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Volume 28 : Issue 28 : "text" Format

Messages in this Issue:
  AT&T Reports Fourth-Quarter and Full-Year Results
  Verizon Reports 4Q and Full-Year 2008
  Re: GateHouse and The New York Times Co. settle dispute over Web sites 
  Total absurdity - Cell phone mandatory noise bill in HR. 
  Re: Total absurdity - Cell phone mandatory noise bill in HR.    
  Re: Total absurdity - Cell phone mandatory noise bill in HR.   
  Re: Total absurdity - Cell phone mandatory noise bill in HR.    
  Re: Staff Finds White House in the Technological Dark Ages   

====== 27 years of TELECOM Digest -- Founded August 21, 1981 ======
Telecom and VOIP (Voice over Internet Protocol) Digest for the
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and the name of our lawyer, and other stuff of interest.

Date: Wed, 28 Jan 2009 10:20:06 -0500
From: Monty Solomon <>
Subject: AT&T Reports Fourth-Quarter and Full-Year Results
Message-ID: <p06240858c5a6267a7487@[]>

AT&T Reports Fourth-Quarter and Full-Year Results Highlighted by 
Robust Wireless Data Growth, Accelerated U-verse TV Ramp, Continued 
Double-Digit Growth in IP Data Services

Dallas, Texas, January 28, 2009

  * Full-year reported EPS of $2.16, up from $1.94 for 2007; full-year 
adjusted EPS of $2.81, compared with $2.76 for 2007
  * Fourth-quarter reported EPS of $0.41 versus $0.51 for the 
year-earlier quarter; adjusted fourth-quarter EPS of $0.64 versus 
  * Fourth-quarter EPS reflects the success of AT&T's iPhone 3G 
launch. Adjusted results exclude merger-related costs and a 
previously announced force reduction charge. In addition, both 
reported and adjusted fourth-quarter 2008 earnings include $0.07 of 
pressure from the company's iPhone 3G initiative, hurricane-related 
expenses and foreign exchange impacts
  * 2.1 million fourth-quarter net gain in wireless subscribers to 
reach 77.0 million in service, up 7.0 million over the past year
  * 4.3 million iPhone 3G devices activated in the second half of 
2008, including 1.9 million in the fourth quarter. Approximately 
40 percent of iPhone activations were for customers new to AT&T. 
iPhone 3G continues to deliver high-value subscribers with 
significantly higher ARPU (average monthly revenues per subscriber) 
and lower churn than AT&T's postpaid subscriber average
  * Wireless postpaid subscriber ARPU growth of 3.9 percent versus the 
year-earlier quarter to $59.59; postpaid data ARPU up 35.7 percent 
versus the fourth quarter of 2007 and up 10.9 percent sequentially
  * 51.2 percent growth in wireless data revenues - reflecting rapid 
adoption of wireless integrated devices and increased usage of 
wireless Internet access, messaging and related services; AT&T's 
wireless integrated devices in service more than doubled over the 
past year
  * Strong ramp in AT&T U-verseSM TV subscribers, with a 
fourth-quarter net increase of 264,000, the company's best quarterly 
gain to date, to reach more than 1 million in service; U-verse 
network deployment now reaches 17 million living units
  * 14.2 percent fourth-quarter growth in wireline IP data revenues 
driven by rapid expansion in AT&T U-verse services and growth in 
business products such as Virtual Private Networks (VPNs) and managed 
Internet services

Consolidated Statements of Income

Statements of Segment Income

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Supplementary Operating and Financial Data

Reconciliation of OIBDA

Reconciliation of Free Cash Flow

Wireline Non-GAAP Consolidated Reconciliations

OIBDA and Free Cash Flow Discussions

Investor Briefing (531 kb PDF)

Slide Presentation

Financial and Operational Results


Date: Wed, 28 Jan 2009 10:21:44 -0500
From: Monty Solomon <>
Subject: Verizon Reports 4Q and Full-Year 2008
Message-ID: <p0624085ac5a6284ae122@[]>

Verizon Reports Sustained Revenue Growth and Continued Strong Cash 
Flows for 4Q and Full-Year 2008

Review Q4 2008 Financials

        Earnings Webcast

        Presentation (PDF 187 KB)

        Quarterly Bulletin (PDF 774 KB)

        Supplemental Schedule (Excel, 80 KB)

        Non-GAAP Reconciliation (Excel 79 KB)

        2006-4Q 2008 Financials
Effective January 27, 2009 (Excel, 615 KB).

4Q Results Fueled by Record Growth in FiOS Internet and TV Customers, 
Continued Strong Sales of Verizon Wireless and Strategic Business 


Consolidated Results

    * 43 cents in diluted EPS and 61 cents in adjusted EPS 
(non-GAAP), compared with 4Q 2007 diluted EPS of 37 cents reported 
and 62 cents adjusted.
    * $24.6 billion in 4Q revenues, up 3.4 percent, or adjusted 
growth (non-GAAP) of 4.6 percent.


