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2013/01/18

| 01.18.13 | Bell Canada increases its IPTV on-demand power

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FierceTelecom

January 18, 2013

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This week's sponsors:
Bandwidth
F5
Aricent
Akamai

Editor's Corner:
Happy Birthday, Dr. King

Today's Top Stories:
1. Bell Canada introduces on demand store for its Fibe TV service
2. Windstream targets SMBs with McAfee endpoint security service
3. AT&T, Verizon to see mixed Q4 wireline results, says Morgan Stanley
4. Hibernia Networks refinances $52 million of its debt
5. Transtelco wraps its Mexico City metro fiber buildout

Spotlight:
Comcast, Cablevision, Charter to shore up video losses in Q4, says Jefferies

Also Noted:
Tellabs to announce Q4, year-end 2012 earnings on Jan. 31; VC investments saw downturn in 2012 Much more...

News From The Fierce Network:
1. Sony's Gracenote teams with DG to sell targeted ads for connected TVs
2. Rovi introduces platform to ease move to IPTV
3. Warner Bros. inks exclusive TV content deal with Netflix
4. More headlines...


Check out FierceTelecom on Facebook!


This week's sponsor is Bandwidth.
UnboundID Webinar: OTT Voice and Messaging: The future of Telecom
Thursday, February 21st, 2 pm ET/ 11 am PT
When there is an app for everything and a phone becomes less of a "thing" and more of a capability embedded in something else, what does the future hold for providers of traditional telecom services? Please join Sean Buckley, Senior Editor of FierceTelecom and a panel of VoIP experts, to learn about what you need to know to not get hamstrung in the regulatory morass. Register Today!

Editor's Corner

Happy Birthday, Dr. King

By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn

FierceTelecom will not publish a newsletter on Monday in observance of Martin Luther King, Jr. Day. We will be back in your inbox bringing you the latest news in the wireline segment of the telecom industry on Tuesday. Have a happy and safe holiday weekend.--Sean

Sponsor: Aricent

Webinars

> Globalstar's New "Wi-Fi" Super Highway - Tuesday, January 22nd, 11:00am EST/8:00 am PST
> Capitalizing SON – How to Implement SON for LTE to reduce OPEX and Increase Revenue - Tuesday, January 29th, 11am ET / 8am PT
> Managing VAS: 4 Trends to improve Data traffic and the customer experience - February 19, 12pm ET / 9am PT
> Webinar: OTT Voice and Messaging: The future of Telecom - Thursday, February 21st, 2 pm ET/ 11 am PT

Events

> Key Contact Center Trends and Priorities for the Upcoming Year - Tuesday, January 29 - 11:30 AM EST, 16:30 GMT
> Service Provider Conference at OFC/NFOEC - March 19-21 - Anaheim, CA
> Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand

Marketplace

> Whitepaper: Who's Using My Directory - And For What?
> eBook: How Cloud Communications Reduce Costs and Increase Productivity
> eBook: Knowledge Management: 5 Steps to Getting it Right the First Time

Jobs

> RF Engineer Job - Beaverton, OR, USA – Yoh
> Test Engineer Job - Overland Park, KS, USA – Yoh
> Implementation Manager II Job - Bellevue, WA, USA – Yoh
> Transport Engineer Job - Gardner, KS, USA – Yoh
> Manager Business Process II - Business Intake - Denver, CO - Cricket Communications

This week's sponsor is F5.

Webinar: Managing VAS: 4 Trends to improve Data traffic and the customer experience 
February 19, 12pm ET / 9am PT


Network engineers, service architects and product realization managers, join us, to learn how CSPs can optimize service architecture and realize higher performance, service availability and flexibility with lower costs. Register Today.

Today's Top Stories

1. Bell Canada introduces on demand store for its Fibe TV service

By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn

Bell Canada (NYSE: BCE) on Thursday introduced its Fibe TV On Demand store, a new VOD interface that will offer existing and new subscribers ways to access and organize their video content to match their own profile.  

It appears that Bell is using the On Demand store as a way to attract new Fibe TV users. However, it will extend the service in phases to existing subscribers throughout January and February.

Through the On Demand store, IPTV consumers can get access to an array of applications, including a poster-style interface; ratings, reviews and recommendations from Rotten Tomatoes; and a "My Videos" feature that enables viewers to add content to their wish list for future screening while showing all current rentals in one location.

A big draw of the Fibe TV On Demand store is, of course, the content.

