How to Find Your Ideal IP Phone
IP phones are designed to work within the Voice over Internet Protocol (VoIP) environment, allowing you to make telephone calls over the IP network. This is done by converging both data and voice over the same connection, and works as an alternative to the standard Public Switched Telephone Network (PSTN). Any call made with an IP phone traverses either the private IP network of a particular corporation, or the Internet.
Today’s market is flooded with hundreds of IP phones, making it extremely difficult to find the best one for your specific needs – but have no fear! We have compiled a list of steps that will help determine exactly what you need to find the ideal IP phone for you.
- First step: Ascertain what VoIP service provider or phone system you currently use. Contrary to what some IP phone retailers might tell you, not all IP phones are compatible with all systems and services. Your incumbent service provider pr phone system vendor should also be able to provide you with a list of compatible IP phones.
- Second step: Establish who will be using your IP phone(s). Each user will have a different set of requirements depending upon their job. For example, while a receptionist may only be concerned about the total number of calls that can be dealt with simultaneously, an executive might be interested in having all of the latest and greatest features and add-ons.
- Third step: Determine what functionality and features each user will require. The majority of users will need basic features, such as call transfer, call waiting, etc. More advanced features include sidecar capability for additional extensions, a large display and speakerphone. Cisco’s Unified IP Phones for example, focus on voice quality, vibrant color displays and other user experience-centric features, and are targeted to meet the needs of a broad range of users.
- Fourth step: Verify how often each IP phone will be used. In the IP phone world, you often get what you pay for in many respects – quality included. If your users are on the phone daily, it would be wise to invest in a set of high-quality IP phone, as they will last longer and offer enhanced call quality.
- Fifth step: Find out how the number of incoming calls each user will entertain at a time. That number will influence the amount of line appearances each user’s IP phone should have. Typically, receptionists, office administrators and operators will require over 10 line appearances, while the average worker will only need 3 to 5.
But that’s not all; in our next post we will continue our list of steps to help you find the ideal IP phone for your needs – stay tuned!
No Comments »Internet T3 Lines
An Internet T3 line, also referred to as a DS3 line, is a high-speed connection capable of transmitting data at speeds of up to 45 Mb per second. A single T3 line is comprised of 28 T1 lines, each operating at a total signaling rate of 1.54 Mb per second, and is equivalent to 672 traditional voice-grade phone lines, each of which supports 64 Kb per second. As a result, an Internet T3 connection can easily transmit real-time, full-motion video as well as large documents and files over a network.
As the second fastest, non-optical connection offered in North America, T3 lines are frequently installed as a major networking artery for organizations 
with high-volume network traffic, such as:
- Universities
- Large enterprises
- Software development corporations
- Video conference and call centers
- Research labs
- Internet service providers
A T3 line is a great solution for those who demand more than a standard T1 line offers. Available in both full and fractional increments, Internet T3 service is the ideal choice for anyone requiring large-scale bandwidth on an as-needed basis, supporting Web hosting, or hosting high-traffic websites. What’s more is that they ordinarily incorporate Service Level Agreements (SLAs) that guarantee high-quality performance and up to 99.999% uptime.
In addition, T-line connections can be used to integrate multiple services, including both voice and data. For example, integrated T1 and T3 lines are regularly employed for dedicated Voice over Internet Protocol (VoIP) service, replacing the standard telephone company. This allows you to allocate a specific number channels to data, and the rest to voice calls, providing you with potentially significant cost-savings and superior call quality.
When it comes to pricing, a T-line connection is comprised of two monthly charges: the port and the local loop. The local loop charge is the cost the local incumbent charges to transport the signal from your Central Office (CO) to the Point-of-Presence (POP) of the provider. The port charge is the fee to access the Internet or telephone network through the carrier’s network. Generally, the loop price is based on geography – the father the CO and POP, the higher the loop costs – while the port price is based upon access speed and the length of your contract. With that said, almost every provider prices loops differently, so it would be in your best interest to price a T1 or T3 line with multiple providers.
