Today's Top Stories Sprint (NYSE: S) may be a late bloomer in the Ethernet services market, but it has put some bold plans in place that will leverage its Network Vision initiative for its wireless network to deliver a broader set of Carrier Ethernet services this year. While he could not reveal the specific details or when its new set of Ethernet services would be available, Mike Fitz, vice president – wireline and solutions engineering for Sprint, said in an interview with FierceTelecom that "we're entertaining deals now and we'll be turning customers up." Given the fact that Sprint's main focus is on wireless, the largest customer for the Ethernet access service will be its wireless division. In addition to building out the Ethernet to support the backhaul of wireless traffic, Ethernet will be used to back up its Infrastructure as a Service (IaaS) services. Its ongoing rollout of Ethernet is supported by ongoing investments in its wireline network infrastructure. Last year, the service provider increased its investment in its wireline business by 53 percent. Fitz said that "I do expect that the investment to remain at these higher levels as we go forward." To date, Sprint's Ethernet offering, which clients use primarily to access its MPLS network services, is available in 147 markets domestically and 64 countries. In 2013, Sprint plans to expand to about 30 new domestic cities, which includes a combination of new cities and expansions within existing cities. A key challenge for Sprint in expanding into to new markets is getting last mile network connections to the businesses it needs to serve. Unlike AT&T (NYSE: T) and Verizon (NYSE: VZ), both of which have an expansive wireline last mile network Sprint has to rely on partners to get that last mile access. "We've been expanding rapidly with Ethernet access and that's a key for us," Fitz said. "When we don't own much of that access, or any of that access, we need to have as many interconnections out there as we possibly can to help with price and with reach." Outside of the U.S., Sprint continues to establish External-Network to Network Interconnection (E-NNI) agreements with other service providers. In Spain, Sprint just established a connection with data center provider Interxion, giving them access to all of the area network service providers such as Telefonica. Serving the growth of its current Ethernet access service and upcoming CE launch will be its network backbone that's being built with 100G optical capabilities. Leveraging Ciena's (Nasdaq: CIEN) 6500 platform, Sprint will be able scale its core network initially to 40G and 100G, and later 400G as network demands dictate. Recently, the service provider turned up its first 100G link across 2,100 km. Fitz said what is unique about their link is that "it is the first link at 100 Gig that we have been able to do across that distance without any regeneration." Related articles:
Sprint targets enterprises with MPLS, managed cloud bundle
Sprint extends Ethernet reach into Spain via Interxion
Gartner: Sprint's MPLS, Ethernet expansions advance its standing Read more about: Carrier Ethernet
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Level 3 Communications (NYSE: LVLT) has yet to announce its own 100G optical offering, but the provider is getting requests from both large enterprise and wholesale customers that now need these connection speeds. Gary Breauninger, who was just appointed Level 3's group vice president for Wholesale Sales, likens the impending demand for 100G services to how VPN services evolved over the past decade. "Around the year 2000 everyone was talking about VPN and the bubble burst and everything went sideways, but then in 2004 people went from talking to 'this is what we need to get past the economic problems,' and I think 100 Gig is right there," he said in an interview with FierceTelecom. "It's one of those things that make you different." The service provider sees interest on both the enterprise and wholesale side, particularly from large national competitive providers. "The guys with a national play or that have a need for an international play are saying '100 Gig: where is it,'" Breauninger said. Stopping short of outlining any specific plans, Level 3 currently can provide some capabilities that "resemble" a 100G product. Breauninger said that while it's unlikely they will release a 100G product this year, they will have something next year. He added that they are "not sure yet" when they would debut a formal 100G product, but in the large enterprise and national carrier sectors "they are pushing it." Related articles:
Level 3 promotes Jeff Storey to CEO, replacing company founder James Crowe
Level 3, tw telecom get seats on GSA's GRITS II contract vehicle
Level 3's Crowe to step down at the end of 2013
Level 3's core services growth helps drive up Q4 2011 revenue
Week in research: OTN spending rises with 100G deployment drive; Private line market levels off Read more about: 100G
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The FCC has adopted a Notice of Proposed Rulemaking (NPRM) on direct access to telephone numbers for VoIP providers, a process that they say will streamline the process to roll out services.
Under the current structure, a VoIP provider has to obtain numbers through traditional telephone companies that act as a middleman, which the regulator says can "raise costs and slow introduction of innovative services, such as high-definition voice." In addition to getting comments on whether interconnected providers should get direct access to numbers, the FCC wants to get feedback on streamlining access to other services that require numbers such as IP access to emergency services, home security systems, text messaging services, programmable appliances and telematics like hands-free cellular modems in cars.
During the course of a six-month trial, Vonage (NYSE: VG) and other VoIP providers will be able to test various technical issues related to the FCC's proposals. VoIP providers that have pending direct-access waiver petitions with the regulator will be able to test direct access for 5 percent or fewer numbers they get through other intermediary sources and a limited amount of new numbers.
