Archive of the Business Services Category

Ethernet, IP VPNs bright spots in data spending decline

The 2% drop projected this year for the US for wireline business data services market is the first decline In-Stat has seen in more than a decade of covering the sector.

Spending on wireline data services (which doesn’t include managed services such as hosted VoIP in In-Stat’s coverage) should stabilize next year before rebounding, reaching $25 billion by 2012 after dropping to $22.4 billion this year.

“Ethernet Services and IP VPN services are among the lone bright spots in the market,” In-Stat analyst David Lemelin said.

Spending on IP VPN services among small and medium businesses should grow 150% between last year and 2012, In-Stat said. And spending on Ethernet services among healthcare firms should triple in that time.

Nortel postpones optical, Ethernet unit auction

Nortel Networks (OTCBB:NRTLQ) has postponed the auction of its Metro Ethernet Networks unit, which was scheduled to be held today.

“In light of ongoing discussions with interested parties, [Nortel] has decided to not hold the previously scheduled auction today in relation to the sale of its global Optical Networking and Carrier Ethernet businesses,” the company said in a statement today. “Qualified bidders are now required to submit offers by November 17, 2009.”

The news puts a damper on Ciena (NASDAQ:CIEN), whose $521-million stalking-horse bid for Nortel’s assets (that’s slightly less than half of the unit’s 2009 revenue) would catapult its stature globally and domestically.

Other potential bidders may include Ericsson, Nokia Siemens, Huawei, Tellabs, Cisco, and Infinera. In October, one analyst suggested that interest among potential buyers had waned in recent months, a notion that seems to bear more credence now that Nortel is seeking more time to attract alternative bids. More recently, however, UBS analyst Nikos Theodosopoulos called NSN a “likely active bidder” that could push the purchase price above $750 million. more

XO in limbo after Icahn standoff

Carl Icahn’s withdrawal of his latest rejected offer to buy the 10% of XO Communications (OTC:XOHO) that he doesn’t already own leaves the company’s next move hard to predict.

Rob Powell at Telecom Ramblings has an interesting analysis of the conundrum the company now faces. And he throws cold water on some of the current speculation that XO might make an acquisition sometime soon.

XO stirred that speculation by writing in its third-quarter earnings report this week, “We believe that certain opportunities exist today in the highly competitive CLEC industry that may not recur such as, but not limited to, the acquisition of other CLECs.” That observation came in the context of the company defending its decision to raise cash without raising high-yield debt. How it will pull that off in Icahn’s orbit is one of the key questions facing XO.

Developers flock to Android, but is openness to thank?

This post is part of a series leading up to an upcoming Connected Planet feature story on Open Mobile. Road to Open: Read part 1 HERE.

Google’s (NASDAQ:GOOG) Android platform has been trumpeted as the beacon of openness and — for the most part — it has lived up to the hype. Although criticized for limiting access to its software development kit, Android is proving to be relatively easy and inexpensive to develop fpr. As a newer platform, it may take awhile for developers to flock to it as they did to Apple’s (NASDAQ:AAPL) iPhone, but there is no doubt they are coming, said Peter Farago, vice president of marketing for Flurry Analytics. more

Cisco sees telco hosted mail partners — just not yet

Shortly after the launch by Cisco of a slew of new unified communications and collaborative technologies earlier today, I was able to touch base with a company executive for some additional insights into the service provider impact of its moves.

Cisco emphasized its long-term focus of working closely with service providers and highlighted some new products likely to be delivered with the help of operators.

But perhaps the day’s most interesting new product, a hosted e-mail offering dubbed WebEx Mail that will not only compete but emulate some of the protocols within Microsoft Exchange, will be delivered solely as a cloud service directly by Cisco — at least for the time being. more

Separating the wireless haves from the have-nots

With all the major U.S. carriers having reported their third-quarter earnings, the scales are clearly tipping in favor of the big two, Verizon Wireless (NYSE:VZ, NYSE:VOD) and AT&T (NYSE:T). They are pulling away from the pack in an ever widening split between the wireless haves and the wireless have-nots, according to Bernstein Research analyst Craig Moffett. more

Windstream becoming RLEC, CLEC hybrid

Windstream (NYSE: WIN) CEO Jeff Gardner told me this summer that he wanted to increase the company’s revenue from business customers from about a third of its total revenue to half over the next five years. Today’s acquisition of privately held CLEC NuVox could cut that down to more like two years. more

NSN reorg to slash work force, focus on partnerships, acquisitions

Faced with mounting competitive and financial pressures, Nokia Siemens Networks (NYSE:NOK, NYSE:SI) is launching a major overhaul, reorganizing its business into three divisions, focusing more attention on partnerships and acquisition, and contemplating cutting its work force by as much as 9%. more

N.H. smart grid fund recipient squares off against bankrupt Fairpoint

Receiving nearly $16 million in smart grid stimulus funding was certainly a boon to the New Hampshire Electric Cooperative, as it was to the other 99 recipients, but the funding had a different meaning for this New Hampshire-based utility. It is owed $400,000 from Fairpoint Communications, the area’s main telco, which is busy wading through bankruptcy. more

Recovery priming carrier M&A, CEOs say

Now that the economy is regaining its footing, mergers and acquisitions in the service provider space should heat up, two carrier CEOs said this week.

Market conditions have become much more favorable to mergers in the last three months, Global Crossing (NASDAQ:GLBC) CEO John Legere said during the company’s third-quarter earnings call today, pointing to its refinancing of $750 million in debt last month as a sign of receptiveness in the capital markets. “I believe we’re in a different environment than even the last time we spoke,” he said. “The biggest change is more


March 2015
« Jan    

Your Account


Subscribe to RSS Feed

Subscribe to MyYahoo News Feed

Subscribe to Bloglines

Google Syndication