Today's Top Stories Home improvement retailer Lowe's on Thursday announced that it will use next week's Consumer Electronics Show in Las Vegas to debut a new set of products and services for Iris, its cloud-based smart home solution.  | | Iris home automation products. (Image source: Lowe's) | During CES, Lowe's said it will display over 15 new Iris devices and services that can perform such functions as security and energy management in addition to supporting the growing use of smart phones and video streaming. Complementing its new set of routers and switches, the new line will include a set of WiFi range extenders and powerline networking solutions that allow homeowners to expand network coverage by leveraging a home's existing electrical wiring. Initially, Lowe's plans to roll out the new products to 100 U.S. stores in the first half of this year followed by a full rollout later in the year. "As the second-largest home improvement retailer in the world, Lowe's recognizes the evolving needs of today's homeowner and is well positioned to offer the widest breadth of compatible connected home products and services at an attractive price," said Kevin Meagher, vice president and general manager of Smart Home at Lowe's. Being a big box retailer, one of the advantages Lowe's has is it can rely on its broad customer base for brand recognition. It can also leverage its large partner base, which includes companies such as Verizon (NYSE: VZ), Honeywell, Whirlpool, and Jarden Safety, to sell integrated home automation solutions. The timing of Lowe's new product line comes at a time when where one of its partners, Verizon, is expanding its role in the home automation market. Other service providers, including AT&T (NYSE: T), Frontier (Nasdaq: FTR) and Time Warner Cable (NYSE: TWC) have launched similar services that could potentially leverage the products that Lowe's is developing for this market segment. ABI reported in its "Home Automation and Monitoring" study, issued in 2011, that while only 1.8 million home automation systems shipped in 2011 globally, that number will increase to over 12 million shipments by 2016. For more:
- see the release Related articles:
ABI: Service providers will drive 12M home automation shipments by 2016
Verizon takes covers off its home monitoring service
AT&T readies new home security, automation service offering
Frontier, Time Warner Cable add home security to their broadband bundles Read more about: Verizon
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Ofcom, the UK's telecom regulator, on Thursday proposed new rules designed to prevent service providers from charging consumers a penalty if they decide to end a service contract when a provider raises their rates. The regulator said that it wants customers to be able to end their phone, broadband or wireless contract "without penalty if their provider introduces any price increase during the term of the contract." In addition, Ofcom wants service providers to disclose potential price increases and make their customers aware of the right to cancel a contract if prices go up during the course of a contract. The current rules only allow an exception from paying termination fees when a provider agrees that the price increase "would be likely to cause material detriment" to the consumer. Under the "exit without penalty" rules, service providers would have to notify customers at least one month in advance of any changes in their contract. And while service providers will still be allowed to raise prices during a fixed-term contract, consumers won't be required to pay a penalty if they cancel due to the price rise. Ofcom decided to launch a consultation after conducting an analysis of the fairness of certain contract terms. The regulator looked at 1,644 consumer complaints it received about changes to terms and conditions during the period Sept. 2011 to May 2012. One of the common complaints was that consumers said they were never notified that their service provider was going to increase service prices on what they thought were fixed contracts. Other consumers said that service providers should not be able to raise prices during a contract and that they should be allowed to end the contract without having to pay an early termination penalty. "Many consumers have complained to us that they are not made aware of the potential for price rises in what they believe to be fixed contracts," said Claudio Pollack, Ofcom's Consumer Group Director, in a release announcing the new proposal. "Ofcom is consulting on rules that we propose would give consumers a fair deal in relation to mid-contract price rises." The regulator has asked stakeholders to submit their views on this issue by March 14 and expects to publish a decision in June. For more:
- see the release Related articles:
BT to run 200 Mbps FTTP trial in 4 UK telephone exchanges
BT cuts price of 330 Mbps wholesale FTTP by 37%
BT revenue declines 9% despite strong broadband adoption Read more about: BT
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Level 3 Communications (NYSE: LVLT) on Wednesday received the "Best Carrier Ethernet Business Application Award – Caribbean and Latin America" from the Metro Ethernet Forum (MEF). MEF said in a release announcing the award that it names service providers that offer "the most unique and innovative business Ethernet services to the enterprise segment." Joined by one of its unnamed large banking and financial services customers, Level 3 presented the MEF with the business Ethernet solution to support that customer's connectivity throughout Brazil. This award comes at a time when Level 3 continues to establish itself in Latin America, a market it increased its presence in when it purchased Global Crossing in 2011. In Q3 2012, Level 3 reported that its Latin America revenues rose 5 percent to $177 million, up from $169 million in Q2 2012. From a broader trend perspective, the Latin American Ethernet and data services market segment has grown increasingly competitive. What has driven this competition is the fact that more multinational large businesses are locating satellite offices in the region. The MNC drive is creating Ethernet service opportunities not only for resident Latin America-based providers like Telefonica and America Movil, but also for BT Americas (NYSE: BT), NTT (NYSE: NTT) and Orange Business services. Existing MNC customers who want to locate offices that work with these providers in the region and want the BT and Orange Business Services, in particular, have been very aggressive in building out their Ethernet and service providers in Latin America. In 2011, BT increased the amount of MPLS points of presence it had in the region by about 20 percent and launched Ethernet services in 21 new cities. All of these efforts will