Any provider that participates in the trial will have to report monthly progress and could be required to return numbers if any issues come up. The FCC granted TeleCommunication Systems, Inc., which provides E911 services for interconnected VoIP service providers, a limited waiver. Vonage, one of the major VoIP providers, embraced the FCC's NPRM. "Direct access to telephone numbers is the future of telecommunications," said Kurt Rogers, chief legal officer for Vonage, in a statement responding to the FCC proposal. "It allows for lower-cost, higher-quality voice service and innovation in developing new services, which benefits consumers." Likewise, AT&T (NYSE: T), which has been an advocate of relaxing TDM-based regulations as the industry migrates towards IP, also spoke out in support of the FCC's proposal. "This proceeding will enable the FCC to gather critical information to transition numbering from its TDM past to its IP future," wrote Hank Hultquist, vice president - federal regulatory for AT&T. This new NRPM for direct access to numbers follows a Notice of Inquiry the FCC issued last week on how telephone numbers are assigned to geographical regions. "The tie between area codes and geographic regions has been weakened by number portability," wrote the FCC in its filing, "especially as mobile subscribers move away from the area where they obtained the service but continue using the number." For more:
- see the FCC release (.pdf)
- and Vonage's release
- phone scoop had this post Related articles:
FCC lays out VoIP outage reporting rules to ensure 911 reliability
FCC mulls new 911 rules for VoIP service providers
Neustar capitalizes on the VoIP LNP opportunity Read more about: VoIP, Vonage
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America Movil (NYSE: AMX) reported that Q1 wireline results were driven by a 20.6 percent rise in pay TV and more customers opting for triple play voice, video and data bundles. During the quarter, the service provider added a total of 1.1 million wireline revenue generating units (RGUs), including 753,000 pay-Tv subscriptions and 568,000 broadband access subscribers. Outside Mexico, America Movil said it added 304,000 wireline voice lines. However, as seen with U.S.-based telcos it said that "single-line accesses are being displaced by triple-play bundles." In other countries it serves such as Brazil, 56 percent of its net wireline additions were triple play bundles. Brazil, which is America Movil's largest wireline market, it had 29.7 RGUs, up 18.7 percent from Q1 2012. The telco reported that the key drivers in Brazil's results were pay-TV and broadband, which increased 24.1 percent and 22.7 percent, respectively. Mexico had 22.3 million RGUs, while Central America and the Caribbean had 6.2 million and Colombia 4.3 million. Three of the fastest growing markets were Ecuador and the Argentinean block, which both grew about 35 in the quarter, and Peru, which grew at 20.8 percent. Despite seeing various gains, Q1 net profit was MXN 26.9 billion (USD 2.19 billion), up nearly 80 percent sequentially, but down 17.4 percent year-on-year from Q1 2012. It attributed the drop to "lower operating profits, and foreign exchange gains which were smaller than a year before." For more:
- see the earnings release (.pdf) Earnings roundup: Wireline telecom earnings in the first quarter of 2013 Related articles:
America Movil considers integrating Brazil telco, pay-TV operations
Telmex faces consumer watchdog lawsuit over illegal charges
America Movil Q4 revenues down 1% amidst 1.4 million gain in broadband RGUs
Telmex fined $51.6 million for anticompetitive practices Read more about: America Movil
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Seaborn Networks, an emerging submarine cable provider that's building out the 32 Tbps Seabras-1 cable network with a link between Sao Paulo, Brazil and the United States, has established Brazil gateways with both Equinix (Nasdaq: EQIX) and Telx. Working with Equinix, Seaborn will make a connection into the data center provider's International Business Exchange (IBX) data center in Sao Paulo, Brazil. Equinix's host of customers, which includes a host of financial, networks, enterprise, content, cloud and IT services companies in Latin America, will now have a direct route between Sao Paulo and New York City. Both Equinix and Seaborn gain the benefit of scale and reach from this new partnership. Seaborn, explains Larry Schwartz, CEO of Seaborn Networks, "will get access to the single largest concentration of carriers, content providers and other companies that require a direct route between Sao Paulo and New York City." Likewise, Equinix will be able to meet the demands of customers that need access to and from Latin American markets. In the United States, Seabras is establishing new gateways to Brazil in a number of Telx's New York City metro facilities, including the data center provider's soon-to-be completed NJR3 facility in Clifton, N.J. It will also get access to Telx's NYC1 facility at 60 Hudson Street and NYC2 facility at 111 8th Avenue, both in New York City. By working with Telx, Seaborn will be able to reach major points of presence in New York and New Jersey. Set to go live in Q1 2015, Seaborn has been making continual progress preparing the foundation for the proposed network. Last October, it employed Alcatel-Lucent (NYSE: ALU) to build out the network and provide related network equipment and related management, system design, installation and system commissioning services. Brazil's state-owned telco Telebrás is also going to build U.S.-to-Fortaleza submarine cable as part of a larger plan to improve the country's Internet connectivity with four main regions: the United States, Europe, Africa and the Southern Cone. Similar to other large-scale submarine cable projects, including the Trans-Pacific Express (TPE), Telebrás is also looking for network partners to help build their network. For more:
- see the Equinix release
- and the Telx release Special report: Submarine cable operators hunt for new routes to counter congestion, political turmoil Related articles:
Seaborn Networks to begin surveys to build Seabras-1 cable network
Seaborn taps Alcatel-Lucent to build its U.S.-to-Brazil cable network
Seaborn Networks to provide New York City to Sao Paulo submarine route
Brazil's Telebrás to build U.S.-to-Fortaleza submarine cable
Submarine cable operators protest FCC's USF contribution proposal Read more about: Telx
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