M&A Journal: TWC Buys NaviSite, Raises Enterprise Presence

February 1st, 2011

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 →]

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Akamai Accelerates WeeWorld, While Level 3 Speeds Up the FBI

February 1st, 2011

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 →]

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Alcatel-Lucent, Ciena to Help SEA-WE-ME-4 Go 40G/100G

February 1st, 2011

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 →]

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Akamai, France, and Caching

February 1st, 2011

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 →]

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Bye Bye Reach, and Hello Southeast Asia

January 31st, 2011

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 →]

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Telenor Flips on Network Neutrality

January 31st, 2011

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 →]

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Level 3 Earnings Primer: Q4/2010

January 31st, 2011

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 →]

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Metro Roundup 1-31: Axcess Ontario, Optimum Lightpath, Sidera, FiberLight

January 31st, 2011

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 →]

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Musical Chairs 1-29: AOL, AboveNet, BroadSoft, MegaPath

January 29th, 2011

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 →]

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Egypt Goes Internet Dark

January 28th, 2011

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 →]

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On the Implications of Verizon’s Terremark Buy

January 28th, 2011

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 →]

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M&A Journal: Verizon Takes Out Terremark

January 27th, 2011

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 →]

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