AT&T challenges Sprint/Clearwire?

July 26th, 2008

Light Reading reports that AT&T has filed a complaint with the FCC, alleging that the Sprint/Clearwire deal should be declined.  That's right, you heard correctly.  An incumbent, which enjoys monopoly status in half the country and which has brought the entire USA telecom industry into a near duopoly alongside Verizon via massive M&A's, is complaining [Read more →]

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Optimum Lightpath on the Move

July 25th, 2008

Last month, in my series on lit buildings, Optimum Lightpath showed up as the most densely connected alternative metro fiber provider out there.  Of course, being focused on New York City and its suburbs - the most densely populated area in the country - makes that density possible, but nevertheless I had never really noticed this division of Cablevision  until then.  Well last week they made a move, [Read more →]

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Further Level 3 thoughts

July 25th, 2008

Level 3 common went up 20% prior to earnings, and is giving about half of that back today.  Traders will be traders, big deal.

The important thing for Level 3 is that they finally got past a major hurdle.  They got operations under control, not in words but in action[Read more →]

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Level 3 Throws a Party

July 24th, 2008

Level 3 (LVLT) reported earnings today, and as with AT&T and Equinix yesterday, the verdict is a good one.  The company reported EBITDA of $251M, well above wall street predictions, and core revenue of $972M which was pretty much in-line.  [Read more →]

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Equinix 2, Economy 0

July 24th, 2008

Equinix reported earnings today, beating Q2 guidance and raising their full year estimates for both revenue and EBITDA.  Again.  After all, they just did that in April.  As mentioned earlier on this blog, Equinix was the first pure internet infrastructure player to report and their results could give us a glimpse of the extent to which this sector is being hurt by the economy.  Well, Equinix shrugged off the macro trends without slowing down.  [Read more →]

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AT&T Reports: Wireless Yum! Wireline Ho Hum.

July 23rd, 2008

AT&T reported earnings today, and investors seem to like the results initially.  What always strikes me when I read their earnings releases is just how dependent they are on their wireless division.  What almost happened this time is that the segment income from wireless ($3.0B) very nearly passed that of wireline ($3.1B) on two thirds of the revenue base.  [Read more →]

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Level 3 Earnings Primer

July 22nd, 2008

Level 3 (LVLT) reports earnings on Thursday, so here is a quick primer on what to expect.  For more detailed thoughts, models from both thejuice and myself were posted to this blog.  Level 3 does not provide quarterly guidance anymore, so expectations are a bit harder to define.  Overall, expectations seem to be that ebitda will improve, that that improvement will be mostly due to cost savings.  Everyone will be looking for [Read more →]

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Conan Meets the CDN

July 22nd, 2008

Today Level 3 finally put up a nice CDN win: Funcom, as the exclusive CDN provider for the Age of Conan Hyborian Adventures online game . Of course, amongst most non-gamers, the first question was 'Funcom who?', but in the gaming world the Conan launch has been big news.  It has a lot (700k) of initial users and a great start, and Funcom clearly hopes to be the next World of Warcraft smash hit, but it is still early in its lifespan.  But from a telecom perspective, how bandwidth and CDNs work for gaming is a bit different than how it works for streaming or website acceleration, so I thought I'd at least try to clear some things up. [Read more →]

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Which Network is 'Best' and CDN Implications

July 21st, 2008

As a followup to my thoughts on that WebHostingTalk poll, consider the top 4 in that poll:  Level 3, Internap, AT&T, and Savvis.   These companies have something in common, the first three are recent entrants into the CDN space, and the fourth had a CDN until last year.  In fact, the first three are the only networks with a CDN offering.  [Read more →]

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Which Network is the 'Best' for US-based Customers?

July 21st, 2008

There is a poll on WebHostingTalk on the question "Which network is the best for US based customers,"  and I think the results have something to tell us.  But, as often happens with polls, what it can tell us has less to do with the question being polled than it does with the people being asked.  Being polled are the denizens of WebHostingTalk, i.e. webhosts, colo providers, and website developers - the people who have actually been on the inside of a datacenter.  And by network, they mean IP transit only.
[Read more →]

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Equinix On Deck

July 21st, 2008

One of the first internet infrastructure companies to report earnings will be Equinix on Wednesday.  Nortia Research has a nice writeup of the financials and expectations on the company, it is worth a read.  I think it may be smart to pay attention to what Equinix says this quarter, because they represent one of the few bright lights out there given that they have largely maintained their valuation in a very tough environment.  [Read more →]

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Yet Another Threat to the Internet?

