Study Group: Equinix Users

GLG News^SM Analyses by this Study Group's Leading Experts(?)

Desparate times call for...............

May 4, 2009

Analysis by:Steve Fortuna, President,

Analysis of:Sprint Is in Talks to Outsource Its Network | online.wsj.com

Sprint/Nextel needs to stop the subscriber loss which is generated by inadequate coverage and capacity/quality issues. Outsourcing Net Management operations to Nextel will probably net savings to Sprint of several billion dollars over the next 4 years, the cost of healthcare for 5,000 + employees. Major feather in Ericcson's cap if they capture the business. Another example of globalization in the telecom sector, when a European company (Ericcson) can do the job better than an American one (IBM). Still not enough savings to dramatically improve the quality/capacity of the network, or the horrible employee morale and bloated internal management structure. In the long term, this won't save Sprint from their marketing ineptitude and poor  executive decisions.

The Insignificant Partnership of LLNW and Widevine for DRM

April 28, 2008

Analysis by:Jason Evans, Director of Operations,

Analysis of:Limelight Teams up with Widevine for Content Security | www.lightreading.com

Limelight is doing the right thing by trying to include more advanced software features in its CDN offering, but the question is how many content owners are making DRM a key part of their short and long-term strategies? Focusing on streaming (via Flash Media Server and WMS) and dying technologies such as DRM probably isn't the most efficient strategy.

MSO's slowly growing up

March 5, 2008

Analysis by:Steve Fortuna, President,

Analysis of:Time Warner Cable Takes Agent Program National | www.phoneplusmag.com

Not only are the MSO's competing well for fixed traditional POTS services, most are upgrading their edge QAMs and physical plant to support circuit emulation services (T1-PRI) over Ethernet and greater IP speeds (20 meg+ and symmetrical services) to address the profitable enterprise PBX and SIP trunking market.  It remains to be seen if MSO's can offer all the QoS and class 5 features to become truly competitive with RBOC offerings like Centrix.  Also, look to MSOs to start bundling resold wireless services to supplant the entrenced carriers.   Most easily threatened are the Tier 2 & 3 ILEC and RBOC  carriers who are most vulnerable to service and quality problems.   Look for further price compression as competition heats up in this market.   If Comcast can more more aggressively into business services in their Tier 1 markets, look for increased churn in incumbent line revenues.

What Blyk forgot

September 17, 2007

Analysis by:Steve Fortuna, President,

Analysis of:Blyk to launch in UK in September | www.telecompaper.com

If you are going to market to tech savvy teens and 20-somethings you need their help in designing the content, marketing and sales.   I don't see a single young person listed on Blyk's rather lame and amateurish website.   This generation is fickle and quick to move when products don't meet their needs, so unless you're going for the 'have no money' demographic whose only choice is a free wireless service, the only companies who will be interested in reaching them are the food and consumer products industry.  Also, what happens the day a subscriber turns 25?  Do they turn off the phone or do you give them a choice of other ad-supported plans?     I think Orange is being cagey here.  They'll sell Blyk their network at an attractive per sub model, but if Blyk can't generate ad revenue Orange has a database of highly desirable 16-24 market demographic that other advertisers will pay to reach. 

Worst Customer Rated Network - Highest Churn

July 12, 2007

Analysis by:Steve Fortuna, President,

Analysis of:Sprint Admits It Is "Unable Meet Your Current Wireless Needs" | telecom.seekingalpha.com

The iPhone is going to put a serious dent in Sprint's consumer base if AT&T doesn't drop the ball on network performance and meets their projection of 10 million units in the next 18 months.  The one problem no one talks about is that 7-10% of every carrier's customers are "problems," either deadbeats or psychopaths or morons who don't know how to operate technology and end up costing more to service than they are worth. Everyone has some degree of "churn" but Sprints numbers have been upside for almost two years and the competitive takeovers are rising.  Someone at Sprint has a mandate to reduce costs and improve service: this is one way to do it.

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