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2013/07/31

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 Giada De Laurentiis Giada's Quick Grilled Salmon
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| 07.31.13 | Google, Level 3 replace AT&T as Starbucks' Wi-Fi network provider

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FierceTelecom

July 31, 2013

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This week's sponsors:
ATEME, Harris Broadcast, Kontron, RAMP and Vubiquity
Alcatel-Lucent
Cisco
Intel

Today's Top Stories:
1. Google, Level 3 replace AT&T as Starbucks' Internet provider
2. Level 3 core network services revenue rises 2.4 percent to $1.4 billion
3. CenturyLink, CWA carve out 5-year tentative agreement
4. Birch Communications' wholesale division appoints new director, adds clients
5. Calix's Q2 revenue rises 20 percent to $99.4 million on strong sales

Spotlight:
Google's Chromecast draws varied reactions from telecom industry watchers

Also Noted:
Google celebrates its first "fiberversary"; Restaurant chain finds value in big data Much more...

News From The Fierce Network:
1. CEA: Fewer Americans using over-the-air antennas
2. Sprint CFO: SoftBank deal lets us take Clearwire spectrum nationwide
3. Viacom wants new judge in YouTube suit
4. More headlines...

Special Report:
Operators team with programmers and rivals to drive local ad revenue

Battles between cable operators and networks over the cost of programming continue to increase each year. But behind the scenes, many operators are teaming up with cable networks and even rivals like AT&T, Verizon and DirecTV to sell local cable advertising--a business that generated $2.7 billion in revenue in 2012. Read more
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This week's sponsors are ATEME, Harris Broadcast, Kontron, RAMP and Vubiquity.

eBook | Making Money from Multiscreen

Cable operators and networks are slowly building a platform that could make multiscreen programming and advertising a much bigger business. Learn more today.


Sponsor: Cisco

Webinars

> Assuring Customers' Multiscreen and OTT Video Viewing Experience- August 19, 2013, 2 pm ET / 11 am PT
> Getting started with carrier WiFi - what's it take for a great user experience? - August 27th, 11am ET/ 8am PT

Events

> ITEXPO 2013 - August 26-29 - Mandalay Bay, Las Vegas
> TIA 2013 - October 8-10 - Washington D.C.

Marketplace

> Whitepaper: Knowledge Management: 5 Steps to Getting it Right the First Time
> Whitepaper: eBook: Smarter Service: The Contact Center of the Future
> Whitepaper: Cisco ONE: Framework for the Internet of Everything
> Whitepaper: The Financial Benefit of Cisco's Elastic Core
> Whitepaper: Touch Technology Extends Mobile Gaming
> Whitepaper: New Wi-Fi Business Models Create Real Value for SPs
> Whitepaper: Gain Business Advantages with Service Provider Wi-Fi
> Whitepaper: SP Wi-Fi: Authorization Options for Mobile Network Operators
> eBook: Making Money from Multiscreen

Jobs

> Wireless Store Manager – Florham Park, NJ – Cricket Communications
> Sr. Account Executive – San Diego, CA – Cox Communications
> Inventory Specialist /Revenue Analyst – Oklahoma City, OK – Cox Communications
> Field Auditor I – Rancho Santa Margarita, CA – Cox Communications
> SAS Administrator – Atlanta, CA – Cox Communications
> Senior Director, Technology Delivery Assurance – Atlanta, CA – Cox Communications
> SMB Account Exec (Cox Business) – San Diego, CA – Cox Communications
> Commercial Development Executive – Anywhere – WhistleOut
> Director of Operations Engineering – Tyler, Texas – Suddenlink Communications
> Need a job? Need to hire? Visit FierceWirelessJobs

This week's sponsor is Alcatel-Lucent.
UnboundID
Webinar: Getting started with carrier WiFi - what's it take for a great user experience?
Wednesday, August 27th, 11am ET/ 8am PT

Meeting customer expectations has never been more challenging than it is today. Learn how Alcatel-Lucent OmniAccess™ Wireless LAN switch family and Access Point product line can help you deliver the Wi-Fi solution your customers want and create new revenue streams. Register Today!

Today's Top Stories

1. Google, Level 3 replace AT&T as Starbucks' Internet provider

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

Google (Nasdaq: GOOG) and Level 3 Communications (NYSE: LVLT) are taking over AT&T's (NYSE: T) role as the backbone providers supporting coffee chain Starbucks' in-store Wi-Fi service.

