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3 Bills That ISP's Need to Be Aware of
On Rad's Radar
Friday, 18 November 2011 07:03

In DC, there are bills moving through Congress that will affect the ISP business.

The Protect IP Act and the companion Stop Online Piracy Act (SOPA) and H.R. 1981, the ISP Data-Retention Bill.

The ISP Data-Retention bill would require Internet Service Providers such as Comcast or AT&T to retain the personal information of its users for up to 18 months. PC Mag has a nice write up here. It passed House committee in July.

All of these bills come with the propaganda that it is to stop child porn and for national security. Actually, it is to help out the MPAA and RIAA, who want help to stop piracy. Some think that it is a violation of the 4th Amendment, but the US Congress has been chipping away at the Constitution since 9/11 for their money men.

Even Lifehacker is tracking what is going on with SOPA. You might have seen the American Censorship Day emails and facebook status updates. People need to understand that the Internet is a loosely connected network of computers and devices that no one group controls and is based on Trust. Even Peering is based on private agreements. The Internet is a huge communications network that has been running smoothly without government interference. Any disruption, as OpenDNS discusses here, will lead to unintended consequences that will not be good for our service economy. How can we spend $4B on building more broadband networks to build the economy AND mess with the foundation of that very network???

Even Fred Wilson, famous VC, rails against it.

As an ISP, I would suggest that you take a look at these 3 bills - that are moving through Congress!!! - and talk to your Congress Critters!
Read more... [3 Bills That ISP's Need to Be Aware of]
 
What Will You Be Selling in 2012?
On Rad's Radar
Wednesday, 16 November 2011 04:18
Most channel executives will tell you that the 2 biggest products for 2012 will be MPLS and SIP.  It makes sense since the PSTN is being phased out as the telecom infrastructure turns to an all-IP network. It also makes sense that not all traffic can travel (safely, securely or timely) on the Internet, so MPLS becomes the WAN solution for control and privacy.

Ethernet will be the product of choice. No more T1. Everyone is going to want an Ethernet hand-off at 10MB, 100MB or a GigE. Even Telarus has added Ethernet to its GeoQuote tool. XO, TelePacific, MegaPath, Paetec and Mammoth Networks have all announced EoC (Ethernet over copper wires) availability. [Now if all 5 carriers had a shared database for EoC availability THAT would be worthwhile.]

Of course, we will hear all about Cloud services from every carrier, including Cbeyond and Integra Telecom. We will hear cloud a million times in 2012.  Maybe the conversation will turn to Cloud Differentiation. IN other words, what kind of Cloud are you selling? Is it redundant, resilient, duplicated, backed up, SAS 70, PCI Compliant and secure? How so?

But Cloud means that we will be hearing about Managed Services, especially Managed Security.  EarthLink has been talking up its Managed Security offering for its MPLS customers. Integra Telecom launched its Cloud Firewall Service at ITEXPO. Netwolves has been selling this kind of stuff for years. Even TelePacific is jumping in this space (of managed security) due to its recent acquisition of Telekenex.

The question really becomes: What will the Channel sell?

Agents will continue selling POTS, T1, PRI, broadband - but what will be the breakout product for them?

Will it be cellular? If so, it will likely be 3G/4G backup for broadband.

Will it be Ethernet? Probably, because it can be sold as a replacement service for T1. (But agents will need to learn how to sell DIA over broadband, which many will likely not even try.)

And selling SIP trunking as a PRI replacement is currently happening. however, Agents need to remember that they need to check for interoperability between the SIP provider and the PBX (or customer equipment).

The Cloud folks wish that Agents would sell their stuff, but I don't see that under the Christmas tree this year for them. Maybe 2013.
Read more... [What Will You Be Selling in 2012?]
 
Lesson from the Penn State Scandal
On Rad's Radar
Wednesday, 09 November 2011 10:59

Companies make mistakes. For instance, Netflix goofed on how the new pricing plan was introduced to customers. Or Google killing the Gmail app for Blackberry. Even HP killing the tablet. The key is Communications.

Right now, Penn State is facing the worst possible scandal imaginable. It will forever smudge its image. Likely, it will destroy the Paterno legacy. I'm not going to get into the right and wrongs here, because I think we can all agree that there wasn't much right being done.

In a case, where a state powerhouse (and money-maker) is presented with 40 counts and two high level execs have to resign, the PR team should have been working 24/7. It should have began when word hit the College that the arrests were imminent. Why? Because no prosecutor is making arrests in this size case without hard evidence and all ducks lined up. Because ESPN is going to turn into Fox news for a week over this. Playing the story 24/7 till people have to turn off the TV.

This will result in billions lost - in licensing merchandise, ticket sales, boosters, donations, TV cash, recruitment and more. There's no room for either short term thinking or let's wait.

