Kenton Group Newsletter

February, 2010 - Volume 8 Issue 2

FROM THE EDITOR

February - the downhill month of Winter! Do you see any signs of Spring yet? But a very short month, so by the time you see this, it will probably be the "Ides of March" already. But that's OK, you probably have been watching the Olympics anyway - did you see the USA-Canada hockey game for GOLD? No matter what, it sure was an exciting game!

The TOP TELECOM news for February is once again STIMULUS - will it live up to its' hype? Stay tuned!

Jim Moehnke - Editor

TOP NEWS

Commerce Dept. issues more broadband-stimulus funding
The Commerce Department last week released the winners of about $1.4 billion in broadband-stimulus funds, with the remaining grantees to be named soon, the agency said. The top award of $126.3 million went to West Virginia for its plan to add about 2,400 miles to the state's fiber network and expand its microwave public-safety network. ConnectedPlanetOnline.com (2/19)

Telecom executives give stimulus mixed report card: A panel of telecom executives offered divergent views on the effectiveness of the federal government's broadband-stimulus program, with some saying it helped create industry jobs, while one maintains its effect has been "minimal." Satellite-industry officials have also been dissatisfied over their lack of funding, but they were cheered by a new program that earmarks at least $100 million to help satellite companies bring broadband to underserved areas. Phone +/xchange magazine (2/19) , Space News International (2/19)

Analysis: Rural telecoms look for alternatives to stimulus grants
Many rural telecoms that had hoped the federal broadband-stimulus funds would fuel their network-build projects have been forced to locate other avenues to come up with the money. Industry insiders cite a number of factors, but largely point to the government's slow disbursement of the funds and the steering of grants to middle-mile, rather than last-mile, applications. xchange (2/24)

Broadband plan due from FCC on March 17
The FCC will offer its report March 17 to create a national broadband plan designed to provide affordable broadband service to 93 million people, some of whom have access to the service but have refrained from taking it because of its cost and fear of technology. The FCC said about one-third of the population -- generally seniors, as well as less-educated and lower-income Americans -- is more likely to bypass broadband service. Reuters (2/23)

After rules change, Qwest studies stimulus fund anew
Like most of the major carriers, Qwest Communications has declined to apply for federal broadband-stimulus grants, but the company has suggested it might change its mind after the government tweaked some of the program's rules, one executive said. The changes affected a provision that prohibited "rural" broadband projects within 60 miles of a city or town. "The good news is that they seem to have heard us in Washington, D.C.," said Chuck Ward, Qwest's Colorado president. TMCNet.com (2/4)

SOCIAL MEDIA

Instead of working harder, be more mindful
Building an effective social-media presence requires a calm, focused mind and the discipline to only attempt one thing at a time, writes Soren Gordhamer. Understanding the difference between effort and attentiveness, as well as being able to set priorities, is also key, he notes. Mashable (2/17)

Twitter escalates Toyota recall scandal
Toyota's attempts to downplay problems on some of its models proved to be no match for the power of social media, as irate users helped push the carmaker to launch investigations and recall millions of vehicles, Matthew DeBord writes. Twitter users are posting thousands of Toyota-related messages each day, as consumers vent publicly about the company's products and its bungled public relations strategy. The Big Money (2/17)

Please Rob Me lets you know if you're giving too much away
Please Rob Me is a Web site that uses humor to raise awareness about the dangers of giving away too much information over the Internet. The site compiles status updates and GPS data from random users at sites such as Twitter and Foursquare and sends out an alert when someone makes their whereabouts too obvious. TechCrunch (2/17)

JUST INTERESTING STUFF

ISPs warn FCC on further Net regulation
AT&T, Verizon Communications and Time Warner Cable on Monday urged the FCC not to increase its jurisdiction over Internet issues, saying more regulatory scrutiny could discourage broadband investment. Joined by national telecom, cable and wireless trade groups, the companies wrote a 14-page letter to the agency terming regulatory rules under consideration as "extremist." The Washington Post (2/23) , The Wall Street Journal/Digits blog (2/23)

