| 08.02.13 | Google Fiber's server ban faces heat from consumer groups

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August 2, 2013 Subscribe | Website | Jobs | Mobile Refer FierceTelecom to a Colleague This week's sponsors: ATEME, Harris Broadcast, Kontron, RAMP and Vubiquity Qualcomm Alcatel-Lucent Cisco Today's Top Stories: 1. Google should remove server ban from its service terms, Free Press says 2. Obama nominates Senate aide O'Rielly as next Republican FCC commissioner 3. Tellabs' Q2 revenue declines to $212M, but meets guidance 4. Shentel's wireline fiber sales rise 7.4 percent to $5.6 million 5. TDS Telecom revenues rise to $223.4M on strong triple play, managedIP adds Spotlight: Week in research: China dominates GPON spending; Toll fraud malware tracked to 10 Russian groups Also Noted: Senators propose Internet tax moratorium; Iowa diabetes program reduces patient care costs 32 percent Much more... News From The Fierce Network: 1. Report: Liberty wants to merge Cox with Charter 2. Netflix adds profiles to better target viewers 3. WiMAX Forum expects to issue WiMAX/TD-LTE network specs by year-end 4. More headlines... Special Report: Wireline telecom earnings in the second quarter of 2013 The Q2 2013 earnings season has begun, and FierceTelecom is tracking how all of the key players in the wireline industry segment performed. Check here throughout the second-quarter reporting season for news on providers, vendors and integrators in the wireline telecom industry. Read more (Image source: iStockPhoto) Check out FierceTelecom on Facebook! 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: Alcatel-Lucent 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 > LTE Advanced is here! - Wednesday, August 28th, 1pm ET /10am PT Events > ITEXPO 2013 - August 26-29 - Mandalay Bay, Las Vegas > TIA 2013 - October 8-10 - Washington D.C. Marketplace > 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 > Whitepaper: Five Steps to Building Visibility and Security Into Your Network 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 Qualcomm. Webinar: LTE Advanced is here! Wednesday, August 28th, 1pm ET /10am PT Tune into this webinar to understand the success factors behind the proliferation of LTE and an impressive line-up of enhancements that LTE Advanced encompasses, including Carrier Aggregation. Register Today! Today's Top Stories 1. Google should remove server ban from its service terms, Free Press says By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn Google Fiber's (Nasdaq: GOOG) rule in its terms of service that prohibits customers from attaching servers to its networks has drawn the ire of consumer group Free Press which says the Internet giant needs to live up to its promise that it is not like traditional cable and telco broadband providers. "I urge Google to follow through on its claim to provide a "different kind of Internet" by becoming a different kind of ISP," the group wrote in a letter to Milo Medin, VP of access services at Google. "It should start by revising its terms of service to explicitly allow individual users to host servers on Google Fiber networks for personal use." This ban means that residential users won't be able to attach their own servers for e-mail or run popular online video games such as Minecraft. It also prohibits customers from using peer-to-peer software since it enables a computer to act as both a client and a server. News of the server ban first appeared in a Wired article that came out earlier this week citing a complaint filed with the FCC by potential Google Fiber customer Douglas McClendon. Google Fiber lawyer Darah Smith Franklin wrote in response to McClendon's complaint that "Google Fiber's server policy is consistent with policies of many major providers in the industry" including AT&T (NYSE: T). For more: - see the Free Press post Related articles: Google closes deal to acquire iProvo Does Google Fiber's iProvo move spell doom for open access? CenturyLink protests Google Fiber's move into Provo Google's iProvo purchase draws fire from Utah-based XMission Google Fiber goes to Provo on the cheap Read more about: Net Neutrality back to top This week's sponsor is Alcatel-Lucent. 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! 