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2013/04/15

| 04.15.13 | Gartner: Savvis tops cloud service providers

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April 15, 2013

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Today's Top Stories:
1. Savvis takes top cloud ranking in Gartner study
2. FairPoint extends CEO Paul Sunu's contract, bumps salary to $800,000
3. America Movil considers integrating Brazil telco, pay-TV operations
4. GVT ups Brazil's FTTH competition with 150 Mbps service
5. Frontier serves up live tech support for $15, to anybody

Spotlight:
Dyle poses new threat to Aereo

Also Noted:
Level 3 wins CDN deal with The Dune Group; Google's quest for fiber freedom Much more...

News From The Fierce Network:
1. Dish could challenge cable's quadruple play with Sprint merger
2. RigNet, SnapTV collaborate to deliver IPTV to offshore drilling rigs
3. CPS Energy solar formula not so bright
4. More headlines...

Special Report:
The Contenders: Municipal fiber providers meeting or beating the incumbent competition
In this installment of The Contenders, we take a look at five standout municipal broadband providers. Just a few years ago, municipal broadband looked like a long shot to many communities. But as demand for high-speed connectivity grows, businesses and residents alike are looking to their cities for affordable broadband. Read more

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This week's sponsor is IneoQuest.

eBook | Advanced Advertising Revenue Set to Soar

Despite expanding advertising options, cable spots still remain the most popular. This eBook explores the growth and potential of new ad platforms, citing specific real-world examples. Download for free today.


Webinars

> The Equifax Big Picture Outlook on the US Economy- April 15th, 2pm ET / 11am PT
> Creating new business opportunities with customer data - Thursday, May 16, 2pm ET / 11am PT

Events

> Competitive Carriers Global Expo - April 17-19 - New Orleans
> Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand

Marketplace

> eBook: Smarter Service: The Contract Center of the Future
> eBook: How to Get a Return on Knowledge in a Big Data World
> Whitepaper: VoLTE: Why, When and How?
> Research: How to Unlock Knowledge from Big, Unstructured Data to Improve Customer Service
> eBook: Advanced Advertising Revenue Set to Soar
> Whitepaper: Cisco Small Cell Solution: Reduce Costs, Improve Coverage
> Subscriber Data: Creating New Opportunities in a Competitive Market
> eBook: eBook | Avoiding the Pitfalls of Android Fragmentation

Jobs

> Instructional Developer II - Denver, CO - Cricket Communications
> Need a job? Need to hire? Visit FierceWirelessJobs

This week's sponsor is Neustar.
Neustar
Webinar: Creating new business opportunities with customer data
Thursday, May 16th, 2pm ET/ 11am PT

It's no secret that wireless operators have interesting data on their customers, but privacy concerns have always kept operators from profiting from it. Join us to discuss how operators can leverage their customer data, while still protecting customer privacy. Register Today!

Today's Top Stories

1. Savvis takes top cloud ranking in Gartner study

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

Savvis, CenturyLink's (NYSE: CTL) cloud and data center subsidiary, was named as one of the top managed hosting providers in North America on Gartner's Magic Quadrant where it is directly competing with AT&T (NYSE: T) and Verizon (NYSE: VZ).

Delivering services through its growing base of U.S. and international data centers, Savvis currently offers a set of shared, dedicated, and hybrid cloud solutions to its multi-site business clients.

"Savvis can handle extremely complex deals, including large-scale e-commerce and enterprise application hosting needs," wrote Gartner in their report. "It has a very broad portfolio of supported infrastructure, middleware stacks and application environments."

Savvis has performed consistently well for CenturyLink. Operating inside of CenturyLink as the telco's Enterprise Markets – Data Hosting division, revenues rose 12.7 percent year-over-year to $292 million in Q4 2012.

While its main focus is on serving large multinational corporation customers (MNCs), it expanded its cloud and managed service portfolio to a broader audience via the launch of its savvisdirect solution last December. It also expanded its application support capabilities via its acquisition of Ciber last October.

The service provider isn't without its issues, however.

"Gartner clients have noted a dilution of focus and support quality within the business following the spate of acquisitions during the past two years that have led to the company's current organizational structure," the report said. "Savvis has multiple hosting and cloud IaaS offerings among its suite of services, which can leave customers unsure which line of service is best for their needs."

