Archive for the ‘Telecom News’ category

Internode believes it will gain better DSL coverage as part of iiNet

February 5th, 2012

Now that its merger with iiNet is complete, Australian competitive broadband provider Internode is looking to serve more customers with its DSL services.

As a subsidiary of iiNet, Internode complements its own DSLAM-equipped telephone exchanges with 242 from its new owner, more than doubling the amount exchanges out of which it can deliver its most popular service packages–Internode Easy Broadband and Easy Naked–from 208 to 450.

While not specifying when each provider will ultimately connect their respective customers to their DSLAMs, Simon Hackett, Internode managing director, said that “the integration process is a priority for both iiNet and Internode.”

“Blending our DSLAM coverage benefits customers of both Internode and iiNet,” he said. “We’re working hard to integrate both DSLAM networks so that we can get Internode customers connected via iiNet DSLAMs and vice versa.”

For more:
- TeleGeography has this article

Related articles:
Australia’s iiNet continues acquisition feast with Internode deal
iiNet to acquire TransACT for $81.5M
Internode targets greenfield FTTH opportunities
Australian competitive providers say Telstra’s revised separation plan is inadequate
iiNet and Primus establish wholesale agreements with NBN Co.

Source:Fierce Telecom

Week in research: Private line forecast at $43B; France likes its VoD

February 5th, 2012

Private line shows modest growth: As the demand for higher bandwidth private lines offsets the shift from lower bandwidth private lines (ATM and Frame Relay) to packet-based services, Insight Research forecasts that the market will reach $43 billion by 2016. The major contributors to private line revenue growth will be data-based cloud computing and demand for new bandwidth-intensive wireline and wireless applications. “The insatiable demand for data has kept the private line market relatively steady over the past five years and we expect this trend to continue,” says Insight Research Director Fran Caulfield. “The need to backhaul data-intensive 4G wireless services and increased local bandwidth for wireline data and video services will sustain the private line segment for the foreseeable future.” Release

Consumer electronics drive WiFi chipset revenue: As more consumer electronics manufacturers incorporate WiFi into their devices, including smart meters, wireless mice, automobiles, and home automation will help drive sales of WiFi chipsets to $6.1 billion in 2015. “As WiFi appears in more and more devices the demand for additional bandwidth will grow along with it,” says Greg Potter, analyst with In-Stat. “Granted, broadband speeds are not yet fully utilizing the available bandwidth allowed by WiFi. However, newer use cases–such as streaming high-definition video from devices to the TV-necessitate an increase in bandwidth. New standards such as 802.11ac aim to provide that necessary speed increase.” Release

French consumers tune into VoD: French consumers like their Video on Demand (VoD) service, as the 34 percent penetration of the video market shows. According to a study from GfK Technology and Retail France, France’s VoD market revenues rose 10 percent in 2011. However, DVD player sales declined 12 percent. The overall French consumer electronic market, one that includes smart TV, smartphones and PCs, fell 4.5 percent last year. Article

Source:Fierce Telecom

Turnkey Internet capitalizes on Google’s Kansas City fiber move by purchasing KCNet

February 5th, 2012

Google (Nasdaq: GOOG) may have yet to complete its fiber network roll out in Kansas City, but Albany, N.Y.-based Turnkey Internet thinks it will have a chance to compete for business customers by purchasing KCNet.

Neither company would reveal the terms of the acquisition.

With KCNet, an ISP that provides Web hosting services, dialup and broadband Internet connectivity, Turnkey will be able to offer its cloud-based IT service to Kansas City-area businesses under the KCNet brand.

Adam Wills, CEO of Turnkey, said in a Kansas City Business Journal article that his company became more motivated to purchase KCNet with Google’s proposed open access fiber network that will allow application providers like Turnkey to offer services to area businesses.

Turnkey believes a presence in Kansas City will enable it to deliver cloud-based services over a faster connection.

 ”We got really interested because our product excels as you get more and more speed to the business premises,” he said. “We can’t live selling our products to people who don’t have high-speed Internet.”

