Pipeline Publishing, Volume 3, Issue 11
This Month's Issue:
The Long Arm of Telecommunications Law
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OSS Newswatch
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By Alana Grelyak

This month’s OSS Newswatch shows a series of mergers and acquisitions, as well as a few new products and some newly created positions. Here’s your OSS Newswatch for April, 2007.

JacobsRimell has announced the availability of JR QuickStart Business, a “service fulfillment and management solution designed to support communications service providers’ rapid rollout of IP-based solutions to global businesses.” “With the business VoIP market expected to grow to upwards of $15 billion by 2012, it is critical that operators develop VoIP offerings that enable them to earn revenue now,” said David Jacobs, CTO of JacobsRimell. “In order for operators to capture a share of this lucrative market quickly, their product offerings, ease of adoption and initial customer experience must stand out among a packed field of competitors…Implementing an appropriate service fulfillment solution is a critical factor in the time to revenue stakes, and JR QuickStart business VoIP is specifically architected so that operators can start to generate revenue from new customers almost immediately.”

Microsoft Corp. is rumored to be in talks with Tellme, a California-based company that develops web-based speech recognition technology. Tellme has created several software applications that allow users to access internet information over the telephone, and it can provide automated data and directory assistance technology to business. Tellme has the potential to sell for as much as $800 million and may help Microsoft in its competition against Google.

Canadian cell phone subscribers are now set to keep their cell phone numbers when switching services. A regulatory decision went into effect on March 14 that will allow cell phone users to change carriers at will in order to take full advantage of the best deals on the market, but will wireless churn rates spike as this begins to happen? Most industry observers feel that such a spike is unlikely as customers will still need to deal with the expenses and headaches of the switching, including contract fees and new handset purchases.

Vonage Holdings Corp. has lost its VoIP patent case to Verizon, which has caused its stock to reach an all-time new low. A federal jury rules that Vonage has infringed on three VoIP patents owned by Verizon. Vonage has been ordered to pay $58 million in damages plus 5.5% royalties on all future sales. Shares in Vonage have fallen to a low of $4.17 in March, down from $17 in May of 2006.

This month’s OSS Newswatch shows a series of mergers and acquisitions, as well as a few new products and some newly created positions.

AT&T has appointed their first ever President of Global Operations. The position was created in an attempt to accelerate the growth of its worldwide IP service portfolio. The position will be filled by Paulino do Rego Barros Jr., former president of BellSouth’s Latin American division before the company was acquired in December by AT&T.

Also in AT&T news, the US-based company has announced that it will invest more than $750 million on Global IP network and solutions in this year alone. The company spent about half of that sum last year and seems to be aiming this year to make sure that the IP needs of its customers are taken care of.

Vancouver-based Sierra Wireless Inc. has purchased AirLink Communications for the sum of $27 million in a cash and stock deal. Sierra will pay a cash sum of $10 million and then issue 1.3 million of its own shares to AirLink owners. AirLink, which last year generated an operating profit of $3.9 million, is expected to increase Sierra’s revenue and operating profits.

The Wall Street Journal has substantiated reports that Palm Inc. is up for sale. Due to Palm’s $500 million cash value and excellent brand name, chances are it will end up being a very interesting acquisition target. Sources say that the pressure put on Palm’s core market by the soon to come Apple iPhone may be a contributing factor to the company’s possible decision to become part of a larger company.

911 Enable, a division of Connexon Telecom Inc. has recently been named to the 2007 “Pulver 100,” the IP Communications industry’s listing of privately-held growth companies that represent the future of the IP-voice and video communications ecosystem. 911 Enable’s addition to the list is due to it’s “cutting edge 911 solutions and its commitment to technological development in 911.”

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