2. Obama nominates Senate aide O'Rielly as next Republican FCC commissioner By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn President Obama has nominated Michael O'Rielly, an aide to Sen. John Cornyn (R-Texas), for one of the vacant Republican spots on the FCC. O'Rielly's nomination comes as the process to confirm Tom Wheeler as FCC chairman continues to move through the Senate. On Tuesday, Wheeler's nomination got approval from the Senate Commerce Committee. He now needs the vote by the full Senate. However, as reported by FierceWireless, the nominations of O'Rielly and Wheeler may not be voted on for several weeks as Congress heads into August recess. When Wheeler and O'Rielly are confirmed, the FCC will be able to again operate with its full five member panel. Right now, the FCC is being overseen by Acting Chairwoman Mignon Clyburn. O'Rielly, reports Reuters, has spent two decades dealing with telecom policy issues. Before working for Cornyn, he advised former Senator John Sununu of New Hampshire and former House Commerce Committee Chairman Tom Bliley of Virginia on telecommunications issues. He'd join FCC commissioner Ajit Pai as the FCC's second Republican, taking over from Robert McDowell, who departed the regulator earlier this year. "I congratulate Mike O'Rielly on his nomination to serve as an FCC Commissioner," Pai said in a statement. "His expertise, experience, and fresh perspective will be a tremendous asset to the commission as we confront the many challenging issues on our agenda. I look forward to working with him and wish him all the best during the confirmation process." Among the wireline issues that the new FCC leaders will  grapple with are USF reform and the call from large incumbent telcos to transition their TDM-based wireline voice networks to all-IP. For more: - Reuters has this article Editor's Corner: 5 wireline issues Wheeler will face if he becomes FCC chairman Related articles: Obama nominates Senate aide O'Rielly for Republican FCC spot Verizon, FCC net neutrality case to be heard by court in September Read more about: FCC back to top 3. Tellabs' Q2 revenue declines to $212M, but meets guidance By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn Tellabs (Nasdaq: TLAB) reported that second-quarter revenue declined year-over-year to $212 million, down from $288 million, but its results were in line with its guidance for the quarter. The vendor said it widened its losses to $8 million or 2 cents a share from $5 million or 1 cent a share a year earlier. Over the past few quarters, Tellabs has been going through a series of transitions, including the exiting of two CFOs and cutting costs via layoffs and scrapping product lines such as 9200 platform. "We made good progress in the second quarter, compared with the first quarter, as revenue and gross profit margins improved," said Dan Kelly, Tellabs CEO and president, in the earnings release. Here's a breakdown of the company's four key segment metrics: Optical: Optical segment revenue was $112.7 million, down year-over-year from $122.4 million in Q2 2012. A rise in 7100 optical transport system revenue was more than offset by lower revenue from its 6300 managed transport systems and 5000 digital cross-connect systems. Optical segment profit was $25.4 million, down from $29 million in the same period a year ago. Data:  In the data segment revenue dropped to $35.8 million from $77.7 million in Q2 2012 due to lower revenue from the Tellabs' 8600 and 8800 smart routers and its 8100 managed access systems. Likewise, the data segment loss, driven primarily by the lower revenue level and lower gross margins, was $2.5 million, compared with segment profit of $5.4 million. Access: Driven by lower revenue from its 1600 single-family Optical Network Terminals (ONTs), access segment revenue was $19.4 million, down from $37.3 million. Meanwhile, access segment profit, driven primarily by the lower level of revenue and lower product gross margins, was $1.3 million, compared with $6 million. Services Segment: Due to lower deployment, support agreement and professional services, service segment revenue was $44.2 million, compared with $50.7 million in Q2 2012. Likewise, the decrease in segment revenue declined to $14.8 million from $17.2 million due to the lower level of revenue from support agreements and professional services. The vendor has forecast Q3 2013 earnings to come in between $200 million to $220 million. Shares of Tellabs were listed at $2.23, down 8 cents, or 3.46 percent, in Friday morning trading on the Nasdaq stock exchange.  For more: - see the earnings release (.pdf) Special report: Wireline telecom earnings in the second quarter of 2013 Related articles: Tellabs appoints Crowe Horwath partner Larry Rieger as acting CFO Tellabs Q1 revenue declines to $209 million on challenges in Europe, Mexico UPDATED: Layoffs on tap as Tellabs Q4 revenue declines to $242 million Tellabs appoints Dan Kelly as new CEO, president Tellabs announces more layoffs as revenue drops to $264M Read more about: Tellabs back to top 4. Shentel's wireline fiber sales rise 7.4 percent to $5.6 million By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn Shentel (Nasdaq: SHEN) may be placing more emphasis on growing its cable and wireless segments, but the telco reported that Q2 2013 wireline fiber sales rose 7.4 percent year-over-year to $5.6 million. The rural telco's wireline operating revenue rose 9.7 percent to $3.7 million, up from $3.3 million in the same period a year ago. Likewise, the wireline segment's adjusted OIBDA was $6.3 million, an increase of $0.6 million from Q2 2012.  As expected, the telco reported that access lines declined to 22,419, compared to 22,670 on June 30, 2012. It also saw a slight gain in its broadband unit as DSL subscribers rose slightly to 12,600. Driven by growth in its wireless and cable segments, Shentel's Q2 net income grew 41 percent to $7.8 million, up from $5.7 million in Q2 2012, and revenue grew 8.5 percent year-over-year to $77.5 million. Cable service revenue rose to $1.2 million due to what it says was 2.7 percent growth in average revenue generating units (RGUs), video price increases driven by rising programming costs, and customers selecting higher priced digital TV services and higher speed data access packages. At the end of Q2, Shentel had a total of 116,115 cable RGUs, up 3.2 percent year-over-year. One of the goals that Shentel set for the rest of 2013 was to increase wireline and cable fiber lease revenues. Shares of Shentel were listed at $19.48, down 4 cents, or 0.20 percent, in Friday morning trading on the Nasdaq stock exchange. For more: - see the earnings release Special report: Wireline telecom earnings in the second quarter of 2013 Related articles: Shentel revenue up 10.4 percent to $76 million on stable wireline, cable results Shentel's wireline revenues rise 12% on fiber service sales growth Shenandoah Telecom to build Page County, Va.'s middle mile network Shenandoah Telecommunications to buy North River Telephone Cooperative Read more about: Shentel back to top 5. TDS Telecom revenues rise to $223.4M on strong triple play, managedIP adds By Sean Buckley Comment | Forward | Twitter | Facebook | LinkedIn Revenue for TDS Telecom (NYSE: TDS), the wireline operating subsidiary of Telephone and Data Systems, Inc., rose 7 percent to $223.4 million with gains in triple play residential bundles and business managedIP connections. The telco said that 70 percent of its residential customers purchased more than one service. Out of that figure, 35 percent took a double play offering, while the remaining 25 percent subscribed to a triple play bundle of voice, IPTV and data. It saw gains in both broadband and IPTV. While TDS Telecom did lose 400 residential broadband subscribers, it added 1,500 new IPTV customers in markets where the service is available. Despite the slight decline in broadband subscribers, the service provider continues to make progress with IPTV and broadband. Taking a page from Google Fiber (Nasdaq: GOOG), TDS launched its "Fiberville" pre-registration campaign in Concord and parts of Knoxville, Tenn., where it plans to offer 100 Mbps fiber to the home and TDS TV services. It also made progress with broadband stimulus projects in both Arizona and Missouri. The service provider will also bolster its broadband coverage with the completion of its acquisition of Alamogordo, N.M.-based cable operator Baja Broadband. By acquiring Baja, TDS will expand its broadband and video service base in various markets including Colorado, New Mexico, Texas and Utah. On the business side, the service provider increased its commercial managedIP connections by 50 percent year over year. At the end of the quarter, it had a total of 19,900 managedIP customers. "TDS Telecom continued to increase ILEC residential broadband and video penetration in the quarter, and commercial managedIP connections increased 50 percent year over year," said LeRoy T. Carlson, Jr., TDS president and CEO, in the earnings release. "TDS Telecom's revenue growth in the quarter was driven primarily by our hosted and managed services acquisitions, where we are focused on offering comprehensive, end-to-end IT solutions for mid-market customers." TDS Telecom's parent Telephone and Data Systems, Inc., reported revenues of $1.23 billion, down from $1.32 billion in Q2 2012. Shares of Telephone and Data Systems, Inc. were listed at $26.80, up 1 cent, or 0.04 percent in Friday 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: TDS Telecom