Telecom in 2011: A [Quick] Year in Review
Recently, Windstream completed its purchase of PAETEC, and that news capped a year of interesting consolidation activity. Multiple advancements are happening simultaneously to fuel the success telecom is currently enjoying: The maturity of metro Ethernet, the proliferation of fiber, mobile devices and the supporting infrastructure, the move from brick and mortar to on-line and the applications are all coming together at the same time. Whatâ??s even better is the connectivity to key cloud providers such as Amazon are now getting a boost in high bandwidth connectivity from folks like AboveNet, which makes the proposition even smarter. Telecoms Outperforming World Economy â?? â??Thereâ??s an app for thatâ? is music to many telcoâ??s ears because where thereâ??s an application from Angry Birds to telemedicine, or someoneâ??s desire to â??Rule the Airâ? as Verizon Wireless suggested, thereâ??s a need for connectivity and infrastructure to support it.  This reminds us of the bumper sticker that states â??Please God, give me one more [telecom] boom, and I promise I wonâ??t piss it away this time!â? This is a boom, and as much as we wish it wouldnâ??t, it will end. Worst wireline CEOs of all time — This was an interesting article from FierceTelecom, and certainly worth a quick read. tw telecom buys back $300M in shares AboveNet Grows in Bay Area AboveNet Connects to DuPont Fabros Santa Clara Data Center Cloud Continues to Gain Steam â?? 2011 was a big year for â??cloudâ? anything. You couldnâ??t (and still canâ??t) read a newsfeed or turn on your television without hearing something about the cloud. Then just days ago, Zayo completed its 360Networks acquisition (its 17th) — a big move for the Louisville, Colorado-based company as it doubles their network size and completes the most audacious addition to their network to-date.
The question on the minds of end users regarding many of the mergers this year involves integration. Though, be forewarned that it brings back painful memories of the telecom boom and bust and hits all too close to home in the housing crisis, as if we learned nothing from the telecom failings a decade ago. Tell us now by sharing your comments and feedback.
Next up is our bold attempt at prognosticating what might be to come in 2012.
Of course, we would be remiss if we didnâ??t throw another log on the first by suggesting former Teligent CEO Alex Mandl.
What do YOU think about 2011â??s telecom and colo happenings? Windstreamâ??s recent purchase of PAETEC poses an interesting challenge/opportunity in unifying disparate entities and assets to create a holistic and cohesive suite of solutions. In essence, Windstream is a company founded on low-bandwidth solutions that now controls considerable assets. There are some great assets under Windstreamâ??s purview, but it will take some serious horsepower, focus and money to create a cohesive network offering to prospective clients. Notable Carriers NOT Making Moves — Instead of doling out big bucks for acquisitions, companies like tw telecom and AboveNet are using their cash to buy back shares and augment their existing networks. It will be interesting to see whatâ??s ahead for both these providers in 2012 and whether they start to jump in on the consolidation action. How successful and/or painful will knitting these networks together? Hereâ??s a list of events, news, headlines and more from the closing months of 2011 along with our commentary. See for yourself if we got it right!
Windstream Completes Acquisition of PAETEC â?? Much like a Russian doll, Windstream bought someone that already bought someone that already bought someone.  This combination of factors has generated the enormous push for more bandwidth, and that push is like a gift to telecom providers. Which headlines were most important and why? Interestingly, cloud has been around for long-time, technically speaking. Itâ??s not a new concept — the internet IS the cloud. â??Cloudâ? is a marketing strategy, more or less.  Hmmm, can you say â??VOIPâ??  The migration to cloud and an increasing reliance on virtualization will happen, just as VOIP did. (Though VOIP is still hampered by the infrastructure of old, the billing systems of old and the fact that we donâ??t have exceptional connectivity everywhereâ?¦yet!) As budgets continue to get crimped, cloud is a fantastic alternative to pricey OPEX-heavy solutions that are obsolete before theyâ??re even close to paid off. Add to that a growing concern that fewer players inevitably means higher prices and lower levels of service, and it feels like same-song-different-verse.
What else describes and/or punctuates 2011?