For more:
- Kansas City Business Journal has this article

Related articles:
Google could use SureWest for 1-Gig network in Kansas City
Report: Google could speed up its FTTH build by buying SureWest
Rumor: SureWest may be a Google acquisition target
Google’s FTTH aspirations run into utility pole snag in Kansas City

Source:Fierce Telecom

BT’s cost cutting helps offset fiscal Q3 revenue decline

February 5th, 2012

BT (NYSE: BT) saw its revenue fall 5 percent to £4.77 billion ($7.55 billion) in fiscal Q3 2011 due to declines in its global services, retail and wholesale divisions, but its ongoing cost cutting effort drove up operating profit by 22 percent to £764 million ($1.2 billion).

Global services revenues declined 4 percent, while retail and wholesale declined 5 percent and 8 percent, respectively.

One particular area where BT did see growth in Q3 was broadband. During the quarter, the service provider added 146,000 new subscribers, representing almost approximately 56 percent of all UK broadband subscriber net additions.

Inside the broadband arena, BT reported that it added 95,000 new Infinity fiber-based broadband customers, ending the quarter with over 400,000 subscribers.

“We have delivered another quarter of growth in profits and cash flow despite the economic headwinds,” Chief Executive Ian Livingston said.”These are a reasonable set of results. We’re seeing further cost reductions, and that’s despite very significant investment we’re making in the business.

Livingston added that “we are becoming a more efficient and better business, but we’ve still got more to do.”

For more:
- see the release
- Reuters has this article

Special report: Wireline in the fourth quarter 2011

Related articles:
BT goes live with wholesale optical spectrum access service
BT targets MDUs in its latest FTTP trial
Infonetics: Service provider 40G/100G optical transition gains momentum
BT adds Ethernet nodes in U.S. and Canada
BT, Scotland Yard create copper theft taskforce

Source:Fierce Telecom

France Telecom Orange to increase fiber network spending in 2012

February 3rd, 2012

France Telecom Orange (NYSE: FTE) isn’t afraid of broadband competition and its commitment to spend €300-350 million euros ($394 million-460 million) shows that it is ready to fight.

Stephane Richard, France Telecom’s CEO said that ongoing fiber buildouts provide it with a weapon to compete with a crop of savvy broadband competitors like Iliad and Free.

Some analysts, according to a Reuters report, have expressed concern that the telco’s fiber network investment could be compromised by Iliad’s move to offer a new low-cost mobile service.  

Richard dismissed such concerns.

“The arrival of a new competitor in the mobile market a few weeks ago will not call into question our dedication to invest in fiber,” said Richard. “I will protect fiber in our budget because it’s crucial to our future competitiveness.”

Augmenting its own €2 billion ($2.7 billion) plan to build out its Fiber to the Home network to an initial 10 million homes by 2015, the incumbent provider has struck fiber sharing agreements with its three main competitors Bouygues Telecom, Free and SFR.

Set on serving mid-sized cities and rural areas, the telco said the pact with these service providers will help it advance rollout times and reduce costs.   

For more:
- Reuters has this article

Related articles:
France Telecom sets ambitious FTTH goal of 15 million homes passed
France Telecom strikes FTTH network pact with Bouygues Telecom
France Telecom injects Alcatel-Lucent’s 100G optical system into key network routes
France boasts 22M copper, fiber-based broadband connections

Source:Fierce Telecom

MegaPath launches new introductory Ethernet speed promotion

February 3rd, 2012

MegaPath is trying to lure business more customers to sign up for its growing Ethernet portfolio by serving up a new suite of lower-speed service tiers.

Priced at $199 per month for both SMBs and enterprise customers in select markets, MegaPath’s Basic Ethernet package includes a symmetric 2 Mbps and 3 Mbps service offering.

Serving as the foundation for these new offerings is its Ethernet over Copper (EoC) network. The service provider revealed that it “is on track to complete the previously announced expansion of its EoC network by June 2012.”   

Already available in over 400 COs in the U.S., MegaPath’s Ethernet service is being offered in several major metropolitan markets, including Atlanta, Denver, Detroit, Houston, Las Vegas, Los Angeles, Miami, Minneapolis, Newark, New York, Philadelphia, Phoenix, San Francisco, Seattle, and Washington D.C.

