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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.”

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What if HP Became an MVNO?
On Rad's Radar
Friday, 01 October 2010 09:47
hp-palm-merge.jpg

All the talk about the Android versus Apple platforms has been interesting, but it leaves out the Blackberry, which actually puts out some rugged, well-liked devices. And there is a sleeper in the corner. That sleeper is HP.

HP bought Palm for a billion, so it is likely going to launch a handset soon. But what if HP went even further? What if HP became an MVNO? Doing a deal with Sprint and Clearwire would give it a big footprint and the ability to sell 4G data.

HP netbooks and tablets could be 3G/4G enabled and sold via HP.com - with a plan or not. But the Palm handsets could be wide open and mobile VoIP enabled. Imagine a handset that was not locked down by the likes of Ma and Pa Bell. Imagine a handset that you could do anything with. Imagine a handset that was a mini-computer.

Handsets become functionally retarded by the carriers, attempting to protect their ecosystem and revenues. That's really the big problem with the cellcos: selfish, short-sighted bean counters. It's never about what the customer wants or needs. It's about what you can shove down their throats by marketing, contracts, and lobbying efforts.

It's tough being an MVNO. Dealing with billing from a telecom carrier is an Excedrin migraine, but HP is big enough to handle that. (And probably in a better position to that than MITEL is. It could do it for MITEL as well just to make some extra points.) But if you are just an MVNO to sell your gear, then it might be less pressure. As for apps, Palm doesn't need to use Palm OS; it could use Symbian or Android to take full advantage of existing apps.

Read more... [What if HP Became an MVNO?]
 
EarthLink Acquires Deltacom
On Rad's Radar
Friday, 01 October 2010 08:57

earthlink logoI had to check the calendar to make certain it was October 1 and not April 1 when I read the headline that EarthLink bought Deltacom.

Deltacom has a lot of fiber in the Southeast - 35 metro rings and 16,400 total route miles of fiber across 14 states - that generates about $440M in annual revenue. That revenue comes from 32,000 SMB customers. EarthLink will combine this with its New Edge Networks subsidiary.

As Gary Kim points out, New Edge targets Enterprise customers with its nationwide DSL/T1 network. Deltacom mainly sold T1 to SMB in the Southeast. Neither do it particularly well, however, as evidenced by the revenue numbers.

Deltacom's fiber and collocations are mainly along the IFN system. Interstate FiberNet was the backbone of the fiber network, but you couldn't find anyone at Deltacom that could price it or sell it. Stuck in a T1 mentality, they missed opportunities to sell OC-x services.

In a marketplace that has regular headlines about the Death of the T1 and with broadband delivering 10MB x 1MB and more, T1 and ADSL have to be sold differently.

Certainly, EarthLink is making a switch from its consumer heritage to business users, but that marketplace has different perspective on telecom and varying sales triggers.

It will be interesting to watch how the newly formed MegaPath/Covad/Speakeasy competes against New Edge in the coming months, since MegaPath/C/S has put a lot of marketing strategy around their roll-up.

It will be interesting to see what ELN does with ITC and especially IFN. It's a lot of fiber, but just having fiber doesn't mean anything. Plenty of companies have sat on fiber that they just couldn't monetize sufficiently. You have to sell densely on-net or within short laterals. That is not something that has been done in the telecom space.

mergers.jpg

Read more... [EarthLink Acquires Deltacom]
 
What to Ask Your Prospective VoIP Provider
On Rad's Radar
Wednesday, 29 September 2010 12:13

If you are a VAR or telecom agent about to pick out a strategic partner to be the VoIP Provider that you work with, here are some things to ask the execs.

Are you a CLEC? It isn't a requirement to be a CLEC to deliver VoIP. However, if not, E-911 and porting will be done by a third-party. Find out who. This brings up the other similar questions:

Can they port numbers? Most businesses don't want to lose their phone numbers or toll-free numbers, so ask if (and where) they can port numbers. Many VoIP Providers back-end into Level3 who does the porting and hands them DID's (phone numbers). But you need to know the territory that you can sell in. Plus who is the RESPORG for transferring toll-free numbers? Maybe how is E-911 handled?