At Frontier, the CEO wants a strong succession plan
The Wall Street Journal takes an admiring look at Frontier Communications CEO Maggie Wilderotter's program to help discover and train the telecom's next CEO. Under her mentoring program, each of her top executives is matched with a board of directors member for two years as a way to improve their leadership skills and keep an eye on the best corner-office candidates. The Wall Street Journal (2/22)

Data revenue up at Cincinnati Bell
Cincinnati Bell's data business continued to grow in the fourth quarter, and its wireline-segment revenue increased 1% to $193 million, compared with a year earlier, the regional telecom reported today. Aside from extraordinary charges, net income remained at 10 cents a share as revenue dipped 3% to $345 million. The Cincinnati Enquirer (2/11) , American City Business Journals/Cincinnati (2/11)

Frontier gets green light in Arizona on Verizon acquisition
The telecom has received approval from the Arizona Corporation Commission to buy up Verizon's local wireline operations. The move will boost the network provider's rural and small-town market base. Rochester Business Journal (N.Y.) (2/19) , RTT News (2/18)

Windstream boosts subscriber base, despite profit dip
Windstream reported its latest financials, and while revenue was better than Wall Street expected, there was a 7% dip in quarterly profit. The telecom signed on 27,000 Internet subscribers in the quarter, and its customer base of 1.132 million is 10% higher than a year earlier. The company enhanced its governance program with a shareholder advisory vote on executive pay and now requires executives to return a portion of their compensation if earnings need to be restated. Reuters (2/18) , MarketWatch (2/18)

Machine turns office papers into toilet tissue

Japanese firm Oriental has developed a machine that will transform memos and business reports into toilet paper. The White Goat machine costs about $100,000, but the company says it will save 60 trees a year.CNET | 02/06  

EMERGING TECHNOLOGIES

Cisco, ISPs said to prep ultrafast Internet
Weeks after Google disclosed it would build a fiber-optic-based broadband network, Cisco Systems is reportedly doing the same, working with unnamed U.S. service providers to meet the FCC's goal of delivering networks that would max out at 100 megabits per second, according to the Financial Times. Analysts said both moves were aimed at testing whether consumers would support an ultrafast broadband system or were satisfied with their current speeds. Financial Times (tiered subscription model) (2/24)

Study: More than 27% of TVs sold in January can surf the Web
A study from iSuppli shows that 27.5% of people who bought TVs in January said that they could use that new device to connect to the Web. Most of the respondents in that group, nearly 42% of them, said their connectivity comes via an Internet-enabled TV, while 20.3% connect through a video game console and 13.2% use a Blu-ray player. CEDMagazine.com (2/24) , InformationWeek (2/24) , Digital Trends (2/24)

IPad is poised to invade the workplace
IT departments need to prepare for workers to demand to use the iPad on the job, Enterprise Mobile CEO Mort Rosenthal argues, particularly among salespersons, medical staff and other employees who need constant access to data while on the move. Rosenthal says he suspects the iPad will require little in the way of technical support, although it will take some time to get all the right business applications running in Apple's closed environment. "The iPhone has really changed the way we deal with technology. ... The iPad feels to me like a similar game changer," he says. CIO.com (2/4)

FTTX/FTTH/BROADBAND NEWS

U.S. broadband usage jumps 20% in 2 years
The number of U.S. homes with broadband connections has increased considerably since 2007, according to a U.S. Commerce Department report that pegged usage at 63.5% as of 2009 compared with just over 50% two years ago. Broadband connections now account for more than 90% of all Internet service compared with 82% in 2008, according to the report. Network World (2/16)

Frontier shows DSL, video gains in quarter
Frontier Communications almost doubled the number of broadband subscribers it added compared with the previous quarter, the company said in reporting fourth-quarter earnings in which the carrier claimed nearly 636,000 DSL customers. The carrier also was cheered by the addition of more than 8,000 Dish Network subscribers for its bundled-service package. OneTRAK (2/24)