Additional Information: Want to learn more? Give us a call today!
How to Find the Ideal VoIP Solution for Your Business (Continued)
How long until you see a ROI?
In order to calculate how soon you will see a Return On your Investment (ROI), all you need to do is determine the total monthly cost savings you will receive by making the switch to VoIP, and then divide that number by your total upfront costs. This will reveal how many months it will take for your business to break-even on your upfront investment.
Hosted or on-premise?
The biggest factor in determining whether a hosted or an on-premise VoIP solution would work best is the size of your company. If you employ less than 30 people and/or have no desire to handle a phone system, then a hosted VoIP service is something you should consider. With hosted VoIP, your service provider hosts your phone system for you. For companies that employ 30 or more staff members, an on-premise VoIP service is likely going to give you the best return on your investment.
How strong is your in-house IT team?
While VoIP systems are a great deal easier to use and maintain when compared to the alternatives, having a qualified employee available to manage the system is crucial to keeping your services running smoothly in the event of an unforeseen issue. Unfortunately, this means that your cousin, neighbor, (or fill in the blank with whoever it is you know that can jailbreak an iPhone or hack into a WiFi network) might not always fit the bill. If that’s the case, our team can help you find a qualified technician.
What about a backup plan?
Believe it or not, many businesses actually overlook setting up a back-up plan in advance; but rest assured those are the same folks that are kicking themselves in the back-side as soon as their service goes down due to the weather or any other number of issues. Adding building redundancy and power protection into your VoIP service is a wise idea – especially since VoIP utilized the Internet as well as your network to transport calls.
What is your budget?
Last, but certainly not least, do you know how much you are able to spend on deploying your business’s VoIP solution? Pricing for today’s business-class VoIP solutions varies greatly due to the number of providers and ways that it is able to be deployed, especially when dealing with SMBs, allowing you to decide whether you want to pay for everything in advance, split it up into monthly fees, or make a down-payment and pay the rest off monthly.
How to Find the Ideal VoIP Solution for Your Business
Voice over Internet Protocol (VoIP) service can dramatically enhance a business’s efficiency, productivity, and cost savings. However, that does not mean all VoIP services are identical. We’ve compiled a list of questions to ask yourself that are aimed to help guide you to your business’s ideal VoIP solution.
Does your Local Area Network (LAN) support VoIP calls?
You cannot realize the full potential of a Bugatti Veyron Super Sport (now dubbed the world’s fastest car) if you only drive it on a gravel road. When working with VoIP service, think of your service as a car and your network as the road. In order for you to make the most of your VoIP service it is imperative that you have a well-paved road devoid of congestion. If your business requires the frequent sending/receiving of large files or depends heavily on the Internet, then you should want to consider employing a network specifically for voice services. This might sound costly; however with provider’s constantly lowering prices to stay competitive, the minor cost investment is likely worth the ability to ensure a superior Quality of Service (QoS) level for your voice service.
Which provider should you choose?
In today’s market there are a host of VoIP providers that offer all shapes, sizes and types of VoIP services. As a result, it is important to look into what they provide as far as Service Level Agreements (SLAs) and service availability/up-time. Another good idea is to look for customer recommendations or company reviews.
How much bandwidth do you have?
While rare, there is the possibility that you can experience an issue with your VoIP service. The majority of the time, issues generally stem from the “last mile” of Internet service – particularly when dealing with small or medium-sized businesses. This is because SMBs often overlook the fact that, in order to account for the additional traffic that will be sent/received, they will need a greater amount of bandwidth.
Does your business make more local or long distance calls?
When it comes to VoIP, companies that conduct more long distance calls stand to see a greater cost savings than those that make more local calls.
What about the PSTN?
As mentioned in the previous answer, some companies will benefit more from employing a VoIP solution than others who could be better off conducting calls over the Public Switched Telephone Network (PSTN). That being said, it is a best practice for all companies to retain at least one PSTN line as a back-up in the event that your network goes down.
Per minute rate or a flat monthly fee?
