Posted byStefanie Ryan

April 28, 2014

5 Misconceptions About Cloud Computing:

There are always questions when it comes to new software or programs that promise to save you money, keep your data secure, and so on. Well, just as there are questions, there are answers as well. It’s time to prove these misconceptions about the cloud incorrect. Some of these misconceptions include:

The Cloud is Riskier

This could not be farther from the truth. Not only does the cloud protect you from viruses and theft, it can also ensure recovery of your data. Some may assume that the word “cloud” signifies that your data and files are floating around for the world to see – again, not true. The “cloud” basically represents the Internet, which is where you have access to your data and programs when you switch to cloud computing. Contrary to popular belief, this is actually an amazing backup plan. When your information is stored virtually, it is no longer connected to your office devices or network. Therefore, it cannot be harmed by physical disasters or emergencies that may affect your work place. The best thing businesses can do is to have a backup strategy, just in case an outage occurs. In the past, another reason for loss of data was because an organization lost their control over it. For example: How data was stored, shared, secured, etc. The cloud gives you back that control of your data, which means a significantly lower chance for it to be lost in an abyss. Just like anything in life, the cloud is not foolproof. But it is a very safe place for your data. While it may be easier to look at the cloud as unreliable and use that as an excuse to hold off, that just isn’t true. The cloud is the future, and it will keep your information safe.

Cloud Computing is More Expensive

This is also false. Although switching to the cloud may come with slight upfront costs such as installation or migration, in the long run, it will save you a lot of money. Cloud computing is known to reduce IT management costs dramatically. When you add up the cost of management, energy, hardware, software licensing, refreshes, storage space, and everything else that comes with managing your own software, you’re looking at a pricey per-year investment. Moving to the cloud makes it significantly more affordable because not only do you only have to buy a “piece of the pie” instead of the whole pie, but you also move your business model from CapEx to OpEx. More specifically, you simply use infrastructure that a provider purchases and manages, meaning you share resources while avoiding the costs of making these purchases yourself. Most providers also offer a pay-as-you-go plan that bills you based on your usage. Think of it like paying your electricity bill – you use what you need, and that’s all you pay for. This is a great way to control your spending. Avoiding cloud computing is the same concept as hiring someone to make your office’s pens for you when you could just get them at an office supply store; the latter saves time and money, just like the cloud does for your business.

You Can’t Increase Security

Cloud solutions already offer a high level of security, but just like you can add extra security to a home, the same can easily be done with cloud services. You can use behavior-based key management servers and encryption management keys to give your files an extra layer of protection. Like most things, the quality depends on the provider, which means you have to do your research. Find the provider that can guarantee the security of your corporate data, and ask them what policies and measures they already have implemented. The majority of companies trust the cloud enough to be switching over, as providers have been zeroing in on security over the past couple of years. Typical security measures should include exterior security systems, security guards, digital surveillance and recording and security scanners. Additionally, many cloud solutions can be further customized to fit your specific wants and needs as a business, including security. If you have compliance needs, make sure your provider can meet these standards. If you want additional monitoring and support for your system, just ask. There are numerous ways to boost security, so don’t be fooled by the misconception that it’s limited.

Cloud is Unreliable

Businesses that have a backup strategy in place, such as the cloud, prove to be more reliable than other types of infrastructure platforms. With cloud solutions, data can be backed up to multiple locations and services, providing an added level of protection. Again, make sure to do your research. Find a provider that makes it a priority to keep your business up and running. You need a reliable provider that will go above and beyond to ensure minimal downtime, great security and high efficiency – and these providers do exist! So maybe you’re wondering, what happens if your business loses connectivity with the cloud? We will automatically send you email updates of critical events that can be picked up from a mobile device, or you can access your information from the nearest location with Internet access. With the cloud, it’s easier than ever to have constant access to the information you need, no matter what happens to your business. With your data stored in the cloud, you can access it from any computing device and any location. So if you can’t get to your office desktop, it’s simple to grab your tablet or laptop and continue working away. This flexible quality of the cloud makes it the most reliable solution.