The first step is to get in front of the scandal as soon as possible. How? Admit the problem. Apologize for it. The public needs to hear that (a) Management or the Board knows that there is indeed a problem and that they are sorry for the problem.

Next, Paterno should have apologized and retired yesterday. Not today. Not at the end of the season. As long as he is the coach, this scandal will be front and center. And the grad student who reported it and is now a coach needs to go. (He didn't follow through. No one did.) Penn State needs a clean slate.

HP should have wiped out the Board of Directors after the tablet fiasco. Why? Under the BOD's watch, two CEO's have been fired - there was the Mark Hurd scandal; Leo Apotheker was fired; and the tablet flub. Ultimately, the BOD has (at least some) responsibility in all 3 heaps, including the lack of clear communication to shareholders and customers. It damages the brand long term.

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We live in an online, 24/7 news cycle. The news cycles are relentless and longer. We also live in a world where everything online is archived forever! Brands (and companies) need to be transparent, forthright and crystal clear in doing the right thing, because like a balloon it just takes one prick to pop it.

Communication with your constituents, employees, customers and marketplace is paramount in a situation. I'm not saying spin the story either. I'm saying be genuine, swift and decisive. The longer you wait, the worse it looks. Plus the news machine will have numerous talking heads giving their take. Not your take. Their back seat driver look through the window view. [And those darn bloggerssmile]

In addition, do you want to be back-pedaling on the story or presenting your own message clearly? [There's a really good book about this by Barry Eisler.]
Read more... [Lesson from the Penn State Scandal]
 
Juniper, TWC Have a Bad Day
On Rad's Radar
Monday, 07 November 2011 11:05

TW Cable had a nationwide outage this morning as reported on twitter and TheVerge. Internet slowdowns and outages were still being reported by Noon Eastern time.

According to the NANOG chatterbox, Level3 & TWC are having the same problem: it appears that Juniper routers are doing a core dump due to a BGP advertisement that triggers a bug. BGP peering causing a number of crashes on the Juniper platform for the last year or so. Unsure if that's related to this problem or not, but the saying one hears frequently is "IPv6 bgp peering isn't as widely tested as the vendors would have you believe"."

I'd use this outage to sell redundancy!!!
Read more... [Juniper, TWC Have a Bad Day]
 
Presidio, Best Buy Make Acquisitions
On Rad's Radar
Monday, 07 November 2011 04:58

Big day at Best But as they buy out the stake in Carphone UK and pick up an MSP.

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Bloomberg reports, "Best Buy Co., the world's largest consumer-electronics retailer, agreed to buy Carphone Warehouse Group Plc (CPW)'s stake in their U.S. mobile-phone joint venture for 838 million pounds ($1.34 billion) and close the U.K. stores it opened less than two years ago."

So Best Buy goes deeper into mobile retailing (well, not sharing profits on its Best Buy Mobile stores).

Today, Best Buy also decided to buy an MSP, mindSHIFT Technologies, Inc., for $167 million.

The press release stated, "The transaction will help accelerate Best Buy's growth in the small and mid-sized business IT services category. mindSHIFT provides cloud services, data center services and professional services to more than 5,400 clients and 25,000 managed desktops in key markets throughout the United States."
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Rodrego A. Byerly tweeted, "mindShift deal makes strategic sense -Best Buy possesses very significant distribution capabilities to deliver managed services to small biz." Best Buy management thinks that their future is as some kind of MSP, which may or may not be true. And buying one that focuses on small biz (it has less than 5 desktops per customer????) is a start, but can it work? Will businesses look to Best Buy as their technology partner? Not sure, since most experiences I hear about say that the Best Buy herd is unskilled. They are no Chuck Bartowski!

More from the MSP / VAR space: "Presidio will acquire all of the outstanding common stock of INX. The proposed transaction will create one of the largest national advanced IT solution providers. The post transaction company, which will carry the Presidio name, will employ over 1,800 IT professionals operating out of 45+ offices across the United States and will offer clients unparalleled access to world-class consulting, engineering & technical resources."

This represents a big day for the VAR/MSP space. We will be seeing more and more of acquisitions in the VAR and MSP space through 2012, it's just too hot of a space. Telcos, cablecos and other VAR's are looking to grow - revenue, skills, talent and technology (like data centers and NOC's). It's far easier to buy than to build.

Telecom equipment provider Tekelec agreed to be taken private for $11 a share in cash, or about $780 million, by a group led by Siris Capital. Other participants in the deal include ComVest Group, GSO Capital Partners, Sankaty Advisors and ZelnickMedia.

In VZ news, FairPoint trust sues Verizon for $2B for fraud in its sale of New England landline business to Fairpoint in 2008. The $2.3B deal is allegedly the reason that Fairpoint went BK. Not for nothing, but I and other analysts wrote about how this deal would be a disaster. Apparently, we were right and Fairpoint didn't do proper due diligence. Where's the lawsuit against the Fairpoint Board of Directors for failure of their fiduciary responsibility?

