Friday, November 05, 2010

Telecom Earnings and the Week in Review



The week ending November 5, 2010 was a busy week in the Telecom world. Some of the earning reports indicated that service providers are experiencing both growth and churn - as buyers seek 'higher' ground for services in a growing competitive market. This week earnings week, Internap (INAP), tw telecom (TWTC), PAETEC (PAET), Cbeyond (CBEY), Cogent (CCOI) adn Abovenet (ABVT) all had their earning calls and releases. The good news is that ratings from industry analysts, such as Cowen state neutral to outperform - showing a net-net positive affect for growth opportunities.

In other news round-up, M&A activity continued as Windstream Corp (WIN) annonced that it has entered into a definitive agreement with ABRY Partners to acquire managed hosting provider Hosted Solutions in an all-cash transaction valued at $310 million.

Global Crossing (Nasdaq: GLBC) also announced its recent acquisitoin of US video fiber network operator Genesis Network. The company expects to lever Global Crossing's international IP connectivity network to build a solid presence in the video transport arena.

Interesting news also came from Telx, the interconnection company. While at FIA in Chicago, the company shared a booth with Interxion, a European-based colocation provider. This week the two companies announced a partnership for global financial colocation which will help colo customers easily locate expansion space on either-side of the Atlantic.

A sweet spot this week was also the Light Reading Ethernet Expo. The picture indicates a packed room for the keynote presentations. Each presentation arena sat over 350 people and were both nearly at capacity for the duration of the 2-day event. The buzz was tremendous and companies explored Ethernet technologies, Ethernet Exchanges, Ethernet delivery solutions, ntework providers and more. A variety of news releases associated with Ethernet were also announced during the Ethernet Expo in NYC this past week. Some of the headlines read: AT&T Gets to 40G Carrier Ethernet, Neutral Tandem and Tinet Connect, Forming Largest Global Ethernet Exchange, Colt connects TO CENX's Carrier Ethernet Exchange in London and New York. Leading industry bloggers such as Telecom Ramblings (Rob Powell) and Data Center Knowledge (Rich Miller) picked up on the bevvy of news as well. Of course the 4 leading Ethernet Exchange providers; CENX, Equinix, Neutral Tandem and Telx all had to turn-up the mic. One of the most impressive announcements came from Neutral Tandem. Just one month after it closed its acquisition of Tinet, a global tier-1 IP backbone provider and wholesale Ethernet and MPLS network operator, the company announced its network integration completion. The combined entity now offers over 100 Points of Presence on its global Ethernet Exchange network solution, propelling the company into the #1 spot in the global Ethernet Exchange Market.

Other news came from Chicago, where the FIA show (as mentioned earlier in association with the Telx/Interxion announcement), Futures Industry Association educated global financial traders on better ways to transport their trading data. Hibernia Atlantic announced that its Transatlantic Cable has seen quite an uptake in Global Financial companies utlizing its network due to its low latency guarantees, quality, uptime and quick delivery.

A busy week indeed and I promise you that this post didn't even cover half of it. A lot is happening out there and I can guarantee you there is more activity to come. The weeks before Thanksgiving are going to continue to be a whirlwind as companies position themselves for the year-end as they plan for the new year.

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