The majority of VoIP providers will let you choose between paying a set, per minute rate or a flat, monthly fee. Take a look at the volume of calls your company makes to determine which option would be best for your business.
Level 3 Closes the Year Out Strongly
Back at the end of September of this year, Level 3 announced its latest Wide Area Networking solution. This cutting-edge WAN solution presents a complete approach to enterprise networking needs in order to better facilitate businesses to optimize critical business application performance.
In addition to extending its own professional services portfolio, the provider also packaged services such as managed services, Ethernet services; Multi Protocol Label Switching (MPLS) based Virtual Private Network (VPN) services, and Dedicated Internet Access (DIA) services. Level 3’s new Wide Area Networking solution includes numerous components that provide an integrated approach to deciphering complicated network management, and includes:
- A comprehensive portfolio of the provider’s data solutions
- WAN optimization for enhanced visibility into app performance
- Firewalls that are network based to speed up cloud app access
- Varying levels of managed solutions for customer equipment
- Superior WAN assessment and design that includes professional services
According to Level 3, with the increasing adoption of cloud applications, mobility and virtualization, companies are progressively struggling with complicated networks, and as a result are calling for complete solutions that are able to accelerate and prioritize vital applications as well as enhance their performance.
Then in early October, Level 3 completed its acquisition of IP solutions provider Global Crossing under a merger that execs said improves the breadth of its worldwide communications business and financial position. You can read more about that here – http://www.easyt1.net/blog/level-3-global-crossing-merger-is-a-done-deal
At the end of October, Level 3 Communication’s president and COO, Jeff Story, along with VP and CFO, Sunit Patel rang the opening bell on the New York Stock Exchange to celebrate the transfer of Level 3 stock to the NYSE from the NASDAQ.
But Level 3 didn’t stop there
In mid November, it was announced that the provider expanded its suite of services and network capacity to meet rising broadband demand in Mexico in hopes to better serve worldwide carriers and companies that conduct business in the country. The new infrastructure connects Mazatlan, Mexico City, Monterrey, and Guadalajara in a 3,484 km ring, and is capable of providing terabits of capacity to transmit multimedia, data and voice services.
According to Gartner, the market for IP VPN, Ethernet and broadband Internet access in Mexico is anticipated to grow at a compound annual growth rate of over 15% last year and 2015.
Additional Information
As you can probably see, it’s been quite the year for Level 3 Communications. If you’re interested in learning more about the solutions offered by Level 3 or any other telecommunications services, give one of our professional account managers a call today!
VoIP and Digital Phone Technology
Voice over Internet Protocol (VoIP) – also referred to as digital phone technology, broadband phone, voice over broadband, Internet telephony and Internet Protocol (IP) telephony – is a service that transmits your telephone conversations via the Internet as opposed to an analog phone line.
Today’s leading communications providers offer Voice over IP with a comprehensive collection of features, such as long distance, unlimited local calling, and a host of other robust features at an affordable price. In addition, providers also offer multiple versions of Voice over IP, including:
- Dedicated Voice over IP phones – these permit Voice over IP calls without the need for a computer. Dedicated Voice over IP phones work by connecting you to a broadband or Wi-Fi network directly, as opposed to analog telephone adapters that plug into a jack and drawing on existing Internet service. Due to the fact that Voice over IP phones require Internet service, the majority of customers opt to employ them in addition to their Internet services.
- Analog Telephone Adapters – as mentioned above, analog telephone adapters work by plugging into a jack and drawing on your existing Internet service – a manner frequently used by broadband and cable providers to permit an enhanced ease of use and a more cost-efficient rate. Also, by employing an analog telephone adapter you get to enjoy the benefits and convenience that arise from bundling your Voice over IP service with cable TV and high-speed Internet services, such as one economical monthly bill.
- Softphones – softphones are essentially software that allows you to make Voice over IP calls via an Internet connection, eliminating the need for specific dedicated hardware. Softphones are installed on your computer. One of the most popular examples of a softphone today would be Skype, which – once installed on a computer with a broadband Internet connection – permits free local or international calling with a fixed phone number.
