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4G is in Trouble
On Rad's Radar
Tuesday, 20 December 2011 11:45
AT&T had to give up the acquisition of T-Mobile.

LightSquared is almost out of money, says Reuters. 

Clearwire needs money - not only to build out the two 4G networks it has promised to Sprint (WIMAX and LTE), but to continue operating.

VZW has been quietly buying up all the AWS and other spectrum it can get, which - if it gets through the DOJ and the FCC - would be devastating to everyone but VZW. If the cablecos actually start bundling VZW with their triple-play, as Forbes is betting, Clearwire - and subsequently Sprint - could be in trouble. 

The top 4 cablecos account for most of the consumer broadband and a huge swash of the US. Partnering with VZW - which seems so weird to me - means that

Sprint has MVNO deals with Cbeyond, TelePacific and XO. It used to have a deal with Pivot, a cable consortium. (I think EarthLink is also with Sprint.) It needs more. It needs CenturyLink and Windstream to be an MVNO customer. So does T-Mobile.

At this point, LightSquared has other issues besides money; they have GPS interference issues to deal with.

Clearwire just needs money to build and run. It needs customers who sign on for a minimum buy. T-Mobile could be one of them. So could WIND and C-Link.

Meanwhile, DISH is quietly fiddling with its spectrum plans. No idea what they will do.  But except for VZW, right now, 4G in the US is a mess, which directly impacts our economy. 
Read more... [4G is in Trouble]
 
What is Wrong with AT&T
On Rad's Radar
Monday, 19 December 2011 08:28
In recent weeks, AT&T has been hit with a blizzard of bad news.

It's 3Q2011 earnings were off estimates. It's merger with T-Mobile is looking less and less likely with the FCC report, its own smoking gun and the DOJ trial. It received horrible ratings for customer service - again. It was caught up in the CarrierIQ rootkit mess. 

The only good news was that it was able to buy the Qualcomm spectrum. This purchase won't solve many of its issues but it will give the network some breathing room. (Unless the same engineers who admittedly mismanaged the wireless network before are still at work at Ma Bell.) 

Today, a notice was released that AT&T Southeast has exhausted its VLAN numbers in Atlanta and South Florida LATA's for Metro Ethernet. It's utterly mind boggling to me. Would you let AT&T manage your network? 

IN other news, VZW scooped up even more AWS spectrum from Cox for $315M. It looks like VZW has sales agent agreements in place with 4 MSO's now - Bright House, Cox, Comcast and TW Cable. Can you say leaving my competition in the dust?

While AT&T was mired down with the merger - and Sprint was stumbling over that same merger - VZW has been taking the necessary steps to win the cellular race. Will Sprint or AT&T be able to catch up? 
Read more... [What is Wrong with AT&T]
 
11 Top Stories in Telecom in 2011
On Rad's Radar
Thursday, 15 December 2011 07:41

Here's my take on the Top 11 stories in telecom of 2011.

1. Shane McNamara being named VP of the Indirect Channel at XO. It was a shock pick for many in the industry.

2. TNCI Bankruptcy! I understand that the reseller model has been taking a huge beating in the last 3 years, but when you start off hawking "Agent Equity", you need to be better fudiciary stewarts than this.

3. WIND-PAETEC merger - I just didn't see that one coming. It did prove my point about the difference in running a private company as opposed to a public one, who is a slave to Wall Street.

4. Qwest getting bought by CenturyLink - and then CL buying Savvis. It was a big shopping spree. I thought it would have been wiser to buy a cell company, but CL is going all-in on the Cloud.

5. The TCA's Certification program. This is kind of self-promoting because I am a Board member and founder of TCA, but I have seen how the carriers are looking at certification for the indirect channel. I think for agents the CTP (or some certification) will be necessary.

6. The Cloud M&A - there was so much of it! The big one was VZ buying Terremark, which might have been the same plan that CenturyLink used when scooping up Qwest CyberCenters and Savvis. I think the one least spoken about is the TWC-Navisite deal.

7. InterNAP killing its Channel. I don't think this story is over, since the agents have to keep fighting this one or risk more crap like this from carriers who need to rightside their balance sheet like some kind of lipstick on a pig. Cloud companies don't want to see it, but it is this action by InterNAP (and Equinix with Switch & Data before it) that keeps Agents from running to the Cloud. Fear of being cut off at the knees. Not that telcos - remember MCI? - haven't sliced the channel (hello RBOCs!)

8. TelePacific's buying spree - Telekenex, Tel-West, Covad Wireless, and Orange County Internet Xchange. It was fast and furious and quick.

9. Dan Foster leaving then returning to MegaPath to take over for Bruce Chatterly as President of the Business Markets Group. That game of musical chairs was confusing to watch, coming on the heels of the merger of Covad's two largest customers - Megapath and Speakeasy - into one company.

10. Since 2011 seemed like the year of serial acquisitions from companies - Megapath, TelePacific, CenturyLink, Windstream, TDS - let's give a hand to EarthLink, who took New Edge Networks and combined it with One Comm., DeltaCom, and STS Telecom to make a nationwide business CLEC play, then added a bunch of IT/Managed services/Cloud services to that CLEC with Logical Solutions, Business Vitals and the Synergy Global Solutions deals. We'll see how that integration works out in 2012.

11. Comcast hiring Craig Schlagbaum to build and run its Channel indicated that Cable was coming to play in the business space. CLEC's need to take note, because most CLEC"s don't OWN or operate their own network, but lease network from ILEC's and Cablecos. Also, Cox and Comcast are rolling out Hosted PBX nationwide, which means the ITSP space better wake up and get its house in order, since cable has a brand and a network to go with that Hosted PBX service.

