A lot of lit tidbits popping up. If you follow me on twitter, then you may have seen some of this already.

Cyber Monday crashed Target.com, but Tom Peters‘ fans crashed dropbox. Tom Peters put out an email to subscribers this morning with links to 14 chapters of Tom’s top topics including Excellence, Execution and more. The chapters were links on dropbox. But it couldn’t handle the volume so it shut off the account.

Happy Birthday to Microsoft Windows – now 30 years old! MS released Power Apps, which is their next billion dollar business line. BI has a view of it.

Analyst: Verizon and AT&T making $17/subscriber per month in 2015, while T-Mobile and Sprint are losing $0.39 <- headline says it all. [fierce]

Good read: Reality Check: The state of wireline through the CenturyLink lens. “As many economics majors know, being a 42% (Verizon FiOS Internet share; video is lower at 36%) participant in a duopolistic structure might be the best mix that they can achieve in their FiOS regions.” As cable enters the cellular race, there will be revenue pressure on Ma & Pa Bell as cable starts chipping away at the former RBOCs last monopoly position. Comcast entering Enterprise doesn’t help VZ either. Rumor had it they were looking to sell former MCI aka VZB, which turns out only to be a banker’s wet dream.

2 biggest problems for RLECs and ILECs: New revenues are not growing (in absolute terms) as fast as legacy revenues are declining and their cost structures are not dropping as fast as legacy revenues – [from RCR]

Another billion dollar CLEC is pivoting: Granite. As the FCC decides if unbundling of voice network elements will continue, companies like Bullseye, Granite and Birch have to shift revenue to non-POTS. Birch made a deal to have access to 80,000 fiber lit buildings. (That means that most CLECs have access to those same 80K fiber lit buildings btw – either through commercial agreement or an aggregator like GTT.)

Granite has launched GRID, which is for malls and shopping centers. MPLS drop to the mall connects to Granite installed fiber channel and cat6 to provide voice, data and fat pipe (Internet) to the tenants of the mall or shopping center. It is targeted at the mall management company. Chasing Verticals is smart.

Tags: cellular, clec, duopoly, fcc, fiber, financials, ilec, microsoft, news, rlec, vz, wireline
Related tags: legacy revenues, billion dollar, granite, fiber, revenues

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I know this happens but I have never seen it in print. Channel Conflict is a big issue. It is basically the conflict between the direct sales team and the indirect sales team. This conflict is so bad that some programs allow for teaming – that is when the channel partner works with a direct salesperson of the carrier and they both get credit/compensated for a sale.

Well, I have a client that has a 100MB pipe from ACC Business, a division of AT&T. The client was under contract with 13 months left on the contract. The client wanted to upgrade to 250MB. ACC Business came back with an excellent price on the the service but with a $50K construction fee for Gigabit fiber. The client balked.

I escalated the issue at ACC Biz. I looked at other fiber providers near my client.

Two months later, an AT&T direct rep knocks on the client’s door and says buy from me and I will waive the construction costs. The client signs. The fiber gets installed. The service turns up. No construction costs.

Channel Conflict.

And people wonder why I pick on Ma and Pa Bell – AT&T and Verizon.

Tags: acc, agents, at&t, att, channel partners
Related tags: channel conflict, construction costs, client, conflict, channel, fiber

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AT&T: Transform from Agent to Provider – Mar 03, 2014

Schools and Libraries are Off Limits – May 12, 2011

Congrats to AT&T Partners – Feb 07, 2011

Contract Termination Class – Dec 17, 2010

Where’s ACC Business Going? – Mar 12, 2009

AT&T Striking and Hiding – Mar 11, 2009

The Rotten Apple in the Channel – Nov 04, 2008

Phone Companies, Channel and Other News – May 29, 2015

Charter Ditches Wholesale – Apr 22, 2015

What Business Model Should the VAR Examine? – Mar 30, 2015

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Copyright On Rad’s Radar?

I know this happens but I have never seen it in print. Channel Conflict is a big issue. It is basically the conflict between the direct sales team and the indirect sales team. This conflict is so bad that some programs allow for teaming – that is when the channel partner works with a direct salesperson of the carrier and they both get credit/compensated for a sale.

Well, I have a client that has a 100MB pipe from ACC Business, a division of AT&T. The client was under contract with 13 months left on the contract. The client wanted to upgrade to 250MB. ACC Business came back with an excellent price on the the service but with a $50K construction fee for Gigabit fiber. The client balked.

I escalated the issue at ACC Biz. I looked at other fiber providers near my client.

