Service Providers

Targeted ad tech draws new lawsuit

Dan O'Shea — Mon, 17 Nov 2008 09:21:19 -0500

A new class action lawsuit was filed last week against deep packet inspection firm NebuAd and several ISPs, with the allegation that DPI technology used in trials went beyond the bounds of the information that ISPs are legally allowed to track on their networks. The lawsuit allows that service providers are allowed to track online traffic for security and protection purposes, but that DPI's ability to access personal identifying informations goes beyond those allowances.

Some service providers began working with NebuAd with the hope of using DPI to help them develop targeted advertising capabilities for their broadband Internet services. It remains strange times for DPI and targeted advertising: NebuAd has faced the wrath of U.S. legislators, as well as massive corporate and strategic overhaul since the DPI controversy started, even though similar U.K. company Phorm has pretty much survived U.K. regulator inspection. Also, even while targeted advertising technology lures a lawsuit of one front, the TelcoTV 2008 event showed last week that companies in the IPTV sector are moving ahead with plans to integrate such capabilities into their platforms. read more about that at FierceIPTV.

For more:
- ZDnet has this story

Sprint disconnects, re-connects with Cogent

Dan O'Shea — Mon, 03 Nov 2008 08:49:00 -0500

Sprint and Cogent Communications have been engaged in a network peering dispute in recent weeks that late last week resulted in Sprint disconnecting its network from Cogent's network. That action resulted in service disruptions for some Internet users. By Sunday night, however, Sprint said it had re-established the connection to Cogent's network on a temporary basis while other options are explored.

The peering dispute has been going on rather quietly since late this summer. The companies had a settlement-free peering agreement in place, but Sprint said that Cogent didn't meet the minimum traffic requirements to keep it going. Sprint reportedly told Cogent it would gradually cut off about 10 interconnections between the two networks during October. Sprint also filed a lawsuit against Cogent in September alleging a breach of contract.

However, it was Cogent which Friday brought more attention to the spat, issuing a press release saying that Sprint had terminated the peering agreement and broken a contract in advance of letting a court decide the fate of the interconnection agreement. There are a lot of rumors circulating about what actually happened and why.

Peering disagreements and disconnections are not all that uncommon, especially when they prove to be less than worthwhile for at least one of the parties involved. But, letting that dispute get to the point where end users are cut off without warning seems irresponsible on the part of both carriers.

For more:
- PC Magazine has this report

Related articles
Cogent made our list of Top 10 Service Providers on the Cutting Edge
Cogent CEO Dave Schaeffer is not universally liked

Welcome to the cutting edge

Dan O'Shea — Thu, 23 Oct 2008 10:26:32 -0400

Just a quick editor's note today to highlight the unveiling of our new special report: FierceTelecom 2008 Service Providers on the Cutting Edge. I also wanted to let you know we're planning now for next month's special report on service assurance in a multi-play services world. Let us know by Nov. 10 if you've got something to say on that topic.

In December, we'll have a special report looking at the top unified communications trends, and we'll close out the year with our year-end review and outlook on the top technologies, trends and industry people for 2009.

As always, thanks for reading.

-Dan

Zayo Group

Dan O'Shea — Thu, 23 Oct 2008 09:32:53 -0400

Location: Louisville, Colo.

Why it's so cutting edge: Like Windstream, we are watching this company more for business/strategic reasons. It closed out 2007 with an aggressive string of acquisitions focused on regional fiber network properties, but hasn't really slowed down in 2008, buying when others shied away from deals and getting funding for those acquisitions when others experienced borrowing difficulty. A number of service providers has said they are interested in doing deals, but Zayo actually is doing them.

But can it keep its edge? Zayo has safely tied its deals directly to ongoing funding rounds, and hasn't let its eyes grow larger than its stomach. Still, the name of the game is telecom services, and Zayo remains one of the newer kids on the block.

Cogent Communications

Dan O'Shea — Thu, 23 Oct 2008 09:15:02 -0400

Location: Washington, D.C.

Why it's so cutting edge: A 2007 Honorable Mention goes big-time. Not long after Forbes singled out Jack Cassidy as honest, it labeled Cogent CEO Dave Schaeffer as "one of the most hated in men in telecom". Is it because Cogent is so darn aggressive in setting the Ethernet price bar lower, or because Cogent is quick to see its own weaknesses and correct them? Cogent's tactics continue to keep the rest of the market, especially the big telcos playing the Ethernet game, honest.

But can it keep its edge? Could "lumpy" Internet traffic patterns affect Cogent's future success? Cogent has been leading the charge on price, but other service providers continue to expand their Ethernet market reach, and get more creative with their services than they had been in earlier phases of the market.