Existing and new Bell Fibe consumers can access a wide array of On Demand HD programming and a selection of traditional channels including AMC, CTV, CTV Two, Disney Junior, HBO, HGTV and The Movie Network. Most movies are available beginning at $4.99 and are complemented by a range of free content. 

With much of its traditional landline voice revenue declining every quarter, Bell Canada, like many U.S.-based telcos, is mining new opportunities in the wireline segment of its business by offering IPTV services, and the new Fibe TV features will advance that effort.

One of the interesting effects that Bell Canada's IPTV play has had is that it drove the ongoing increase in data revenues during Q3 2012.

Bell Canada reported that in the wireline segment, its broadband data revenues rose 0.1 percent to CAD 1.4 million (USD 1.4 million), a factor it attributes higher TV revenue driven by strong subscriber growth in its Fibe TV offering. The telco added 13,416 new net high-speed Internet customers in Q3, compared to a net loss of 101 users in 2011.

While it saw continued growth of Fibe TV during the quarter, it only added 15,846 net new subscribers, down from the 26,169 it added in Q3 2011. Bell Fibe TV added 42,973 net new customers, up from 20,297 in Q3 2011. Bell's Fibe Fiber to the X (FTTX) network footprint passed 200,000 homes as the Fibe TV footprint reached over 2.8 million households at the end of Q3.

For more:
- see the release

Related articles:
BCE Q3 wireline revenue declines 4% despite focus on FTTx, IPTV service sets
Bell Canada appeals to feds after Astral Media acquisition rejected
CRTC rejects Bell Canada's Astral Media acquisition
Bell Canada, investors wrap up Q9 Networks purchase

Read more about: IPTV
back to top


This week's sponsor is Aricent.
Openwave

Webinar: Capitalizing SON – How to Implement SON for LTE to reduce OPEX and Increase Revenue
Tuesday, January 29th, 11am ET / 8am PT

LTE is the fastest growing communication technology of all time. In this webinar our experts will discuss how Network Equipment Manufacturers can leverage the concept of Self Organizing Networks (SON) to not only manage highly complex LTE networks but also reduce operational expenditures and enhance customer satisfaction. Register Today!


2. Windstream targets SMBs with McAfee endpoint security service

By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn

Windstream (Nasdaq: WIN) on Thursday introduced a managed endpoint security service from McAfee to its growing base of small to medium business (SMB) customers.

With the new Endpoint Security Protection service, Windstream takes on the burden of handling multiple security products by giving SMBs a single solution to detect and block viruses, spyware, spam, phishing attempts and hacker attacks. As a proactive service, Endpoint filters and quarantines threats carried by email in the cloud before they have a chance to reach a customer's network.

Windstream is likely looking at this from the angle that, while SMBs can go out and purchase off the shelf licenses from McAfee, they do not typically have the resources to deal with or prevent larger-scale security problems.

Two key points of the new service are affordability and ease of use. SMBs that may already use Windstream for telephone and data services have an established relationship with the provider and may be more likely to adopt the service versus having a local IT dealer provide it to them to protect their PCs and laptops.  

Endpoint Security Protection includes the ability to customize protection by blocking websites and emails that "are potentially dangerous or cause employees to be less productive." Unlike when companies manage software releases on their own, Windstream will also provide automatic updates and upgrades to ensure they have the most up-to-date security elements in place to deal with emerging threats.

While cloud-based security services are still relatively nascent, Windstream is tapping into a market that does have great growth potential. A recent survey from Infonetics estimates that global demand for managed cloud-based security services will grow 83 percent between 2011 and 2016.

For more:
- see the release

Related articles:
Windstream recovers chunk of TRO bond from D.I.D. Corp.
Windstream sees strong FTTT uptake
Windstream Hosted Solutions to build Durham, N.C. data center
Synergy: IaaS and PaaS revenues rise 65%
Windstream takes top spot in VoIP access, SIP trunking services market, says Frost

Read more about: Cyber Security
back to top


3. AT&T, Verizon to see mixed Q4 wireline results, says Morgan Stanley

By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn

Verizon (NYSE: VZ) and AT&T (NYSE: T) will release their Q4 earnings next Tuesday and Wednesday, respectively, and Morgan Stanley forecasts that both telcos' wireline results will be a mixed bag.

With Verizon, the wireline headlines are predicted to center on how the telco is recovering from Hurricane Sandy.