Two months later, an AT&T direct rep knocks on the client’s door and says buy from me and I will waive the construction costs. The client signs. The fiber gets installed. The service turns up. No construction costs.

Channel Conflict.

And people wonder why I pick on Ma and Pa Bell – AT&T and Verizon.

Tags: acc, agents, at&t, att, channel partners
Related tags: channel conflict, construction costs, client, conflict, channel, fiber

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Related Entries

AT&T: Transform from Agent to Provider – Mar 03, 2014

Schools and Libraries are Off Limits – May 12, 2011

Congrats to AT&T Partners – Feb 07, 2011

Contract Termination Class – Dec 17, 2010

Where’s ACC Business Going? – Mar 12, 2009

AT&T Striking and Hiding – Mar 11, 2009

The Rotten Apple in the Channel – Nov 04, 2008

Phone Companies, Channel and Other News – May 29, 2015

Charter Ditches Wholesale – Apr 22, 2015

What Business Model Should the VAR Examine? – Mar 30, 2015

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RingCentral has a deal in place with TELUS, a telecom company like AT&T in Canada. 8×8 has had its Virtual Office suite in Canada since 2013. Today, Zayo announced that they were buying Allstream, a division of MTS in Canada. Allstream has a 35,000 km fibre-optic network and provides communications services to enterprise clients including the Canadian government. A good amount of inter-city and metro fiber is in the mix.

“Zayo said it plans to integrate Allstream’s 30,000 kilometres of fibre into its own core operations and create the only “pan-U.S./Canada communications infrastructure provider,” writes the Globe and Mail.

It was a good deal for Zayo at about $500M. Now they can expand in Canada like they have in Europe but with the ability to leverage one of Canada’s largest business to business telecom operator. Zayo is “targeting CAD $300M of revenue, a >40 percent EBITDA” – that is a 5 year ROI.

I think a lot of operators are looking outside the US because the cost of customer acquisition is high here. And maybe being global gets you bigger customers – or at least a different segment of the marketplace.

I also think that there aren’t many more fiber providers in the US that Zayo can acquire — and especially none this big with this much upside.

Tags: fiber, mergers, zayo
Related tags: canada, allstream

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The M&A Picks Up Steam – Jan 14, 2015

2 Small Acquisitions – Dec 14, 2012

Zayo Grabs First – Oct 17, 2012

Zayo Buys AboveNet – Mar 19, 2012

Mergers, Acquisitions and Moves – Nov 09, 2015

FCC Moves on Frontier and the Internet – Sep 14, 2015

Integra Expands With Fiber Buy – Aug 18, 2015

Fiber Play: NTELOS Bought by Shentel – Aug 13, 2015

M&A Rumor Mill – May 04, 2015

News Tidbits Part 2917 – Apr 27, 2015

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RingCentral has a deal in place with TELUS, a telecom company like AT&T in Canada. 8×8 has had its Virtual Office suite in Canada since 2013. Today, Zayo announced that they were buying Allstream, a division of MTS in Canada. Allstream has a 35,000 km fibre-optic network and provides communications services to enterprise clients including the Canadian government. A good amount of inter-city and metro fiber is in the mix.

“Zayo said it plans to integrate Allstream’s 30,000 kilometres of fibre into its own core operations and create the only “pan-U.S./Canada communications infrastructure provider,” writes the Globe and Mail.

It was a good deal for Zayo at about $500M. Now they can expand in Canada like they have in Europe but with the ability to leverage one of Canada’s largest business to business telecom operator. Zayo is “targeting CAD $300M of revenue, a >40 percent EBITDA” – that is a 5 year ROI.

I think a lot of operators are looking outside the US because the cost of customer acquisition is high here. And maybe being global gets you bigger customers – or at least a different segment of the marketplace.

I also think that there aren’t many more fiber providers in the US that Zayo can acquire — and especially none this big with this much upside.

Tags: fiber, mergers, zayo
Related tags: canada, allstream

Follow me:

Twitter Profile

Related Entries

The M&A Picks Up Steam – Jan 14, 2015

2 Small Acquisitions – Dec 14, 2012

Zayo Grabs First – Oct 17, 2012

Zayo Buys AboveNet – Mar 19, 2012

Mergers, Acquisitions and Moves – Nov 09, 2015

FCC Moves on Frontier and the Internet – Sep 14, 2015

Integra Expands With Fiber Buy – Aug 18, 2015

Fiber Play: NTELOS Bought by Shentel – Aug 13, 2015

M&A Rumor Mill – May 04, 2015

News Tidbits Part 2917 – Apr 27, 2015

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Sponsored by Apex Technology Services, a leading IT Services company