be complemented by its satellite service capabilities, which serve about 37,000 sites today. These efforts have helped the company win major service contracts with ECT - Empresa Brasileira de Correios e Telégrafos (the state-owned Brazilian Post Office and Telegraph Company) and Caixa Economica Federal, for example. Likewise, in October 2011 Orange Business Services expanded its service and network capacity in five key cities in Brazil and Chile, followed by Argentina, Peru and Panama. By making those network upgrades, Orange will extend its suite of services, including MPLS (i.e., IP VPN and Business VPN), International Ethernet Link and its emerging Telepresence videoconferencing service. Competition in the Latin American Ethernet market, which is still relatively nascent, should help drive down prices of services such as VPLS and other data services. According to a recent TeleGeography report issued last November, the median price for a FastE connection in Brazil's capital was $10,973 in H2 2012, which is twice what a business customer would pay in New York or Los Angeles, two markets where there are multiple service provider options. Level 3, which has been providing services in Latin America for almost 10 years, can cite the award and its large banking customer as proof that it is becoming a serious player in the Latin American Ethernet market that can take on other providers making inroads into the region. For more:
- see the release Industry Voices: The MEF Carrier Ethernet certified professional program Related articles:
Level 3's revenue rise in Q3 driven by core services
Level 3 unveils network security solutions set
Level 3 extends CDN services to public sector via WITS-3 contract
Level 3's forecast reaffirmation buoys shares 9% Read more about: Carrier Ethernet
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Frontier Communications (Nasdaq: FTR) and TRG Customer Solutions, an outsourced contact center solutions provider, established a partnership to extend the telco's computer security and backup services to TRG customers. Under the terms of the agreement, TRG will offer three of Frontier's Secure products: computer security; cloud-based unlimited backup and sharing; and proactive identity protection. These products are available to both Frontier and non-Frontier customers in all 50 states. A key target of the TRG pact is businesses that are looking for an alternative source for network security and backup and want to forgo having to deploy their own systems on their premises. The two companies claim that, by handing off these functions to Frontier and TRG, businesses can "experience revenue growth, improved operational effectiveness, increased customer satisfaction and reduced costs." This partnership also provides benefits to both Frontier and TRG. For Frontier, the expanded TRG partnership means they have another broad channel to sell their security and backup solutions. Since Frontier is a traditional landline provider that's been seeing inevitable declines in its traditional PSTN landline businesses, this is another example of how it is working to diversify its reach. TRG can add these products to its own portfolio and leverage its well-established customer relationships and brand recognition to sell these services. While existing TRG customers could go to Frontier or another online backup and security provider, it's likely they would prefer to work with a partner they use for other technical support functions. For more:
- see the release Related articles:
Frontier starts delivering energy services
Frontier to get $29M for West Va. network upgrades
Frontier Q3 revenue declines as it narrows its residential, business subscriber losses
FairPoint, Frontier get into the energy game Read more about: Frontier Communications
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CenturyLink (NYSE: CTL), one of the incumbent service providers in Oregon, has filed a lawsuit against the City of Portland over a new wireline phone service tax that went into effect on Tuesday. The lawsuit comes after Portland's City Council in November voted to approve the expanded tax, which is designed to raise up to $5 million in revenue for police department reforms. In the suit, which was filed last Friday in the Multnomah County Circuit Court, the telco said that the tax "undermines its ability to compete with other telecommunication providers and violates both state and federal law." "CenturyLink believes that this change in how the city taxes local telephone companies is in conflict with applicable state and federal restrictions on the taxes and fees that cities may charge consumers for local telephone service," CenturyLink said in a prepared statement provided to FierceTelecom. "For this reason, CenturyLink filed an injunction in Multnomah County Circuit Court to obtain a definitive resolution of this issue and to protect its customers' interests." CenturyLink said that the tax is unfair because it does not include wireless operators. Like other U.S. cities, wireless has become the dominant voice service in Portland, with 3.4 million subscribers versus only 949,000 traditional PSTN service subscribers. At this point, the telco said that it "is not passing through the increased tax as we believe the city tax conflicts with both state and federal limits on how cities can tax local telephone service," but "this may change if the city tax is upheld." Before this new tax went into place, CenturyLink and Frontier Communications (Nasdaq: FTR)--which also opposes the new tax--were required to pay 7 percent of their local voice service revenues to the city. Now, CenturyLink and Frontier are required to pay the city 5 percent of their gross revenues. Frontier, which said it does not have a significant presence in Portland, has not filed a lawsuit with the city and would not comment on the issue. This new tax is a positive for competitive providers such as cable MSO Comcast (Nasdaq: CMCSA) and CLEC Integra, both of which are required to pay 5 percent of their gross revenues to Portland. Tax battles between cities and service providers have become more frequent recent years as telcos face ongoing competition from cable operators offering voice service and wireless providers. For more:
- The Oregonian has this article Related articles:
CenturyLink, Frontier protest Portland, Ore. wireline tax hike
New Hampshire to overhaul its century-old telecom rules
Competitive phone companies face $11.7M in FCC fines over mystery fees * Updated article with statements from CenturyLink and Frontier. Read more about: CenturyLink
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Week in research: Coherent 100G takes over core networks; power line communications may see 19% CAGR
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