According to Business Insider, "Urban Airship which helps companies add features like push notifications and in-app purchases to their mobile apps on multiple mobile platforms, has raised a $15 million Series C round with strategic investments from Verizon and Salesforce."
Read more... [Presidio, Best Buy Make Acquisitions]
 
Do You Need an Audit?
On Rad's Radar
Friday, 04 November 2011 07:32

The FCC wouldn't have spent so much time this year on billing problem is cramming or third party billing to your phone bill. Again so big that the FCC had to workshop the issue after three dockets - 09-158, 11-116, 98-170 (from 1998!!).

Members of the Society for Telecommunications Consultants perform audits, assessments and even TEM (telecom expense management). Agents (and VAR's) should be offering audits and assessments as a way to break into a prospect. Even TEM can be used as an introduction to government agencies and enterprise accounts. This is one reason that master agents like Microcorp and TBI have introduced TEM solutions like INSITE and PartnerIQ, respectively. As companies have to do more and more with less and less (this includes telecom agencies) having tools like TEM can be a benefit to a client company.

Why would a company want to have their contracts and bills audited or assessed? I asked Courtney Cross of C3 Telecom, who said, "A system wide telecommunications analysis that uncovers infrastructure inefficiencies and corrects them reveals up to 10x more savings than a billing audit alone." C3 Telecom recommends "that a C3 MAP full scale telecom infrastructure analysis be completed at least once a year, or prior to an upgrade in technology to ensure maximum efficiency."

C3 Telecom Assessment Overview

Yvonne Fry of Lines of Communication says, "The assessment and optimization process is a critical first step of engagement to ensure maximized savings and efficiencies and lay a strong foundation for on-going support. It offers great revenue potential as well as building the depth of the relationship."

If you are challenged to get into bigger accounts (over $3000 per month in telecom spend), offering an audit, assessment or TEM may be the way.
Read more... [Do You Need an Audit?]
 
So Who is Going to Buy XO?
On Rad's Radar
Thursday, 03 November 2011 10:11

I got asked this question again today: Who is going to buy XO? I think we can almost all agree that Carl Icahn would like to sell his company.

XO had 2010 revenue of $1.5 billion, only $8 million more than 2009. So that's flat. XO just laid off 400 employees - probably to make the numbers look better.

Who would buy them?

WIND just received approval to acquire PAETEC, so that takes 2 names out of the running.

Level3 didn't win Paetec and just grabbed Global Crossing, but I could see L3 making a pitch to Icahn, because it would be revenue for L3 and a good portion of it is VoIP revenue. However, integration would be a flashback to the 2006-2008 era. Plus while revenue is up for L3 this past quarter, losses also increased. OUCH! [Plus as I have mentioned before L3 needs to take Cogent off the table, since that is their main competitor in the IP space.]

CenturyLink just swallowed Qwest and Savvis. That plate is full, plus I think focus at C-Link is Cloud not TDM/network.

EarthLink has just purchased 3 MSP's, following more in the PAETEC play book than any other. EarthLink acquired IT Solution Center and Hosted Application Business from Synergy Global Solutions. ELNK has completed the acquisition of xDefenders, a managed IT security company based in Rochester, NY, to "Enhances National Managed Services Provider Strategy". And ELNK "completed its acquisition of Business Vitals, a national provider of managed information technology (IT), security and professional services based in Columbia, South Carolina." They also bought LogicalSolutions.net. That's 4 quickies on the heels of STS Telecom, Deltacom and ONE Comm. Just it looks like the play book centers around MSLEC, the strategy that MegaPath re-branded under. Do they have room in the fold for XO? Probably. And ELNK has an easy time getting credit.

[BTW, have you seen the new ELNK website? It looks great! Seems like wordpress with its clean template design. It includes video testimonial!]

Zayo just surprised many folks by buying 360. I thought it would be the other way around, but I'm wrong often. (Well at least 20% of the time according to Dane!) Is there enough VC dough to get XO? (Or will I have that reversed as well?)

Broadview Networks, TelePacific, Broadvox and Integra aren't candidates, but who knows what private equity money is thinking.

Frontier and Fairport have not moved to cloud yet. They both have indigestion from eating up Verizon assets. Maybe one of them will pop some TUMS and give Icahn a bid.

Cox and Comcast - do the cable guys want to buy some VoIP and fiber?

Some outliers:

I remember being surprised when Host.Net bought WV Fiber, so it could happen again. Not likely with its strict focus on data center and cloud services.

A foreign company looking for network - like Tinet, Telefonica, Tata, Reliance (which bought Yipes in 2007), Orange telecom. I would have listed T-Systems, but with DT still wondering what is happening with T-Mobile, that seems unlikely - or if AT&T pays T-Mobile its break-up fee of $3-6 billion, they could buy XO with that!
Read more... [So Who is Going to Buy XO?]
 
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