The Cloud is Just a Fad

Any organization that relies on web applications like Dropbox, Amazon, Gmail, etc. already uses and relies on cloud computing. Just as the idea of the telephone started with a wire and a dial wheel, the cloud is only beginning its evolution. Migrating to a new technology doesn’t  have to be scary and uncertain. More than half of businesses have already implemented the cloud in some way, and many of these are taking it slow. That’s okay! You don’t need to hastily decide, “We’re moving everything to the cloud, today!” Test the waters. See which parts of this new technology fit the needs of your business. It’s a flexible solution that can be customized for your organization, and that’s part of why it’s so amazing. Whether you need improved security, lowered costs, higher efficiency, a backup plan, or a mixture of these benefits, the cloud is the answer. One thing is clear: the cloud is not just a fad. It’s here to stay, and businesses need to decide if they want to keep up with these changes or be left behind.  Cloud computing for businesses has turned into a way of life, as well as a secure, cost effective way to manage all of their IT systems in one place. The cloud is now the most advanced and simple way to run a business’ IT environment.

Consumers concerned over Verizon, AT&T VoIP-only transition

March 19, 2014 | By Jim Barthold

Plans by AT&T (NYSE: T) and Verizon (NYSE: VZ) to shut down copper-based networks in favor of VoIP-only service are drawing concerns from consumers who worry that IP-only will interfere with services like burglar alarms, emergencies and fire alarm systems that depend on copper-based services. Some are even worried about losing copper-based Internet connections.

The Utility Reform Network (TURN) filed a complaint with the California Public Utilities Commission.

"Verizon is deliberately neglecting the repair and maintenance of its copper network with the explicit goal of migrating basic telephone service customers who experience service problems" to VoIP "often without the customers' knowledge or consent," TURN's telecom research director, Regina Costa, wrote in the complaint, according to a story in Computerworld.

TURN said it received complaints from Verizon customers who were converted to VoIP without their permission.

A Verizon spokesman told the publication via e-mail that the carrier is reviewing the complaint and planning a response to the CPUC.

"Where our all-fiber network is available, it provides a reliable platform that can support anything ranging from traditional telephone service to next-generation technology, depending on the customer's needs," Jarryd Gonzales wrote in the e-mail.

AT&T has run into some concerns of its own as it plans trials to phase out copper networks in Carbon Hill, Ala., and West Delray Beach, Fla.

The plan "has drawn fire from those who worry it leaves high and dry individual end users who rely on legacy copper networks, especially in rural areas, for both plain telephone service and copper-based Internet access service," a story in GCN stated.

AT&T, which has the backing of federal regulators, maintains that the transition will "ensure that Florida customers, and ultimately consumers and businesses across the country, can benefit from the latest communications technologies."

Windstream to ax 400 jobs, expects $20M in annual savings

February 24, 2014 | By Sean Buckley

Windstream (Nasdaq: WIN) is laying off about 400 employees by March in an effort it says will increase its operational efficiency as it continues to sharpen its focus on becoming a bigger player in the enterprise services space.

About 175 workers' jobs were eliminated through what it said was a "voluntary separation initiative."

"We continue to invest in our growth areas, primarily business services and consumer broadband, and at the same time we must maintain a disciplined approach to expense management," said Jeff Gardner, president and CEO of Windstream, in a release.

By making these job cuts Windstream expects to save about $20 million in annual costs. It also expects to incur a $9 million to $10 million charge in the first quarter of 2014 to pay severance to employees that were affected by the company's move.

This is not the only time the telco has had to conduct layoffs. In 2012, it cut between 375-400 management positions, which translated into almost 3 percent of its total 14,500 workforce. It also laid off 280 employees following its acquisition of PAETEC in 2011.

Regardless of this near-term setback, Windstream continues to make progress in growing its presence in the business services segment.

While it won't release its fourth-quarter 2013 earnings until Feb. 27, in the third quarter of 2013 business revenues rose 1 percent year-over-year to $916 million. IP-based voice and data, dedicated Internet access (DIA) and data center services were $407 million, up 5 percent year-over-year.

Ten reasons Google should own Verizon by 2017

February 20, 2014 | By Steve Donohue

I began contemplating the possibility of a Google (Nasdaq: GOOG) acquisition of Verizon's (NYSE: VZ) wireline business last September, after Verizon said that it would buy Vodafone's stake in Verizon Wireless for $130 billion. Google's announcement Thursday that it is looking at expanding Google Fiber to 37 additional cities where its primary competitors would be Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and AT&T (NYSE: T) left me wondering if Google could be on the path to buying not only Verizon's FiOS business, which doesn't operate in any of those 37 cities, but the entire company, including Verizon Wireless.

A Google-Verizon marriage would be the largest corporate merger ever. The companies had a combined market cap of $537 billion at Wednesday's market close. It would dwarf the $164 billion AOL-Time Warner Inc. merger in 2000, and the $183 billion acquisition Vodafone 

AirTouch closed that year of German telephone and Internet provider Mannesmann. There was buzz about a potential Google-Verizon merger in 2009, when the companies released a joint policy statement that detailed a shared vision for network neutrality. I have no idea if Google and Verizon are discussing a merger. But here are 10 points to consider, including reasons why the deal makes sense and signs that it could actually happen.

No Google Fiber-FiOS overlap
The cities Google said on Wednesday that is exploring for a Google Fiber expansion don't include a single FiOS market. If Google expands to all 37 markets, it would challenge Comcast and AT&T in Georgia, AT&T and Time Warner Cable in parts of Colorado and North Carolina, Cox Communications in Arizona, and Comcast in parts of California, Oregon, Tennessee and Utah.

Ubiquitous and affordable broadband
A Google-Verizon merger could help deliver affordable high-speed Internet service through both wired and wireless networks. It would help the United States keep pace with South Korea, Japan, and other countries where faster and more affordable Internet access is available. It would help President Obama achieve his goal of seeing affordable broadband access available nationwide.

Verizon already offers FiOS TV and Internet in 16 states, including parts of New York, California, Texas, Florida, Pennsylvania and New Jersey. Google could rapidly expand Google Fiber by upgrading the fiber-to-the-premises (FTTP) network that delivers FiOS. A merger would also appease consumers in dozens of cities that have complained about Verizon's decision in 2010 to halt its FiOS expansion.

Competition for Comcast, Time Warner Cable
A Google-Verizon merger could reduce concerns about Comcast's planned merger with Time Warner Cable hurting broadband competition. Overbuilds of cable operators by Verizon and AT&T haven't resulted in reduced broadband prices. But Google's announcement last year that it would expand to Provo prompted Comcast to offer faster Internet tiers with better pricing, including a $120 monthly triple-play that includes a 105 Mbps Internet connection.

In addition to offering consumers in the Kansas City area a $120 monthly pay TV and 1-Gig Internet bundle, or a $70 monthly 1-Gig standalone service, Google offers a free 5 Mpbs service to any consumer within its footprint who is willing to pay an installation fee. Google would likely agree to a merger condition that would require it to offer a free wideband Internet tier. And with Verizon's targeted advertising technology and wireless assets, it could make a profit from offering low-priced or even free broadband tiers.

Reduced programming costs
Google and Verizon wouldn't need to hammer cable networks and broadcasters for volume discounts in order to reduce the cost of pay TV programming packages. Instead, the companies could cut subscription prices by taking advantage of targeted advertising technology that would allow them to deliver relevant ads to viewers watching programming on TV, tablets, smartphones and other IP-connected devices.

In December, Verizon CEO Lowell McAdam predicted at a Goldman Sachs conference that some content owners would subsidize wireless data plans, similar to the way companies pay the costs of toll-free 800 phone numbers.

Earlier this month, we ran a story about a recent Verizon patent application that detailed how it may be able to offer subscribers discounts on phone and pay TV services, along with free pay-per-view movies, if they agreed to allow media buyers to deliver ads to the home screens of mobile devices. In 2012, we wrote about a Verizon targeted advertising patent application that showed how it could deliver ads to viewers based on information collected from infrared cameras and microphones in subscriber homes that could detect conversations, people, objects and even animals that are near a TV. Google and Verizon could make those next-generation concepts a reality. 

Improved home automation
It may only be a coincidence that a few weeks after Google announced a $3.2 billion deal to acquire home automation device provider Nest Labs, Verizon confirmed that it has stopped offering Verizon Home Monitoring and Control to FiOS subscribers. "We are revisiting the service to more accurately reflect our vision for the connected home," Verizon spokesman John Columbus said. Could that vision include the integration of devices from Nest?