Starbucks said the new agreement will enable them to deliver network and Wi-Fi connection speeds "up to 10 times faster" to consumers who shop in their retail stores. Similar to a LTE-based mobile wireless service, the new network will deliver speeds ranging from 5-10 Mbps.

Set to serve over 7,000 U.S. stores, Level 3 will begin upgrading Starbuck's network and install related Wi-Fi equipment in a number of locations in Colorado and other states.

Under the terms of the agreement, the Wi-Fi will be branded as a Google service while Level 3 will manage network connectivity in each store.

Although the companies did not reveal financial terms of the contract, D.A. Davidson & Co. telecom analyst Donna Jaegers said in a Denver Post article that it could be worth an estimated $50 million for Level 3.

Level 3 does not sell services directly to consumers, but Jaegers said that the added benefit is that since many Starbucks are located in office buildings and strip malls, the coffee shops could attract new business clients with their suite of IP-based data and voice services. 

As part of the agreement, Starbucks and Google will also jointly develop the next-gen Starbucks Digital Network.

Adam Brotman, chief digital officer of Starbucks said in a release that the goal of the Digital Network is to enable any of its customers to access the Web easily over its Wi-Fi network. 

For more:
- see the release
- The Denver Post has this article

Related articles:
Level 3 to deliver data center services to Major League Baseball media subsidiary
Level 3's Q1 revenue dips to $1.58 billion on expected government contract disconnects
Level 3 Wholesale hints at 100G service rollout in 2014
Level 3 promotes Jeff Storey to CEO, replacing company founder James Crowe

Read more about: ISP, WiFi
back to top


This week's sponsor is Cisco.


Cisco® ONE: Framework for the Internet of Everything


Prepare service provider networks to harness network value, increase business agility, and achieve greater operational efficiency. Learn more



2. Level 3 core network services revenue rises 2.4 percent to $1.4 billion

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

Level 3 Communications' (NYSE: LVLT) Core Network Services was once again the shining star in its portfolio in the second quarter, rising 2.4 percent to $1.4 billion.

The service provider said that it saw growth across all three of its regions--North America, EMEA and Latin America.

Leading CNS revenues by region was North America with $970 million in revenues, while EMEA and Latin America had $220 and $189 million in revenue, respectively.

"Level 3 saw good growth in enterprise Core Network Services revenue this quarter across all three of our regions, and it continues to be the key driver for our business," said Jeff Storey, president and CEO, in the earnings release. "Demand remains healthy, and we had solid growth in Core Network Services sales this quarter."

However, as seen in previous quarters wholesale revenues declined again by $19 million. Sunit Patel, CFO for Level 3 said they "expect further declines for the remainder of the year" in wholesale services.

The service provider's total revenue was $1.57 billion, up from $1.58 billion in Q1 2013.

During the quarter, the competitive provider also reduced its net loss to $24 million, compared to $62 million in Q2 2012. The net loss, which included cash and non-cash severance charges attributable to executive management changes incurred in the second quarter 2013, was 11 cents per share.

Patel said that they "expect sequential CNS revenue growth in 2013 to be generally stronger compared to 2012."

Shares of Level 3 were trading at $22.37, up 51 cents, or 2.33 percent, in late Wednesday morning trading on the New York Stock Exchange.

 For more:
- see the earnings release

Special Report: Wireline telecom earnings in the second quarter of 2013

Related articles:
Level 3 to deliver data center services to Major League Baseball media subsidiary
Level 3's Q1 revenue dips to $1.58 billion on expected government contract disconnects
Level 3 Wholesale hints at 100G service rollout in 2014
Level 3 promotes Jeff Storey to CEO, replacing company founder James Crowe
Level 3 extends metro network presence into Argentina, Colombia

Read more about: Level 3 Communications
back to top


3. CenturyLink, CWA carve out 5-year tentative agreement

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

CenturyLink (NYSE: CTL) and the Communications Workers of America District 7 have reached a tentative five-year labor agreement covering about 11,000 legacy Qwest employees.

The contract, which will now be sent to the CWA bargaining unit members for ratification, represents workers in a number of Midwest and Western states, including Arizona, Colorado, Idaho, Iowa, Minnesota, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.

"CenturyLink and the CWA are pleased that we have come to an agreement that provides our employees fair and equitable benefits and will better enable us to deliver on our mutual commitment to serve our customers," said Glen Post, CEO and president of CenturyLink, in a release.

Under the terms of the proposed agreement, CenturyLink will provide lump sum increases and pay raises. In addition, the telco will implement limitations on its ability to outsource its call center work outside of its wireline footprint and bringing back jobs that were outsourced or off shored.