Gartner magic quadrant 2013 managed hosting

For more:
- see the release
- and Gartner's report

Related articles:
CenturyLink, CyrusOne scale data center sales reach with Ingram Micro
CenturyLink, Frontier, Windstream ask FCC for more CAF-I broadband funding
Gartner: AT&T gets high business marks, but faces new competition

Read more about: Managed Services
back to top


2. FairPoint extends CEO Paul Sunu's contract, bumps salary to $800,000

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

FairPoint Communications (Nasdaq: FRP) has renewed its employment agreement with current CEO Paul Sunu for three years, according to a filing the telco made with the Securities and Exchange Commission (SEC).

Paul Sunu, FairPoint

Sunu (Image source: FairPoint)

Under the terms of the agreement, Sunu will serve as CEO of FairPoint from April 9, 2013 to August 31, 2016 "unless the agreement is terminated sooner."

"Mr. Sunu's term of employment under the Employment Agreement shall be extended automatically for successive one-year terms unless notice of termination is given by either the Company or Mr. Sunu prior to the expiration of the term of employment (including any extension thereof) pursuant to the terms of the Employment Agreement," FairPoint said in the SEC filing. "In addition, under the Employment Agreement, Mr. Sunu shall be nominated to the Board (and shall so serve if elected)."

He will receive an annual base salary of $800,000, which will be reviewed every year by the telco's compensation committee and can be increased after consulting with independent directors on the board.

His target level bonus under the annual incentive plan is 100 percent of the base salary payable to him during the applicable performance period. He is also eligible for a maximum bonus of up to 150 percent of his base salary in addition to being able "to participate in the benefit and other plans made available generally to the Company's other senior executives, including but not limited to the FairPoint."

In 2012, Sunu earned $4.2 million in total compensation, including his baseline salary of $750,000. Other forms of compensation in 2012 included a $157,220 bonus, $1 million in stock options, $2.2 million awarded as stock and $103,783 from other types of compensation. 

For more:
- see the SEC filing

Related articles:
Fairpoint axes 90 more employees in New England region
FairPoint, Maine lawmakers jointly tackle lottery scams
FairPoint extends wholesale Ethernet reach into Boston
FairPoint's Q4 revenue driven by broadband, Ethernet services

Read more about: Fairpoint Communications
back to top


3. America Movil considers integrating Brazil telco, pay-TV operations

By Samantha Bookman Comment | Forward | Twitter | Facebook | LinkedIn

More action on the Brazil broadband front as America Movil (NYSE: AMX) said it is studying the possibility of slimming down operations in the country by merging its fixed and mobile carriers and its cable TV operations.

Embratel Participacoes, the third-largest wireline telecom in Brazil, will structurally integrate with number-three ranked mobile operator Telecom Americas and cable operator Net Servicos de Comunicacao SA. The three units said that they are "evaluating options" for the merger in a joint statement issued Thursday, according to Telegeography.

The move could put America Movil in a much stronger position in Brazil's fast-heating competitive communications market.

America Movil last year became the dominant pay-TV operator in Latin America, with 22 percent of the region's 51 million subscribers. The conglomerate did so by wrapping all of its regional operators--Telmex, Telmex Internacional and Net Servicos of Brazil--under the same umbrella.

"The proposed merger of operations would create a telecoms giant with the leading position in Brazil's pay TV and broadband Internet markets (NET) and the second-biggest share of the country's mobile phone sector (Claro)," according to a NY Daily News article.

Last year, Spain-based Telefonica accomplished a similar merger, joining its fixed-line and mobile divisions in Brazil into a single unit.

Despite its pay-TV coup, America Movil's overall revenues dipped slightly in the fourth quarter of 2012, falling 1.1 percent over the previous quarter to MXN 198 billion (USD 16.2 billion).

For more:
- Telegeography has this story
- NY Daily News India has this coverage

Related articles:
GVT ups Brazil's FTTH competition with 150 Mbps service
America Movil takes over Latin American TV market lead from DirecTV
America Movil Q4 revenues down 1% amidst 1.4 million gain in broadband RGUs

Read more about: America Movil
back to top


4. GVT ups Brazil's FTTH competition with 150 Mbps service

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

GVT has introduced a 150 Mbps tier for its fiber to the home (FTTH) service offering in Brazil, exceeding its previous 100 Mbps limit and boosting its competitiveness with Telefonica's Vivo.