Cincinnati Bell

Dan O'Shea — Thu, 23 Oct 2008 09:12:19 -0400

Location: Cincinnati, Ohio

Why it's so cutting-edge: The company has not been afraid to make bets on new technologies or new business moves. It was among the first service providers in the U.S. to roll out a fixed-mobile converged service, and just days ago announced a unique smartphone family plan from its wireless unit. CEO Jack Cassidy was lauded as "The Most Honest Man in Telecom" by Forbes magazine, and has made several small, but strategic, acquisitions in the last year. The telco had a strong second quarter, and Cassidy is now helped by a COO and a new CFO to back him up.

But can it keep its edge? FMC is in a critical period as it moves out of its infancy stage as a commercial service. The acquisitions helped Cincinnati Bell achieve bigger numbers in Q2, but what will future financials hold? The regional play also will sometime soon face the prospect of a consolidating independent telco sector, and decide what role it wants to play.

FierceTelecom Special Report: 10 Service Providers on the Cutting Edge

Dan O'Shea — Thu, 23 Oct 2008 09:04:47 -0400

This year, I made my list of cutting-edge service providers without looking back at last year's list. I didn't want to be swayed too much by big names or distant past performances. I looked at who's been most active this year, who has taken decisive steps to alter their fortunes, and who seems well-positioned to make some big news in the near future.

What's the result? A list that including several service providers focused on truly cutting-edge, market-Ethernet services. This year's roster also includes five independent or rural telcos poised for big changes, one international juggernaut and yes, one subsidiary of one giant former Bell company (see if you can figure out who that is). I've also listed five companies receiveing honorable mention, all of whom arguably deserved a spot in the top 10.

As with last year's list, you may not agree with my choices or my logic (some choice having been made purely on technology or service innovation, others made with M&A ambitions in mind), but that is where you take over. Let us know what you think. Post a comment and tell us about your own top 10 and what makes them so special. I look forward to reading your feedback and suggestions.

Click the link at the bottom right of the screen to see the first of ten, Canby Telecom, then follow the links at the bottom of each subsequent page to see the full list. Enjoy!

- Dan

Qwest expands Ethernet service availability

Dan O'Shea — Fri, 17 Oct 2008 08:49:48 -0400

Qwest Communications announced that it rolled out Ethernet service in 759 new cities this year, and now it serves a total of 1,129 U.S. markets and six international markets. What's more, about 95 percent of these markets are outside of the telco's traditional 14-state service area.

While Ethernet service providers have been busily one-upping one another in recent years with such expansion announcements, Qwest pointed out that it isn't spending new money on new infrastructure to do it. Rather, in many cases, it is leveraging installed fiber and partnerships with carriers in markets where it doesn't have its own infrastructure, said Eric Bozich, vice president of product management for Qwest.

"We use the assets we have in the ground where we can, but [in out-of-region markets] we won't over-build AT&T and Verizon," Bozicch said. "We'll partner with them and use their networks to deliver our service."

Bozich contended that service providers spending a lot of money to build their own Ethernet infrastructures have a responsibility to gain a return on those investments that ultimately challenges their ability to meet the price point dictated by the market.

Qwest offers Ethernet speeds ranging from 5 Mbps to 10 Gbps for all sizes of customers, and Bozich said more customers are now relying on Ethernet for all their communications, even voice.

"We don't even call it VoIP," Bozich said. "We sell it to them as part of an affordable managed service package, and that's what they want."

XO taps Ciena for Ethernet gear, E-NNI help

Dan O'Shea — Wed, 15 Oct 2008 08:59:41 -0400

XO Communication has made several big Ethernet announcements already this year, and the carrier just announced another Ethernet move in choosing to deploy vendor Ciena's LE-311v Service Delivery Switch at its Ethernet hubs in 75 U.S. markets. The gear will play a key role in helping XO manage external network-to-network interfaces (E-NNI) at the points where other service providers connect to the XO hubs.

Having a reliable E-NNI function will help the carrier Ethernet market at large, because carriers can put their faith in their own customers' traffic moving over lines set up on other carriers' networks without threatening the service level agreements and reliability guarantees they have struck with their customers.

For more:
- check out this coverage at Light Reading

New broadband act lacks funding, mapping elements

Dan O'Shea — Thu, 09 Oct 2008 09:33:02 -0400

The Broadband Data Improvement Act, upon further review, may not deliver on all of the broadband data reporting promises that it once seemed designed to provide. Significantly, in the final version passed by Congress, the House of Representatives deferred from its own bill, H.R. 3919, to the Senate's version of the bill, S. 1492. However, the Senate version did not contain $40 million in funding to support broadband reporting efforts, or the mandate to create a detailed national broadband map using data reports from all service providers--a measure seen by many as the primary antidote to previously inaccurate broadband reporting.