Reaching agreement will likely ensure that CenturyLink will avoid any possible service installation and repair interruptions. In February, the executive board of CWA District 7 authorized setting a strike date for 13,000 CenturyLink CWA members.

CWA's previous contracts with CenturyLink, which expired on Oct. 6, 2012, were extended on a day-to-day basis while negotiations continued.

Qwest employees who work in Montana, represented by the International Brotherhood of Electrical Workers (IBEW) Local 206, should complete negotiations in the coming weeks, CenturyLink said.

For more:
- see the release

Special Report: The battle for union contracts: AT&T, Hawaiian Telcom, others hash out wireline benefits

Related articles:
CenturyLink employees working 'day-to-day'
CenturyLink union workers authorize possible strike
AT&T, CWA East ratify four-year wireline employee contract
Frontier workers in West Virginia rally for new contract

Read more about: IBEW
back to top


4. Birch Communications' wholesale division appoints new director, adds clients

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

Birch Carrier Solutions, the wholesale unit of Birch Communications, has appointed 30-year telecom industry veteran Greg Hogan as its director of business development.

Hogan comes to Birch from Ernest Communications where he served as that service provider's VP of client services. Birch is in the process of acquiring Ernest's customer assets, a deal scheduled to close in the third quarter of 2013.

Vincent Oddo, president and CEO of Birch, said in a release that "With Greg's help, we plan to expand our wholesale portfolio in the near future, with new territories, new products and new clients."

During the quarter it also signed six new wholesale carrier customers, including Bullseye Telecom, Belgacom, Staratos, Telaris, 382 Communications, and Primus Telecommunications.

Being able to announce these six customers is a big milestone for Birch as it only launched the wholesale division last February.

The wholesale division leverages the $50 million the CLEC spent to build out its network in the Southeast and Southwest, an effort that included its own organic efforts and the acquisitions of other regional service providers.

This February, Birch completed the final phase of its multi-year network upgrade and expansion project, during which it added 43 central office colocations, for a total of 290 COs, and 15 wireless towers for its wireless local loop services in five states.

For more:
- see the release

Related articles:
Birch's Covista acquisition extends its presence into 10 new states
Birch waives fees for Mississippi storm victims
Birch finishes IP network expansion to 290 central offices
Birch Communications gets $12 million from CoBank

Read more about: personnel changes, Birch Communications
back to top


5. Calix's Q2 revenue rises 20 percent to $99.4 million on strong sales

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

Calix (NYSE: CALX) reported that a jump in sales put its Q2 2013 revenue at $94.4 million, up 20 percent year-over-year from Q2 2012. The vendor said the rise in revenue was due to strong growth with both domestic Tier 1, 2, and 3 telcos and international service providers.

These results met the lower end of its forecasted guidance of between $94 million and $98 million.

"The year-over-year revenue growth in Q2 and better-than-anticipated bottom line results reflect the company's progress in expanding its reach into both domestic and international markets," said Carl Russo, president and CEO of Calix, during the earnings call. 

While the vendor's international revenue declined slightly to $12.1 million, the segment made up 13 percent of its total revenues and it did have one 10 percent customer in the quarter.  

One of the key initiatives Calix took during the quarter was to add enhancements to its existing E7-2 ESAP (Ethernet Service Access Platform) and 700GE ONT platforms and introduce a new product, the EXA Powered E3-48C.

With the new GPON-8 Card, customers can get 16 ports of GPON on Calix's ESAP, while new downloadable home gateway software will transform its E7 ESAP into a residential services gateway (RSG). As the latest member of its E3 family of sealed ESANs, the E3-48C offers up to 48 ports of "combo" VDSL2 and PSTN services.

Like its competitors ADTRAN (Nasdaq: ADTN) and Alcatel-Lucent (NYSE: ALU), Calix's platforms support vectoring, but Russo said that the technology is just one of many tools that wireline operators will migrate to and use where they need to extend the rate and reach of their existing copper networks.

"I look at vectoring just not the same way technologically, but the same way with new product lifecycles like ADSL and ADSL2 and then ADSL2+ and VDSL," he said. "I don't know that any of them are significant market expanders as much as they are the next technology that gets deployed in that market."

Looking towards Q3 2013, Calix has forecast revenue between $102 million and $106 million and gross margin between 46 percent and 47 percent.

Shares of Calix were listed at $11.73, up 0.01, or 0.08 percent, in Wednesday morning trading on the New York Stock Exchange.

