some of it is commoditization and price pressure. Some of it is the reputation it garnered during the last round of acquisition integration. L3 is certainly a good alternative to the RBOC's, when it has fiber in the area.

 

Read more... [L3 Sells Coal Mine]
 
AT&T Sneaks One In
On Rad's Radar
Sunday, 27 November 2011 17:24
AT&T sneaks in a note that says they set aside $4B for a break-up fee during the Thanksgiving break. AT&T withdrew its petition from the FCC as they wait to see what happens with the DOJ and the lawsuit.

Read more... [AT&T Sneaks One In]
 
Gratitude
On Rad's Radar
Tuesday, 22 November 2011 05:00
Just a quick note to say Happy Thanksgiving! 

Although we have had a crazy ride these last few years, this is the week to be thankful for what you have. (It could always be worse.)

jim-rohn-quotes-on-happiness.jpg 

Read more... [Gratitude]
 
3 Things to Watch for in The Channel in 2012
On Rad's Radar
Monday, 21 November 2011 16:48

2011 has yielded some surprising momentum for the Channel. With the cable industry, cloud providers and so many other companies making more commitments to the Channel. I think that there are 3 things we need to watch for in The Channel in 2012.

In 2012, we will see more M&A. Credit is cheap. Companies are sitting on cash. It's a good time to buy instead of build, especially cloud services. Look for any company that offers managed services to be acquired if they have real revenue, an engaged Channel, and a unique product set (that the acquiring company doesn't have.)

Certifications have been popping up all over - not just at the TCA. There is a lot of variation in product offerings in both cloud and managed services. It will take much education for the Channel to understand what is being offered, by whom and for whom. Webinars and marketing collateral alone will not work. Certificate programs will identify the professionals - those that are committed and deserve the limited resources available.

Without a doubt, we have not heard the end of the noise of the Cloud. It's no prediction. What we will see is what cloud providers can (A) differentiate themselves with a clear, concise value message and (B) what cloud providers - cloud comm providers included - can gain organic revenue in the face of cable competition. As I write this, one RBOC is pushing a 10MB ethernet bundle with a SIP PRI for cheap against a similar Comcast package. The competition for every deal will increase as the economy remains flat and each slice of the telecom pie - TV, broadband, voice, cellular - remains flat as well. The problem with this is that sales will be tough, revenues will decline and with it commission checks. Ouch!

Read more... [3 Things to Watch for in The Channel in 2012]
 
Frontier Gets Cell Service, Agents Should Too
On Rad's Radar
Friday, 18 November 2011 08:23

Frontier Communications has inked a deal to be a channel sales agent for AT&T for voice and data cellular plans, as reported by the Fool. "This was a natural extension of a product that we are not currently offering that would fit well with our product suite," Steve Crosby, Frontier's senior vice president of government affairs and public relations. At least they realize that cellular is an important part of the total telecom send. Do you?

When master agent,TBI, launched its SAAS-based TEM platform, Geoff Yearack, director of TBI's wireless division, stated that it was a way to aid agents with getting some of the wireless spend of clients.

Agents have to start looking at ways to get more of the telecom wallet as that budget is absorbed into the IT budget. The simple approach is to offer TEM to your clients. Another approach is to offer asset management. To tie into cyber-security, laptops, data cards, mi-fi gadgets, tablets and smartphones not only need to be tracked by businesses but secured against data theft and loss.

Cbeyond, XO, TelePacific and other CLEC's are offering cellular plans in conjunction with Dynamic T1 and other services. With the average T1 price at an all time low, it's one way to increase ARPU or MRR -- and in turn, increase commissions.

Sprint recently raised $4B in a debt offering in order to pay for network upgrades for "iPhone and its Network Vision network modernization plan". Rumor is that some of it will be used for Clearwire build-out, which seems likely given that Clearwire has some of Sprint's spectrum and has been Sprint's 4G partner. How do you hang that up now? But it goes to show that even after the billions already spent by the the cellcos - VZW, ATT, Sprint, Clearwire, and even MetroPCS - billions more will have to be spent to -- not buy more spectrum -- but to just deploy the spectrum they are currently sitting on, for tower backhaul and for network management. Big pie there that Agents need to take a piece of.

Read more... [Frontier Gets Cell Service, Agents Should Too]
 
FCC's Small Biz Cyber Planner
On Rad's Radar
Friday, 18 November 2011 07:50

There is a whole lot of truth to this statement from the FCC: "American small businesses are key drivers of innovation, economic growth and job creation. Small businesses employ more than HALF of all private sector workers, and they have generated about two-thirds of net new jobs over the past 15 years. Small businesses drive innovation, producing 13 times more patents per employee than large firms."

The FCC goes on to explain that "Broadband and information technology is increasingly important to the success of our economy, to jobs and to the future of small business. Broadband connectivity and online business tools are powerful factors in small businesses reaching new markets, increasing productivity and efficiency, and generating economic growth. A recent study found that having a broadband connection makes a $200,000 a year difference in median annual revenues for businesses."

When you couple that with the ever increasing number of hacks - whether for identity theft or credit card numbers or corporate data - cyber-security becomes important. Add IP-PBX and VoIP lines to the mix and security isn't something that should be forgotten or left off due to the budget line expense. But it does. And it has a cost.

The FCC, as part of National Cyber-Security Month, joined with the Department of Homeland Security, U.S. Chamber of Commerce and several corporate executives to unveil a new FCC online tool-- the Small Biz Cyber Planner. "The planner is an easy-to-use, free online tool that will create a customized planning guide to help small businesses protect themselves from cyber-security threats."

Symantec and The National Cyber Security Alliance (NCSA) released results of a survey finding that only 52% of small businesses have a cyber-security plan or strategy. That's not really surprising because most think it won't happen to me. Yet the statistic remains that a new computer attached to the Internet takes less than 20 minutes to be attacked.

"The survey also found 77% of small businesses do not have a formal Internet security policy for employees." This is an example of how you can help your clients by pointing this out and having a discussion about security measures - even simple ones like password management and usage. And as data moves to the Cloud, access security via devices becomes more troubling and requires written policies in place that are closely followed.

Read more... [FCC's Small Biz Cyber Planner]
 
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