October 15 , 2005
 
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Selected Competitive Intelligence

Qwest Targets the Enterprise with Global Reach for iQ Networking Platform 

October 5, 2005 -- Qwest Communications has announced several new enhancements to its iQ Networking WAN solution. First, Qwest has expanded iQ Networking's MPLS services for global outreach across 57 countries. Second, Qwest has added another quality of service (QoS) queue, bringing its total queues to four, to give customers another way to prioritize data traffic. Third, Qwest is introducing a rental option for customer premises equipment.

Recommended Competitive Responses

Carriers with international operations should point out to their customers that Qwest's iQ Networking may reach 57 countries worldwide, but it does not own those facilities and cannot guarantee complete operational control of the plant end-to-end. Rather, it is entirely dependent on BT Infonet, which is why Qwest cannot extend the same SLAs internationally as it offers domestically.

Recommended End User/Customer Responses

Qwest is doing its best to woo customers during the run-up to the proposed AT&T/SBC and MCI/Verizon mergers. Customers should approach Qwest proactively to negotiate the best possible terms for the full range of their data services while the carrier is sensitive to the emerging competitive threat of other joint RBOCs/IXCs.


Perimeter Internetworking Enhances Managed Services Positive with U.S. Networks Acquisition

October 6, 2005 - Perimeter Internetworking is acquiring U.S. Networks' assets, enhancing its managed network and security services. The new company will have a combined 1,600 customers. Perimeter will adopt U.S. Networks' E-Mail Content Filtering service that it developed and add its security operations center (SOC) to Perimeter's existing infrastructure. The U.S. Network acquisition is Perimeter's fifth acquisition in two years.

Recommended Competitive Responses

Managed security competitors will need to carefully watch Perimeter Internetworking's acquisitions, as with five acquisitions over the past two years and more expected, it has the ability to grow into a major threat to the market status quo. Furthermore, its managed services offerings go beyond traditional MSSP offerings, making it all the more important for service providers to look at their full portfolios and consider expansion beyond just security.

Recommended End User/Customer Responses

Customers will want to ask Perimeter Internetworking about future bundling of services, as well as any discounts for customers that may want to add multiple managed services to their program list. They should also inquire about SLAs on service performance to ensure that quality does not suffer during the transition to the new company.


XO Increases VoIP Peer Pressure

October 4, 2005 -- XO has announced that it is interconnecting with Stealth Communications' Voice Peering Fabric (VPF) VoIP peering network. XO will offer VPF members its Call Origination and Termination service for calls that must be terminated to the PSTN.  

Recommended Competitive Responses

IXCs such as Level 3 and Sprint should consider connection to VoIP peering networks to gain access to an additional customer base and increase the percentage of VoIP calls that can be carried without going through the PSTN.

ILECs should point out concerns about quality of service and security as well as emergency response.

 


These companies might consider setting up their own peering network as well to take advantage of this emerging space for wholesale.

Recommended End User/Customer Responses

XO's participation in the VPF extends its direct reach to other VoIP subscribers. Network-based providers that want to offer customers a voice and data portfolio that includes VoIP should definitely consider XO. The carrier already has a well-established VoIP network, and its participation in the VPF extends its reach to other VoIP providers, offering its customers less expensive services for VoIP calls.


Yahoo! - Microsoft Forge New Messaging Alliance

October 12, 2005 -- Yahoo! and Microsoft announced an agreement to connect users of their consumer instant messaging (IM) services on a global basis. The industry's first interoperability agreement between two distinct leading global consumer IM providers will give MSN Messenger and Yahoo! Messenger users the ability to interact with each other, forming what is expected to be the largest consumer IM community in the world.

Recommended Competitive Responses

Messaging competitors in general will need to evaluate their own messaging strategies in light of this move from Yahoo! and Microsoft, as this has the means of shifting the market in a new direction that these players can now more easily dictate.

AOL will need to take action, either to join this partnership like it did in July 2004, or look to partner up with competitors such as Google in looking to set a messaging standard. Ultimately, it must recognize that with users facing low hurdles to messaging use, it is in its best interest to support one industry messaging standard now.

Recommended End User/Customer Responses

End users can look at alternative service solutions such as Trillian or Meebo, which allow IM users to have IM interoperability, often combining AIM, Yahoo! Messenger, MSN Messenger, IRC, Jabber and ICQ identities under one console.

Many users will be pleased with the news of this pending interoperability, but for most users, the software is free, so it has been only a minor annoyance when contacting someone on a different messaging system.

 
Free Advisory Report

The FCC Eliminates DSL Internet Sharing, Handing RBOCs Freedom over Broadband Resale

With its latest DSL order, the FCC continues its consistent track record, set during the Michael Powell years, of dismantling regulations controlling local telecommunications competition in favor of letting the market decide. Citing changing technology and market conditions, the order bypasses three decades of common carrier regulation.

The surface FCC justifications are skimpy, such as blaming broadband ISP resale for delays in telcos developing and deploying innovations. Some Commissioners' individual statements suggest that the Supreme Court NCTA v. Brand X decision simply forced their hand. In practical terms, the ruling does not change the topology of the residential broadband market much, because third-party ISP resale of incumbent local carrier DSL could not compete on price.

However, the ruling's somewhat bizarre underlying logic could pressure the FCC to re-classify additional common carrier services as information services.

Click here to read the full Advisory Report

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