In short, Voice over IP service lets you stay connected while saving you money. It allows you to receive reasonably priced long distance and international rates, popular features, including caller ID and call forwarding, and provides reliable customer support – what’s not to love about that?
More Information
Are you interested in learning more about Voice over IP services? If so, give us a call today! We work with the leading providers of Voice over IP services and would love the chance to find you the ideal solution at the best available price.
Internet T1 and Internet T3 Connections
How businesses use T-line connections to achieve success
In order for any company to grow and prosper in today’s fast-paced business world, it is imperative that they have the ability to reach out to employees and customers – regardless of their location. It’s a well known fact that the most successful companies today thrive on ISPs (Internet Service Providers) that provide reliable services complete with a comprehensive list of features that meet their requirements.
Internet T1 and Internet T3 lines (also referred to as T-line connections) are telephone lines comprised of either fiber optic or copper wires that offer 24 DS-0 channels. These channels permit data and voice transmissions at speeds ranging from 1.5 Mega bits per second (for Internet T1 lines) to 45 Mega bits per second (for Internet T3 lines), making them exceptionally faster than alternative services, such as DSL or cable.
Along with faster transmission speeds, Internet T1 and Internet T3 lines allow you to conduct multiple local and long distances telephone calls simultaneously without requiring the installation of any additional wires. This saves your company from having to pay for additional installation fees and costly phone charges.
What’s more, is that Internet T1 and Internet T3 connections are often considered an attractive solution for many businesses because they offer an “always on” connection, meaning they run 24 hours per day, 7 days per week. T-line connections also support advanced, high T1-bandwidth applications, including web conferencing, audio conferencing, Voice over Internet Protocol (VoIP), and multi-user Virtual Private Networking (VPN).
Due to the fact that Internet T1 and Internet T3 lines provide a great deal of high T1-bandwidth and the ability to support a large number of popular business applications, the pricing can run fairly high; and while pricing generally depends on your company’s office location, part of it is also determined by the type of Internet T1 or Internet T3 line you select. For example, there are a range of T-line connection types available:
- Fractional T-line connection
- Full T-line connection
- Integrated T-line connection
- Bonded T-line connection
- Dynamic T-line connection
- Voice T-line connection
Are you interested in learning more about Internet T1 and Internet T3 solutions? To find the ideal solution at the best available price that meets your unique business needs, contact one of our professional account managers today!
Verizon Offers Three New Powerful Internet Access and VoIP Packages to SMBs
The popularity of Voice over Internet Protocol (VoIP) services as well as other IP communications continues to grow at a rapid pace. As a result, Verizon has launched a new set of offerings that were created to address to the rapid increase of Voice over Internet Protocol in the SMB domain and the ensuing demand for robust high-speed Internet connections. Additionally, Verizon’s new offerings also support the SMB-directed marketing efforts of Verizon Global Wholesale clients.
VGW’s three new packages were designed to cover the vital features and speeds that developing SMBs need to engage customers in innovative and assertive ways and to resolve current connection issues. They include:
- A grouping of the provider’s router hardware with its SIP Gateway Service. This permits wholesale clients to provide SMBs with a fast and efficient way of getting into the VoIP game due to the fact that the SIP Gateway Service transmits VoIP traffic between the traditional telephone network and packet-based IP networks
- Dedicated Internet T1 that plans to combine discounted hardware and low-cost services, making it ideal for businesses with more than 30 employees that handle high volumes of email traffic, large file transfers, and web hosting. A Quality of Service option is available for an additional fee, and largely benefits companies that consolidate key business, video and voice applications onto a converged IP network
- Internet Dedicated Ethernet is geared toward heavy data users and includes an Ethernet connection of either 5Mb or 10Mb with Internet access. This service will bundle discounted Ethernet service and a Samsung iBG1000. Also targeted at companies planning on consolidating their key business, video and voice applications onto a converged Internet Protocol network, this Internet Dedicated Ethernet offering serves as a one-vendor solution that the end-user can ultimately leverage to suit their business model
Verizon Global Wholesale’s senior VP of marketing, Quintin Lew, stated in a recent release that by providing offers that contain both hardware and services, “we’re giving our wholesale customers new ways to support their small- and medium-sized business customers in a time when every nickel and every efficiency counts toward success.” Lew added that the provider’s objective continues to be that of supporting its wholesale customers by providing them with tools that allow them to help SMBs succeed.
