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2013/11/27

| 11.27.13 | Vivendi, SFR press the demerger button

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FierceTelecom

November 27, 2013

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This week's sponsors:
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Ciena
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Editor's Corner:
Have a great Thanksgiving

Today's Top Stories:
1. Vivendi gets board approval for SFR telecom business, names Bollore as chairman
2. XO names Qwest exec Christopher Ancell as new CEO
3. IP router, switch revenues drop 10 percent, but Q4 outlook good
4. AT&T brings 200 St. Louis area buildings onto fiber network
5. TDS Telecom completes part of Colorado broadband stimulus build

Spotlight:
Amazon, Hulu, and Roku ramp up their holiday promotions

Also Noted:
The top 10 security threats for 2014; CBeyond TotalCloud recognized as top SMB service Much more...

[Sponsored Content]
Executive Insights:
- Why it's Time for the Telecoms Industry to Embrace Carrier Ethernet Standards
- Read More Executive Insights

News From The Fierce Network:
1. Time Warner Cable, Bright House flip switch on Showtime Anytime
2. Yahoo hires Katie Couric for online news role
3. Deloitte: Two-thirds of U.S. consumers prefer Wi-Fi over cellular
4. More headlines...

Special Report:
They're cooked: The top wireline turkeys of 2013

Thanksgiving is a time to relax, eat generous portions of turkey, and yes, watch the Dallas Cowboys and Detroit Lions take the field once again. It's also a great time to reflect on the past year. In the latest edition of our Top Wireline Telecom Turkeys, we serve up a healthy portion of companies' failed initiatives, products, strategies, and executive mishaps of 2013. Read more


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This week's sponsor is Amdocs.

Webinar: Is your strategy for small and medium-sized businesses bringing rewards?
Wednesday, December 4th, 11am ET / 8am PT / 4pm GMT

Gain insights into where service providers are currently experiencing problems in the sales cycle, with a benchmark for the SMB market by sector, as well as ideas on how to increase efficiency. Register Today!


Editor's Corner

Have a great Thanksgiving

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

On behalf of the FierceTelecom staff I would like to wish you a happy and safe Thanksgiving holiday. We'll back in your inbox on Monday with the latest news in the wireline segment of the telecom industry.--Sean

Webinars

> Is your strategy for small and medium-sized businesses bringing rewards? - Wednesday, December 4th, 11am ET / 8am PT / 4pm GMT
> LTE Advanced in unlicensed spectrum? - Tuesday, December 10th, 1pm ET /10am PT
> Unraveling the LTE Roaming Puzzle- Wednesday, December 11th, 2pm ET/ 11am PT

Marketplace

> Whitepaper: OTA Updating Simplified - Using SaaS to Update Android Devices
> Whitepaper: Your Guide to iOS 7
> Whitepaper: Next-generation Network Security
> Whitepaper: Customer Experience for Service
> eBook: Partnering For DPI Deployment
> eBook: eBook | Driving The Business Case For The Connected Car

Jobs

> Account Executive – Cablevision - Edison, NJ
> Need a job? Need to hire? Visit FierceWirelessJobs

This week's sponsor is Ciena.

eBook | Converging the Optical Core to IP

This eBook discusses the latest developments and approaches to converging the optical core to IP. In addition it will look at how service providers can use the converged optical core to handle their own internal core network needs, and deliver higher speed optical services to their enterprise and wholesale customers. Download it today.

Today's Top Stories

1. Vivendi gets board approval for SFR telecom business, names Bollore as chairman

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

Vivendi has made it official that it will separate its telecom unit from its growing media and content activities and has named Vincent Bollore as its new chairman.

Bollore, who already serves as vice chair of the company's supervisory board and is a 5 percent shareholder, will take over the post from current chairman Jean-Rene Fourtou when it completes its demerger in the second half of next year.

According to a report in Reuters citing an article from Le Monde, Fourtou fought with Bollore over his ambition to have more input in the company's future. Fourtou added that he expected Bollore could replace him as chairman of the media division after the company realignment is complete.

The company has tapped Hearst Magazines' head of media and content activities Arnaud de Puyfontaine to run Vivendi's remaining businesses, while Jean-Yves Charlier will continue in his role as chairman and CEO of SFR.

The company said that the demerger plan will take the form of a distribution of shares in French telecom operator SFR to Vivendi shareholders. It added that a stock listing for SFR would offer Vivendi shareholder the opportunity to invest in two separate vehicles, valued according to the specifics of their respective sectors.

"It would offer them the opportunity to invest in two separate vehicles listed on the stock market and valued according to the specifics of their respective sectors," Vivendi said in a statement.

However, Vivendi did not reveal what it would do with GVT, its Brazilian telecom subsidiary.

This demerger is part of the company's broader realignment to reduce debt and focus its attention on media, including consuming digital media in music and video. In July, Vivendi announced it would sell its 53 percent stake in Maroc Telecom and a deal to sell most of its 61 percent stake in video game firm Activision Blizzard.

Vivendi said that it would present the demerger plan to the regulators for approval and then seek shareholder approval at their next annual meeting next June.

For more:
- Reuters has this article

Related articles:
Vivendi could spin off its telecom businesses, focus on entertainment
Vivendi pushes ahead with plan to offload Maroc Telecom 
Vivendi picks telecoms chief Charlier to head France's SFR
Vivendi delays GVT sale after getting lowball offers

Read more about: Vivendi
back to top


2. XO names Qwest exec Christopher Ancell as new CEO

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

XO has appointed 30-year telecom industry veteran Christopher Ancell as its new CEO, giving the company a permanent replacement to Carl Grivner, who left in April 2011.

Chris Ancell

Ancell (Source: CenturyLink)

Set to join the company on Dec. 2, Ancell comes to XO from CoreSite Realty Corp. where he served as that company's senior VP of sales and sales engineering.

Earlier, he spent 12 years serving in a number of leadership roles at both CenturyLink (NYSE: CTL) and Qwest, including serving as the president of CenturyLink's business markets organization and executive vice president of Qwest's business markets organization.

His experience in running business service divisions at CenturyLink and Qwest will come in handy at XO, which has been growing its presence in larger business accounts and increasing its reach into other countries, including Canada.

Ancell will take over the CEO role from Laura Thomas, who will remain with company and return to her role as chief financial officer.

For more:
- see the release

Related articles:
XO CEO Carl Grivner resigns from company
XO targets multi-cloud enterprises with bandwidth-on-demand
XO settles patent dispute with Acacia Research subsidiary

Read more about: Xo Communications
back to top


3. IP router, switch revenues drop 10 percent, but Q4 outlook good

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

The global IP router and switching market may have suffered a near-term setback as revenues dropped 10 percent sequentially, but vendors are expected to see improvement in the upcoming fourth quarter, according to Infonetics Research.

Infonetics service provider router switch q3 2013Overall, the segment totaled $3.6 billion, up 7 percent year-over-year. Infonetics has forecast that the market will grow at a 7 percent compound annual growth rate (CAGR) from 2012 to 2017, when it will reach $20.2 billion.

Michael Howard, principal analyst for carrier networks and co-founder of Infonetics, said that the sequential dip in revenues was mainly due to seasonality and that the sector improved over Q2 2012.

"The third quarter is normally slow for the carrier router/switch market, so a 10 percent sequential drop isn't overwhelmingly bad, especially with the expectation of a good 4Q13 and an improving year-over-year outlook," he said. "All three main IP router/switch categories--edge routers, core routers, and carrier Ethernet switches (CES)--are up from a year ago."

While Huawei and ZTE both reported that their routing revenues in Asia Pacific declined during the quarter, Infonetics said it expects that they will both recover in Q4 2013. Likewise in Europe and EMEA, the segment did decline 10 percent, but the research firm expects that a number of the largest providers are "expected to carry out a decent budget flush in the 4th quarter."

From a vendor perspective, Cisco (Nasdaq: CSCO) continued to hold onto its first place lead with 38 percent market share followed by Alcatel-Lucent (NYSE: ALU) and Juniper Networks (NYSE: JNPR). One of the notable moves was Huawei, which dropped to the number 4 spot on Infonetics' Q3 2013 global router/Carrier Ethernet Switch revenue share Leaderboard.

All three of the top routing and switching vendors saw gains in the most recent quarter.

Cisco said in its fiscal Q1 2014 period that switching sales rose 3 percent to $3.75 billion as it saw an increase in the Americas and EMEA regions, while Alcatel-Lucent's IP routing division rose 7 percent year-over-year to $789.2 million. Due to successive record quarters of growth for its MX platform, Juniper reported that routing revenue was $609 million, up 5 percent sequentially.

For more:
- see the release

Related articles:
Juniper Networks to cut 280 jobs despite Q3 revenue rise of 6 percent to $1.2B
Alcatel-Lucent's Q3 IP revenues jump 7 percent to $789.2M
Cisco's switching sales grow to $3.75B, but net revenue drop, forecast raise concerns

Read more about: Cisco
back to top


4. AT&T brings 200 St. Louis area buildings onto fiber network

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

AT&T (NYSE: T) is giving more businesses in the St. Louis area the opportunity to access higher speed services such as Ethernet by extending their fiber network to over 200 multi-tenant buildings.

Through this expansion, the telco is making its suite of Ethernet and IP/VPN services available to over 5,000 business customer locations.

These fiber deployments also provide a few side benefits to the building owners. By having AT&T install fiber, they make their location more appealing to potential clients. There's also minimal disruption when new customers are added because the fiber-based electronic equipment that's installed can serve multiple tenants.

As part of the telco's Project VIP investment plan, it is deploying its fiber network to an additional 1 million business customer locations in its wireline service area by the end of 2015.  

In Missouri, AT&T has allocated $250 million to expand its on-net fiber connections to businesses and the reach of U-verse to more consumers.

The telco has been aggressively lighting up new multi-tenant buildings in multiple states as part of its fiber to the building (FTTB) program. In addition to St. Louis, AT&T equipped buildings with fiber in other parts of its territory, including Nevada, North Carolina, Ohio, San Francisco, and Silicon Valley.

For more:
- see the release

Special report: AT&T's $14B Project VIP: breaking out the business service, U-verse numbers

Related articles:
AT&T equips 230 MDUs with fiber in Nevada and Silicon Valley
AT&T U-verse revenues rise 28 percent to $3.1B, subscribers top 10 million
AT&T extends fiber to 450 San Francisco buildings
AT&T extends fiber into 107 buildings in Ohio through Project VIP initiative
AT&T lights 93 North Carolina buildings with fiber as part of Project VIP initiative

Read more about: AT&T
back to top


5. TDS Telecom completes part of Colorado broadband stimulus build

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

TDS Telecom (NYSE: TDS) is putting broadband into more rural customer's hands by completing part of its ARRA-funded broadband Internet project in Paonia, Colo.

Set to be completed by January, this network build will provide broadband services to about 540 area residents.

For this project, TDS subsidiary Delta County Tele-Comm, Inc., installed about 12 miles of fiber cabling and 12 cabinets, which will house necessary broadband loop carrier (BLC) devices to deliver services to residents.

Similar to other areas where it has gotten American Recovery and Reinvestment Act funding, the telco said it will inform residents when service is available.

Out of the telcos that applied ARRA grants, TDS won 44 projects, including this one in Colorado.

TDS has completed nine other ARRA projects in GeorgiaIndiana, Missouri, New Hampshire, and New York. It is also in the process of completing a project in Alabama.

For more:
- see the release

Related articles:
TDS progresses with 4 broadband stimulus projects in Georgia, Wisconsin
TDS Telecom completes part of Alabama broadband stimulus build
TDS' Wisconsin, New Hampshire broadband projects extend service to 1,300 customers
TDS Telecom's Q3 revenues rise to $234.5M on gains in IPTV, managed services
TDS Telecom extends broadband to 600 more homes in Indiana

Read more about: Broadband, Tds Telecom
back to top


Also Noted

This week's sponsor is Qualcomm.

Webinar: LTE Advanced in unlicensed spectrum?
Tuesday, December 10th, 1pm ET /10am PT

As the operators prepare for the looming 1000x data challenge, small cells and utilizing all spectrum resources are in the front and center. But, does it work? What is needed? Tune into this webinar to get the answers Register Today!