Although GVT has built a sizeable fiber to the building (FTTB) footprint, the provider said that it uses FTTH when it's delivering 100 Mbps and above to reduce network latency.

Available in areas where it already delivers FTTB services, GVT will offer the service will be offered for BRL 299.90 (USD 152) as part of a triple play service bundle. In addition to the new speed, it lowered the price of its existing 50 Mbps service by BRL 50 (USD 25).

"These moves reinforce our strategy of innovation in ultrafast broadband with increasingly affordable prices for our customers," said Marco Lopes, VP of marketing for GVT.

GVT faces competition from Telefonica's Vivo, which reported last month that its FTTH subscriber base rose from about 1,000 customers in 2011 to 115,000 at the end of last year. Despite a shortage of skilled technicians, Vivo said it will be able to meet its goal of connecting 230,000 FTTH subscribers by the end of the year.

Over its FTTH network, Vivo can deliver speeds from 50-200 Mbps and IPTV to the end customer. Last September, Vivo launched an IPTV service over its FTTH network in São Paulo.

For more:
- BNamericas has this article

Related articles:
Vivendi delays GVT sale after getting lowball offers
Vivo sets 230,000 FTTH subscriber goal amidst worker shortage
Telefonica's Vivo brings 100G to Brazil
Oi SA's broadband plan footprint reaches over 2,000 cities
TIM Brasil completes first phase of FTTx project with ZTE

Read more about: Broadband
back to top


5. Frontier serves up live tech support for $15, to anybody

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

Frontier Communications (Nasdaq: FTR) is expanding its tech support services by offering a $15 per month, 24x7 service to address issues that consumers and businesses face, such as problems with their Wi-Fi routers or computer viruses.   

With its Premium Tech Support, Frontier says that it will have a set of experts available that reside in the U.S. who will provide "a level of coverage not available with standard technical support."

What's interesting about the service is that it will be available nationwide to any residential or small- to medium-sized business customer that has computing and networking devices, regardless if they're a Frontier customer or not.

The telco, of course, is not alone in its desire to deliver these kinds of support services.

AT&T (NYSE: T) offers a similar service called ConnecTech. For $15 a month, the service lets subscribers talk to the company's experts to solve technical isues with computer performance, viruses and malware, connections and home wireless networking.

As reported by FierceCable, Time Warner Cable (NYSE: TWC) offers subscribers similar support under its SignatureHome service. However, the cable MSO only offers the service to customers who order its $200 monthly bundle, which includes a wideband Internet connection, a multi-room DVR and premium channels.

For more:
- see the release
- and here's FierceCable's take

Related articles:
Frontier's West Va. broadband proposal gets state senate backing
CenturyLink, Frontier, Windstream ask FCC for more CAF-I broadband funding

Read more about: Customer Service
back to top


Also Noted

TODAY'S SPOTLIGHT... Dyle poses new threat to Aereo

Steve Donohue, FierceCableAereo has already drawn the ire of broadcasters, but it is now facing yet another challenge from Dyle, an emerging mobile video company backed by NBC, Fox and other broadcasters. Already, Dyle has made a mark in the TV delivery market by using over-the-air antennas that allow users to get programming on their Apple (Nasdaq: AAPL) iPad, iPhone, and other smart phone devices. FierceCable Editor Steve Donohue takes a look at the emergence of Dyle and what it could mean to Aereo. Read more

Wireline news from across the web:

@FierceTelecom RT @VoiceOnTelecom: Telcos have huge opportunity in enterprise IT support for knowledge workers. Post | Follow @FierceTelecom

> Level 3 will supply international retailer The Dune Group with content delivery network (CDN) services that they say will improve the speed and efficiency of its online retail platforms. Release

> Vonage will report its Q1 2013 results during a conference call on Wednesday, May 1. Release

> Omnatel is negotiating a deal with Haya Water and Telecommunications Regulatory Authority to lease fiber cables to homes and offices in Muscat governorate from Haya Water. Article (sub. req.)