For more:
- see the earnings release (.pdf)
- see the earnings call transcript (sub req.)

Special Report: Wireline telecom earnings in the second quarter of 2013

Related articles:
Calix avoids Q1 downward trend as revenue rises to $90.5 million
GPON drove wireline access growth in Q4 2012, says Dell'Oro
Sales from broadband stimulus growth drive Calix's Q4 revenues
Bonding telcos' love affair with copper through VDSL2
Calix stays hopeful as Q3 revenues rise to $81.3M

Read more about: Calix
back to top


Also Noted

This week's sponsor is Intel.

Intel® Software Adrenaline Magazine
Get the latest in touch and sensory technologies. This edition explores the frontiers of touch computing, mobile lifestyles and more. Download today


TODAY'S SPOTLIGHT... Google's Chromecast draws varied reactions from telecom industry watchers

Jim Barthold, FierceIPTV Josh Wein, FierceOnlineVideo

Having sold out online in less than 24 hours, it's clear that Google's new Chromecast device has captured the hearts and minds of the broadband public, but its debut is drawing different opinions from telecom industry watchers. On one hand, Jim Barthold, editor of FierceIPTV, says that Chromecast could possibly drive telcos like Verizon to expand their FiOS TV and broadband service base beyond their set targets. Alternatively, Josh Wein, editor of FierceOnlineVideo, says that the initial lack of support for a broad array of video content is giving him pause to purchase Chromecast. Check out Jim's commentary here, and Josh's view here.

Wireline news from across the web:

@FierceTelecom RT @broadbandtrends: Google's one year "fiberversary": Market impact not yet quantifiable but immeasurable. Post | Follow @FierceTelecom

> Sonic Drive-in's SVP and CIO Craig Miller has found value in big data and cloud computing. Article

> FairPoint will release its 2013 second quarter results after the market closes on Monday, August 5, 2013.  Release

Online Video News

> After the success of its show "Under the Dome" this summer, CBS is looking at ways to work with online video distributors to boost the profitability of new shows. Article

Cable News

> The carriage deals that Discovery Communications has with pay-TV distributors wouldn't block it from licensing content to virtual cable services like the one Intel is reportedly developing. Article

> Time Warner Cable confirmed that it is beginning to charge subscribers $5.99 monthly to rent a cable modem, marking the second increase it has implemented in nine months. Article

IPTV News

> There appears to be a lot of pent-up demand for Google Chromecast, the $35 streaming stick that plugs into HDTVs and lets users grab online content like YouTube, Netflix and other streaming services and puts it on TV. Article

And finally ... Teradata's CTO Stephen Brobst says that big data is 'crossing the chasm' from technically oriented organizations to mainstream businesses. Article

News From The Fierce Network:

> Media servers drive positive Pace results, revenues hit $1.38B Post
> House passage of Coal Residuals Reuse Act gets mixed reviews Post

Webinars

> Assuring Customers' Multiscreen and OTT Video Viewing Experience- August 19, 2013, 2 pm ET / 11 am PT

This webinar is intended to provide a general description and recommended practices for monitoring adaptive streaming video networks, provide an opportunity to understand how many others have successfully deployed a video service assurance solution for multiscreen and OTT video. Register to attend the webinar.

> Getting started with carrier WiFi - what's it take for a great user experience? - August 27th, 11am ET/ 8am PT

Meeting customer expectations has never been more challenging than it is today. Learn how Alcatel-Lucent OmniAccess™ Wireless LAN switch family and Access Point product line can help you deliver the Wi-Fi solution your customers want and create new revenue streams. Register Today!

Events

> ITEXPO 2013 - August 26-29 - Mandalay Bay, Las Vegas

ITEXPO is the business communications and technology event. Gain knowledge, solidify partnerships, and form new relationships to keep your company ahead of the curve. You won’t want to miss this year’s keynote from Apple Co-Founder, Steve Wozniak. To register and for more information, please visit www.itexpo.com.

> TIA 2013 - October 8-10 - Washington D.C.

TIA 2013 will address disruptive technologies and changing business models as companies position themselves for success with wireless, the transition to all-IP networks, Cloud, M2M, smart buildings, and more. The conference will offer ideas for thriving in the changing ICT environment. www.tia2013.org. Registration opens June 2013.

Marketplace

> Whitepaper: 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!

> Whitepaper: eBook: Smarter Service: The Contact 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.