    * 1.4 million organic (non-acquisition-related) net customer 
additions, almost all retail; 1.2 million total net customer 
additions, including a net customer loss under a previously announced 
exchange agreement related to the 3Q 2008 acquisition of Rural 
    * 72.1 million total customers; 70.0 million retail customers, up 
9.9 percent, not including customers added with the Jan. 9, 2009, 
acquisition of Alltel.
    * 12.3 percent increase in total revenues; data revenues up 41.4 
percent; ARPU growth for 11th consecutive quarter; strong 47.2 
percent EBITDA margin on service revenues (non-GAAP).


    * 303,000 net new FiOS TV customers and 282,000 net new FiOS 
Internet customers, the highest ever for the company.
    * 14.3 percent increase in consumer ARPU in legacy telecom markets.
    * 8.4 percent increase in revenues from strategic business services.


    * $2.26 in 2008 diluted EPS from continuing operations and $2.54 
in adjusted EPS, compared with 2007 earnings of $1.90 per share and 
$2.36 per share, respectively.
    * $97.4 billion in 2008 revenues, up 4.2 percent, or adjusted 
growth of 5.1 percent.
    * $26.6 billion in cash flows from operating activities; $17.2 
billion in capital expenditures.


Date: Wed, 28 Jan 2009 06:01:43 -0800 (PST)
From: "" <>
Subject: Re: GateHouse and The New York Times Co. settle dispute over Web sites 
Message-ID: <>

It will be interesting to see what happens to traffic on the Gatehouse
site with NYT no longer linking to it.

Newspapers are, of course, complaining of others, like Google, making
money off their content. But, Google and others (including Telecom
Digest) only provide enough of the story for a reader to decide
whether to read the whole thing, then provide a link to the story on
the original site. This brings traffic to the site and viewers to the
ads on the site. This should be good, but apparently web ads are
bringing in less money than comparable print ads. Advertisers consider
ads in print publications more valuable if the publication has paid
circulation, since the subscriber is less likely to throw the
publication away unread. But, does it mean the reader actually looks
at the ads? The web ad has to be considered quite a bit more valuable
since, in most cases, the advertiser pays only if a reader clicks on
the ad. This indicates considerably more interest in the ad than can
ever be demonstrated for a print ad. So, are print ads just
overpriced? Or, are web ads underpriced in that they cannot pay for a
reporting staff?

Back on web ads, the hit rate seems much higher on ads placed in
search results than ones placed in content, since the viewer is
actually looking for something similar to what the advertiser is
selling. In ads in content, this is much less likely to be the case. I
recall hearing of one content sensitive ad where an ad for luggage was
placed alongside a newspaper story about a killer who placed body
parts in suitcases.

Anyway, linking seems reasonable to me. It will be interesting to see
how this all shakes out.



Date: Wed, 28 Jan 2009 09:13:00 -0600
From: Denise Reinecke <>
Subject: Total absurdity - Cell phone mandatory noise bill in HR. 
Message-ID: <>

You guys are gonna love this one!

No, I am not making this up!

No, it's not April 1 either!


Date: Wed, 28 Jan 2009 09:48:30 -0800 (PST)
Subject: Re: Total absurdity - Cell phone mandatory noise bill in HR.    
Message-ID: <>

On Jan 28, 12:03 pm, Denise Reinecke <> wrote:

"Congress finds that children and adolescents have been exploited by
photographs taken in dressing rooms and public places with the use of
a camera phone."

Well, this is a fact, and adults are being targeted as well.

The same could apply to modern digital cameras, which are also silent
compared to film cameras which have a mechanical shutter that make a

This is a weird issue.  On the one hand, we don't like the idea of
secret picture taking, especially in private areas.  On the other
hand, serious photographers always could take pictures secretly using
telephoto lens cameras.  Further, computer mini-cams are easily

Generally, picture taking is an protected right of free speech;
restrictions apply toward how pictures are published.  In other words,
you may freely (usually) take a picture of anyone or anything in a
public place, but you may be limited on how you publish it (for
example, you can't use it for advertising purposes without the
subject's consent and you are subject to libel/slander laws).

On the other hand, existing laws already protect privacy in non-public
places or issues of a personal matter.  (If someone's bathing suit
flies off at the beach that's an private matter and you can't take a
picture of the naked person.)


Date: Wed, 28 Jan 2009 10:41:35 -0800
From: Steven Lichter <>
Subject: Re: Total absurdity - Cell phone mandatory noise bill in HR.   
Message-ID: <BF1gl.9627$>

Denise Reinecke wrote:
> You guys are gonna love this one!
> No, I am not making this up!
> No, it's not April 1 either!
How about a huge flash like the old plate cameras?

Like the Congress has nothing better to do then add stupid bills.

The Only Good Spammer is a Dead one!! Have you hunted one down today? 
(c) 2009  I Kill Spammers, Inc. A Rot In Hell Co.