Cable News

> Comcast CEO Brian Roberts received $29.1 million in total compensation last year, up $2.2 million from what he earned in 2011, the MSO disclosed in a Securities and Exchange Commission filing. Article

> Visible World, a targeted advertising technology provider, has named former RCN Cable and NDS executive Todd Narwid as its new SVP of sales. Article

IPTV News

> The University of Melbourne's Shepparton, Australia campus is using high-speed broadband and IPTV to deliver dental education--including HD and 3D video--to regional Victoria. Article

Online Video News

> Fraunhofer Heinrich Hertz Institute (HHI), a German firm, claims it can squeeze data throughput rates of up to 3 Gbps from "off the shelf LED room lights." Article

And finally … How Google hopes to liberate America from cable captivity. Article

News From The Fierce Network:

> Cox trademarks 'Simplify, Sync & Socialize' Post
> Verizon reacts to T-Mobile, will launch device financing program April 21 Post

Webinars

> The Equifax Big Picture Outlook on the US Economy- April 15th, 2pm ET / 11am PT

Attend this webinar, and you'll gain a clearer understanding of current and future economic indicators along with a high-level analysis of the big issues facing markets today. Register today!

> Creating new business opportunities with customer data - Thursday, May 16, 2pm ET / 11am PT

It's no secret that wireless operators have a lot of interesting data on their customers, but privacy concerns have always kept operators from profiting from that data. Join us to discuss how operators can leverage their customer data, while still protecting customer privacy. Register Today!

Events

> Competitive Carriers Global Expo - April 17-19 - New Orleans

CCA is the premier trade show and conference for the competitive mobile ecosystem and brings together decision-makers for networking, learning and sharing best practices. CCA is the nation's leading association for competitive wireless providers. To register www.ccaevents.org.

> 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

> eBook: Smarter Service: The Contract Center of the Future

This eBook explores the challenges facing traditional contact centers and the benefits of deploying the contact center of the future. You'll find links to further resources on the final page. Download today.

> eBook: How to Get a Return on Knowledge in a Big Data World

Learn how to get put your organization's collective knowledge in the hands of your service reps using advanced enterprise search technology - and watch your service performance improve and customer satisfaction soar. Download Now For Free!

> Whitepaper: VoLTE: Why, When and How?

This whitepaper will argue that VoLTE creates a significant opportunity for operators, but warns that the evolution from existing voice services will place before them a number of serious challenges. Read More.

> Research: How to Unlock Knowledge from Big, Unstructured Data to Improve Customer Service

Learn how to unlock knowledge trapped in silos and systems and read how advanced enterprise search technology can put your organization's collective knowledge in the hands of your service reps. Watch your service performance improve and customer satisfaction soar. Download Now!

> eBook: Advanced Advertising Revenue Set to Soar

Despite expanding advertising options, cable spots still remain the most popular. This eBook explores the growth and potential of new ad platforms, citing specific real-world examples. Download for free today.

> Whitepaper: Cisco Small Cell Solution: Reduce Costs, Improve Coverage

Address the challenge of mobile service coverage and expand network capacity with the Cisco Licensed Small Cell Solution. Using small cells, service providers extend voice and data services to mobile subscribers while offloading traffic. Read this whitepaper today.

> Subscriber Data: Creating New Opportunities in a Competitive Market

It's a critical time for telco companies fending off competitive threats. Carriers can stay on the defensive, or they can take a new approach. This white paper examines how subscriber data is the best asset for delivering game-changing services. Learn more.

> eBook: eBook | Avoiding the Pitfalls of Android Fragmentation

Fragmentation between the multiple Android operating systems continues to plague device makers, developers and wireless operators. This eBook explores ways to overcome these challenges. Download for free today.

Jobs

> Instructional Developer II - Denver, CO - Cricket Communications

Cricket Communications, a subsidiary of Leap Wireless, is the pioneer and leader in delivering innovative value-rich prepaid wireless with no long-term contracts. Responsibilities include developing eLearning content and managing all training rollouts. 5 years' experience in eLearning and training content development required. Telecommunications experience preferred...Learn More.

> Need a job? Need to hire? Visit FierceWirelessJobs

Announcing FierceWirelessJobs, the new FierceMarkets careers site. Find the perfect job or post your openings at http://www.fiercewireless.com/jobs.


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