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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

A Few Days of News
On Rad's Radar
Monday, 20 September 2010 11:57

The FCC has written a protectic order for Inter-Carrier Compensation finally! "Developing a Unified Inter-Carrier Compensation Regime, establishing just and reasonable rates, Connect America, high-cost universal Service Support and the National broadband Plan for Our Future. Adopted a Protective Order in this proceeding." (Dkt No. 10-90 01-92 05-337 07-135 09-51)  Just means that you can provide data redacted for privacy. But it does mean that the FCC is moving forward.

Neutral Tandem is acquiring TINET SpA. As Rob Powell explains besides being a switching platform, NT also runs an MPLS network. Now it will run an IP and Ethernet network too. Perhaps, another Ethernet Exchange is going to open?

Master Agency TBI in Chicago hires Mike Saxby, former Phone+ group publisher, as Chief Strategic Officer. Good luck, Mike, on this new step!

RCN Metro was bought by ARBY partners and re-launches as Sidera Networks.

SUTUS adds Intelligient call routing.

NJ government phone bills get auditing: "A recent audit of New Jersey's telecommunications billing and contracting procedures found major flaws totaling more than $3 million in wasted taxpayer dollars."

Read more... [A Few Days of News]
 
Knology Buys Sunflower
On Rad's Radar
Monday, 20 September 2010 11:39

It's an MSO acquisition. Knology is a cable operator in 12 markets, including a section of Pinellas County, Florida. Knology announced it is pay $160M to acquire Sunflower Broadband, a Lawrence Kansas ISP infamous for bandwidth caps.

From MultiChannel, "Knology has about 600,000 residential voice, video and data subscribers in Florida, South Dakota, Georgia, South Carolina, Alabama and Tennessee. Sunflower will add about 51,000 homes passed and around 105,000 revenue generating units in Lawrence, Eudora and Douglas counties in Kansas."

At the same time, Knology is trying to re-finance $770M in debt, according to Business Week.

Read more... [Knology Buys Sunflower]
 
COLOTRAQ Picks Up Slack
On Rad's Radar
Monday, 13 September 2010 08:45

Just as Switch-and-Data became Equinix, the channel program was shuttered. Well, COLOTRAQ is here to pick up the slack. COLOTRAQ has launched its master agency for colocation and managed hosting. 

Officials with Colotraq said that the new master agency empowers agents and consultants, who specialize in delivering telecom and IT solutions, to source their clients' needs for IT infrastructure.
Company officials said that joining the master agency gives an agent instant access to the services of more than 400 service providers who maintain over 3,000 colocation facilities in 1,200 markets across 160 countries. 
 
See COLOTRAQ's CEO, Danny Bouchedid, speak about Uncovering Collocation & Managed Hosting Opportunities at Channel Vision Expo on Monday, October 4.

Read more... [COLOTRAQ Picks Up Slack]
 
VZ Bumps Commissions Again
On Rad's Radar
Monday, 13 September 2010 08:42

Verizon is no longer paying commissions on new or renewal POTS as of 9/1/10. This includes Mass-Market and Mid-Tier Customers. Other changes include: discontinuing commissions for Renewals for any Mass-Market customers (20 employees or less) and a decrease in commissions of 57% for Mid-Tier Customers.

Resellers of VZ services like Granite, TNCI, MetTel, and Ernest will continue to sell and compensate POTS lines.

I have to say though, if POTS is your bread-and-butter, you are looking at the end of that bread line.

Read more... [VZ Bumps Commissions Again]
 
Paetec acquiring Cavalier
On Rad's Radar
Monday, 13 September 2010 08:14

PAETEC announced that it is merging with Cavalier Telephone this morning. The transaction is worth about $796M if I read between the lines correctly - $336M in debt and $460M in financing. So PAETEC gets about $800M in additional revenue for $796M.

CavTel will be a wholly-owned subsidiary of PAETEC. Does that mean integration will be unlikely? Just one more asset under the umbrella? How does this integrate with Energy and Allworx and MacLeod?