Comcast moves closer to 100 Mbps broadband service
Comcast, according to this report, soon will bond four downstream channels in all of its systems to offer a superspeedy broadband service with speeds up to 100 Mbps. The 100 Mbps service launch date is unclear. CEDMagazine.com (2/19)

Texas proves to be a hotbed for AT&T's U-verse business
Over the last three years, AT&T has signed on more than 425,000 IPTV subscribers between the Houston and Dallas-Fort Worth areas, serving an equal competitive punch to Comcast and Time Warner Cable. At the end of last year, the telecom provider had 2.1 million U-verse TV subscribers. Multichannel News (2/17)

Google aims its innovative eye at broadband services
Is Google aiming to become the next big broadband provider? Company leaders say no, and that its pilot tests of broadband service that promises speeds 100 times greater than today's network are just innovation at work. "We are not getting into the [Internet service provider] or broadband business," said Rick Whitt, telecom and media counsel at Google. "This is a business-model nudge and an innovation nudge." The Washington Post (2/11) , Bloomberg (2/11)

VOIP NEWS

Verizon Wireless-Skype deal signals new smartphone era

Confirming earlier reports, Verizon Wireless and Skype detailed their new VoIP-based smartphone association Tuesday that allows subscribers to download free voice and videoconferencing applications onto nine handset models that include the Motorola Droid and BlackBerry Curve. The deal signals carriers' changing stance on IP-based voice services. "Where we see revenue growing is from data services, not voice services," said John Stratton, chief marketing officer of Verizon Wireless. Reuters (2/22)

Is security a concern in using Skype in the workplace?
Skype is making a big play for business adoption, with the beta launch of its Skype for SIP late last year. But whether small and midsize businesses are keen with the VoIP technology is still a big question given security requirements around using the technology. Network World/CSO (2/4)

Despite subscriber dip, Vonage posts profit
While the fourth quarter included a loss of 10,131 voice customers, Vonage posted $223.5 million in revenue, a slight increase from its $222 million in the third quarter. It also posted $4.4 million in net income, compared with a $54.5 million loss in the third quarter. OneTRAK (2/25)

WIRELESS NEWS

WiMAX, beating expectations, should reach 1B by 2011
WiMAX technology will pass more than 1 billion people globally by the end of next year, a larger penetration than previously predicted, according to a study from the WiMAX Forum, which says the 4G system is on pace to reach 800 million people by year-end. WiMAX now covers 620 million people in 147 countries, but it is concentrated largely in the Asia-Pacific region. eWeek.com (2/15)

Sprint adds 3 cities to 2010 WiMAX launch list
Sprint Nextel said Wednesday that it would add Denver; Kansas City, Mo.; and Minneapolis, to its 2010 WiMAX launch targets, joining previously announced New York, San Francisco and three others as the next cities to link to the Clearwire network. For its part, Clearwire said it was on schedule for its network to reach 120 million people by year-end, with Houston next to launch. Clearwire CEO Bill Morrow said the company intended to broaden its third-party distribution base this year and added that entering the handset business remained a back-burner item. Electronista (2/24) , Wireless Week (2/24) , MocoNews.net (2/24)

Sprint to release first WiMAX-enabled phone in summer
Sprint Nextel will introduce a WiMAX-enabled 4G handset this summer that will also be compatible with existing cellular networks, according to a published report. The carrier will release the phone even while Clearwire's network has a number of gaps in order to differentiate itself from its rivals. In a related story, a top Sprint executive said, "There's a redistribution of IT budgets in 4G's favor." PC World/Tech Inciter blog (2/20)

WHITE PAPERS & OTHER RESOURCES

The Web Buyer's Guide White Paper & Resource Library is your best source for white papers, case studies and more, on a wide range of IT products and services, including Security.

FUN SITE OF THE MONTH

Like Cheetos? Like games? Maybe you will find this one entertaining

The legend of the Cheetocorn
http://www.win7news.net/Y2VRLU/100218-Cheetocorn

QUOTE(S) OF THE MONTH
There is no greater fraud than a promise not kept."
 
--Scottish proverb