Kenton Group Newsletter

July 2014 - Volume 12 Issue 7

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Jim Moehnke, Editor


Hello again, everybody! And welcome to the Kenton Group monthly newsletter, where you can find a summary of Telecom news (chosen by me) that grabbed the headlines for the month. If you are a new Kenton Group associate, or customer - I hope that you will enjoy it and maybe find a few interesting articles that you may have missed!

Did you know? That if you find an article of interest, all you need to do to read all about it is to click on the bold-type header and you will be taken directly to the full story

.And if you like what you see there, you may find that many of the publishers will have links for you to subscribe to their newsletter (or printed magazine) and may also have a blog for your participation. Here are just a few:;;; and

If you are like me and enjoy the "light side of the news" (a.k.a. the comics page) before getting into the heavy stuff, then scroll to the bottom of this page where you will find this month's chosen FUN site, QUOTE and APP of the month. (but no, I don't do Sodoku or crossword puzzles), And wait until you see which APP that I picked!!! (hint - maybe could have picked a happier one)


Enjoy! And "Happy Dog Days of Summer"!

Editor Jim


Frontier to offer text messaging service for landlines
Frontier Communications has collaborated with Zipwhip to provide a cloud-based service that allows landline customers to send and receive text messages. "The value of the landline is still very high, especially for businesses. ... This is an extension of that number for the way their customers want to communicate," said Frontier's Rod Imbriani. (7/1),

Verizon shows wireline revenue gain in Q2
Verizon Communications outpaced expectations with second-quarter earnings of 91 cents a share, with wireline revenue showing a gain of 0.3% to $9.8 billion. The growth marked the first such increase in the segment since 2007. The company added 1.4 million wireless contract customers, including 1.15 million tablet users. It boosted sales 5.7% to $31.5 billion. Barron's (free content)/Tech Trader Daily blog (7/22),

Windstream will form REIT, spin off some assets
Windstream will join the trend of U.S. companies seeking tax relief by spinning off some of its assets, largely its fiber and copper telecom network, into a real estate investment trust, or REIT, that will be publicly held, the operator announced today. The move will lower Windstream's debt burden by $3.2 billion but also will reduce its dividend by 30%. Executives say the spinoff will allow Windstream to invest more in its network and expand services to subscribers. Arkansas Business (7/29),

AT&T U-verse broadband stands at 11.5 million subs
AT&T's high-speed broadband U-verse service attracted 488,000 new customers in the quarter, bringing the total to 11.5 million subscribers, while its wireless arm added more than 1 million new monthly customers. The telecom's lower-cost financing plans caused AT&T to miss analysts' quarterly revenue expectations and post a lower profit for the quarter. Multichannel News (7/23),

NIH chooses CenturyLink for data center services
The National Institutes of Health has awarded a multiyear contract to CenturyLink for the provision of data center connectivity and management for the National Library of Medicine and the Center for Information Technology. The contract is valued at more than $60 million over the next decade. GovConWire (7/10)

TDS Telecom makes TV the center of its Gigabit strategy
TDS Telecom is betting that demand for next-generation television services will give its fiber-to-the-home strategy an edge over the competition. As part of a limited rollout of Gigabit services in New Hampshire, the company has included television in its $100-a-month bundled service package. "It's really tied to our IPTV platform," TDS Telecom's Matt Apps said, adding, "There's still a lot of content out there you're just not going to get over the top." Light Reading (7/23)

 Google amps up Fiber plans to 34 cities
Google could announce plans by year-end to bring its gigabit Fiber service to up to 34 U.S. cities, Chief Financial Officer Patrick Pichette said Thursday. He identified the potential new markets and said the company was preparing a "checklist" that would speed the local permission process and reduce construction costs. Multichannel News

FCC targets fraud and abuse of Universal Service Fund
The Federal Communications Commission has named former senior assistant U.S. attorney Loyaan Egal to head up a task force dedicated to unmasking waste, fraud and abuse in the agency's Universal Service Fund program. The so-called "USF strike force" will work closely with the Department of Justice and other law enforcement agencies to police the program -- which earmarks money for rural and low-income communities for the purpose of broadband expansion -- as it rolls out new initiatives. (7/14)


 World Cup championship becomes most social event ever
Sunday's World Cup final broke records on Twitter and Facebook, with a peak of 618,725 tweets a minute and 280 million Facebook interactions registered. The Guardian (London) (7/14)

Is social media making workers less productive?
Some employers fear that social networking is making their workers less productive. That's a valid concern, but better training is a better way to address the issue than outright bans on sites, Ilya Pozin writes.