Want to learn more? Give one of our professional account managers a call today!
Difference between SIP Trunking and Hosted PBX Services
SIP Trunking
Session Initiation Protocol trunking, also known as SIP trunking, enhances the quality and efficiency of your communications. Capable of also providing your business with considerable cost-savings, SIP trunking eliminates the need for expensive Primary Rate Interfaces (PRIs) ISDN Basic Rate Interfaces (BRIs) and local Public Switched Telephone Network gateways.
In contrast to traditional telephony, wherein groups of physical wires would be delivered from the provider to a business, SIP trunking allows you to substitute conventional fixed Public Switched Telephone Network lines with PSTN connectivity via the Internet.
In addition to placing telephone calls, SIP trunking also supports multiple forms of real-time unified communication on the same connection, such as conferencing, whiteboarding, inter-office file transferring, and instant messaging.
Hosted PBX
Let’s start by quickly defining what a PBX is; a PBX, or Private Branch exchange, is where an incoming call can be routed to different extensions. Due to advancements in modern technology, PBXs are no longer required to be on-site, thus the birth of the hosted PBX.
To put it simply, a hosted PBX offers advanced call routing that is hosted by a provider that handles the technical side. One of the biggest benefits of employing a hosted PBX system is the cost-savings it provides due to the fact that there are no required hardware purchases or upgrades. In addition, hosted PBX services make advanced business technology available for even small businesses.
SIP Trunking vs. Hosted PBX
What it really comes down to is the size of your business.
Smaller companies with 20 employees or less should opt for a hosted PBX solution, as it offers traditional PBX features that are managed off-site by a Voice over IP provider.
Larger enterprises and those with 20 or more employees are more likely to benefit from an SIP trunking service. However, SIP trunking requires you to have your own IP PBX equipment, which can be expensive.
It’s important to note that each provider has implemented their own version of what they believe each service should offer, which can lead to certain misconceptions and confusion in the marketplace.
Are you looking to employ a hosted PBX or SIP trunking service for your business? Give one of our skilled, professional account managers a call today! We partner with the leading providers of telecommunications services in order to find you the ideal solution to meet your unique needs at the best available price.
Wireless Carriers Cut Jobs Even with Rising Revenues
Oh where, oh where are the telecom jobs – oh where, oh where can they be?
According the CTIA – The Wireless Association (an international nonprofit membership organization that has represented the wireless communications industry since 1984), in 2010 wireless revenues reached almost $160 billion. However, according to the analysis of the US Department of Labor figures that was done by The Wall Street Journal, the number of US wireless jobs is decreasing, reporting that almost 6 months ago employment fell to 166,000 – a 12 year low that represented approximately 20,000 fewer jobs than in June of 2009 when the recession ended.
That being said, there is some discrepancy in the numbers. The survey conducted by the CTIA found that over 250,000 people were employed at the end of 2010, while the Bureau of Labor Statistics counted 172,000. When asked to explain the difference between the numbers, CTIA’s Research Department head, Robert Roche, stated “Different approaches and different definitions,” adding that the CTIA survey excludes other wireless-related jobs, such as maintenance and tower construction companies and large and independent retailers that sell wireless services and products.
XO Communications Possibly Cutting As Many As 400 Jobs
XO Communications, one of the nation’s largest competitive local exchange carriers that serves over 90,000 customers, including more than half of the Fortune 500, may be cutting up to 400 jobs.
Since completing a merger agreement to sell itself to affiliates of billionaire Carl Icahn back in mid-August, it has been said that Herndon, Virginia-based XO Communications will lay off up to 400 employees. Prior to the merger agreement, Icahn owned roughly 92% of the combined voting power of XO’s outstanding shares of capital stock.
