Telecom Ramblings

So nearly every single news magazines and blog ran an article yesterday about Verizon’s decision to throttle bandwidth for heavy users of its wireless network, a memo that lands just in time for its launch of the iPhone.  Seriously, though, was it that big a deal?  It’s a 4G device on a 3G network, if you don’t throttle it somehow, then it will throttle itself even more effectively.  Ask AT&T just how effectively. [Read more →]

Unlike the late 90s, it isn’t every day we see a network services provider go public, so I was pleased when a reader pointed me to Wednesday’s updated S-1 filing and a PR from Masergy Communications (news, filings), which suggests the IPO is imminent.  Masergy is a company whose name I run into frequently but which I have never known all that much about.  That’s largely because it is privately held and smaller than its principal giant competitors, who tend to dominate the news.  Masergy serves the large enterprise market with managed network services, leveraging bandwidth leased from wholesale carriers, competing with the likes of Verizon Business, AT&T, BT Global, Tata, and Global Crossing, as well as similarly large system integrators.  So let’s take a quick look at Masergy’s numbers, which now include their Q4 results too: [Read more →]

Catching up with the various network operator news this week that I couldn’t put together a whole post on:

Trans-European network operator Colt Group (LON:COLT, news) has extended its partnership with iPass for enterprise mobility services via a cloud-based services delivery system.  That’s fancy marketing-speak for secure access to [Read more →]

While I have been very glad to see the frenzy over low latency connectivity bringing differentiation and favorable pricing trends to parts of the bandwidth market, in the past I have nevertheless taken a rather dim view of high frequency trading itself.  My feeling has been that HFT adds little to the world except more liquidity where there was usually plenty already.  Its real function is just to enable traders to pick each others’ pockets more frequently in a zero sum game. Well I think that’s still basically true, but nevertheless I like it now, and here’s why. [Read more →]

According to Telegeography and others, Telecom Italia is taking a hard look at a Metroweb, although they have yet to make an actual offer.  Metroweb owns and operates a very deep metro/regional network centered on Milan, with some 5,100km of cable in the ground.  They also have intercity fiber connecting those assets to other Italian cities.  That they are for sale does not seem to be in question, with the price tag said to be in the EUR400-500M range, or $550-650M.   [Read more →]

As expected, the largest of the next generation backbones, Level 3 Communications (NYSE:LVLT, news, filings), reported its fourth quarter 2010 earnings today.  Total fourth quarter revenues of $921 and a loss per share of $0.09 (not including $0.06 in a one time tax benefit) will not surprise the street much.  But with Level 3, one has to look deeper than the overall numbers to understand the company’s trajectory.  As regular Telecom Ramblings readers know, I offered my own detailed guesses on Monday, and just to toot my own horn for once, I pegged the CNS and EBITDA numbers right on, and was quite close across the board: [Read more →]

According to Dan Rayburn, AT&T (NYSE:T, news, filings) has turned away from its in-house CDN development and worked out a deal with EdgeCast Networks (news) [a subsidiary of Verizon (NYSE:VZ, news, filings)] instead.  They’ll use EdgeCast’s software to build out their retail offering.  If AT&T runs with it, this could be a very significant alliance for EdgeCast, potentially bringing it fully into the top tier of the CDN market.  The other high profile carrier partners they’ve added are Global Crossing, Deutsche Telekom, Telus, and AAPT.  But for sheer size and scope, there is only one AT&T.  Yet we really know little about just how [Read more →]

This evening, Time Warner Cable (NYSE:TWC, news) announced that it has signed a deal to buy hosting and cloud provider Navisite (NASDAQ:NAVI, news, filings) [a subsidiary of Time Warner Cable (NYSE:TWC, news)] .  The purchase price of $5.50 per share represented a 33% premium above the stock’s closing price today, and amounts to a total pricetag of $230M.  They will combine NaviSite’s managed hosting and cloud services with their SME-focused Business Class division.  Many will see this as [Read more →]

Dueling PRs in the CDN sector this morning, one from the cutting edge of social media and the other a major government website:

Akamai (NASDAQ:AKAM, news, filings) won a deal with WeeWorld, which is a global social game that I haven’t yet come across but has 40M or so registered ‘WeeMees’ (I don’t even want to know).  Since using Akamai to cache their content closer to the consumer, WeeWorld’s interactive website has seen an 8-30% reduction in page load times, which is significant in these low-attention-span times we live in.  Interestingly, they revealed [Read more →]

One of the primary undersea cables linking Europe to Asia is getting an overhaul.  SEA-WE-ME-4 is expanding its capacity by moving to 40G along its entire 20,000 kilometer length.  The cable went live in the early part of 2006 (or was it late 2005?), and consists of two fiber pairs whose total capacity will after the upgrade be 2.4Tbps, or 4.8Tbps total.  Here’s a quick snapshot of the cable’s route: [Read more →]

There was an interesting article over on Light Reading yesterday by Craig Matsumoto, citing an industry source who said that sometime last year Akamai (NASDAQ:AKAM, news, filings) got into a tiff with three French ISPs, two of which were supposedly Orange and SFR.  As the story goes, Akamai refused to pay more and got the boot and had to serve data from the UK for a while, though the disagreement was later resolved.  An Akamai representative quickly disputed the account in the comments following the article, but without actually [Read more →]

Two interesting developments lately in the southeastern Asian cable market lately.