July 20th, 2008

As the internet becomes more and more central to society, it seems that threats to its health spring out of the woodwork in increasing numbers.  Earthquakes at choke points such as what happened off Taiwan 18 months ago, uncontrolled explosions in traffic from video, malicious botnets run by international criminals or even countries, and now.... complexity.  [Read more →]

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The Size of Skype

July 20th, 2008

Ike Elliott posted a nice summary of Skype's financial progress the other day, I recommend a look.  Reading through it I was struck by the size of Skype's business these days.  It seems that this year they should have around $550M in revenue, of the non-cable voip players only Vonage is bigger.  I myself have used Skype a great deal, but only rarely for paid services. [Read more →]

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Intercarrier compensation – still?

July 20th, 2008

The FCC has been promising to 'fix' intercarrier compensation since the 90s, but they have a court-imposed deadline of November of this year.  Does anyone actually believe it?  There is a quote from The Princess Bride by Inigo to Vizzini:  "You keep using that word.  I don't think it means what you think it means", and it applies here.  A deadline isn't a deadline if you have already pushed it back by about a decade.  [Read more →]

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You Know Power is a Problem When…

July 18th, 2008

Datacenterknowledge reports that datacenter provider UK Grid is actually considering entering the power industry to solve its problems.  It seems that the supply in Manchester is just insufficient or that further supply is too expensive.  So they are planning to buy property near their datacenters, and install CHP (Combined Heat and Power) generators to which they will feed natural gas, [Read more →]

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A Question for Global Crossing

July 17th, 2008

In my series of questions for carriers during earnings season, I now turn to Global Crossing.  As hard as it is to do with this company, we must set aside questions about history here.  The idea is to draw out information we can use to understand the present and get hints of the future. [Read more →]

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Earthlink and the Power of Cashflow

July 17th, 2008

NSP Strategist at Rad-Info had a post Monday about Earthlink's travails, which prompted me to go and see how their stock had done lately.  What I found actually shocked me:  the stock has come back up.  Not way up, but I had expected a collapse to match the disasters they have been through lately. [Read more →]

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SK and Sprint: Implications for Sprint Wireline?

July 16th, 2008

Unstrung has an article today about the SK/Sprint talks that are supposedly going on, with an interesting comment on the future of XOHM. Specifically, they note that SK Telecom has a experience and interest in Wimax, and the relationship with Clearwire may be integral to what is going on here.

[Read more →]

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Selling Dark Fiber

July 16th, 2008

LightReading had an article yesterday about how Cox is upgrading its national network from leased wavelengths to dark fiber.  Comcast did the same thing a short while back, and Cox's move wasn't exactly a secret so there's no big shock value.  But it did disturb the ashes of an old argument, specifically whether selling dark fiber IRUs is a smart move for a carrier or not.  In this case, the carrier is [Read more →]

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Followup to A Question for Level 3

July 16th, 2008

I have a few details and clarifications for my question to Level 3 which came up in private communications.  First, many thanks to all who commented publicly or privately, you have been very helpful. [Read more →]

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A Question for Cogent

July 15th, 2008

The next question in this series goes to Cogent Communications.  Once again, the idea is to elicit a useful response.  First though, let me add a disclaimer.  Cogent's CEO Dave Schaeffer has a style that drives me nuts - like fingernails on a blacboard, and in the past that has led me to dismiss the company itself too easily.  I try to look past that now, but I don't always succeed.  That said, here is my question: [Read more →]

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What were they thinking?

July 15th, 2008

Computerworld reports that the state of Tennessee is finally migrating its primary datacenter to a new location.  Why?  Well, it seems that there were a few minor problems with the location... [Read more →]

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A Question for Level 3

July 14th, 2008

Since Level 3 reports first amongst the nextgen carriers - in just 10 days, they get the first question.  As I said in my introductory post on this subject, my purpose is to elicit a useful response.  Therefore I need to ask about something they a) know the answer to, and b) are likely to be willing to talk about.  So without further ado:  [Read more →]

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