October 2009

Despite significant declines, many small independent telcos are still heavily dependent on access revenues, which they collect from other carriers for connecting calls to and from their customers. This was one of several key findings of a recent study of independent telcos conducted by the Telergee Alliance, a network of seven certified public accounting firms with telecom specialties. For calendar year 2008, the median percentage of total operating revenues comprised of interstate access revenues was 36.6% for the 196 respondents, while intrastate access comprised a median 11.1% of total operating revenues. These high values were particularly surprising, considering that interstate access revenues declined a median of 1.3% between 2007 and 2008, and that intrastate revenues declined a median of 7% during that period. The decline in access revenues was partially a result of fewer access minutes. Interstate access minutes declined a median of 7.7%, while intrastate access minutes declined a median of 10.8%, the study found.

A new survey gauging the vulnerability of companies to cyberattack shows that most believe some sort of attack is inevitable. Cybersecurity provider Solera Networks has recently completed a network forensics survey that looks at what a lot of companies have done, and are in the process of doing, to head off cyberattacks. Here is a breakdown of the numbers: -More than 85 percent have had a major network incident in the past 36 months or expect to have one in the coming 36 months -Nearly half say that when an attack occurs, it can take 2 to 10 or more days to determine the full scope of the incident -92 percent believe that it is important to have network forensics capabilities that can capture and record all network traffic, however, only 28 percent were very familiar with network forensic solutions -24 percent don't have an effective incident response plan in place.

Tens of millions of U.S. computers are loaded with scam security software that their owners may have paid for but which only makes the machines more vulnerable, according to a new Symantec report on cybercrime. Cyberthieves are increasingly planting fake security alerts that pop up when computer users access a legitimate website. The "alert" warns them of a virus and offers security software, sometimes for free and sometimes for a fee. "Lots of times, in fact they're a conduit for attackers to take over your machine," said Vincent Weafer, Symantec's vice president for security response

A case can be made just a month into the new TV season that the Big 4 networks are not taking enough strategic risk to ameliorate the continuing erosion of ad revenues, audiences and content economics. Indeed, all four broadcast networks are missing a major economic opportunity to experiment more online and in wireless mobile with creative and financial models that will define their future. The $2 billion less in upfront advertiser spending (nearly one-quarter of the broadcast networks' prior year's take) was not only a byproduct of the recession. It also signals the steady shift of dollars to digital and advertisers' reluctance to automatically invest it all in broadcast TV. Broadcast network revenues and the ratings estimates have become so anemic that the risk of trying something different can only bring improvement. Here are strategic risks the broadcast networks should take: 1) Create interactive connections between select advertisers and their target consumers. Broadcasters can charge a facilitation fee, rather than slapping TV commercials online. 2) Selectively charge consumers to download popular TV episodes from Hulu. 3) Build social-networking elements into Hulu using Twitter and Facebook. 4) Launch other new low-cost, innovative content in prime time. "American Idol" works thanks to real intrigue around real people. 5) Use prime-time TV as a creative platform to introduce and develop new content that can morph into paid shows online. 6) Work with major cable operators to minimize the damage their TV Everywhere experiment in usage-based pricing is likely to have on broadcasters' free lunch video economics and consumer expectations.