TODAY'S SPOTLIGHT... Amazon, Hulu, and Roku ramp up their holiday promotions

HuluAs retailers gear up for Black Friday and Cyber Monday, online video providers are getting in on the action with a series of new marketing campaigns to lure more viewers or to buy their online video wares. While Netflix may be tight lipped about its plans, Hulu has been running a Hulu for the Holidays promotion, which includes a daily sweepstakes that offers prizes from a 55-inch Samsung TV to an Xbox One or monthly subscriptions to Hulu Plus. Meanwhile, Google is offering free shipping for its $35 Chromecast dongle device. Sam Bookman, managing editor of FierceMarkets' wireline group, takes a look at the latest online video provider promotions. Read more

Wireline news from across the web:

@FierceTelecom RT @Khali Henderson: Top 10 security threat predictions for 2014. Article | Follow @FierceTelecom

> Cbeyond announced its TotalCloud Phone System has been named a Small or Medium Business Service of the Year (Bronze Winner) in the 2013 Best in Biz Awards. Release

> 8X8's CTO Bryan Martin will speak at the Voice Communications Exchange Committee (VCXC) on Dec. 3 at the Penn Club in New York City. Release

Cable News

> Intel has slapped a $500 million price tag on the OnCue platform that it has developed for use in a virtual cable platform, Bloomberg reported Monday. Article

> Just eight months after launching a subscriber acquisition campaign in which it offered a free Xbox 360 to broadband customers who ordered U-verse TV, AT&T (NYSE: T) said it'll stop offering its pay TV service on the gaming console on Dec. 31. Article

Online Video News

> HBO's TV Everywhere app HBO Go added support for Google's Chromecast, a device that lets users stream video from their smartphones, PCs and tablets to a Chromecast connected TV last week. Article

Wireless News

> The Tier 1 carriers are not the only ones launching holiday-focused promotions, as smaller carriers C Spire Wireless, U.S. Cellular and Leap Wireless' Cricket are getting into the act with deals of their own. Article

> Qualcomm said China's National Development and Reform Commission started a probe related to an anti-monopoly law (AML) in the country. Article

And finally … Facebook's CEO Mark Zuckerberg said in a television interview that the U.S. government "really blew it" on conducting surveillance programs that riled foreign leaders and domestic skeptics. Article

News From The Fierce Network:

> Salesforce.com abandons 'social enterprise' push Post
> CA ISO, NERC examine energy storage role in California Post

Webinars

> Is your strategy for small and medium-sized businesses bringing rewards? - Wednesday, December 4th, 11am ET / 8am PT / 4pm GMT

Gain insights into where service providers are currently experiencing problems in the sales cycle, with a benchmark for the SMB market by sector, as well as ideas on how to increase efficiency. Register Today!

> LTE Advanced in unlicensed spectrum? - Tuesday, December 10th, 1pm ET /10am PT

As the operators prepare for the looming 1000x data challenge, small cells and utilizing all spectrum resources are in the front and center. But, does it work? What is needed? Tune into this webinar to get the answers Register Today!

> Unraveling the LTE Roaming Puzzle- Wednesday, December 11th, 2pm ET/ 11am PT

This webinar will delve into the challenges of LTE roaming as well as explore potential solutions. Register Today!

Marketplace

> Whitepaper: OTA Updating Simplified - Using SaaS to Update Android Devices

As Android becomes more and more popular and the preferred OS choice for many other non-mobile devices, like smart watches, ruggedized devices, cameras, TVs and others, having an over-the-air (OTA) update capability has become essential to every new Android manufacturer. Download this white paper today to learn more.

> Whitepaper: Your Guide to iOS 7

he new version of iOS marks a notable improvement over the last in terms of aesthetics and features, and this guide should get you up to speed with the changes and additions to what Apple calls the world’s most powerful mobile OS. Download today!

> Whitepaper: Next-generation Network Security

Learn how Intel and McAfee are helping enterprises counter security threats. Download Now!

> Whitepaper: Customer Experience for Service

This Executive Brief explores the role of service and support in creating great customer experiences, the service goals market leaders use related to customer experience and the Oracle approach for empowering new service experiences. Download today!

> eBook: Partnering For DPI Deployment

DPI in the marketplace is expected to boom in the near term. To achieve successful deployment, DPI must be tightly integrated with the specific capabilities carriers want to offer. Download to learn more!

> eBook: eBook | Driving The Business Case For The Connected Car

Outfitting automobiles with wireless connectivity has become a No.1 priority for car makers. Learn the latest on the connected car space and what it means for wireless operators, car makers and consumers. Download this eBook today.

Jobs

> Account Executive – Cablevision - Edison, NJ

The Account Executive is responsible for selling Optimum Lightpath Products and services to mid market companies in an assigned geographic area. This position will sell to new accounts as well as to existing accounts as assigned. The AE-II will generate leads by cold calling, networking and referrals as well as closing leads generated through various marketing initiatives...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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