I'm certain we will see more M&A in 2012 since companies are flush with cash and can't organically increase revenue. And I am also certain that Cable will be making a big impact in the SMB space in 2012, much to the detriment of CLEC's and VoIP providers.
Read more... [11 Top Stories in Telecom in 2011]
 
The Advice Column
On Rad's Radar
Thursday, 15 December 2011 06:19

It's the end of the year. Time for Reflection. Time to set some Goals for 2012. Time to review those goals from 2011 to see how you did.

Here are a few articles with some good advice.

There's an article trending about 30 Things to Stop Doing to Yourself. It's a good read.

Here are 10 great tips from successful small business owners. I like this tip: Stick to your core business.

Here are 7 tips from highly productive people.

Mojo Marketer Angela has 4 tips for telecom email marketing.

Gary Vee asks a really good question, "Why do we celebrate fund raising instead of sales?"

Have a safe and happy holiday season!
Read more... [The Advice Column]
 
LightSquare, GPS, ADTRAN and West
On Rad's Radar
Monday, 12 December 2011 10:56

ADTRAN "announced today that it plans to acquire, through an asset sale and purchase agreement, the Nokia Siemens Networks fixed line Broadband Access business (BBA), and associated professional services and network management solutions. The planned acquisition would include the Broadband Access intellectual properties, technologies and the established customer base." This gets ADTRAN some revenue and a foot into International customers.

IN other acquisition news, HyberCube is being bought by West Corp.

"West Corporation, a leading provider of technology-driven, voice and data solutions, today announced that it has entered into a definitive agreement to acquire HyperCube LLC, a premier provider of tandem switching services to telecommunications providers. .... Founded in 2005 and backed from its inception by Kamine Credit Corporation, Annex Capital and Chambers Street Investors, HyperCube has rapidly grown to become a leading provider of toll-free origination services in the United States. HyperCube's unique network provides neutral interconnection services for all types of providers, including wireless, wireline, and voice over Internet protocol (VoIP). Hypercube currently serves eight of the top ten largest wireless companies in the U.S.

That's an interesting grab for West Corp, which bought Intercall (conferencing) and Smoothstome (Hosted PBX). Now to grab some toll-free minutes. Maybe its just a revenue play.

Luckily, T-Mobile knows where's its bread can get buttered: T-Mobile Keeps Eyes On The Channel Amid AT&T Merger Turmoil

According to its own press, LightSquared Has Now Signed More Than 30 Wholesale Customers. Clearwire's financial stability coupled with the SpectrumCo-VZW deal has probably helped. Or maybe LSqd was giving it away cheap just to get commitments, some cash and some buzz. However, that GPS issue won't go away. A document leaked to Bloomberg states that 75% of GPS devices experience interference. OOPS!

LSqd called for an investigation stating that only select data was leaked and it was misleading. Personally, I don't think it is misleading. There are few radio operators that have a tight control of the power and frequency that they broadcast on. GPS was their first, LSqd. Too bad. (Plus you don't have the cash to do it anyway!)
Read more... [LightSquare, GPS, ADTRAN and West]
 
Sprint's Spending on Marketing
On Rad's Radar
Monday, 12 December 2011 07:35

According to Adage, Sprint has a new CMO, Bill Moyer, who fired the old agency for a new agency to handle the $1.4 Billion ad spend of Sprint. I looked at that number and my jaw dropped. Sprint spends more than 1 billion in marketing dollars?

Surely there is a better way to spend that money than more black and white ads of Dan Hesse.

danhesse.jpg

Yesterday, I asked some friends - all in marketing of one flavor or another - if they had seen the new Rocket Man VW ad. All said no. One said, "AH! But you remember it." Yeah. I like the Elton John song. I thought it was creative. But I would never buy a VW - even if it is a great stereo system. And this is VW's second creative commercial.

There are many elements to an effective commercial. It has to be creative or innovative or original. It has to be memorable, which is usually tied to an emotional response or connection with the viewer. Linking an emotion with a brand is HUGE!

However, today, we see that companies want more than "just" branding. They want - no, need - to move the needle of sales with their marketing spend.

Some companies are migrating ad dollars to social media. Too many get caught in the trap of social media numbers, while still others view social media as just another broadcast channel. Both miss the whole point.

Branding is important, especially in a commodity market. VW seems to be spending its time featuring features - the stereo and the remote start. More success could come if the brand centered around the customer experience. Customers own that car for 5 years and own that cell phone for at least 2 years. What are those years going to be like dealing with the Brand?

There are thousands of companies selling Hosted PBX. Call it anything you want, it's hosted PBX and it's fast becoming a commodity because everyone is selling it - Parallels, Intermedia.Net, Broadsoft's 400+ customers, Metaswitch's client base and more. To differentiate, it won't be about the features since you all have about the same ones. It will be about the Customer Experience, the Quality of Service and the Integration. At the end of the day, the marketing will have to demonstrate to your market what it will be like to have your service. Get there first. (Want help? Call me.)
Read more... [Sprint's Spending on Marketing]
 
A Final Note on ATT-T-Mobile
On Rad's Radar
Monday, 12 December 2011 07:00
Great quote from this Bloomberg article, "We don’t have any confidence that we are spending all this time and effort and the taxpayers’ money and that we’re not being spun," U.S. District Judge Ellen Segal Huvelle in Washington said. 

Every lawsuit, every court appearance costs the taxpayers money. Not just to pay the judge and attorneys but the rest of the court costs - personnel, security, physical plant, etc.
Read more... [A Final Note on ATT-T-Mobile]
 
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