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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

How Good is BYOB VoIP?
On Rad's Radar
Monday, 12 December 2011 06:15
One of my coaching clients has had some issues with BYOB (bring your own broadband) ITSP's (VoIP providers) over the last couple of months. I have too. My Aastra IP phone died and I moved to an ATA, which has added an incredible amount of echo and tin to the line. He says that he has one way calls and the two of us have experienced garbled calls. 

All that makes it difficult to sell VoIP to businesses.

Some of it - like the echo - is the CPE. Some of it is the configuration by the ITSP. Some of it is the broadband.

The ITSP should correct all issues with the CPE and the configuration - without doing finger pointing to the broadband. If you deliver BYOB VoIP, you can't spend all your time blaming the ISP.

If you buy and use BYOB VoIP, you can't expect POTS quality service either. Seriously. VoIP isn't POTS. And Voice over the Internet (which is what BYOB VoIP is) is going to have quality issues. Period.

My ISP has been giving me indigestion over congestion issues for a while, but what can you do? 

The Duopoly – cable and telco – want to meter broadband because they want more revenue. They don’t want to upgrade the networks any more unless they can make more $$. They need the ARPU to go up, which in the current economic climate is just not going to happen. So the result is to decrease CAPEX spending on network upgrades. We see this on cellular networks. Despite spending $7-9B per year on the cell network, the cell networks still experience congestion and that is after the cellcos have capped consumer usage too! What happens when the wi-fi offload to broadband hits the point of congestion? Metering. (We already have capping in place on consumer broadband.)

How is this going to affect business down the road?

More and more workers are working from home. That means day time broadband networks are being used like never before. (It used to be around 3 PM when the broadband would get hit as kids came home from school.)

Smartphone users are switching to wi-fi when they can to save dollars and the broadband networks - more than 60% cable today - are congesting - at a few points. The bottlenecks are in the neighborhoods and in the peering points.

When David Byrd was talking about BYOB in his blog and stated, " For the most part, 90-95% of the time, this works out very well and an overwhelming majority of our customers are very happy," I believe he was talking about DIA not broadband. Big difference. A business broadband circuit of 10MB x 2MB is not the same as a T1. The numbers look better but broadband is best effort, shared bandwidth and DIA is a dedicated circuit. The quality of bandwidth is degrees different.

Many ITSP's have moved to looking for bigger deals where the business will buy DIA or MPLS or a dedicated VoIP circuit. Converged is a nice idea for a network, but at the end of the day, it is about quality, ease and of course price. With the cost of customer acquisition increasing, no company wants to lose a customer over quality. (Besides that churn number makes Wall Street unhappy. 2.8% is not a friendly number.)

For businesses with less than 25 handsets, BYOB VoIP may be the way to go, but think about having two broadband circuits - something to alleviate the VoIP quality issues that may arise.

Look for an ITSP that is connected to your ISP as that can alleviate some of the path quality issues.

Try a demo phone for a day or two to see what it will be like.

Fax, alarm circuits and other special needs lines will still have to be POTS for now, but that's okay - you'll have a back-up line in case something happens to the VoIP or the Internet or the power.

Read more... [How Good is BYOB VoIP?]
 
Why I Was Going to Run for Congress
On Rad's Radar
Saturday, 10 December 2011 06:35

This is kind of a political rant, so far warning and I apologize if I offend you in advance.

Voter Suppressionmedia green zones like in Baghdad (and here),indefinite detention of Americans by military, the revolving door between lobbyists and governmentSOPACongressional insider trading, shorting on the debt ceiling, re-districting to keep power - aren't we tired of this crap yet? I am. Very tired. DC and state capitals are owned and run by career politicians and lobbyists. This truly is Corporate America or America, Inc.

I have spent the last few weeks trying to decide if I should run for Congress. I spoke with several campaign people in Tampa Bay as well as a few close friends, family and advisors. Despite my being a registered Democrat - and most of the folks I spoke with being Republican – everyone was very supportive, some even a little too giddy at the idea of me running for Congress.

I bitch about politics, so I figured I needed to get involved. More accurately, I want to fix it. It’s a tall order. Either you are a part of the problem (empathy, not voting, blaming) or part of the solution. I want to be a part of the solution.

