AT&T, together with BellSouth and Cingular, accounted for a cumulative 11% of Time Warner Telecom's total revenue last year, buying wholesale capacity on TWT's network to reach enterprises outside its local access territories. As those three unify, and AT&T pulls traffic from the other two carriers onto one common network, some of TWT's revenue steam will disappear. In fact, it's already begun to happen. [source]There's more to come. BellSouth internet buys transit from UUNET (fMCI now VZB) and Level(3) at each of its BMF's (BellSo Managed Facilities - what the rest of us call IP POP's). So I figure that at the least VZB will lose that revenue - and quite possibly L3. As of April 1, agents could only sell AT&T Business MIS - DOT NET ended.
Monday, May 21, 2007
Merger Hurts IXC's
The mega-merger of at&t and BellSouth resulting in 2 carriers losing some revenue. First, Qwest lost a chunk of LD resale revenue, since BethSouth Long Distance was basically Qwest resale. Then, according to Telephony, TWTC was a wholesale loop provider for at&t. In fact: