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March 2007 - Posts
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AT&T, Qwest Communications and Verizon on Thursday were awarded the government's largest telecommunications contract ever, a 10-year deal worth up to $48 billion.
The contract winners, who beat out Sprint Nextel Corp., don't simply split a pool of money. They now have to compete with each other for the various telecom needs of dozens of federal agencies, the General Services Administration announced.
The contract covers voice, video and data services and technologies for as many as 135 agencies operating in 190 countries. Several major departments, including Homeland Security and Treasury, have already signed up.
While AT&T Inc., Qwest Communications International Inc. and Verizon Inc. gained an important and deep-pocketed client, the announcement was a huge blow to Sprint, analysts said, because it has been providing telecom services to the federal government for nearly 20 years.
"The federal government was Sprint's first major customer since the company started," said technology consultant Warren Suss of Jenkintown, Pa.
While current GSA officials would not say why Sprint lost out, Bob Woods, a former official at the agency who now works as a consultant, surmised that Sprint could not meet the low prices of its competitors. Woods estimated that Sprint could lose roughly $200 million to $250 million annually in existing government business.
Executives from Sprint plan to meet with GSA officials next week to discuss why their contract proposal fell short, and the company will decide afterwards whether to file a protest, spokeswoman Sukhi Sahni said in an e-mail.
For the winners, Thursday's announcement was perhaps most significant for Qwest, the smallest among them. Suss said Qwest can now leverage its government business to gain more corporate clients.
Qwest senior vice president Diana Gowen conceded that the Denver-based company has its work cut out for it going up against AT&T and Verizon, but said Qwest's smaller size would make it more agile. "If you want to make it the David and Goliath story, we'll be the David and slay the dragon," she said.
Don Herring, president of AT&T's government business, said getting on the contract is "a really important first step," adding that it will be several months before the companies start bidding on specific agency projects. AT&T is based in San Antonio.
Industry analysts said they expect the federal government to spend at least $20 billion over the life of the so-called Networx Universal contract, which is capped at $48 billion.
"The advanced technologies and services defined in the Networx program will serve as a platform to transform the government's telecommunications infrastructure to a more seamless and secure environment," GSA's acquisitions commissioner Jim Williams said in a prepared statement. GSA procures and manages federal assets.
The two previous 10-year government-wide telecom contracts had two main providers. The first went to Sprint and AT&T. The second to Sprint and MCI Worldcom, since acquired by Verizon.
For the losers of the Networx Universal contract, there is a consolation prize on the table. GSA is planning in May to award a second telecommunications contract called Networx Enterprise -- worth up to $20 billion -- that contains fewer mandatory requirements and services in select areas across the nation.
In a statement, Sprint said it expected to win the second contract.
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Long Distance SPIF
March 1 through April 30, 2007
Bring a Long Distance deal to Qwest. Earn up to $2,000!
A new program from the Qwest Business Partner Program awards Partners who bring new Long Distance deals to Qwest with SPIF level payouts. The opportunity will be available through April 30, 2007.
Net New Long Distance customers to Qwest committing to a minimum monthly spend on Long Distance services of $1,000, $2,500, $5,000, $10,000 or greater in MRC over a contract term of 24 months or greater will earn the Partner a SPIF payout in accordance to the table below.
Both Channel Integrated and Non-Channel Integrated deals are accepted (QTA, QTA Express, Qwest Connect contracts all qualify but the SPIF will match the total Long Distance commit).
Non-Channel Integrated contracts can be submitted through the Qwest Referral Program Desk at 866-417-5820. This offer cannot be combined with any other QRP SPIF. You will be responsible for sending the completed SPIF request form through the proper process stated below.
SPIF can be combined with other Long Distance promotions.
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LD Commit
Per Month |
SPIF PAYOUT
24 Month Minimum Term |
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$1,000 |
$200 |
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$2,500 |
$500 |
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$5,000 |
$1,000 |
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$10,000+ |
$2,000 |
SPIF payout levels are for Long Distance spend only and do not include data products for contribution to QTA. Long Distance has to bill a minimum of one of the levels above.
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XO Communications has announced the launch of XO MPLS IP-VPN, the company’s new network-based IP-VPN solution that offers businesses and large enterprises a secure, intelligent and managed network to connect offices, customers and partners and converge a wide range of voice, video and data applications over a single IP network infrastructure.
Delivered over the XO private, nationwide Multiprotocol Label Switching (MPLS)-based IP network and available in 75 major metropolitan markets across the United States, XO MPLS IP-VPN provides a wide range of access options to connect locations and flexible classes of services to prioritize Internet, intranet, extranet, voice, video and mission-critical business applications – all over a single, high performance application-aware IP network.
The service represents the initial step of XO Communications’ broader IP convergence services strategy. Later this year XO will integrate its MPLS IP-VPN service with its award-winning business-class VoIP service, XOptions Flex. This integrated offering will give small and medium-sized businesses as well as large enterprises with smaller offices nationwide an end-to-end converged wide area networking solution for voice and data communications. XO will also expand its VoIP services portfolio later this year to support larger businesses and enterprises.