Telemedicine and telehealth services
Verizon and Google have both expressed interest in offering telemedicine and telehealth services. A merger could move concepts that are currently being tested in laboratories into the homes of millions of Americans, and help President Obama achieve the goals outlined in the Patient Protection and Affordable Care Act of 2010, which is better known as Obamacare.

Virtual cable
Industry observers suspect that both Verizon and Google are preparing to launch virtual pay TV platforms. Google would benefit from Verizon's recent purchase of Intel's virtual cable technology, and Google has the Internet advertising capabilities to make the concept of a virtual MVPD (multichannel video programming distributor) profitable for both distributors and programmers.

Shared vision for network neutrality
Google and Verizon showed in October 2009 that they are on the same page when it comes to network neutrality when they released a set of principles for an open Internet. While Verizon sued the FCC after it implemented network neutrality rules, the company demonstrated in its policy statement with Google that it does support the concept of "new, enforceable prohibition against discriminatory practices."

Support in Washington
Under President Obama, the Department of Justice approved Comcast's acquisition of NBCUniversal in 2011. It also gave the green light to a spectrum, marketing and innovation deal that Verizon struck with Comcast, Time Warner Cable and Bright House Networks in 2011. A Google-Verizon merger could win support in Washington if the companies commit to offering affordable broadband and pay TV programming. The deal could make the United States the worldwide leader in broadband, and it would be part of the legacy of President Obama. Google and Verizon may have a better chance of wining approval for a merger under the current administration. That's why it would make sense to push for closing the deal before January 2017, when President Obama completes his second term.

Merger would drive needed consolidation

There's no doubt that a Google-Verizon merger would be controversial, and spark concerns about competition. But the deal could also rapidly accelerate major telecom consolidation that would make cable and telephone rivals stronger. A Google-Verizon merger could result in Comcast buying not just Time Warner Cable, but Cablevision and several other major MSOs. It could also spark mergers between other wireless carriers. The end result could be stronger wireless and wireline broadband providers who could drive broadband nationwide, and help the United States compete on a global basis.--Steve

FCC to rework existing net neutrality rules, won't appeal Verizon ruling

February 19, 2014 | By Sean Buckley

FCC Chairman Tom Wheeler plans to craft a new set of net neutrality rules that will prohibit broadband providers from throttling bandwidth or blocking Internet content from over-the-top providers like Netflix of Amazon, reports The Washington Post.

The regulator won't appeal the ruling by United States Court of Appeals for the District of Columbia last month that rejected a previous version of these rules. In its ruling, the court said that the FCC did not have the legal authority to implement the regulations it proposed in 2011, which were challenged in a lawsuit filed by Verizon Communications.

While the ruling was a loss for the regulator, it did give it the option to regulate broadband access under Section 706 of the Telecommunications Act of 1996. This would enable the FCC to develop rules on discriminating Web traffic while complying with the court order.

Another element that the FCC could enact is reclassifying broadband providers, which allows for regulating them similar to the way they regulate traditional telcos. According to the Washington Post's report, this reclassification would give the regulator the authority to put in place what policy experts say would be a "blanket ban on traffic discrimination."

Besides managing network traffic, the commission could use Section 706 to look into state-level laws that bar municipalities from building their own fiber-based broadband networks. A number of states, including Utah and Minnesota, have proposed laws banning community broadband networks.

VMware vCHS growth hinges on upcoming hybrid cloud services

Beth Pariseau, Senior News Writer

Published: 06 Feb 2014

VMware made its mark in technology history with server virtualization, but the company needs to catch up to cloud competitors with services beyond basic infrastructure to succeed long-term, industry watchers say.

VMware Inc. was the first to successfully virtualize x86 machines and has enjoyed a dominant position as a server virtualization vendor since then. Analysts estimate its market share at 80% to 85%, despite competition from Microsoft Hyper-V, which claimed it took server virtualization share from VMware last year.

