Study Group: Triple Play or Quadruple Play Experts

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

Nortel Optical Sweepstakes

August 14, 2009

Analysis by:Ronald Gruia, Program Leader-Emerging Communications Solutions &,

Analysis of:Is Ericsson the Hope for Nortel's MEN? | www.lightreading.com

As Nortel disposes of its business units, gaining market share via acquisition will be an way for vendors in the optical space to give the top two players (Huawei and Alcatel-Lucent) ar run for the money. This article examines the potential suitors for the Nortel MEN unit and their likelihood to bid on these assets, in addition to key considerations for each vendor. The list includes Ciena, Cisco, Ericsson, Fujitsu, Huawei, Infinera, Juniper, Nokia Siemens Networks (NSN) and Tellabs.

Shutting down Alt. Energy HQ does not mean complete exit from the Green Arena

July 7, 2009

Analysis by:Edward Moran, Principal,

Analysis of:BP shuts alternative energy HQ | www.guardian.co.uk

The shutting down of BP London Alternative Energy HQ is a simple measure of cost reduction in times of financial crisis and global economic instability. The exit from the solar and wind segments of alterntative energy is very well timed and synchronized with the alternative energy HQ: Both wind and solar areas are not part of BP core business but they did look good on the green banner and part of the slogan Beyond Petrolium. Both wind and solar are almost matured technologies but still not economically viable and can only make economic sense with government subsidies and grands. On the other hand, BP alternative energy activity in the area of biofuels is alive and well in Brazil. This is the only segment of alternative energy which is in line with BP core business of gasoline production and distribution.

Nortel Fire Sale Begins

June 22, 2009

Analysis by:Ronald Gruia, Program Leader-Emerging Communications Solutions &,

Analysis of:Nortel selling wireless unit to Nokia Siemens | finance.yahoo.com

Wireless assets acquired by NSN from Nortel include the CDMA business and LTE IP (Intellectual Property).  NSN gets relationships with operators such as Bell Mobility, VerizonWireless, Sprint Nextel, KDDI, China Telecom. CDMA is still profitable and will have a long tail. NSN also expands its footprint in North America, which represents only ~ 5% of its revenues and this acquisiton will certainly better position the company to tackle one of its Achilles heels. NSN gets Nortel's IP on LTE including SON (Self-Organizing Networks) and ongoing LTE relationships (NT had won KDDI tender and was carrying out a trial at T-Mobile AG); 400/2,500 employees that NSN is getting from Nortel were working on LTE, other 2,100 on CDMA. Who will fill in the void in terms of R&D spend in Canada? NSN will open up a lab and there are rumors that Huawei will expand its presence, but look for more from other entrepreneurs such as Sir Terry Matthews. It will be tough to match Nortel's R&D budget.

The (almost) final phase of demise of Telecom Italia as a top 3 regional telecom leader in South America

June 22, 2009

Analysis by:Edward Moran, Principal,

Analysis of:Telecom Italia starts tender for Argentina stake - report | www.telecompaper.com

The decline of Telecom Italia (TI) as a regional telecom leader in South America began a few years ago as TI began selling most of its in-country wireless operations. The TI Group remained in only two major markets where it had participation in both wireline and wireless segments: Brazil and Argentina. In spite of the board and management declarations from Italy that the group will not sell off in any assets in these two core markets, the moment of truth has arrived when TI had to admit (maybe not verbally / officially) that these two operations are declining as a result of competition and other market forces.

The war on Digital Right Management (DRM) between Univision and Grupo Televisa (NYSE:TV) goes to court

June 10, 2009

Analysis by:Edward Moran, Principal,

Analysis of:Univision and Televisa back in court | www.rbr.com

The war between the two North American Latino media giants return to court. It is a new version of an old war about who has the rights to distribute certain licensed content in a certain geographic area. The right of Univision to distribute the Mexican Televisa content via its US Latino broadcast channel is very well defined under the exclusive contract signed between the two media groups several years ago. But the agreement apparently does not cover new types of media that became available in recent years such as broadband Internet, 3G wireless and maybe event the new IPTV platform. It would be impossible to block the access of US based consumers to the Mexican Televisa web site, so Univision is likely to have lost the war even before the court makes its decision on the issue.

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