The first is the end of Reach as we know it.  Remember Reach, the joint venture between Telstra and PCCW that bought the old Level 3 Tiger assets after the bubble bubble and never found its footing?  Well they’ve been restructured yet again, but this time it looks a bit more permanent.  Telstra and PCCW are splitting [Read more →]

The tide has been turning lately against network neutrality, following the FCC’s action.  Over in Europe, the Norwegian incumbent once fully embraced the concept, even voluntarily signing a NN code of conduct back in 2009.  But apparently they’ve changed their mind according to this ArsTechnica article, and want to charge extra for YouTube and other traffic.  Their argument, however gives me pause.  Not because it’s new or anything, but because it’s so obviously wrong at a factual level: [Read more →]

Level 3 Communications (NYSE:LVLT, news, filings) reports earnings on Wednesday morning, and therefore it is time for Ramblings’ quarterly earnings primer.  Level 3 spent 2010 recovering from a 2009 that saw churn eat away their revenue and set them back again from positive cash flow.  Since the first quarter of 2010, the company has been growing core revenues steadily, albeit slowly.  Their fortunes in 2010 depend on one thing: solid revenue growth.  They know it, too – you can hear it in every investor presentation they give.  And investors and analysts know it too.  The debt mountain in front of them cannot be scaled any other way.  With that in mind, here are my own detailed [Read more →]

Several items last week that I didn’t get to but were worth noting in the metro fiber arena:

Axcess Ontario signed a master agreement with Iberdrola USA, under which they will supply dark fiber to Rochester Gas & Electric, hooking up 10 facilities in Ontario County, New York.  The name Axcess Ontario always confuses me as to whether it’s up in Canada, but it’s better than the company’s old mouthful of a name: [Read more →]

A few quick notes on the everlasting game of musical chairs amongst executives across the sector:

Mike Manos has resurfaced as the new Senior VP of Technology at none other than AOL.  Manos headed up Digital Realty Trust (NYSE:DLR, news, filings) for many years, and last year was working over at Nokia.  His appearance at AOL suggests that the company is reinventing itself again, this time with data center infrastructure and the cloud in their sights.  In his own blog, [Read more →]

Many, not the least of which being Renesys, have now noted that Egypt appears to have cut off its own access to the internet in the face of unrest.  Not just filtered things they don’t like, or throttled traffic to discourage use.  They’ve shut it down – except perhaps for the stock markets.  There has been no interruption of course to the traffic flowing through the country from Europe to Asia on those critical cable systems, nor is there likely to be since Egypt is clearly doing this at the IP layer via its own ISPs.  Still, one has to wonder just what repercussions [Read more →]

Rich Tehrani has an interesting piece on the the implications of the NAP of the Americas falling into the hands of one carrier (Verizon), following yesterday’s surprise M&A announcement.  It’s not about net neutrality though, but about carrier neutrality which is a very different thing.  The purchase stands to change the landscape of interconnection for a large chunk of the internet in ways that cannot be [Read more →]

In a surprise acquisition, telecommunications giant Verizon (NYSE:VZ, news, filings) announced today that it has agreed to purchase colocation and cloud provider Terremark (news, filings) [a subsidiary of Verizon (NYSE:VZ, news, filings)] for $19 per share, or $1.4B.  That’s a 35% premium above Terremark’s $14.05 closing price. Terremark’s board has already approved the purchase, but just to make doubly sure, Verizon is in the midst of acquiring 27.6% of the company’s stock from several large shareholders. [Read more →]

Level 3 Communications (NYSE:LVLT, news, filings) is making a move on the European enterprise marketplace.  They will now be offering their Dedicated Internet Access and VPN solutions in several European markets, including France, Germany, and the UK.  These are of course their original markets where they built out their own metro loops etc, and where they earn most of their revenue over there.  As for the expansions to the north, south, and east where they added [Read more →]

Zayo Group and its founder, President, and CEO Dan Caruso have been a rising force in the fiber sector since the company’s founding in 2006.  Dan used to blog over at Bear on Business and was a regular commenter here, but that level of access to his thoughts and opinions became a casualty of his success (and of Zayo’s issuing of publicly traded debt).  Today Dan Caruso returns to Telecom Ramblings, this time on the other side of the microphone, to discuss recent events and future directions at Zayo: [Read more →]

This is a guest post by Paolo Gorgò, who blogs over at Nortia Research and over on Seeking Alpha.  Anyone else who might be interested in a guest post may contact the webmaster.

InterXion recently filed plans with US regulators for a stock market listing on the NYSE, and its IPO is scheduled for Friday, January 28.

One of Europe’s largest data center providers, InterXion competes mainly with Equinix Europe and TeleCityGroup and smaller local providers. These three major European players offer a slightly different coverage of the European region, but all have data centers in the most [Read more →]

Catch-up time for the fiber sector:

Midwestern regional and metro operator US Signal (news) has completed the expansion of its footprint to the south and west.  They have lit 1,000 miles of intercity fiber into southern Indiana and through central and southern Illinois to St. Louis, Missouri.  The expansion also includes metro rings in [Read more →]