As IT pros move from server consolidation to automation and cloud computing, VMware has also evolved into a cloud-centric company. It offers several on-premises cloud computing products bundled into the vCloud Suite, which includes vCloud Automation Center as well as server virtualization software. And last fall, it entered the public cloud with its vCloud Hybrid Service.

But VMware faces stiff competition as it looks to flourish as a cloud service provider. Amazon Web Services (AWS) is the 800-pound gorilla in cloud computing, with hundreds of thousands of customers, and there are a number of other prominent cloud providers in the mix.

VMware vCloud Hybrid Service (vCHS) has attracted some enterprise interest so far, but VMware's execution must be stellar to catch up to the rest of the market, IT pros said.

Specifically, VMware's execution is critical when it delivers on the Disaster Recovery as a Service (DRaaS) and Desktop as a Service (DaaS) offerings it revealed with the launch of the vCloud Hybrid Service (vCHS) in September.

Both offerings officially remain in beta, though VMware said on a Jan. 28 earnings call that DRaaS is about to enter general availability.

DRaaS: The best bet for vCHS

Last fall, VMware said the Site Recovery Manager (SRM) product still needs multi-tenancy capabilities to make DRaaS work, which has been completed on schedule. DRaaS will be available in beta in the fourth quarter, and according to one beta program participant, it works as expected.

"It's giving us the frequency of updates that we expect, and we can move things in and out of the cloud very quickly," said Darryl Dugan, manager of information technology for Nexon America, an online game publisher headquartered in Los Angeles. "Now we're just mapping out the regions that we want to use."

Dugan's company now has a Dedicated Cloud Core instance in VMware's Western Region and one in the Eastern Region, as well as a Virtual Private Cloud Core in the Western Region.

"The DRaaS with SRM is probably the biggest opportunity that VMware has right now," said Kyle Hilgendorf, an analyst with Gartner Inc., based in Stamford, Conn. "I don't think they can get there fast enough."

VMware will also offer DaaS on vCHS based on its acquisition of Desktone in 2013.

VMware avoids saber-rattling when it comes to AWS, but once the VMware vCHS DaaS offering leaves beta, it will be in direct competition with the public cloud giant. AWS has already built up a months-long lead in the market; the Infrastructure as a Service leader came out with its Amazon WorkSpaces product in November.

For now, vCHS customers are content to wait for a virtual desktop environment compatible with VMware's View VDI software.

"Desktop is something we're chomping at the bit for," said Shawn Wiora, CIO of Creative Solutions in Healthcare, based in Greenville, Texas.

VMware vCHS to-do list continues

As VMware looks to expand vCHS, it must also refine its cloud pricing model and undertake international expansion.

VMware's cloud pricing may still change as the company gains experience as a cloud service provider. For example, today there isn't compatibility between the vCloud Hybrid Service and the Cloud Credits Purchasing Program used to buy services with VMware Service Provider Program partners via an up-front purchase of pre-paid credits. VMware said it is exploring ways to integrate the programs.

While the current model of purchasing Core packages up-front suits the budget cycles of some early adopters, it remains unclear how successful it will be overall.

For example, some partners say their customers are confused by the pricing requirements and unclear how on-premises licensing translates into this model.

"We've had more help on [vCenter Operations Manager] and vSphere with operations management," said one value-added reseller (VAR) based in the Northeast who requested anonymity. "That's easier to get our arms around. The cloud is scary for VARs and a lot of salespeople. … We could definitely use more help."

International expansion is also crucial for VMware's cloud business. On the company's Jan. 28 earnings call, VMware CEO Pat Gelsinger said there has been beta availability of vCHS in the United Kingdom since December, with general availability expected this month.

"They really need to stand up data centers outside the U.S. before people can really see what the world thinks of it," said Bob Plankers, a virtualization and cloud architect with a major Midwestern university and a VMware customer.

Beth Pariseau is senior news writer for SearchCloudComputing. Write to her atbpariseau@techtarget.com or follow @PariseauTT on Twitter.

Do you have plans in place for Microsoft® XP's ‘End of Life’ ?

Do you have plans in place for Microsoft^® XP's ‘End of Life’ coming up on April 8th? It’s approaching quickly, and will be here before we know it.