“With the launch of XO MPLS IP-VPN, we’re expanding our IP solutions to offer more intelligent and more efficient networking services to businesses that need to improve communications between employees, customers and partners,” said Tom Cady, president of XO Business Services. “XO MPLS IP-VPN allows businesses to simplify network management and introduce a wide range of new applications and capabilities all over a single, converged IP network.”
Key benefits of XO MPLS IP-VPN include:
• Nationwide Coverage – Broad coverage with service availability in 75 metropolitan markets across the United States
• Flexible and Scalable Network Architecture – MPLS-based network architecture provides any-to-any connectivity among all sites and automatically sets up pathways to new sites.
• Broad Range of Access Options – Customers can utilize the service with Dedicated Internet Access at speeds from T-1 through OC-X and Ethernet services.
• Robust Classes of Service – Optimize data traffic flows to support any type of application with one flat rate for access to all four classes of service.
• Fully Managed – Reduces total cost of ownership and provides 24x7 monitoring of network facilities and equipment.
As part of the fully-managed solution, XO provides network designs based on customers’ network topology, applications and other wide area network requirements. XO can also supply, install and maintain customer premise equipment and assign bandwidth for applications based on the classes of service. Customers also have the option to utilize their own premise equipment and manage it themselves.
XO MPLS IP-VPN is also designed to provide enterprises with a flexible infrastructure to support the migration to a single IP-based communications network. The solution can be used to integrate different traffic types from existing legacy networks, including Frame Relay, onto one network as enterprises transition to a single, converged IP communications strategy.
“The XO MPLS IP-VPN solution is a strong step in serving enterprise customers with converged voice and data applications,” said Cindy Whelan, senior analyst, Current Analysis. “XO’s IP heritage and powerful access network portfolio positions its new IP VPN services to meet the needs of customers ranging from smaller multi-site businesses to large enterprises.”
Classes of Service
XO MPLS IP-VPN enables businesses to prioritize mission-critical traffic such as voice, video and other mission-critical applications over non-urgent traffic such as email and web browsing. By prioritizing traffic, businesses can safeguard high-priority traffic over low-priority traffic, while not having to increase bandwidth purely to support non-critical traffic. The service also allows customers to allocate bandwidth and prioritize applications and have any class of service utilize up to the full available bandwidth without incurring additional charges. XO MPLS IP-VPN offers four classes of service:
• Real Time CoS – for applications that are very sensitive to latency and jitter, such as VoIP.
• Critical CoS –for applications that can withstand higher latency and jitter, but still need guarantees on both delay and jitter such as video applications.
• Priority CoS –for applications which need to take priority, but are not susceptible to variations in latency or jitter such as database applications.
• Standard CoS – for applications which can withstand moderate to high variations in latency or jitter such as email and web browsing.
Service Level Agreements
XO MPLS IP-VPN is backed by service level agreements for each class of service encompassing availability, latency, packet delivery and jitter:
Class of Service Latency Packet Delivery Jitter Availability
Real Time 55 ms 100% 0.5 ms 100%
Critical 55 ms 99.99% 0.8 ms 100%
Priority 55 ms 99.9% 0.9 ms 100%
Standard 65 ms 99% 1 ms 100%
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Verizon is well respected as both a local phone company as well as a worldwide networking provider. With the acquisition of MCI, Verizon has a broad and well respected network and product set. You can sell from both the Verizon ILEC and Verizon Business product sets and this includes Local Service, Data and Long Distance both in and out of Verizon local service areas. Verizon Business products are available nationwide as well as internationally and includes services such as MPLS, VoIP, Local PRI, DSL and more.
Sales Opportunities are available to upgrade or re-contract existing customers while making considerable commissions. Verizon pricing for Integrated T1 service in-region is very attractive, as well as Verizon Business Dedicated Internet outside of local Verizon territory. VoIP products are available that include Hosted IP Centrex and Flex T1 services...both of which include virtually unlimited long distance usage and on-net calling. Dry Loop DSL (DSL without local phone service) is available in Verizon Local region as well as Verizon Business DSL and POT's services that are available nationwide. FIOS (fiber optic Internet Access) is available with speeds up to 30 Mbps for only $350 a month!
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Qwest Communications International Inc. today announced it received the top score in overall customer satisfaction for its business voice over IP (VoIP) services by Forrester, an independent analyst firm. Qwest was also first for its overall VoIP market presence.
In the report titled "The Forrester WaveTM: U.S. Enterprise-Class VoIP Services, Q1 2007" (February 2007) Qwest ranked highest in overall VoIP market presence. The report noted Qwest's strong VoIP deployments, revenues, sales capabilities and overall customer satisfaction on hosted VoIP and managed IP private branch exchange (PBX) services.
Additionally, the report recognized Qwest for having one of the broadest and deepest nationwide hosted VoIP footprints in the United States.
"Qwest was the first major telecommunications company to roll out a VoIP service, and now we sell VoIP in more than 1,000 cities nationwide and carry billions of VoIP minutes per month for business, consumer and wholesale customers," said Dan Yost, Qwest executive vice president of product. "We believe Qwest's technology is second-to-none, and are proud that Forrester recognized our customer service and strength of market presence."