What is the Disaster Recovery/Business Continuity plan?

How do they handle Fax over IP? T.38 works for the two-page occassional fax, but if the business does a lot of faxes (lawyers, mortgages, etc.), TDM is the name of the game. T.38 requires a compatible fax machine, IAD, and network.

How is NAT Transversal handled? If some employees work from home behind a Duopoly broadband connection, how will the IP Phone connect to the LAN?

Not every IP-capable PBX can connect to every VoIP Provider. Some do Inter-operability testing. Some don't. A duct tape solution is to do PRI conversion of the SIP Trunk at the customer premise, but that will be messy. PRI is a standard with just two configurations in any class 4 or class 5 switch. However, SIP is a collection of about 30 RFC's - or think of it is 30 compromises that were never standardized for the industry. So you have to ask about inter-op between the SIP switch or SBC and the hardware before the order.

In a similar thread, you might want to ask how some special features that you are used to are implemented (if they are). For example, overhead paging, call park, message light, and other key system features. If they are important to the client (due to what I call Blinky Light Syndrome), you want to make certain that you explain the implementation to the business BEFORE you order.

Finally, how do you maintain Quality of Service for the VoIP packets? Is this On-Net via Private Line or MPLS? Or does this service ride the public Internet?

One for the Geek Squad:

What codec to they use? Important only so that you can talk about it with the geeky prospects, but also so you have a handle on the upstream bandwidth needed. FYI: G.711 (64 kbps); G.729 (varies); and G.722 (HD).

Obviously, there are questions about the VoIP Providers commitment to the Channel; how quotes and orders are processed; commissions; and the like, but those are the same questions you would ask a cableco, cellco or CLEC.

Read more... [What to Ask Your Prospective VoIP Provider]
 
The Channel and IP Comm
On Rad's Radar
Wednesday, 29 September 2010 11:22
hosted-pbx.jpg

I presented on a webinar for the Technology Channel Association today titled How to SELLECOM Hosted PBX. We had a good turn out and many questions (which I appreciate).

One question was why I would suggest that the agent NOT ask for the bill. When selling IP Communications, it isn't about cost savings. It's about productivity and efficiency -- in other words, Saving Time, which is more important than money.

The sale doesn't come about due to a bill review. It develops from asking questions about how the phone is used, what applications are important, and what is the makeup of the work force. I know that sounds counter-productive and uncomfortable, but the way to a high value sale of IP Comm includes Hosted Email linked to the Hosted PBX for Unified Messaging.

Many applications can hook into the Hosted PBX system like CRM systems. Domino's uses that combination - PBX + CRM - so that your Caller ID pulls up your customer record. It makes for a better customer experience - for directions for the driver; for what your favorite items are; for couponing; for loyalty rewards; and notes about what a lousy tipper you are!

Why Hosted Over Premise?

In multi-location businesses, a hosted PBX solution has many advantages over a Premise-based PBX beyond the addition feature set. In some cases, the premise PBX may be the answer, but when selling IP Comm, the question then becomes what added capabilities would you like to have? IVR? ACD? Voicemail-to-text? Call Recording? Mobile extensions? In an IP world, these can be added as an overlay through a SIP Trunk.

To be successful at this, you have to drink the kool-aid. I think Broadsoft-based Hosted PBX will be a game changer for the SMB space. There are 400+ Broadsoft based service providers. If they all peered for HD Voice, BAM! I'm psyched about it! And so should The Channel. But to sell it you have to know it and use it. Period. You can't have a POTS line at the office. It's the Enthusiasm for IP Comm and it's myriad of possibilities that will make the sale easier.