The telco's wireline facilities, mainly in New York and New Jersey, suffered major damage as the result of massive flooding, a factor that left many of its consumer and business customers without service.

"We see stable wireline margins of 21.9% (up from 21.7% in 3Q12) and revenues declining by 2.0% as the storm as well as fiscal cliff uncertainty likely impacted both consumer and business customers," Morgan Stanley said in a research note. 

Interestingly, the impact of Hurricane Sandy drove Verizon to replace damaged copper wiring with fiber.

Lowell McAdam, CEO and chairman of Verizon, said during the UBS Financial conference in December that the copper-to-fiber transition is an initiative that will give the company the opportunity to not only upsell consumers multiple services, but will also "reduce our maintenance costs dramatically." 

In addition to driving out more fiber into the network, Verizon settled its issues with the Communications Workers of America and International Brotherhood of Workers (IBEW) unions.

Morgan Stanley noted that "Though 3Q12 saw the end of union negotiations, any financial benefit of the new contracts isn't expected until 2013."

AT&T, meanwhile, will also see decent growth in the consumer segment, while business revenues will be "sluggish" due to ongoing economic uncertainty in the United States and Europe.

"In wireline, we expect a similar tone as 3Q12 with reasonable growth in consumer, but sluggish revenues from business customer," said Morgan Stanley.

As seen in previous quarters, Morgan Stanley forecasts that AT&T will see declines in wireline broadband of 56,000, with DSL losses of 700,000 outpacing the 644,000 growth of its higher speed Fiber to the Node (FTTN)-based U-verse service. Morgan Stanley expects the company will report that it added U-verse video subscribers during the quarter.

On the U-verse side, the financial company said another key factor will be "Project VIP's expected impact on DSL and U-verse subs in 2013."

Related articles:
AT&T Q3: Consumer, business IP drive up wireline revenues 2%
Verizon's Q3 wireline earnings get a boost from consumer FiOS services

Read more about: Morgan Stanley, fourth quarter earnings 2012
back to top


4. Hibernia Networks refinances $52 million of its debt

By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn

Hibernia Networks, a global capacity provider, on Thursday completed refinancing of $52.5 million of its debt, a move it says will enable it to pay off debt and provide incremental liquidity for growth and capital.

One of the new lender groups in this transaction includes funds managed by affiliates of Fortress Investment Group LLC and Bridge Bank.

The financing comes at a transitional time for the service provider.

Earlier this week, Hibernia Atlantic changed its name from Hibernia Atlantic to Hibernia Networks as a way to illustrate that it has evolved from just another submarine cable operator to being a broader network solutions provider.

In recent years, the service provider has been finding a growing niche for its fiber-based Ethernet, DTM and even SONET-based services in three main vertical segments:  wholesale, financial and media.

While Hibernia has not announced any specific new network growth plans, it will likely continue to play up its growing image as a broader solutions provider and use this refinancing effort to focus on key growth areas.

For more:
- see the release

Related articles:
Hibernia renamed Hibernia Networks to reflect global solutions focus
Telehouse, Hibernia Atlantic take up network challenge after Hurricane Sandy disrupts communications
Hibernia Atlantic brings Ethernet services to IO New Jersey
Hibernia strengthens media capabilities by acquiring TeliaSonera's MediaConnect business
Hibernia Atlantic names CME Group as latest PoP on its GFN

Read more about: Debt Financing, Global Capacity
back to top


5. Transtelco wraps its Mexico City metro fiber buildout

By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn

Transtelco, a competitive wholesale and business service provider, on Wednesday put the final touches on its metro fiber network in Mexico City, enabling it to address growing wholesale and enterprise service opportunities in a high growth Latin American country.

The multi-duct, multi-ring network will be able to provide a suite of services--including transport, IP access, Metro Ethernet, voice, collocation, content delivery and IT services-- to other service providers and businesses located along the U.S.-Mexico border.

Similar to other providers like XO Communications, Transtelco is extending its reach into Mexico City via Reynosa-McAllen and Nuevo Laredo-Laredo, Texas markets--two growing entry points into Mexico.  

Having this network complete provides the benefits of greater reach to both Mexican and U.S.-based businesses and service providers.

A U.S.-based incumbent or competitive service provider could better respond to their client's need to expand their respective businesses into Mexico City, particularly Ethernet. While service providers have been aggressively expanding their Ethernet footprints, they can't get to every location so they'll need to have local partners like Transtelco that can give them that reach into a market where they don't have network or experience serving.  