When asked about the possibility of cutting hundreds of jobs, Chad Couser, spokesman for XO Communications stated that he had “no comment;” however according to one source, there was a conference call made last week to discuss the issue.
Now that the company has gone private it’s unlikely that any job-cut numbers will be disclosed, but this would not be un-charted territory; XO Communications has trimmed down its workforce before. In the first half of 2011, the provider’s selling, general and administrative expenses shrunk just over $20 million when matched up to the previous year. XO Communications ascribed the decrease primarily to “changes in employee benefit programs and a decline in payroll and related expenses due to headcount reductions.”
More about XO Communications:
XO Communications provides reliable communications solutions that are built around your individual requirements in order to keep your business productive and competitive. From advanced SIP trunking, Voice over IP and bundled data and voice communications to high-speed security and WAN solutions, XO is committed to providing powerful and reliable solutions – no matter what size your business is.
Small-sized businesses – get the biggest return on your investment with Dedicated Internet Access and Voice over IP services built especially for companies with fewer than 100 employees
Medium-sized businesses – let XO deliver end-to-end network and communications solutions so you can keep focused on your core business
Large enterprises – for companies with over 500 employees, XO helps improve operation efficiency and solve complex challenges via their robust hosted IT, security, networking and IP communications solutions
SMBs Sold On the Value of Cloud Communications
For years now, hosted Voice over Internet Protocol (IP) services have provided strong business value, however customarily the advantage has been associated solely with expense savings. Traditionally, businesses that consider on-site PBX a safer bet – because in the event of a business continuity threat the equipment is locally available and able to be accessed easier – place a high value on the reliability and uptime of communications systems. However, according to a July 2011 report conducted by Aberdeen Group, (a leading provider of fact-based research that aids individuals and organizations is making better business decisions) this previous conjecture is no longer accurate.
The report included over 100 businesses that were polled in their use of telecommunications services. Aberdeen Group found that the “Best in Class” companies or top 20% of telecommunications end-users in terms of performance faced one-quarter of the Service Level Agreement-defined issues and had 5% of the downtime as standard respondents. As it turns out, these high-level enterprises were over two times more likely to employ a hosted communications solution than any other organization, which demonstrates that reduced service impairment and improved uptime are now strongly associated with the real-world usage of hosted Voice over IP.
Aberdeen broke the report down even further, splitting its respondent base into three separate categories – small, medium, and large organizations – for additional profiling.
Small organizations (those that comprise of 50 or fewer employees) proved to be very much in favor of hosted Voice over IP solutions, primarily because they were looking for the most cost-efficient solution. Just over 30% of Aberdeen Group’s report audience noted that they have already adopted this type of solution, and an additional 35% say they plan to do so in the next 2 years. Small companies are often heavily reliant on their telecom systems in order to support a customer and partner environment since it is more cost effective than traveling for in-person meetings. Aberdeen Group found that by employing a hosted Voice over IP solution, smaller companies increased their odds of reaching 99.999% uptime (aka the “five 9s”) support that many thought was only attainable to large enterprises.
Medium-sized businesses (those that employ between 51 and 2,500 employees) are less likely to implement a hosted Voice over IP solution, with just 11% of respondents reporting that they have already adopted it and another 30% saying they plan to do so. A part of the issue is that more than 60% of the medium-sized companies listed in the report had already made investments in on-premise PBX solutions and therefore felt compelled to continue using the equipment until it was completely depreciated. That being said, the knowledge with existing equipment and penny-pinching instinct came at the cost of inferior uptime.
While Aberdeen Group’s report indicated that hosted Voice over Internet Protocol (IP) services currently offer the greatest benefits to small and medium-sized organizations, it should be noted that both have different goals and concerns, and have different needs associated with adopting a hosted Voice over IP solution.
A Few Things to Consider Before Selecting a VoIP Provider
Today, countless businesses have either already begun substituted their existing phone service with a Voice over Internet Protocol service, or are considering it. In fact, Voice over IP solutions are becoming so popular with companies of all sizes, that U.S. business penetration rates are predicted to reach nearly 80% in the next two years.