By most accounts, S. 1492 still takes steps to improve broadband reporting and to publish more accurate information, but it seems that much of the concern surrounding broadband reporting methods last fall got lost in the shadow of the ongoing financial crisis and the $700 billion bailout legislation.

For more:
- read this report at BroadbandCensus.com

Jabber punches up Cisco's UC effort

Dan O'Shea — Mon, 22 Sep 2008 10:08:49 -0400

Cisco Systems has agreed to acquire Jabber, a highly-regarded developer of presence technology and messaging applications that had lured previous investments from France Telecom, Intel and others. Aside from the France Telecom link, the deal could have significant implications for service providers and for Cisco's ongoing effort to realize more business from the service provider sector. Jabber actually has worked previouslywith carriers such as BT, former RBOC bellSouth (now AT&T) and Portugal Telecom on corporate enterprise messaging and presence solutions. Its technology may now play a key role in unified communications solutions that Cisco may seek to provide via its carrier partners, or on its own.

For more:
- see more info on the deal at FierceVoIP
- read this post at Light Reading Europe

Telecom industry studies pandemic potential

Dan O'Shea — Sun, 21 Sep 2008 19:02:56 -0400

Telcos are getting better at responding to hurricanes and other kinds of disasters, but what about a massive disease outbreak? The Federal Communications Commission sponsored a panel last week for major service providers and network operators to discuss their preparations for such a pandemic event, which could require a response very similar to other types of disasters.

Remote network management, traffic grooming and telecommuting would be key for a disease disaster that could keep many people in their homes or locked down elsewhere. Service providers have had many chances in recent years to practice and refine their responses to natural disasters, but let's hope that the preparation for a pandemic does not have to be tested by a real-world crisis anytime soon.

For more:
- read this story at Network World

Verizon Business joins virtualization parade

Dan O'Shea — Wed, 17 Sep 2008 09:40:13 -0400

Virtualization of data centers and other network resources, with moves by companies such as Cisco Systems, VMware, Nortel Networks, Juniper Networks and others, are dominating the headlines. Amid these moves, service providers showed interest in staking their claim on the market, and with Verizon Business' new virtualization professional services offering, perhaps we are seeing that interest bear fruit.

Verizon Business is now able to pitch itself as a VMware Authorized Consultant, giving it a connection to the virtualization pioneer and a strong position from which to convince companies to adopt the technology in their data centers. The telco, using VMware software, can help corporations assess which of their many applications could be consolidated on a single server, and which of their many servers are most-underused, and in turn can help them plan their virtualization strategy.

For more:
- check out this coverage at Telephony

NebuAd loses CEO Dykes

Dan O'Shea — Wed, 03 Sep 2008 09:22:25 -0400

NebuAd's CEO Bob Dykes has left the company to become chief financial officer at VeriFone. Dykes was the company's primary defender as Congress took aim at carrier trials of its Web tracking technology in recent months. Dykes also was once CFO at Juniper Networks. COO Kira Makagon is slated to become NebuAd's new CEO, and the company is said to be trying out new business model ideas.

Yesterday, the USA Today carried an Associated Press story examining how the company's business opportunity has all but dissolved. Was the timing all wrong for a system that tracked Web surfer habits, or was this technology just a natural evolution of where advertising has been had headed for a long time? To me, it still seems like the biggest thing wrong with NebuAd is not the company or the technology itself, but how unclear and secretive service providers have been about their use of the technology.

For more:
- see this paidContent.org post at The Washington Post
- read this post at GigaOM
- see this Associated Press story at USA Today

Convergys to take billing for a spin?

Dan O'Shea — Wed, 03 Sep 2008 00:23:43 -0400

Telecom software firm Convergys said this week that it is considering a spin off of its Information Management group, the part of the company that deals in billing systems for service providers. The company says that the unit and its other group may achieve greater potential if separated. It would be an interesting move at a time when billing and operational support system companies are on call for frequent large-scale transformation projects. That business has lured companies like Oracle further into the telecom software fray, and other larger vendors also may be looking to add more OSS capabilities. All of that could mean, as Light Reading points out, that such a spin-off may not remain independent for long.

For more:
- see this story at Light Reading

Sandvine still hanging in at Comcast

Dan O'Shea — Mon, 25 Aug 2008 10:27:20 -0400

The Federal Communications Commission order punishing Comcast for delaying peer-to-peer Internet traffic called for the cable TV giant to adopt a new traffic management approach. It's existing traffic management system--the one it used unfairly, according to the FCC--is provided by vendor Sandvine. However, as Comcast is working on a new system, that doesn't mean Sandvine is out of the picture. The vendor has said in the past that its gear can be used to a number of different ends. Now, the order just better defines what is fair and unfair use by carriers.