Likewise, Mexico-based companies and service providers that have traditionally had little options besides Telmex will be able to have an alternative provider for in-region service and access to major U.S. markets via Transtelco's own network facilities and partners. Transtelco was an early adopter of Ethernet exchanges, having established a connection with carrier Ethernet exchange provider CENX in 2010.

"The expansion of Transtelco's network into this critical market allows Transtelco to expand its footprint in an important manner while offering new services and solutions to a growing customer base at competitive rates," said Edgar Mosti, Vice President of Wholesale Network Services, Transtelco, in a release about the new network.

In addition to Ethernet, the new network will be an enabler for cloud services. Last May, the service provider began a trial of Alcatel-Lucent's (NYSE: ALU) CloudBand system to connect customers to its cloud services out of its El Paso data center.

For more:
- see the release

Related articles:
Transtelco expands U.S. Ethernet reach via CENX
XO extends its Latin American network reach
Transtelco dips feet into the cloud market with Alcatel-Lucent's CloudBand product

Read more about: Alcatel-Lucent, Transtelco
back to top


Also Noted

This week's sponsor is Akamai.

"Innovating at the Pace of Mobile" Discover ways to successfully capitalize on the mobile opportunity and how a comprehensive mobile delivery platform can help maximize your organization's chances of success. Download Now.


TODAY'S SPOTLIGHT... Comcast, Cablevision, Charter to shore up video losses in Q4, says Jefferies

Shedding basic video subscribers is an ongoing reality in the cable industry, but a Jefferies and Co. report forecasts that Time Warner Cable (NYSE: TWC) will report the biggest subscriber loss out of the top four cable MSOs in Q4 2012.

Jefferies said Time Warner Cable will announce that it lost about 140,000 subscribers, up from 129,000 in the same quarter last year, when it reports its earnings. Alternatively, Time Warner Cable's cable MSO brethren Comcast (Nasdaq: CMCSA), Charter Communications (Nasdaq: CHTR) and Cablevision (NYSE: CVC) will actually report that they have narrowed their video losses in the quarter.

Comcast will likely report a loss of 12,000 video subscribers, down from 17,000 in the same period a year ago. Likewise, Charter is expected to reduce subscriber losses by 8,000 to 38,000 subscribers, and Cablevision will report video subscriber losses of 10,000, compared to 14,000 during the fourth quarter of 2011. Article

@FierceTelecom RT @gigaom: VC investments saw a downturn in 2012, did 10 percent less in funding than the previous year. Article | Follow @FierceTelecom

> "Broadband access is no longer a luxury," New York Sen. Charles Schumer said on Wednesday at the Orange County Business Accelerator in New Windsor. Article

> Brazil's state-owned service provider Telecomunicacoes Brasileiras (Telebras) has signed a contract to extend the country's national broadband network (Plano Nacional de Banda Larga, PNBL) to Manaus--one of the host cities for the FIFA 2014 football World Cup. Article

> Tellabs will announce Q4 and year-end 2012 financial results after the close of the market on Jan. 31. Release

Cable News

> The NCTA, NAB and MPAA have all expressed support for President Obama's new proposals to reduce gun violence. Article

> Suddenlink promoted former Cox Communications executive Kevin Stephens as its new president of commercial and advertising operations. Article

Enterprise Communications News

> Gartner says in a new study that enterprise use of digital technologies, including mobile, analytics, big data, social and cloud, have reached a "tipping point." Article

Online Video News

> Time Warner Cable says Netflix is making it hard for ISPs that don't partner with the streaming video provider to get access to new content. Article

And finally… Cloud security is key for any enterprise that is supporting the BYOD movement, says a new (ISC) 2 2013 Global Information Security Workforce study. Article

News From The Fierce Network:

> Nextiva, 8x8 top GetVoIP.com list of best business VoIP providers Post
> T-Mobile days away from launching LTE in Las Vegas, Kansas City to be next Post

Webinars

> Globalstar's New "Wi-Fi" Super Highway - Tuesday, January 22nd, 11:00am EST/8:00 am PST

This webinar will discuss the innovative technology, public benefits, and regulatory outlook of providing a new 22 MHz channel under the existing 802.11 IEEE standard. Join to learn technical aspects of TLPS deployment and the outlook for near-term relief from the FCC. Register Now!