Afterwards I was discussing the call with a Channel chief who was on the call. He mentioned that more education is certainly needed in The Channel, if agents and VAR's are going to transition along. AT&T wants to close the PSTN in 5 years. The Cloud is here. Small businesses are already online buying phones and call paths from FreedomVoice, RingCentral, Speakeasy and Packet8. The time is Now for Agents and VAR's to educate themselves about IP Communications and The Cloud.

I was reminded that I talk in too many acronymns and that I have more technology background that most other agents. I have to remember that when speaking, because not everyone understands what 1U, pizza box, ACD, LNP, CAPEX, and some other buzz terms are. (Good reminder going into ITEXPO and CVX where I am talking in 4 sessions!)

So the big take-away today was that agents - especially members of TCA - are interested in learning about IP Comm (and how to sell it). And TCA is uniquely positioned to do more on the education front with the cooperation of our vendor members.

Read more... [The Channel and IP Comm]
 
The Mobile Ecosystem Battle
On Rad's Radar
Tuesday, 28 September 2010 12:40

Just finished recording a webinar for COMDEX-Virtual on Mobility + The Cloud = Convergence in Telecom. Khali Henderson, Editor-in-Chief of Phone+ magazine was on the panel with me. I shared this article her because it was relevant. Now I want to share it with you along with my thoughts.

The main point is that telcos (and cellcos and cablecos) are fighting hard not avoid becoming just a dumb pipe. They want it all. Jean-Louis Gassée points out that AT&T was the first cellco to share revenue with the handset maker. Let's face it, Apple's iPhone was just one more device to sell to the Tribe but it also happened to expand the tribe. The iPod helped to grow the Apple tribe from a fringe to a device-loving mainstream. Some even bought Mac books. The iPhone was the first device that incorporated the whole vertical.

Cool handset with a great user experience (UX); a smartphone that was also an iPod and a computer. Apps and iTunes for added revenue. That was a first.

Sure today Blackberry and Android have app stores, but not Palm or Blackberry or even Nokia thought of it first.

And creating Face Time (the video conferencing app) was brilliant. (The other really cool app is Spark's Tour Wrist, that takes full advantage of the parts, pieces and UX of the iPhone.)

Back to the ecosystem. The Telcos weren't the fist ISP's. They waited till the market matured, then steamrolled their customers to take the market. I can't figure out if they are missing the SAAS and Cloud boat or again waiting for others to figure it out for them, then cannibalize that market. As a consumer, I think the ILECs suck in billing and customer service. Employees at the RBOC's are so harried that they can't even get Winbacks correct. More layoffs are rumored at AT&T -- including Channel folks -- this quarter, which just means even less people that know what they are doing and even less hands to actually do it. What an opportunity for CLEC's and MSP's.

Their quarter-by-quarter mentality makes it hard to do business with (or work for) them. It also remains to be seen if that short-term mentality can handle the $70B in debt that AT&T is holding. According to the FT.com, "Verizon Wireless had about $15bn of net debt and was generating about $1bn of cash a month". Verizon's total debt is $57B, according to Verizon filings. Two companies with $127B in debt and about a 17% margin, who just announced that they feared sales would dip in 3Q. Plus VZ has had 2 red quarters and 2 quarters saved by tax credits from sales. They need to wrench every dime out of their cellular customers - handsets, monthlies, apps, ringtones, accessories, you name it. No wonder VZ moved some Android handsets to Bing. They have to keep one eye on Google, since GOOG is now platform, apps, SAAS, store, search and advertising.GOOG just needs a dumb pipesmile

Handsets have usually been a sales driver - even before the iPhone, but especially since then. But carriers subsidize those with contracts. Handset makers have done whatever the carriers wanted. That's why Open Source devices haven't seen much play. Until Google helped build the open source Android platform. Now that could be a game changer.

It would be more of a game changer if the FCC would remind VZW that the 700 MHz spectrum they bought came with a kind of Carterphone provision. But alas our FCC is a toothless old man with bad memory and worse eyesight. (You heard me, Julius!)