When the expansion is complete, the provider will extend its EoC services into eight new markets: Austin, Detroit, Houston, Las Vegas, Newark, N.J., Portland, Ore., Sacramento and Tampa.

This expanded coverage will resonate with multisite businesses that are looking for alternative sources of Ethernet connectivity. It will also enable MegaPath to compete more effectively not only with cable operators but also other large competitive providers like Windstream (Nasdaq: WIN) and XO (OTC BB: XOHO) that have also been aggressively expanding their own EoC footprints and offerings.

For more:
- see the release

Special report: Competitive carriers hone their Ethernet over Copper skills

Related articles:
MegaPath Wholesale extends Ethernet reach via Telx, sheds Covad Wholesale name
MegaPath goes nationwide with Ethernet over Copper
MegaPath furthers its bond with Ethernet over Copper
MegaPath targets SMBs with new symmetrical Ethernet service

Source:Fierce Telecom

AT&T, Orange Business establish telepresence connectivity pact

February 3rd, 2012

AT&T (NYSE: T) and Orange Business Services are combining their collective knowledge in telepresence that will allow their customers to use their respective services from their main and remote sites.

By establishing this agreement, large enterprises will be able to schedule telepresence meetings and connect telepresence endpoints.

Current AT&T Telepresence Solution and Orange Telepresence Community customers using Cisco (Nasdaq: CSCO) TelePresence endpoints will be able to access the new service.

In addition to reducing obvious travel costs by being able to conduct face to face meetings remotely, the service will take the guesswork out of conducting a videoconferencing call regardless of the network or exchange they are using.   

The new arrangement between the two service providers appears to be part of a new trend where service providers are trying to connect what could be described as telepresence islands.

Of course, AT&T and Orange aren’t alone in establishing such agreements. Just this week, Tata Communications (NYSE: TCL) launched a global telepresence effort with nine other domestic and international service providers.

For more:
- see the release

Special report: Wireline in the fourth quarter 2011

Related articles:
Tata Communications helps form global telepresence group
BT, Orange establish telepresence connectivity agreement
Sprint, Tata partner for telepresence
Sprint to extend Tata videoconferencing services to enterprise customers

Source:Fierce Telecom

Comcast brings home automation service to Denver market

February 3rd, 2012

Comcast (Nasdaq: CMCSA) is taking its Xfinity Home service to the Denver market.

Seeing an opportunity to enhance its revenue mix from its existing broadband and video customer base, the Xfinity Home service will provide users with a host of services, including home alarm protection, in addition to other features like the ability to adjust thermostats and remotely turning off and on lights.

Users can also develop personalized settings where they can get real-time e-mail or text alerts whenever a door is opened or closed or motion detectors report activity inside or outside of the home, for example.

The service also plays into the increasingly mobile nature of today’s consumer with the inclusion of the Xfinity Security app that can be downloaded for free on Apple’s iTunes App Store.

While the home automation market is still in an embryonic stage, Comcast along with fellow cable MSO Time Warner Cable (NYSE: TWC) and telcos (AT&T (NYSE: T), China Telecom (NYSE: CHA), Frontier (NYSE: FTR) and Verizon (NYSE: VZ)) have been aggressively rolling out home automation services.

Initially driven by home security services, a new Infonetics study revealed that service providers are rolling out home automation services to increase average revenue per user (ARPU) and reduce subscriber churn.

For more:
- see the release

Related articles:
Infonetics: Home automation to boost operators’ revenue, customer loyalty
Verizon taps InstallerNet to conduct installation of its home automation service
AT&T gets into the home automation game
Time Warner Cable puts iControl to work in its IntelligentHome service offering
iControl Networks finds entrance into Europe via Swisscom

Source:Fierce Telecom

FCC serves up reworked Lifeline program to weed out fraud, promote broadband adoption

February 3rd, 2012

The FCC voted unanimously Tuesday, 3-0, to reform its Lifeline phone subsidy program and reduce waste by preventing consumers from claiming services from multiple service providers.

A new National Lifeline Accountability Database will be created to prevent multiple carriers from receiving support for the same subscriber.  