completes broadband stimulus project in Orchard Farm, Mo. TDS' Fiberville program lures subscribers to IPTV, FTTH TDS offers 100 Mbps option in Tennessee, Minnesota FTTH markets TDS Telecom Arizona broadband stimulus project gets underway Read more about: Tds Telecom back to top Also Noted 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   TODAY'S SPOTLIGHT... Week in research: China dominates GPON spending; Toll fraud malware tracked to 10 Russian groups GPON rules the BRIC: The market for 2.5G Gigabit passive optical network equipment totaled $1.4 billion in the BRIC countries (Brazil, Russia, India and China), emerging economies that are seeing solid growth in the GPON segment. However, while China dominates equipment spending, accounting for 90 percent of the market, Brazil and Russia have higher take rates. Russia is also the most active country in terms of FTTH subscribers. In any case, Chinese manufacturer Huawei tops the list of 2.5G GPON vendors and ZTE has a presence in all four countries. "There's a real dichotomy between China and the other BRIC nations, especially Russia and Brazil, where growth is solid but dwarfed by the numbers by China," said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics. "Take rates in Russia and Brazil have been much better than in China, which continues to pursue a 'build it and they will come' philosophy." Continue... Wireline news from across the web: @FierceTelecom RT @broadbandtrends: Is Google Stumbling on fiber innovation? Article | Follow @FierceTelecom > Two U.S. Senators have written a new law that they say would put a permanent moratorium on Internet access taxes. Article > Sercomtel, a Brazil-based competitive regional provider, has introduced a 200 Mbps broadband service in Londrina, complementing the 100 Mbps service it began offering in the city in 2011. Article > The Iowa Care Consortium's "Keep it in Check" Iowa Medicaid Diabetes Program said its telehealth program helped reduce the total cost of enrolled patients' care by 32 percent. Article Cable News > CBS Corp. CEO Les Moonves told analysts that the 15 percent of CBS viewers who rely on rabbit ears and other over-the-air antennas to watch original programs such as Big Bang Theory and NCIS "are not the most advertiser-friendly and the most appealing to our advertisers." Article > Rural Broadband Investments has acquired cable systems with 9,000 subscribers in Southeast Texas from McDonald Cable. Article IPTV News > Residents in the western half of Eagle County, Colo., will be among the first U.S. subscribers to get CenturyLink's Prism TV IPTV service after the county formally renews a franchise agreement with the telco. Article Online Video News > Netflix is bringing back individual profiles, a move it says will give up to five people on each subscriber account the ability to get personalized viewing recommendations. Article And finally … A new thinkbroadband poll reveals that 77 percent of survey participants say that broadband is important. Article News From The Fierce Network: > Leap says it doesn't have to purchase additional iPhones from Apple Post > CEA claims only 7% of Americans rely on over-the-air TV, draws criticism from NAB Post > Global solar, wind growing despite shrinking investments Post > Verizon offers cheaper 500 MB Share Everything plan 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! > LTE Advanced is here! - Wednesday, August 28th, 1pm ET /10am PT Tune into this webinar to understand the success factors behind the proliferation of LTE and an impressive line-up of enhancements that LTE Advanced encompasses, including Carrier Aggregation. 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: 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. > Whitepaper: Five Steps to Building Visibility and Security Into Your Network This five-step approach can help IT easily deliver the right information to the right tools at the right time to optimize your network. Download Now 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. FierceTelecom is the leading daily news source for telcos and other telecom industry insiders. Sign up for free | Visit the website Refer FierceTelecom to a Colleague ©2013 FierceMarkets This email was sent to ignoble.experiment@arconati.us as part of the FierceTelecom email list which is administered by FierceMarkets, 1900 L Street NW, Suite 400, Washington, DC 20036, (202) 628-8778. Contact Us Editor: Sean Buckley, VP Sales: Jack Fordi, Publisher: Jason Nelson. Advertise General advertising: Jack Fordi. Request a media kit. 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