Running XP beyond the end of life cutoff date means that Microsoft will no longer offer support. Critical updates and security patches will not be released, leaving the operating system at risk and vulnerable. Hackers will be standing by to attack as soon as it’s retired. 

Can you afford to put your business at risk?

There are alternatives to updating and managing the operating software available and likely will reduce your IT operating expense. 

LKC is here to help with the process and provide alternatives. How can we help you? 

AT&T blames U-verse Internet outage on 'web hosting service issue'

January 27, 2014 | By Steve Donohue

AT&T (NYSE: T) was hit with a major outage impacting its U-verse service, sources reported Monday.

The service provider said that while U-verse broadband Internet customers in several states lost service, its U-verse TV and voice products were not impacted. 

"A limited number of AT&T customers across multiple states may have experienced a disruption with U-verse high speed Internet service due to a third-party web hosting service issue," an AT&T spokesperson said in a statement sent to FierceCable. "Technicians worked to quickly resolve the issue, and service is currently running normally." 

In January 2013, AT&T blamed "an issue with a server that supports U-verse" for causing a major outage of its broadband service.

CenturyLink extends cloud services to SMB customers

January 22, 2014 | By Sean Buckley

CenturyLink (NYSE: CTL) is bringing its cloud services down to small-to-medium sized businesses (SMBs) with the debut of its Managed Office service bundle. The offering is intended to provide a higher level of customer service to SMBs, like what is available to larger enterprise customers.

Using a mix of network, hosted VoIP and cloud capabilities, customers that sign up for the Managed Office suite will be able to get a host of IP services and custom support.

In addition to Managed network and Hosted VoIP, CenturyLink will offer Managed CPE, Hosted apps and cloud storage, and security software. These services will be complemented by Managed install and training, one-stop customer support and scalable, per-seat pricing.

Creating a suite of cloud services that are specifically packaged for the needs of the SMB makes sense. This segment typically lacks the capital to support a large IT staff that can implement complex communications solutions.

The new SMB service package comes at a time when CenturyLink is positioning itself as a full service IT and managed services provider for any size business customer. Earlier this week, the telco rebranded its Savvis data hosting subsidiary as CenturyLink Technology Solutions as a way to better align the business unit and parent company.

CenturyLink can also apply the Managed Office bundle to both its existing SMB customer base and previous customers that may have churned to another operator.

Google buys Nest Labs for $3.2B to get foothold in Internet of Things

January 14, 2014 | By Phil Goldstein

Google (NASDAQ:GOOG) paid $3.2 billion to acquire Nest Labs, a maker of smart thermostats, smoke alarms and other home gadgets, grabbing a foothold in the smart home and Internet of Things markets. The size of the acquisition, while not on the same scale as Google's $12.4 billion deal for Motorola Mobility, indicates Google's desire to establish itself in a market that may be one of the next frontiers of computing and Internet access.

Net was launched in 2011 by Apple (NASDAQ:AAPL) iPod creator Tony Fadell. According to Re/code, which cited unnamed sources familiar with the matter, Google was the only serious bidder for Nest and Apple was not in the mix.

"Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family," Google CEO Larry page said in a statement. "They're already delivering amazing products you can buy right now--thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfill their dreams!"

The Nest Learning Thermostat is perhaps the company's best-known product, and has been featured in smart home demos by Verizon Wireless (NYSE:VZ) and other carriers. In a company blog post, Fadell noted that Nest has partnerships with some of the largest energy companies in the country, has a team of 25,000 certified professionals who help install Nest in the U.S. and Canada, and the company has more than 300 employees spread across three countries.

"So if things are going so well, why did we decide to partner with Google?" he wrote. "Google will help us fully realize our vision of the conscious home and allow us to change the world faster than we ever could if we continued to go it alone. We've had great momentum, but this is a rocket ship."

Google Ventures has been one of Nest's backers, and Fadell related how at the 2011 TED Conference, Nest showed Google co-founder Sergey Brin a video and an early model of the Nest Learning Thermostat. "He instantly got what we were doing and so did the rest of the Google team when we showed them," Fadell recounted.