Twitter posts user, revenue growth in second quarter
Twitter ended the second quarter with 271 million subscribers, up 24% year-over-year, and its revenue more than doubled to reach $312.2 million, though its net loss grew to $144.6 million. Mobile accounted for 81% of all ad revenue in the second quarter. Bloomberg (7/29),


AT&T outlines DIRECTV merger benefits for Senate panel
AT&T defended its proposed $49 billion merger with DIRECTV before the Senate Commerce Committee on Thursday, and Comcast did the same with its Time Warner Cable buyout. AT&T Senior Executive Vice President John Stankey said the deal would enable the telecom to more effectively compete with the larger cable companies. The Hill (7/16)

Tech jobs are on the increase
According to the most recent Bureau of Labor Statistics report, of the 288,000 jobs added in June, the IT sector alone added 8,700 payroll positions across telecommunications, data processing and computer systems design services. And, projections for additional IT job growth are strong. According to an annual study conducted by Computer Economics, a survey of more than 200 IT organizations in the U.S. and Canada concludes that 52% of these organizations plan to add staff. See more.

Justice Dept. urges Congress to make illegal streaming a felony
The Internet streaming of unauthorized content should be a felony, not a misdemeanor, Justice Department official David Bitkower said in testimony before a House subcommittee. Felony prosecutions would result in greater fines and better deterrence, he argued, noting that the bandwidth devoted to Internet streaming of illegal content increased 470% between 2010 and 2012. Multichannel News (7/24)

Americans continue to drop landlines
Last week, the Centers for Disease Control (CDC) released new data showing that U.S. households continued to "cut the cord" and replace landline telephones with wireless voice service in the second half of 2013. Based on a survey conducted from July through December 2013, the CDC found that 41% of U.S. households were wireless-only in the second half of that year while a little less than 48% had both a wireless and landline telephone. And, just over 8.5% of American households were landline-only. Read more.

Verizon details government requests for user data
Verizon reported Tuesday that it received 150,000 requests from the U.S. government about customer data during the first half of this year. Nearly half of those were subpoenas, and there were 37,000 court orders and 714 wiretap requests. The nation's largest wireless carrier publishes the numbers regularly in an advocacy bid to create more transparency around such government requests. Reuters (7/8)


Verizon completes 100G Ethernet trial
Verizon says it has successfully completed a trial of its high-capacity Ethernet technology, joining with Splice Communications and CyrusOne to transmit data 4.6 miles over its 100G infrastructure while maintaining carrier-grade quality. "This accomplishment, which we believe is an industry first, is a significant step forward along the evolution of 100G technology," said Guru Pai, Verizon's chief product officer and senior vice president of corporate technology. Channel Partners (7/17)

AT&T: We'll issue stand-alone wearable in 2014
AT&T said it will release a wearable device this year that will work with or without a cellphone. "It needs to be an independent device. It needs to do something different for the end user, for people to buy it en masse," said AT&T's Glenn Lurie, who added that the market will "explode" when wearables start linking to 4G networks on their own. He predicted the first such devices will be devoted to wellness, music and social networks. News Service (7/8)

Why wearables' success in the enterprise matters
Mass adoption for wearables in the consumer space remains an unknown, but panelists at a wearable-focused event said they see the devices, especially those that are multifunctional, as a means to drive revenue and quantify results in the enterprise space. "We already know what the killer application is - the ability to work hands-free," said Ed English of APX Labs. Network World (7/24), Network World (7/24)

Verizon looks to IoT for new connected-car innovation
Cisco predicts that the Internet of Things will provide more than $14.4 trillion from a growing number of connected-device technologies over the next decade. As a result, Verizon says it is looking to IoT to bring new connected-car tech into vehicles, focusing on driver location to provide advanced services to users, with cars learning daily patterns of drivers that would then sync with other devices, and adapt to changing environments and needs on demand. ZDNet/Between the Lines blog (7/22)

Google, others consider turning pay phones into Wi-Fi hot spots
Pay-phone locations may be future Wi-Fi hot spots, and Google is one of several companies reportedly expressing interest in such a plan for New York City. Separately, market analysts are raising their estimation of Google, saying the company holds an advantage over others as the digital world transitions to mobile and wearable devices. Bloomberg (7/21), Reuters (7/18), (7/21)


Verizon offers FiOS upload speeds to match downloads
Verizon has launched an upgrade program to provide upload speeds that will match the faster speeds of downloads for its FiOS customers, placing greater competitive pressure on companies like Comcast. Verizon cites several factors driving the need for greater symmetry in upload and download rates: video chats, file sharing on social networks, cloud-based backups and the expanding Internet of Things. Multichannel News (7/20)