I have to tell you that what I learned is that the process to run for office is challenging. It takes a lot of money to run for office. A standard Congressional seat needs a minimum of $1.3 million dollars for staff, advertising, printing, office and travel. That's a minimum. The candidate will be asking for money 4 to 6 hours per day, every day. The candidate will be stumping, at events, at churches, in neighborhoods, seven days a week, long days, for a year. There's no way my business would survive that schedule. And anything less than going 110% just isn't in my DNA. I want to win, even on projects with clients - I want a win. I want a positive outcome.

A few people told me to start small - like a county seat - but the point is: I don't want to be a career politician! They are the problem! We have politicians, not Statesmen. It’s a Big difference.

The other problem is the national blame game. “It's the Dems!” “It's the GOP!” PUH-lease! The difference between the two parties is slim at best. Take the politics out of it and look at the issues: healthcare, education, economy, foreign policy, term limits, civil liberties and the US Constitution.

I could point out that in 1992 the Clinton Administration was trying to design a healthcare solution, but the GOP stalemated the whole Clinton Administration, like it is doing to the Obama Administration now. But that’s being political. The issue is that the elected Congress Critters are NOT doing their JOB! Stalemating isn’t governing. We have real issues in the country that need to be fixed before we begin a slide into third world status.

People forget that the US economy is service based. The Bush tax cuts put money back in consumers – not voters, Consumers – pockets. Why? So they would spend it in our economy, since our economy is built on consumers buying stuff. Wal-Mart, McDonalds, Apple, Microsoft, etc. require the US consumer to buy their stuff. And to buy more of it every quarter in order to maintain the stock price for the fat cats on Wall Street. (I won’t go on a tangential rant about how Wall Street only extracts value from the economy.)

When the Middle Class gets squeezed, there is less money being spent in the economy. I wrote a while back about how banks, credit card companies and insurance companies had reached their peaks, when the economy was humming along on the real estate bubble up to June of 2006. Since then, it has been downhill for these companies and they have to find new ways to make money from the shrinking number of customers. (That would be you!)

Small businesses don’t think about raising prices to make more revenue or how to add fees to customers’ bills to make a few extra dollars. Only public companies think that way, since they are a slave to Wall Street.

What happens when the economy slows down further??

Here’s a scenario for you: the payroll tax cut doesn’t get renewed, the holiday credit card bills arrive in January to lucky that are still employed but now with less take home pay. Whoops! Now even less money for restaurants, gas, food, lottery, etc. This cycle ends up with small businesses closing. McDonalds won’t close, but a franchise may close. Wal-Mart won’t close, but a few mom-and-pops will. BP won’t close, but the gas station owners may. Now we have more unemployment, more vacant buildings, and more burdens on society, which ripples to more bankruptcies and foreclosures. The pool of people paying for the largesse is shrinking. It’s a mess. In addition, small business is the job growth engine, not large business. As small business dies, so does job growth and the economy.

But can a freshman Congressman make a difference? Not likely alone. He or she would need help from a lot of places.

Am I going to run? Not this time. I would need a lot of money. My business would suffer. The spotlight and mudslinging would be annoying. The political process is daunting, so I am going to get my feet wet by helping others this time round. I am going to shed some light on the DC mess and make some noise (not here, don’t worry). I also may be joining these three organizations: NoLabels, Rebuild the Dream and My America.

What do you want Your America to look like in 5 years? What are you doing to get it there? The elected are not leading us; they are screwing us down the river. Ranting on twitter, FB and your blog is fun, but action is where the tires meet the road. You can make fun of Occupy but at least they got up and did something. Are you?

And voter ignorance in this country is epidemic. See here and here and here. Maybe it is head in the sand defense against so much going wrong that is out of our control or maybe it is that we are getting so dumb as a nation that we can't grasp the debt any more than we can balance our check book or maybe it is an attention deficit society looking for immediate gratification. 

Read more... [Why I Was Going to Run for Congress]
 
MicroCorp Acquires Another
On Rad's Radar
Wednesday, 07 December 2011 09:39
MicroCorp-Blue.png

Master Agent MicroCorp announced yesterday another acquisition (following the purchase of 5 Star Communications in June).