> Whitepaper: Cisco ONE: Framework for the Internet of Everything

Prepare service provider networks to harness network value, increase business agility, and achieve greater operational efficiency. Learn More

> Whitepaper: The Financial Benefit of Cisco's Elastic Core

This whitepaper describes the financial benefits of an intelligent, converged, and programmable network. Read Now

> Whitepaper: Touch Technology Extends Mobile Gaming

Get the latest in touch and sensory technologies. This edition explores the frontiers of touch computing, mobile lifestyles and more. Learn more today.

> Whitepaper: New Wi-Fi Business Models Create Real Value for SPs

The rapid growth of mobile data and the popularity of Wi-Fi have created new and innovative money-makingopportunities for service providers. This whitepaper shares how service providers can make money by implementing new and innovativeWi-Fi business models and how correctly deploying the right model can lead to significant business benefits. Download Whitepaper Now.

> Whitepaper: Gain Business Advantages with Service Provider Wi-Fi

Wi-Fi has become a strategic asset for Service Providers to keep up with the growing mobile data demands on their network. As a result, Wi-Fi is seen as a place for business innovations and monetization opportunities. Explore the different ways operators can monetize their network with Wi-Fi through lowered costs and increased revenues. Download Whitepaper Now.

> Whitepaper: SP Wi-Fi: Authorization Options for Mobile Network Operators

The availability of Hotspot 2.0 and Passpoint devices will remove the historical friction users have faced in getting their Wi-Fi devices to seamlessly and securely connect to a new Wi-Fi network. Learn more about the standard for authenticating the user within a Wi-Fi environment and, how to authorize a particular user for access to the Wi-Fi network. Download Whitepaper Now.

> eBook: Making Money from Multiscreen

Cable operators and networks are slowly building a platform that could make multiscreen programming and advertising a much bigger business. Learn more today.

Jobs

> Wireless Store Manager – Florham Park, NJ – Cricket Communications

Cricket Communications offers nationwide wireless voice and mobile data services over high-quality, all-digital wireless networks. Every day, our Store Managers at Cricket run all aspects of the Cricket retail business including, but not limited to, financial management, business operations... Learn More

> Sr. Account Executive – San Diego, CA – Cox Communications

The Sr. Account Executive - Enterprise is responsible for meeting or exceeding sales goals for large accounts. The position is responsible for initial contact with customers, follow-up, proposal preparation, making customer presentations and seeing the sale through to the signing of a contract...Learn More

> Inventory Specialist /Revenue Analyst – Oklahoma City, OK – Cox Communications

The Inventory Specialist is responsible for providing accurate and detailed reports regarding inventory sell-out levels with recommendations and guidance to assist sales leadership in yield management through the development of optimized rates...Learn More

> Field Auditor I – Rancho Santa Margarita, CA – Cox Communications

The Field Auditor will maintain the security of the cable system by designing and implementing an effective and efficient audit program, asset and loss prevention programs; investigate internal and external security problems; implement internal and field security programs with other departments... Learn More

> SAS Administrator – Atlanta, CA – Cox Communications

SAS Administrator is responsible for providing senior level expertise on overall technology, infrastructure and administration as it relates to the SAS Grid enabled architecture, installed on RHEL/JBOSS server platform. Manages, configures and supports SAS...Learn More

> Senior Director, Technology Delivery Assurance – Atlanta, CA – Cox Communications

This position is accountable for driving Standard Processes, Governance, and Continuous Process Improvements across the Technology organization to improve the consistency and repeatability of our delivery processes. This role supports all technology organizations and closely partners with our enterprise portfolio management team...Learn More

> SMB Account Exec (Cox Business) – San Diego, CA – Cox Communications

The SMB Account Executive promotes, sells, and retains commercial business solutions for voice, data and video to SMB level customers. Sell bundled telephony, data and video products to existing/new commercial business customers based on assigned revenue targets...Learn More

> Commercial Development Executive – Anywhere – WhistleOut

This is an easy, 'open and shut' opportunity for an experienced and well-connected telco executive who is looking for a fresh opportunity in digital marketing with a unique, innovative and fast growing online comparison engine. This position is tasked with enhancing the depth of relationships with carriers and resellers in the US and Canada... Learn More

> Director of Operations Engineering – Tyler, Texas – Suddenlink Communications

Suddenlink Communications is the 7th largest provider of broadband cable, internet, phone and security services in a multi-state environment. We are currently seeking a Director of Operations Engineering to support our Texas and Oklahoma markets. This position requires cable gurus with the following experience...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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