Archive for October, 2004

Broadband’s Quiet Consolidation

Om Malik | Wednesday, October 27, 2004 | 7:28 AM PT | 0 comments

It is not obviouos to the naked eye, but slowly …. actually very slowly the broadband business is going through a consolidation. In past three days, I have come across three companies which have bought rivals. Cogent Communications, which had been flirting with disaster itself, has acquired Aleron Broadband (formerly AGIS Internet).  Cogent’s sixth acquisition this year also includes an infusion of cash as part of the transaction. Previous buys include PSINet, NetRail, and AleronThrough the acquisition, Cogent has also received over $18 million in cash to be used for a variety of purposes including network expansion, marketing and sales activities in the U.S. and abroad, and the potential acquisition of additional assets. Ken Peterson of Columbia Ventures Corporation will join Cogent’s board as a result of the transaction. Further details were not disclosed. (Om is investigating, so to speak!) Continue »

Asia slowly going VoIP

Om Malik | Wednesday, October 27, 2004 | 7:13 AM PT | 0 comments

CNN International reports that slowly and slowly, VoIP is taking hold in places like Hong Kong and Singapore, as broadband spreads through the region. Now there is nothing new here, except even in that part of the world, people are using VoIP to lower their long distance phone bills. Tan Tong Hai, of Singapore-based company Pacific Supernet, said the company would prefer to be known as a CSP, a communications service provider, rather than an ISP, CNN adds Continue »

Cox, Comcast’s High Speed Blockbuster!

Om Malik | Wednesday, October 27, 2004 | 7:02 AM PT | 0 comments

Comcast’s Third Quarter 2004 Results show that the largest cable company in the country is showing no signs of a broadband slowdown. “Our high-speed Internet service led the way, adding
over 549,000 subscribers - the highest level of quarterly high-speed Internet
additions in the Company’s history, ” CEO Brian Roberts said in a statement. The company now expects its total high-speed data aka broadband adds to be around 1.6 million - 1.7 million, up from the previous range of 1.5 million - 1.6 million. Continue »

Craig eats crow, but not good enough

Om Malik | Tuesday, October 26, 2004 | 6:32 PM PT | 0 comments

Oregonian reports that Intel Corp CEO Craig Barrett, got down on his knees in front of more than 6,000 technology managers, and begged forgiveness at the Gartner Group conference. Intel had five projects to be scrapped or delayed; it is sitting on a record inventory that reduced third-quarter profit growth to the slowest pace in five quarters. Stock is down 34 percent year to date, and if that is not all, AMD is really kicking their butt. The bad news ain’t over. LCOS chip did not work out really. “Their product road map has some holes,” Sangeeth Peruri at New York-based J & W Seligman, which manages $20 billion told the Oregonian. The big fund dumped its shares in the company because “They will struggle to fend off market share loss to AMD for the next four to six quarters.” Nothing seems to be working! Comm unit, is losing more money than ever and this includes all the Centrino-stuff. The division’s operating loss came in at $251 million in the most-recent quarter up $208 million a year earlier. “We ate crow,” Barrett said and later in an offline interview said managers at Intel, the world’s largest computer-chip maker, had become too relaxed. Not just the managers, but also the CEO! (How about taking responsibility and saying well I resign. It might be symbolic to employees, that even CEO is not about the law!) Continue »

The S700: Sony Ericsson’s Next Big Hit?

Om Malik | Tuesday, October 26, 2004 | 5:11 PM PT | 3 comments

Matt Maier has a fantastic piece on the Sony Ericsson turnaround today. He is talking up a storm with Urban Gillstrom, president of Sony Ericsson and an avowed gadget freak, sat down with Business 2.0 to talk about the death of the PDA, Sony Ericsson’s future, and where the convergence trend will take the wireless industry.

Like the Red Sox and the artist currently known as Prince, Sony Ericsson is enjoying an incredible turnaround. Earlier this month it announced its fifth straight profitable quarter. With profits of $110 million on sales of $2.1 billion, the London-based company made a 20 percent jump in market share, hurtling past Korea’s LG to become the world’s fifth-largest mobile-phone maker. Continue »

VoIP: How much is a phone number really worth?