Date: Wed, 28 Jan 2009 13:41:05 -0800 (PST)
Subject: Re: Total absurdity - Cell phone mandatory noise bill in HR.    
Message-ID: <>

On Jan 28, 4:26 pm, Steven Lichter <>

> How about a huge flash like the old plate cameras?

As an aside, the big flash reflectors of the past created a much
better picture since the light source was larger and not as specular.
Today's flash units are so tiny that very harsh shadows and flatness
making pictures look like a lousy ID card photo.  Those old flash
reflectors were much more powerful as well, so the photographer could
be further away from the subject.

On the other hand, dealing with disposable flashbulbs was a real
pain.  They could fail or break before use, and after use they were
very hot and uncomfortable to handle.  They could shatter on
occassion.  They were expensive.

Coming back to telecom, it took many years before both film and
electronic (video) were sensitive to utilize existing light indoors.
TV and movies used to be shot under horrendously bright--and hot--
lamps, I'm surprised actors didn't suffer high damage.

I don't know how Bell managed to make a tiny Picturephone video camera
that would work without auxillary lights, although it was intended for
relatively bright offices and the resolution and image size was
relatively low.  (Though Bell offered a special lens to allow document
transmission as well.)

Today of course both still and motion video sensors work in low light,
although high quality TV and film production still requires strong

Except for some Internet users, Picturephone service still never
caught on.  People very frequently send still or movies attached to
emails, but see-and-talk still seems more of a novelty than day to day
standard practice.  Can cell phones go to live video mode while
someone is talking on them, a la Picturephone style?  Do they make
landline telephone sets capable of that, or does someone require a
computer and Internet connection?

Video conferencing is apparently quite popular, especially as a way to
save money from travel expenses.


Date: Wed, 28 Jan 2009 10:17:03 -0800 (PST)
Subject: Re: Staff Finds White House in the Technological Dark Ages   
Message-ID: <>

On Jan 27, 4:51 pm, (Garrett Wollman) wrote:

Mr. MC and Mr. Wollman make some excellent points.

> The "early people" knew very well that they had completely ignored
> security: they did so intentionally, knowing that the network would
> only ever be accessible to a few thousand DoD-approved contractors and
> grantees.  (Many of the "early people" had spent their prior careers
> working on operating systems with significant security design
> requirements, like Multics.)  There was a fundamental principle that
> hosts were responsible for their own security, which made[1] a great
> deal of sense in a world where computers required large rooms and
> skilled full-time staff to maintain (as opposed to today, where a
> resource inversion has given the "bad guys" access to vastly more
> computational power and network resources than the "good guys").
> Nobody expected that their "walled garden" would be turned inside out.

I can understand where they're coming from, but I don't agree with
their thinking.

First, even though you mention their experience in security on earlier
systems, I still think the designers consciously chose a very open
architecture for flexibility in connections and freedom to
communicate.  Hacking for malicious reasons is not new, kids were
doing it in 1968, probably earlier.  Likewise for hacking for
intellectual reasons, which could also damage machines and service.

Secondly, protection against malicious end users isn't enough.
Anything and everything that is input into a computer has to be edited
for validity to ensure the data accidently or intentionally causes a
program to crash (e.g. a "data exception" on IBM machines) or to
compromise memory on any machine that has multiple programs or users
on it.  This protection is a must for transmissions from a remote
network, if nothing else, to ensure the data stream is valid and
doesn't crash the network controllers themselves.  This could be from
merely communication line static, certainly a common problem in the
1960s.  But there is no guarantee that programmers on remote computers
are properly sending data and control streams to another.

Today we have the problem of hackers seizing control of unprotected
servers and hijacking them for their own maliscious use.  This could
easily be an unintentional problem from sloppy communications
programming and the network should've had protections for it.  Also,
flooding a target machine ("denial of service" attack) could've been
done very easily by accident (an "infinite loop" bug in a program) in
the past, and there should've been protections against that.

In short, by the 1960s, computer people had enough experience of
common programming bugs that 'firewalls' should've been part of the
very basic design of networking, especially in the days when computer
cycles were costly and limited, you obviously didn't want a remote
machine sucking out the power of your machine through a flood of
erroneous requests.

What is sad is that when mini and personal computers replaced the big
mainframes as connection points, the old protections of the mainframe
were forgotten or ignored.  Part of this was intentional since one
attraction of the new small boxes was the low overhead--simple
operating systems without the cumbersome software maintenance and
controls required by the big boxes.  Users no longer had to navigate
their way through policy manuals and snooty human gate keepers to get
computer time.  Also, many of these users were "free thinkers" opposed
to controls.

Also sad is that the Internet developed first, then people woke up and
realized the mainframe's overhead wasn't such a bad idea after all.
Today we have firewalls and the same bureaucracy to protect our mini's
and PCs, except it doesn't work as well since it was added after the
fact rather than designed in in the first place.

[public replies, please]


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