The FCC said the new database builds on efforts it took in 2011 where it eliminated almost 270,000 duplicate subscriptions in 12 states following the review of over 3.6 million subscriber records, saving $33 million.

Under the reformed program, the FCC has also established a one-per-household rule, but defines a household as an “economic unit” so that separate low-income families living at the same address can get connected.

Service providers that participate in the Lifeline program are eligible for subsidy of up to $10 per month per subscriber, and the program is part of the $9 billion Universal Service Fund, which the FCC is currently reforming. AT&T (NYSE: T) and Verizon (NYSE: VZ) offer both wireless and wireline-based Lifeline phone plans to low-income subscribers.

Besides voice services, another important part of the reformed program focuses in enabling low-income residents can get access to broadband data services. A new Broadband Adoption Pilot Program will help it determine how Lifeline can be used to increase broadband adoption among Lifeline-eligible consumers.

Although the three commissioners did not agree on whether they should cap total Lifeline fund, which has grown from $488 million in 2000 to $1.3 billion in 2010, they did acknowledge the reforms are a critical first step.

For more:
- see the release
- see this Bloomberg article

Related articles:
Consumer groups question whether FCC’s Lifeline program reforms go far enough
FCC asks PUCs to help it reduce fraud in Lifeline program
USF voice service subsidy comes under FCC scrutiny
Verizon, Sprint, USTelecom join challengers to USF reform plan

Source:Fierce Telecom

EU takes its data privacy seriously; why won’t the U.S.?

February 3rd, 2012

Samantha Bookman, FierceTelecom

Last Saturday, Jan. 28, activists and lawmakers in the EU and Canada celebrated an event that got relatively little publicity here: European Privacy Day. It was the culminating date in a monthlong campaign to raise awareness of privacy and data protection issues faced not just by the EU, but globally.

In the United States, the National Cyber Security Alliance also celebrated Data Privacy Day on Jan. 28, but its efforts focused on consumer-level methods to secure data from threats like hackers and data-mining viruses or other intrusions. European Privacy Day took a more holistic path in calling attention to privacy and data protection, with meetings and round tables in several countries including Belgium, Sweden, the UK, Hungary, Germany, and more. Each addressed aspects of privacy and security from the consumer, business and legislative level.

As I mentioned in a recent column, the EU is locked in negotiations with the United States over how the U.S. obtains and shares data on Europe’s citizens. But that’s not the only concern faced by the continent over how data is collected, stored and secured both within its borders and worldwide.

Privacy Day-related meetings discussed topics ranging from the implications of smart metering for privacy, to free speech and freedom of association issues related to the workplace, to reviews and discussion on current data protection laws and new laws being enacted. In short, participants didn’t just ask how they could secure our computers and data centers against intrusion; they discussed the real implications of the IP age on individual rights.

The expansive reach of the dialog on the rights of individuals when it came to privacy and protecting data that’s collected about them was surprising in its depth, compared to the U.S. version of Data Privacy Day in which consumers and businesses were given the usual instructions to keep their antivirus programs up to date and to be aware of current laws regarding release of individuals’ data.  

Most discussion of legislative or corporate efforts to protect data and comply with privacy rules in the U.S. is kept within legal and corporate circles; most Americans don’t think much about privacy laws. It’s dry stuff, to be sure, and it takes a Herculean effort to call their attention to even a single facet of privacy and data protection. Last week’s Web-wide protest against the proposed SOPA and PIPA bills is a good example of the level of effort needed to call attention to an issue with our data networks and/or the Internet. But a law that also deeply affected individual rights to privacy was passed with little comment just three weeks prior.

“Technology is changing the way institutions, governments, and individuals interact,” wrote E.D. Kain in a Forbes article about the National Defense Authorization Act. “The symmetry of power is shifting and governments and non-state actors alike are scrambling to keep up. Sometimes this creates real security threats.” And it raises questions about how well our private information is being protected, or how it’s being used, in the midst of this scramble.

The United States needs to put at least as much effort into publicizing the discussion about privacy and data protection as the EU does. Let’s see what next year’s Data Privacy Day addresses.–Sam

Source:Fierce Telecom