Sandvine several months ago announced a FairShare software extension that allows carriers to identify sources of network congestion without delving into applications specifics. Comcast is believed to be considering a variety of possible solutions to meet the FCC order's requirements, and Sandvine's FairShare is believed to be among the candidates, according to Light Reading's Cable Digital News. Sandvine also can support metered broadband billing, which several service providers are testing and many are likely to eventually deploy.

For more:
- see this report at Light Reading's Cable Digital News

Related articles:
The FCC issued its Comcast order last week. FCC report
Sandvine and its competitors were busy around NXTcomm. Sandvine report

VoIP leads IMS charge

Dan O'Shea — Mon, 25 Aug 2008 10:02:05 -0400

Infonetics Research has a new report suggesting that about 75 percent of service providers around the world plan to offer VoIP services over IP Multimedia Subsystem (IMS) infrastructure by the first half of 2009. That comes as good news, as the industry has begun to see something of a backlash against IMS, but it's probably not what most vendors and carriers had in mind for this standard as it evolved over the last several years.

IMS traditionally has been seen as an eventual supporter of fixed-mobile converged services, including VoIP, but multimedia services increasingly were touted in recent years as the chief beneficiaries of the new network standardization. Instead, carriers have been rolling out those services independent of IMS because of the cost and risk involved. The research also shows that some in the industry may still have interoperability concerns about IMS deployment, despite a multitude of public interoperability tests in recent years.

For more:
- see this story at Telephony

Related articles:
IMS doubt has been in fashion this year. IMS report
IMS inspired NSN's acquisition of Apertio. IMS report

Cox eyes $500 million wireless investment

Dan O'Shea — Thu, 21 Aug 2008 09:13:23 -0400

Cable TV company Cox Communications already has committed $300 million at auction to acquire 700 Mhz wireless spectrum, and company president Patrick Esser said at the Progress and Freedom Foundation's Aspen Summit that Cox will spend a total of $500 million to roll out mobile content offerings and other wireless services that will enhance its ability to offer quadruple play services on a single bill. Cox also wants to integrate all of its services via wireless where that makes sense.

Though Cox is not saying when all this will happen, it joins other service providers who are getting closer using their new spectrum. Meanwhile, 700 Mhz activist Google, which did not acquire any spectrum in the band, has moved on to a campaign promoting the use of white space TV spectrum for mobile broadband.

For more:
- see this Cox report at InformationWeek
- see this white space story at Network World

Related articles:
Cox also reportedly has been looking at its fiber options. Cox report
Google was very interested in 700 Mhz this time last year. Google report

FCC issues Comcast throttling order

Dan O'Shea — Thu, 21 Aug 2008 08:36:46 -0400

The Federal Communications Commission finally issued a formal order condemning Internet traffic throttling practices Comcast undertook that delayed peer-to-peer traffic on its network. The 67-page order comes about three weeks after the commission narrowly voted in favor of punishing Comcast for such practices. At first glance the order itself does not elaborate on what the FCC has already said--that Comcast must explain its network management practices and come up with new alternatives within 30 days.

Comcast actually has already made progress on that front with a new approach that slows access for the heaviest Internet users at times when the network is becoming congested. That approach is currently being tested in some markets in Pennsylvania, Florida and Colorado. The new wrinkle is that Comcast will not distinguish between different types of traffic. So P2P traffic won't be specifically targeted, though it seems likely some of the same P2P users affected by earlier discriminatory practices will be affected by the new approach too. The FCC order and new Comcast plan only assure the P2P users that they won't be singled out to be throttled. Furthermore, as Wired News Blogs points out, the FCC order actually gives service providers some license to further filter Internet content.

For more:
- read this story at The Washington Post
- see this post at Wired News Blogs

Related articles:
The FCC voted to punish Comcast earlier this month. FCC report
Verizon CTO Lynch says Net neutrality clouds the real need for network engineering to ensure quality. Verizon report

XO expands Ethernet over copper, VPLS

Dan O'Shea — Wed, 20 Aug 2008 09:16:53 -0400

Service provider XO Communications has started offering a new, extended-reach Ethernet over copper service to its business customers. Based on Hatteras Networks technology, the service is targeted at business users within 11,000 feet of a point of presence or collocation spot, and it is being offered at speeds ranging from 20 Mbps to 70 Mbps in 10 Mbps increments, as well as 200 Mbps and 500 Mbps offerings.

The carrier also said it is upgrading its network to support virtual private LAN service to deliver Ethernet within service classes, probably by sometime next year. Ethernet over copper technology has been around a long time, and VPLS support is a more recent goal of service providers, but both moves show how carriers in the ultra-competitive Ethernet market need to look at new ways of extending services, increasing service variety and improving service quality in order to differentiate themselves.

For more:
- check out this coverage at Telephony

Related articles:
XO counts Speakeasy among its Ethernet over copper resellers. XO report
Hatteras Networks talked up new carrier deals at NXTcomm. Hatteras report