Analysts said the deal pointed to how important the Industrial Internet--one aspect of the Internet of Things based around home appliances and other goods--will be in the years ahead. "The Industrial Internet may not be as sexy as the latest smart watch, but there's huge amount of money to make from devices, applications, connectivity and services," MachNation analyst Steve Hilton said. "These solutions can bring the communications to billions of electromechanical devices in our world."

"The Nest acquisition by Google is yet another validation point that the Internet of Things (IOT) sector has graduated far beyond its startup phase," Gilad Meiri, IoT industry expert and CEO of Neura, said in a statement. "Google has made an art out of deeply understanding how people interact with their virtual world, the Web, and in so doing has been able to monetize that understanding in wildly successful ways. This acquisition is the first of what we see as potentially many next steps by Google and others to further understand the vast amounts of data representing how people interact with their physical world."

AT&T's special access proposal faces fire from CompSouth

January 6, 2014 | By Sean Buckley

AT&T's (NYSE: T) desire to eliminate pricing discounts on special access contracts that are longer than three years now faces its latest challenge from CompSouth, an association of CLECs serving business customers in the Southeast.

The telco's main argument is related to its goal of switching all of its current wholesale TDM-based special access customers to IP-based services such as Ethernet by 2020.

In its filing with the Tennessee Regulatory Authority (TRA), CompSouth said AT&T has not provided any facts about how it would no longer be able to provide DS1 and DS3 services after it transitions to all-IP. Incumbent telcos use circuit emulation technology that allows TDM-based services to be transported over an IP network.  

"CompSouth submits that there is no factual basis for AT&T's claim that the company will be unable to continue offering DS1 and DS3 services following its alleged transition to an 'all IP' network," the organization wrote in its complaint.

If AT&T eventually gets its way, a wholesale customer's monthly charges could increase by as much as 20 to 30 percent for some services.

CompSouth said that AT&T's proposed "elimination of long-term discounts for DS1 and DS3 services is not necessitated by the transition to IP but by AT&T's desire to increase revenue from the sale of DS1 and DS3 services."

Critics say AT&T's proposal has two implications for businesses that are served by competitive providers. Besides raising service prices, the other reality of AT&T's proposal is that much of the TDM equipment used today won't be replaced for a number of years. And while Ethernet and IP have advantages in terms of speed and flexibility, they are not universally available, nor are the higher speeds appropriate for every business.

Currently, AT&T and fellow RBOC Verizon (NYSE: VZ) own about 80 percent of the special access market.

Competitive providers that purchase wholesale special access services from AT&T and other incumbent telcos got a reprieve in December when the FCC said that it was suspending the telco's plan for five months.

AT&T sets TDM-to-IP transition trials to focus on challenges, service impact

January 2, 2014 | By Sean Buckley

AT&T (NYSE: T) brought proposals to the FCC to begin testing its TDM-to-IP transition and to set a timeline to make these changes throughout its 4,700 wire centers.

During a recent meeting with the FCC's Technology Transition Task Force, the telco said that it would focus on conducting service-based experiments in wiring centers that "represent the challenges it will face with the transition and conduct an extensive review of the services to be impacted as part of this experiment."

The telco added that the tests will represent a mix of both consumer and business services geographies. It will also incorporate reporting capabilities "as a means for keeping the FCC informed about any experiments in progress."  

Out of the three largest telcos, AT&T has been the most vocal proponent of the TDM-to-IP transition, which it plans to complete by 2020.

AT&T previously expressed frustration over a lack of action from the regulator on the transition. New FCC chairman Tom Wheeler proposed that the regulator issue an order on the matter at its upcoming meeting this month.

In tandem with its TDM-to-IP transition, the telco also discussed with the FCC its proposal to eliminate discounts on long-term contracts for TDM-based special access circuits. This proposal has drawn fire from a number of competitive providers, including Sprint (NYSE: S), tw telecom (Nasdaq: TWTC) and Windstream (Nasdaq: WIN), which argue AT&T is abusing its dominant position in the wholesale special access market.

While AT&T maintains that its tariff proposals are "lawful," they are looking at ways to create a "viable path to the TDM-to-IP transition." It proposed a number of modifications that it said would enable wholesale customers to still purchase and maintain DSn (digital signal) services and related pricing closer to the 2020 IP transition deadline.