Listed below are two of the most common questions asked by customers who are considering moving to VoIP:
Q: What is required to move to Voice over IP?
A: First you need to decide whether you want to continue using your existing PBX. If you do, you will need a Voice over UP gateway in order to digitize analog calls from your TDM PBX. A crucial facet is the equipment components and design of your Local Area Network, as it will become part of your telecommunications infrastructure in a Voice over IP environment. In addition, you must ensure your equipment, including your router, firewall, and switch, are capable of handling Voice over IP, and are able to give voice traffic priority, and deliver the Quality of Service that a Voice over IP requires
SMBs that do not own a PBX will require either an analog telephone adapter or a Voice over IP device in addition to a router or Voice over IP gateway.
Q: What type of benefits does Voice over IP offer?
A: While initially the appeal of Voice over IP service was toll savings, there are many other reasons. For starters, Voice over IP runs over a business’s data network or Internet connection, which would provide your IT staff easy manage routine tasks, including activating features, adding or deleting users, and establishing voicemail boxes for no additional fee. This can save your business a significant amount of capital, as an outside vendor would typically charge a few hundred dollars an hour for the exact same job.
Another benefit of employing Voice over IP services is the mobility they provide. Exclusive features allow you and your team to work remotely while still being able to access additional features and advanced call handling at dramatically reduced costs. This is because unlike conventional telephony, Voice over IP takes advantage of the thousands of dollars worth of investments already made by a business via making use of the on hand network infrastructure for system installation.
If you are considering employing a Voice over IP service, contact one of our professional account managers today to learn more!
Level 3 To Lay off US Workers Now That the Acquisition Is Complete
XO Communications’ allegation that the merger would create a “global colossus” that would dominate the Internet backbone market, resulting in higher prices and decreased service quality proved to be untrue and did not change the FCC’s ruling – the transaction was approved.
Earlier this week it was announced that Level 3 Communications, a provider for a variety of customers, including government agencies, other communications providers, and large enterprises completed its acquisition of Global Crossing, a provider for 40% of Fortune 500 companies, as well as 700 carriers, mobile operators and Internet service providers worldwide. The deal advanced Level 3’s position as an international telecom carrier with undersea network facilities and fiber infrastructure on three continents and in more than 45 countries.
Prior to closing, Level 3 had said the transaction would generate approximately $2.5 billion in savings and enrich its financial position. However, while the merger proved to be good news for shareholders, customers, and the company as a whole, that was not necessarily the case for employees. Collectively, Level 3 and Global Crossing employ over 10,000 staff members.
Citing a Level 3 top executive, Reuters reported that as part of its effort to incorporate Global Crossing, the provider is anticipating laying off as many as a few hundred employees. According to Level 3’s chief executive officer, James Crowe, the majority of the cuts will be coming from those currently working in the United States adding that “in large parts of the world it is very minimal.”
Subsequent to the merger’s completion, credit rating agencies Moody’s Investors Service and Fitch Ratings have promoted Level 3’s rating position. Moody’s Investor Service states that while the provider has a sizeable debt load and moderately poor margins, there is a probability that it will “become modestly cash flow positive on a sustained basis within two years.”
Fitch Ratings said that the transaction improves Level 3’s “competitive position,” and explained that once the acquisition was complete, it deleveraged the provider’s balance sheet, and noted potential for Level 3 to continue improving its credit score and produce steady free cash flow levels. Fitch Ratings added that on top of escalating Level 3’s scale, the merger increases the depth and breadth of its services, allowing it to spread out into new markets and widens the range of customers the provider serves, “including large multi-national enterprise customers.”
AT&T’s Acquisition of T-Mobile USA Would Nearly Reach the President’s National Broadband Goal
According to the former US Representative of Virginia’s 9th congressional district, Rick Boucher, if AT&T completes its acquisition with T-Mobile USA, it will just about reach the goal that President Barak Obama set of making high-speed wireless services available to at least 98% of Americans in the next 5 years.