Amazon, Google, Apple, Salesforce.com are all strong forces in the SAAS world. All have e-commerce strength. All have a head start on the telcos for value added income. Can the telcos steamroll the likes of these guys?

Then you have HP buying Palm. If there was a dark horse, here it is. Palm was the first smartphone. HP understands the cloud and data centers. BellSouth tried working with EDS on e-Commerce and major hosting, but it was a disaster. (Sales teams couldn't wrap around what they were selling. This is a major problem for ALL carriers right now). Jean-Louis Gassée points out that the e-commerce (music, video, apps) is the difficult part - and Nokia and Microsoft both failed. I see a Fail whale in the telco future as well.

treo.jpg

So HP could take two-thirds of the ecosystem as well.

I wonder which one will try the MVNO route first, just to demonstrate to the carriers that you can be kind to your customers and still make money.

Until Julius wakes up and grows a pair, we will see a battle in the cellular arena. Structural Separation is still my favorite phrase.

Read more... [The Mobile Ecosystem Battle]
 
Americans Agree the Internet is Working
On Rad's Radar
Thursday, 23 September 2010 10:02

"Hart Research Associates conducted a national survey finding that opposition to government Internet regulation remains high with more than 75 percent of respondents agreeing that the Internet is currently working well and over 55 percent stating that the federal government should not regulate the Internet at all." From Broadband for America.

A couple of things:

Sample size: 800 voters. Not much of a cross-section of "225M registered voters. Statistically, 800 of 225M is too small to be any where near accurate. That's the problem with most polls. Plus what about locale. Where all 800 in the same mall? Was the demographics of the 800 representative to the voter demographic breakdown?

Next, how would they know? How would the average American know if the Internet was working? Most don't know what Twitter is - and many are just finding out about Facebook - so how would they know?

Your gamers would know. Your heavy users and early adopters would know. But your 800 surburbanites that actually wanted to talk to a pollster? Not likely.

It's probably a reflection that Americans crave less regulation overall. Until something bad happens - like say all the financial markets crash. Then we want regulation, forget that we had regulation and then de-regulated. Because we just want stuff to work without thinking about it. We pay taxes in order for people to monitor that situation.

The key behind Net Neutrality isn't anything more than everyone needs the same access. Period.

We don't regulate Internet2/Abilene. We don't regulate Cellular access to the Internet either. You want to prioritize a network Comcast or VZ or AT&T? Build Internet3 or stop marketing your broadband as Internet. That brand means something. It means open access and fair play and the innovation frontier. And noone of the Top ISP's own that.

Read more... [Americans Agree the Internet is Working]
 
So We Have These Mergers
On Rad's Radar
Wednesday, 22 September 2010 11:31

So we have all these mergers taking place, then I'm reading Consulting magazine to find a book review about John Hagel's The Power of Pull. We are in an era of declining ROA from Big Business, so they have to keep buying assets to stave it off.

"to support that proposition we muster a set of evidence around performance trends over long periods of time for all public companies in the United States. In particular, we show that return on assets (ROA) for all public companies in the U.S. has eroded in a very substantial and sustained rate since 1965. In fact, it has come down about 75 percent. There is no evidence of it leveling off, much less turning around."

OOPS! Hagel began writing about the shift push to pull models in 2005.

It's just that change has been happening so fast. Execs have had their eyes on the wrong thing. Synergies, metrics, the stock price - these are not ways to get an ROA. And your biggest asset: domain knowledge - keeps going out the door in round after round of layoff.

I'll admit I don't quite grasp Hagel's pull platforms in any way other than how marketing has had to turn around into Inbound marketing because there are too many ways that consumers can ignore or avoid advertising and marketing messages.

This again supposrt my theory that any unspent stimulus money should just be turned over to the SBA.

Read more... [So We Have These Mergers]
 
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