One of the assets is Intellifiber and its 17,000 route miles of fiber. It will be interesting to see how PAETEC leverages that since  CavTel couldn't and no one had leveraged MacLeod fiber yet. (I have a e-book coming out on how to sell to Lit Buildings, they might want to buy).

PAETEC gets another data center and MSP, since CavTel bought one in January.

To me this is consolidation for consolidation sake. As if getting bigger is going to help without Focus. Who are your customers and why?

As if you can compete against the ILEC's who are all but unregulated. PAETEC, CavTel and every other CLEC depends on the ILEC last mile. Getting bigger doesn't alleviate that issue.

For any merger, I would love to hear the plan for how the acquiring company is going to honestly leverage the acquired assets better than the previous management team. Just once.

This is the mess than is eroding our economy on a weekly basis. M&A for bankers, stockholders and Wall Street. It doesn't add value. It doesn't add synergies that add value. It's a paper play. It wasn't like they bought Leap or Cricket.

Read more... [Paetec acquiring Cavalier]
 
Sprint FMC Integration Service
On Rad's Radar
Monday, 13 September 2010 07:12

According to the press release today, Sprint just annoounced Wholesale Mobile Integration. Not true. Last October at Broadsoft Connections, Sprint was talking about MVNO options like this. At the Channel Partners Expo in Vegas in february, I tracked down the Sprint Product Manager for this offering. It was May before they sent me the first slide deck about the 3 different offerings. It was September when they finally sent me pricing - even though I consult with many Broadsoft based ITSP's it still took 7 months. And the pricing examples are wrong in the slide deck.

Um, Mr. Hesse, do you see why your company needs a new CEO? These kinds of organizational problems start at the C-Suite.

They did have time to launch a website.

There are 3 options:

Straight MVNO, which is wholesale purchasing of data by the KB, minutes of use, and SMS messages. The carrier is paying for each KD, text and minute of use. Plus activations and monthly per handset charges. Also, the carrier has to do its own handset fulfillment. That's right: go get your own handsets, configure them correctly, handle RMA (returns), and tech support. Then there is the billing.

Option 2 is to use a MVNE - a middle man. They can handle the handsets and some other stuff, but there really isn't that much margin for a middle man.

Option 3 is "Leveraging Sprint's CDMA, IMS, and IP platforms to integrate mobile handsets with a Wholesale Partner's managed VoIP (prem-based or hosted) service." This is the Wireless Integration Service for Broadsoft based VoIP Providers (or MITEL). It consists of an MPLS connection into Sprint's IMS from the feature server that will allow registered cellular phones to act like an extension on the Broadsoft system. Every call goes through the Broadsoft switch.

It will be interesting to see how this evolves because most carriers can't wrap their head around Hosted PBX let alone wireless integration of Hosted PBX. And now it's a longer sale as you start talking about cellular and desk phones and PBX and landlines. It will be interesting to watch.

As an aside, I find this funny from Sprint's slides: "Devices do not drive decisions--57% say they do NOT select a provider based on wireless devices. The key considerations in provider selection are Network Reliability (92% Very Important), Cost (87%), and Network Speed (82%)." Then 43% of the people DO select by device. Can you say iPhone? Android?

Lightyear is a big Sprint Wholesale customer, but mainly wireline, although they are reselling Sprint MVNO service as Lightyear Wireless. See the video of the Lightyear CEO.

Read more... [Sprint FMC Integration Service]
 
CEO Moment
On Rad's Radar
Monday, 13 September 2010 06:09

Football season started this weekend. The General Manager's job of an NFL team is to build a winning team. Let's assume that the team has a developing quarterback and a good running back. The GM's job during the draft and trade is to get the best blocking line that he can.

The quarterback needs protection and the running back needs a hole to run through.

This is no different in sales. Your sales team needs help.

They need a game plan. They need someone to remove corporate hurdles that stymie their performance. They need coaching. They need training - on your products and services, on the corporate systems, and on selling.

We are in a new world here. What worked 10 years ago won't work today. TDM was yesterday. IP Communications is today.

BTW, it's not just your direct sales team that needs help with blocking and protection. Your Indirect Channel is filled with Agents that want to sell your services if you just remove some obstacles.

Read more... [CEO Moment]
 
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