Om Malik | Tuesday, October 26, 2004 | 4:38 PM PT | 5 comments

Martin is back in Scotland, and is doing some deep thinking. Some if it even mere mortals like me can understand. Anyway read this piece to basically understand that even $4.99 a month for a London phone number Vonage is charging, is just too much money. Lingo charges $9.99 by the way. Martin’s rant is inspired by today’s announcement of Virtual Vonage in London. Aswath points out that VoIPUser is giving away UK#s for free, so why bother with Vonage, or Lingo?

Compared to a $10/year domain name, phone numbers are very expensive. If you though Verisign was a rip-off, you’re only dealing with the amateur side of the address space sport. Whilst we’re on the economics of phone numbers, it is worth noting that not all numbers are equally valuable. Obviously, there are sequential, alliterative or lucky numbers (123-4567, 777-0000, 888-8888) that are sometimes sold for a premium. Then there are desirable area codes, such as Manhattan’s 212 prefix, or 0207 in central London. Continue »

Broadbandits, in Paperback

Om Malik | Tuesday, October 26, 2004 | 3:29 PM PT | 0 comments

After a long wait, Broadbandits: Inside the $750 Billion Telecom Heist has come out in paperback. I hope you would be kind enough and buy the book this time around. I could use billions of dollars in royalties. At present the paperback’s rank is a pathetic 731,286. I hope to see some surge in this. With WorldCon trial coming soon, I hope the sales are going to nudge-upwards! Continue »

Cell Operators, the new Bell Cos?

Om Malik | Tuesday, October 26, 2004 | 3:04 PM PT | 1 comment

FCC and Justice Department have both given two thumbs up to the Cingular-AT&T Wireless merger. What a giant! With nearly 47.6 million customers across the country they are now ahead of Verizon Wireless by nearly 7 million customers. I guess given their size, one could expect them to exert more control over the handset makers and equipment suppliers. I hope the giant company rolls out faster wireless Internet sooner than later. One question that does come to mind: Are the wireless operators the new Bells? (Alternatively, the extend the grip of the Bells to the wireless space.) Merrill Lynch in a recent note pointed out that Verizon, “would like to get smaller with regard to its wireline business and is evaluating taking some clusters of primarily rural access lines and divesting them.” The focus will be wireless and fiber. Why? because there is going to be less regulatory meddling in these two services. Continue »

Boingo’s Pipe VoIP Dream

Om Malik | Tuesday, October 26, 2004 | 12:49 PM PT | 0 comments

Just got off the phone with Boingo Wireless’ President and COO Dave Hagan. The idea was to get a clear sense of what was the real deal with Boingo-Vonage relationship. I guess, despite the press releases and all that, it was much ado about nothing. Hagan described it as a marketing partnership. No money changes hand, no revenue share, nothing… nada! “We will co-market their softphone product, along with a Boingo software and you can use VoIP at Boingo hotspots,” he said. In fact the two companies are not going to spend much dollars - they are hoping users will cross promote usage. Of course you can use it on any other hotspot network, but Hagan said it is more than just laptops and PDAs. Cell phones will WiFi will be big, and since they have a global footprint, it will be good for Vonage users. And by the way this is not an exclusive relationship. I wonder, why won’t Boingo rollout its own VoIP service, using someone as a private label supplier. No plans for now, Hagan said. “We are dipping our toes in VoIP waters right now,” he added. In summation, despite all the noise, it looked like a press release effort for two companies to get more buzz! Did the common VC backer, NEA push them to make a lot of noise around it? Continue »

Samsung’s Struts its stuff

Om Malik | Tuesday, October 26, 2004 | 9:49 AM PT | 7 comments

samsungvogue.jpgSamsung has long realized the cell phones are part of our lifestyle, a fashion accessory and not just a device to call others. Well in an effort to spread this message, they have repeatedly teamed up with fashion designers, especially in emerging markets such as India. However, they are now bringing that model to the US. They have teamed up with Vogue, and Diane von Furstenberg to develop a new line of products. First up, a limited edition designer phone DVF Mobile by Samsung. DVF Mobile by Samsung has a camera, camcorder and more such crap. DVF Mobile by Samsung will come with Diane von Furstenberg original charm and accessory known as the “CityBand,” which allows on-the-go, style-conscious women to carry the essential lip gloss, credit card and wireless phone in one elegantly designed package. When does a device like this come for men? You with essential tool belt accessory package and a cooler of brews? Continue »

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