Paetec Buys Allworx

Paetec is acquiring Allworx Corp., a provider of IP-based PBX and key systems aimed at the small and medium business user. The transaction makes more sense in light of Paetec's recent merger with McLeod, whose customer base is largely anchored on smaller businesses use a single T1 connection at most sites. Paetec's historic customer base is a mid-market firm. So Allworx will make sense as a favored solution for McLeod customers more than for Paetec's historic base.

Based in East Rochester, N.Y., Allworx primarily uses Value Added Resellers as its sales channel. Paetec says it will continue to use VARs, as well as its extensive agent network, to introduce both Allworx services to Paetec customers while cross-selling Paetec connectivity services into the Allworx base.

The acquisition, set at $25 million, is interesting as it is not common to see communications "footprint" providers buying "application" providers. But more providers seem to be putting their money where their views are, as "moving up the stack" now is seen as necessary.

Level 3 has been buying content delivery assets, not simply termination assets or access assets, for example. That isn't to say all providers think this is the right strategy. Some continue to launch or extend Layer 2 connectivity businesses that deiberately remain focused on access to end user sites and transport within a metro area or region.

"People Have No Idea What We Might Be Up to"

Google's 80/20 program, where associates are encouraged to spend 20 percent of their time thinking up new things for Google to do, means Google "could do almost anything," says one source. Google just bought Jaiku, a mobile social networking and messaging service, and seems still to be hunting for experienced telecom executives and capacity, for example.

Google is going to be a player in mobile, it seems clear enough. The only issue is how it will play, and in how many ways.

Wal-Mart to Sell HughesNet Services

Need a little satellite broadband with your order? Wal-Mart customers will be able to buy HughesNet satellite broadband services soon. Sure, it is a niche. But there are lots of big niches in the communications business. About 10 percent of all U.S. end users live places where the local telephone company is not one of the big brand names. Also, for some of us, wireless is a good way to back up a primary wired broadband connection. In my case, Covad as a primary for primary in-home business and personal use, plus 3G wireless primarily for mobility, but also as the backup in case the primary service fails for any reason.

T-Mobile Goes Down

It wasn't your imagination: if you use T-Mobile data services, you had no connectivity for as much as four hours on Tuesday. Personally, I thought it was the coverage inside the convention center I am working inside of. Nope. There was an outage. I thought it was the BlackBerry server at one point. But no.

The latest outage just illustrates an important element of digital life: you really can't trust any service or application to remain "always available." Everything is going to crash, or be unusable, for some amount of time. So one either gets used to the idea of periodic outages, or if that isn't satisfactory, you are going to have to back up all your mission critical services, devices, data or applications. Personally, I don't worry too much about application diversity, though most of us have some of that. I do make sure broadband and mobile access, as well as computing devices, are redundant.

First 700 MHz Winner: AT&T

at&t is the first winner of the battle to win 700 MHz wireless spectrum. Not, of course, because it has won anything in the upcoming auctions for C block and other spectrum. Instead, at&t is acquiring $2.5 billion worth of wireless spectrum licenses covering 196 million people in the 700 MHz frequency from Aloha Partners.

The 12 MHz of spectrum covers all of the top-10 U.S, wireless market and 72 of the top 100 markets overall.

A Location Based Service Somebody Needs to Develop

As someone who spends lots of time at conferences and trade shows, and who randomly bumps into people, it occurs to me that one location-based service that would really be helpful is a way to have your mobile alert you when somebody you have been communicating with over a recent user-defined period is in your vicinity. The reason is simple enough: quite often one works with people for years without ever physically meeting them. And if the opportunity presents itself, one would like to stroll over and say hello.

The issue is that I don't know how well GPS will work when all of us are inside a large meeting hall. Bluetooth would help for short distances, I suppose. It might also be nice if the app could run in the background when synchronized with one's notebook or desktop and collect photos of your contacts, putting them into your contact database so you know roughly what the person you want to meet looks like.

For that matter, scouring public sources and putting a picture into my contact directory might also be nice if I weren't a Facebook user, which essentially provides that function.

Sprint Loses CEO; 337,000 Subs

Sprint Nextel says it expects to report a net loss of approximately 337,000 post-paid subscribers in the third quarter, and also announced the resignation of CEO Gary Forsee. Perhaps the company has spent too much time on the WiMAX network is hasn't yet built, and too little time stemming serious subscriber losses in the voice and third generation business it does have.