Combined the Company will be the largest Telecom Agency on the East Coast.

MicroCorp will also expand its portfolio by signing a strategic partnership agreement with Premier Solutions Group, LLC to provide Technology Solutions throughout the United States.

Atlanta, GA & Lancaster, PA - December 7th 2011 - MicroCorp, Inc., the Nation's leading Telecom Master Agency, announces today the signing of a definitive agreement under which they have acquired the assets of Premier Management Group (PMG) of Lancaster Pennsylvania. PMG is a business unit of Premier Companies, LLC and provides managed telecom solutions to small, medium and enterprise sized business customers throughout the Northeast.

This strategic relationship will allow MicroCorp to expand its portfolio of services through a partnership agreement with Premier Solutions Group, LLC (PSG), thereby allowing MicroCorp to provide converged single-source-solutions to its nationwide distribution channel.

MicroCorp will retain the "Premier" brand and operate PMG as a wholly owned subsidiary that will collaborate with PSG in providing integrated and converged telecom and technology solutions. The Company will continue to operate from the Premier Office Building in Lancaster, PA, alongside the PSG team. PSG will increase its focus on application development, managed services, Cisco advanced technologies such as wireless, voice, video, data center and security, while also launching some voice cloud services through a soon-to-be announced joint venture.

The PMG and MicroCorp transaction closed on December 7th and the full integration of operations will be completed by February 1st 2012.

It's an example of the channel side consolidation. As carriers acquire cloud and managed services companies, master agencies are bulking up to migrate from a transaction only model as well.

Read more... [MicroCorp Acquires Another]
 
Mergers Cost Jobs
On Rad's Radar
Wednesday, 07 December 2011 06:25

In the wake of AT&T getting caught misleading the federal agencies about the benefits of its merger with T-Mobile (FCC report here), we see that the merger of PAETEC and Windstream has already resulted in job losses.

Windstream cuts 58 jobs at Palm Harbor office is just the start of at least 280 jobs being cut from its combined workforce of 14,500. Synergies require job cuts. Richmond is losing 70. Even Rochester is losing 52 jobs, according to 13 WHAM TV.

Mergers can't work without job losses, office closings, and other economic detriment. It is what it is, but don't put lipstick on it and try to sell the pig as a boon to anyone but your shareholders. And I think that means short term shareholders, because mounting debt combined with flat markets and more competition in a climate of stagnate job growth means the long term picture is worse than the pig.

lipstick_pig_080910_mn.jpg

Now the ILEC mouthpieces are writing about how unfair the FCC report was. Really? Because the FCC staff had 2 million pages of documents from AT&T and T-Mobile to sift through, including the "smoking gun memo" that said AT&T didn't need to buy T-Mobile, it could spend one-tenth the $39B price tag to build out the network itself. AT&T also admitted to Congress that it mismanaged its network. They all have spectrum. Or be like VZW and buy it from Leap and SpectrumCo - or LightSquared or DISH et al.

And let's not forget one big thing: both cellcos have lousy customer service records. That HARMS consumers. The FTC, DOJ and FCC were established to protect CONSUMERS, not other companies (Sprint) or shareholders. We have very little (real) competition in telecom.

Final thought: Most mergers fail!

It isn't about bigger. It's about Better. Zappos grew to a $1B with great culture and customer service. Say that about a telco.

It isn't about bigger. Ask Intermedia (ICI, the first billion dollar CLEC that had to sell to MCI) or PAETEC (the company that Arunas Chesonis said needed to be a billion dollar company. For what?). It's about Innovation. Ask a company in the Duopoly about Innovation.

Read more... [Mergers Cost Jobs]
 
Sprint Deals With Clearwire
On Rad's Radar
Monday, 05 December 2011 11:50

The best details of the Sprint-Clearwire deal is at Marketwatch, but Tammy Wolf at TMC did a good job, too. Clearwire gets "up to $1.6 billion over the next four years in payments for WiMAX services, possible pre-payments for LTE services and potential equity investments" from Sprint. "Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013, subject to certain conditions." So Clearwire is stuck with WiMAX until like 2015 while also building an LTE network. The speculation begins: is $1.6B enough for Clearwire? Who will buy the bundle (Sprint-Clearwire)? The Senate wants to know more about Lightsquared. DISH wants someone to build it an LTE network. VZW picked up the SpectrumCo 20 MHz from the cablecos. The cablecos will now be selling VZW services to its customers as an authorized VZW sales agent. (Isn't that stupid?)