> Capitalizing SON – How to Implement SON for LTE to reduce OPEX and Increase Revenue - Tuesday, January 29th, 11am ET / 8am PT

LTE is the fastest growing communication technology of all time. In this webinar our experts will discuss how Network Equipment Manufacturers can leverage the concept of Self Organizing Networks (SON) to not only manage highly complex LTE networks but also reduce operational expenditures and enhance customer satisfaction. Register Today!

> Managing VAS: 4 Trends to improve Data traffic and the customer experience - February 19, 12pm ET / 9am PT

Network engineers, service architects and product realization managers, join us, to learn how CSPs can optimize service architecture and realize higher performance, service availability and flexibility with lower costs. Register Today.

> Webinar: OTT Voice and Messaging: The future of Telecom - Thursday, February 21st, 2 pm ET/ 11 am PT

When there is an app for everything and a phone becomes less of a "thing" and more of a capability embedded in something else, what does the future hold for providers of traditional telecom services? Please join a panel of VoIP experts, to learn about what you need to know to not get hamstrung in the regulatory morass. Register Today!

Events

> Key Contact Center Trends and Priorities for the Upcoming Year - Tuesday, January 29 - 11:30 AM EST, 16:30 GMT

Join us for this live web event where we will discuss the rapid change of pace in contact center technology, and how to deliver great customer experience through the adoption of cloud-based solutions, social media as well as new methods of measuring agent effectiveness. Click here to register.

> Service Provider Conference at OFC/NFOEC - March 19-21 - Anaheim, CA

Hands-on workshops, discussion panels, the Ethernet Alliance program and many more programs to help telecoms evolve their Next Generation fiber networks. Free admission to expo with more than 550 exhibitors. Network with fellow entrepreneurs and experts. Learn More.

> Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand

Please join Jason Nelson, Publisher of FierceWireless, FierceTelecom, and FierceCable as we announce the winners of the Fierce Innovation Awards 2012. Click here to RSVP today.

Marketplace

> Whitepaper: Who's Using My Directory - And For What?

Active Directory (AD) is the heart and soul of your enterprise, so monitoring access - knowing who can get to the information and how they're using it - is critical. But tracking and examining access is difficult, if not downright impossible. Or is it? Read More.

> eBook: How Cloud Communications Reduce Costs and Increase Productivity

Download this new eBook to quickly learn how cloud communications deliver cost savings, Communication Features and more... Request Now!

> eBook: Knowledge Management: 5 Steps to Getting it Right the First Time

This eBook sets out 5 simple steps for optimizing customer service and support with an effective, best-practice-led knowledge management initiative. Download today!

Jobs

> RF Engineer Job - Beaverton, OR, USA – Yoh

Yoh has a (12) months contract opportunity for a RF Engineer to join our client in Beaverton, OR. Job responsibilities include designing RF system block, creating specifications and characterizing subsystem from antenna through digital conversion. Minimum three (3) plus years RF engineer experience...Learn more.

> Test Engineer Job - Overland Park, KS, USA – Yoh

Yoh has an exciting contract opportunity for a Test Engineer II to join our client in Overland Park, KS. The Test Engineer II to provide technical support in the execution and maintenance of the production network. The Test Engineer II candidate should have a thorough understanding of IP routing, switching and the OSI model...Learn more.

> Implementation Manager II Job - Bellevue, WA, USA – Yoh

Yoh has a contract opportunity for an Implementation Manager II to join our client in Bellevue, WA. Responsibilties include to manage all aspects of telecom equipment deployment from: customer relationship, project plan of record, project schedule, cost, and inventory. Minimum of five (5) years of experience...Learn more.

> Transport Engineer Job - Gardner, KS, USA – Yoh

Yoh has an exciting contract opportunity for a Transport Operations NOC to join our client in Gardner, KS. This position understands in-depth equipment specific maintenance procedures and can assist field operations in card swaps and equipment restoration. Ability to manage multiple tasks on time, including ticket administration, communications, and follow up activities required...Learn more.

> Manager Business Process II - Business Intake - Denver, CO - Cricket Communications

Cricket Communications, a subsidiary of Leap Wireless, is the pioneer and leader in delivering innovative value-rich prepaid wireless services with no long-term contracts serving approximately 6 million customers. The Business Intake Manager will provide oversight and management of the Business Readiness Board and delivery of a consolidated calendar of system & commercial launch dates. Bachelor's Degree - business, marketing or related field; or equivalent experience required...Learn more.


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