The report also acknowledged Qwest for its "trendsetting" VoIP installation project management practices and for its ability to meet the needs of VoIP customers that have diverse domestic U.S. location requirements. Rather than assign different project managers on a per site basis, Qwest assigns the same project manager to oversee each site's installation. This differentiated approach to project management improves communication, coordination and ultimate accountability.
Amidst ongoing industry consolidation, Qwest's national VoIP presence and portfolio expand customers' choices - in service providers and solution sets. These value-added services increase customer's confidence that Qwest will execute a successful service migration and deliver a positive experience overall.
To create the VoIP report, Forrester analysts conducted primary research to develop a list of vendors that met its criteria. Vendors were then selected according to product and service fit, customer success and Forrester client demand. Vendors were evaluated based on the criteria developed by a top Forrester analyst.
About Qwest
Qwest offers a unique and powerful combination of voice and data solutions for businesses, government agencies and consumers - locally and throughout the country. Customers coast to coast are turning to Qwest's industry-leading national fiber optic network and its Spirit of Service for quality products and superior customer experience. For more information on Qwest, and its various operating subsidiaries, please go to www.qwest.com.
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Two leading communications companies sign definitive agreement
NuVox Communications and FDN Communications today jointly announced that they have signed a definitive agreement to merge the two privately held facilities-based communications providers. Following a transition period, the combined company will operate under the name NuVox Communications, and will provide IP-based communications solutions including voice, data connectivity and storage, private networking, web hosting, and security services to business customers across the Southeast and the Midwest. The combined enterprise will initially have more than 90,000 customers, 1 million voice and data lines in service, and annual revenues exceeding $500 million.
“Combining NuVox and FDN Communications makes excellent strategic sense given our similar philosophies about customers—that is, a keen focus on the business market evidenced by our suite of products and services aimed specifically at that market and our unwavering commitment to proficient, ‘high-touch’ customer service,” stated Jim Akerhielm, Chief Executive Officer of NuVox Communications. “The two companies have complementary target customers, overlapping geographic markets in the fast growing Florida and metropolitan Atlanta areas, and efficient, customer-centric operations positioning the new company to be a leading provider of communications solutions for business customers.”
“A larger total footprint and deeper customer penetration in key markets will position NuVox for further growth,” added Mike Gallagher, Chief Executive Officer of FDN Communications. “Both companies have a proven track record and have posted very compelling financial results. Together, the new combined company will build on the strengths and experience of each company.”
The senior management team will be comprised of individuals from both FDN Communications and NuVox. Leading the combined company will be Akerhielm, who will serve as CEO, and Gallagher who will serve as President of Strategic Markets. The board of directors will consist of David Solomon as Chairman of the Board, Akerhielm and Gallagher, Jim Wade and Gillis Cashman of MC Venture Partners, James H. (Jamie) Greene, Jr. of Kohlberg Kravis Roberts and Co. (KKR), Scott Perper of Wachovia Capital Partners, and Jim Fleming of Columbia Capital Partners.
“Both NuVox and FDN Communications have made tremendous investments in technology and the build out of their networks” commented Jamie Greene of KKR.
“As a result, they are now able to fully implement Voice over Internet Protocol (VoIP) technology, which is enabling their customers to take advantage of a richer set of communication services and applications as well as significantly enhanced broadband connectivity. In addition to the ability to better leverage each company’s investment in technology and the clear benefits to customers, the combination of the NuVox and FDN networks allows for a number of operational and financial efficiencies which will lead to improved profitability and accelerated growth.”
“We are excited to bring together the superb teams of employees of both companies. I believe the people of both NuVox and FDN Communications are the reason each company has been so successful, and as a combined team, we can achieve even more,” added Akerhielm.
The combined company’s headquarters will be in Greenville, SC with extensive sales, customer, and technical operations in both Greenville, SC and Maitland, FL. The transaction is expected to close in June 2007. Until closing, FDN Communications and NuVox Communications will continue to operate separately. Customers of both companies will not experience changes to their existing service agreements as a result of the merger.
The transaction has been approved by the Boards of Directors of both NuVox and FDN Communications. Financial terms of the proposed merger were not disclosed. The combined company will refinance the existing senior credit facilities of both NuVox and FDN Communications. Completion of the transaction is subject to approval by the stockholders of both companies, as well as regulatory approvals and customary closing conditions.
About NuVox Communications:
NuVox Communications provides voice, data, and security services to business customers in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, and Tennessee. These services are provided through advanced Alcatel-Lucent, Nortel, Sonus, and Cisco technology. NuVox has been honored as a certified Cisco Powered Network. NuVox’s VoIP services are delivered via technology from Cisco, Sonus, Sylantro, IP Unity, and Acme Packet. For more information, visit www.nuvox.com.
About FDN Communications:
Headquartered in Maitland, Florida, FDN Communications has been providing facilities-based, business-class communications services in the Southeastern United States for nearly a decade. Serving tens of thousands of satisfied customers with over a quarter million telephone and Internet lines, FDN presents tailored solutions for today’s communication challenges. To learn more about FDN, visit www.fdn.com.
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