Boucher, who previously served the House for 28 years and now heads up the government strategies practice group of the international Sidley Austin law firm and serves as the honorary chairman of the Internet Innovation Alliance, noted that the merger would mark a “very important step [in] achieving universal broadband in the near future.” He also added that by 2017 AT&T would offer broadband to 97% of the US population.
Earlier this year in the President’s State of the Union address, Obama alluded to his proposal that over the next 10 years would essentially free-up 500MHz of wireless spectrum via incentive auctions which would encourage innovation, and construct a nationwide interoperable wireless network for public safety while slashing the national deficit by roughly $10 billion.
The Wireless Innovation and Infrastructure Initiative would provide broadband service to the majority of 26 million Americans that the FCC recently reported to Congress are still going without high-speed Internet service.
Dallas, Texas-based AT&T claims that the acquisition of the fourth-largest wireless provider, T-Mobile USA, would solve its need for additional spectrum. Moreover, AT&T cited its broadband plans as one of the chief public benefits of the $39 billion merger that would allow its fourth-gen LTE network to reach 97% of United States citizens.
Before the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights, AT&T’s CEO, Randall Stephenson said the company’s broadband plans signify almost “55 million more Americans than our pre-merger plans and millions more than any other provider has committed to service.”
While there have been many parties opposed to the merger – including Sprint, the Department of Justice and several states – there are quite a few high profile, well-known names that are supporting it. Yahoo, Research in Motion, Qualcomm, Oracle, Microsoft, Facebook, Brocade and Avaya were named in a letter sent to Julius Genachowski, FCC Chairman. The letter addressed the fact that wireless networks are under pressure to keep up with the increasing demand for wireless broadband, and states that, “Given the network capacity challenges, policymakers must give meaningful consideration to AT&T’s acquisition of T-Mobile as a means of addressing their near term wireless broadband capacity needs,” the letter states.
Another Suit Filed Against Proposed AT&T Merger
AT&T has been fighting an uphill battle since announcing its attempt to acquire T-Mobile USA, leaving many to wonder if anyone outside of the two companies is in favor of the $39 billion merger.
Consumers have been blasting the acquisition since early May, with many filing comments with the Federal Communications Commission that argue the controversial purchase would result in a wireless duopoly with less competition that would only lead to higher prices.
Recently AT&T was hit with yet another lawsuit; this time from Ridgeland, Mississippi-based Cellular South, the nation’s largest privately held wireless provider. Joining the ranks of seven states, Sprint, and the Department of Justice, Cellular South filed its lawsuit in the same US District Court in D.C., where the additional cases against the multi-billion merger are currently pending. The most recent criticism alleges that the purchase will hurt competition, making it harder for regional carriers like Cellular South to secure not only competitive prices, times, and nationwide roaming, but also wireless devices.
According to claims made by the Department of Justice in its antitrust suit, the $39 billion acquisition would give AT&T control over almost half of the wireless market in a number of regions whilst controlling more than 50% of the market in no less than 15 cellular marketing locations.
While AT&T has vowed to battle the Department Of Justice in court, surfacing reports are indicating that the company has hunted for ways to pacify the US government by implementing certain compromises, including contacting smaller competitors to measure their interest procuring assets.
AT&T claims that the Department of Justice is ignoring the “significant competition” in the market, headed by regional carriers such as Cellular South and nationwide providers like Sprint, Verizon, MetroPCS. Both the Department Of Justice and AT&T are due in federal court on the 21st for a status meeting with Judge Ellen Huvelle and it is expected that they will also talk about the possibility of a settlement.
Although their opponents believe otherwise, AT&T has dismissed the Bellevue, Washington-based T-Mobile USA as a serious competitor. However, the company has had its fair share of struggles as of late; in addition to losing subscribers, it was announced that German parent, Deutsche Telekom AG, will no longer continue to make substantial investments in the US.
We’d like to know what you think; are you for or against the proposed merger?