Read more... [Sprint Deals With Clearwire]
 
Lots of News (I Can't Cover in Detail)
On Rad's Radar
Monday, 05 December 2011 11:30

Dag Peak explains the difference between BroadTouch and BroadCloud by BSFT.

That Carrier IQ key logging software has Sprint and AT&T caught in lawsuits. This privacy issue reminds me of the cigarette suits -- keep suing and when you win one, you crack the whole thing open and huge sweeping change must follow. So lawyers start your engines and get out those lawsuits! (Like I have to tell you to.)

Obama names new FCC nominees for Senate approval. Copps is term limited and Meredith Baker left for a lucrative job at Comcast! (No conflict of interest there, just part of the revolving door in DC.)

CenturyLink adds broadband caps to compete better with Cox, who does too.

I'm still working on my blog post about this: FCC Releases Connect America Fund Order, Reforms USF/ICC for Broadband

It's a week where SAP feels like Ron Paul, because its cloud acquisition got about 90 seconds of space. AT&T has to feel like Herman Cain, after the FCC released its report about why the cellular merger was a no-go. Is VZW like Romney for quietly scooping up the cableco spectrum AND getting them to sell VZW services?! T-Mobile is quietly in the corner like Bachmann trying to figure out the next move.

Read more... [Lots of News (I Can't Cover in Detail)]
 
Is All Broadband Going Metered?
On Rad's Radar
Monday, 05 December 2011 10:56

Many rural fixed wireless ISP's meter their service for network management and costs reasons. The spectrum is finite, which means that wireless ISP subscribers can only get a set amount of bandwidth from that tower. The backhaul from the tower would be the other limiting factor.

In cable systems, the backhaul to the neighborhood is the bottleneck. The next bottleneck is the Internet gateway - how big is the pipe to the Internet that the cable system uses locally (and just how congested is it).

The DSLAM is the bottleneck for most neighborhoods. And the backhaul is the next bottleneck. It's tough to backhaul a 48 port mini-DSLAM with 2xT1, but it is done. Often.

As you have seen on the commercials, VZW and Ma Bell limit your mobile data to 2GB and 5GB. Sprint does too, except on your smartphone, but according to reports today, will be stopping that practice and moving to caps as well. T-Mobile has caps.

Ma Bell and TWC both trialed caps on consumer broadband. Supposedly this bombed but we know that Comcast and others have bandwidth caps for consumer broadband.

Now CenturyLink is capping DSL. CenturyLink is announcing the following Excessive Usage Policy (EUP), which will become effective in February 2012:

CenturyLink's EUP applies to all residential high speed Internet customers and is only enforced in the downstream (from Internet to customer) direction. Video services provided by CenturyLink PRISM™ TV are not subject to the usage limits. The policy has the following usage limits per calendar month:

• Customers purchasing service at speeds of 1.5Mbps and below, have a usage limit of 150 Gigabytes (GB) of download volume per month.
• Customers purchasing service at speeds greater than 1.5Mbps, have a limit of 250GB in download volume per month.

This will be one more pinch point for the consumer. Consumers are streaming music, movies, TV, living on social media, and sharing media with their friends. Stores this holiday season are selling TV's and DVD players that are all Internet-enabled to stream GoogleTV, Netflix, HuluPlus, Pandora, YouTube, CinemaNow and more. (Heck, you probably read my rant about all the buffering I go through with BHN.)

Not only that, so many tele-workers are using consumer broadband from home, working in The Cloud (so to speak).

VoIP, web/video conferencing, Skype, Citrix and virtual desktop, VPN and security wrappers, CRM, backup, virus and software updates - that cap will be hit quick in 2012.

The funny thing is that most of it was poor planning on the network operators part. And because they are a slave to The Street, who still see telcos as rate-of-return dividend checks, the consumers will get pinched. So too will providers, when the consumers find out that the backup or the VDI app or whatever is costing them $10 extra a month, it's out. Watch.

Read more... [Is All Broadband Going Metered?]
 
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