FCC designates areas for $100M in rural broadband experiments
Roughly 10% of the U.S., mostly in remote rural areas, is eligible to take advantage of $100 million the Federal Communications Commission is allocating for improvements in rural broadband service. The project gets its money from the FCC's Connect America Fund. The commission is providing bidding incentives for proposals that exclusively serve tribal lands. TV Technology (7/28)

Cable broadband customers to exceed video subs next year, Moody's says
Cable companies will have more broadband subscribers than video customers next year, according to Moody's Investor's Service, reflecting cable's increased focus on data services. "Broadband has become an anchor product for most households and we believe a primary purchase decision for anyone moving into a new residence," the Moody's report said. Multichannel News (7/24),

Survey: Customers embrace FTTH connections
Customers with high-capacity fiber connections report faster download speeds, which translate in a time savings of 49 hours per year compared to other services, according to a survey conducted by the FTTH Council. The council reported the number of fiber-to-the-home connections with gigabit speeds at 10.4 million, an increase of only 700,000 from one year ago. GigaOm (7/23)


FCC logs 1 million Open Internet comments
The Federal Communications Commission says it has received more than 1 million public comments about Open Internet rules. The debate centers on the idea of reclassifying telecom providers so they would be regulated more like utilities; AT&T has said reclassification would result in years of uncertainty and litigation. The Hill (7/20), Reuters (7/18)

Researchers see a future beyond TCP/IP
Danish researchers, working with engineers from MIT and Caltech, say they have conceived of a more efficient way to deliver data over the Internet than legacy TCP/IP. The process, they say, can not only increase security but also produce higher capacity. The method relies on a proprietary element known as Random Linear Network Coding, which facilitates what researchers equate to removing the red lights from an intersection by better managing traffic flow. Network World (7/30)


Telecom, wireless and cable urge Senate to pass CISA
USTelecom, CTIA and NCTA urged passage of the Cybersecurity Information Sharing Act (CISA) in a letter sent to Senate leaders last week. The associations said protecting cyberspace is a shared responsibility, but current legal uncertainties are preventing private and public members of the Internet ecosystem from sharing critical cyberthreat information in real time. This bill would remove these uncertainties and enhance protection of customer data and network infrastructure while serving the broader public interest by addressing privacy and civil liberties concerns. Read more.

Infonetics: Connected-car services will be $17B market in 4 years
The worldwide market for connected-car technology and services is forecast to be worth $17 billion in four years and represents a significant opportunity for telecoms, according to Infonetics. "The connected-car vertical is able to make use of every generation of cellular technology available," says Godfrey Chua of Infonetics. Total Telecom Magazine (U.K.)


Check out the library of on-demand webinars
From policy briefings on voice regulation to webinars on LTE [and everything in between], USTelecom's wide range of educational events provide insight on profitability and promoting sound policies. Visit our extensive online library of events currently available on demand. Watch them when and where you want.

Join a community that can help you grow your business
You are invited to join OPEN Forum, a unique business community where you can leverage meaningful advice from other business owners to help you overcome obstacles in your business.


My pick for APP of the month is: Stock Market HD: Stocks & Shares by Lifelike, Inc. (Apple App store).

This app has up-to-date data from "highly reliable sources". It is well maintained with frequent updates and works with all Apple OS versions. It has a 4.0 out of 5 user rating.

But OH! As I am writing this I am watching the markets taking their biggest drop of the year, and getting updates every 10 seconds -- The DOW ending at $16,563.30, a drop of $317.06. :(

App engagement intensifies
How are today's consumers engaging with applications? A recent Nielsen study shows that the amount of time has definitely increased. In fact, people across the generations are heavily engaged, with those ages 55 and older spending more than 21 hours per month utilizing apps. In addition, U.S. Android and iPhone users ages 18 and over spent more than 30 hours over the fourth quarter of 2013, compared with 18 hours during the same period in 2011 -- marking a 65% increase in app use. Read more.


Gonzales-Gonzales = don't miss this ! VERY FUNNY.

-Gonzales = don't miss this !

You may remember Gonzalez Gonzales from John Wayne movies. He provided comedy in Rio Bravo, Hellfighters, and another Wayne movie.

Here is where he got his start as an actor when he appeared as a contestant on 'You Bet Your Life'. Now this is truly funny.Groucho takes advantage of the situation based upon the audience laughter.

John Wayne saw the event and put him in his movies. This interview will bring a smile to your face.(Watch Full Screen) 

The country needs and, unless I mistake its temper, the country demands bold, persistent experimentation."

-- Franklin D. Roosevelt,
32nd U.S. president

If I won't be myself, who will?"

-- Alfred Hitchcock,
British-American film director

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