Heavy Reading in the News
Since our inception in 2003, Heavy Reading has built a solid reputation as a provider of impartial analysis and informed market research. While our focus is exclusively on providing telecommunications professionals with the hard data and competitive analysis they need to make critical technology decisions, sometimes our findings are so striking that the media cannot fail to take notice. Following are some examples of Heavy Reading's appearances in the news:
* * * * *
Wondering what people are saying about Light Reading?
* * * * *
BusinessWeek, July 24, 2008"The companies that manage those massive, coast-to-coast broadband networks which deliver a host of communications services may soon tap vast storehouses of data on our network use to — you guessed it — serve up personalized ads. Many providers of high-speed Internet access also sell TV and wireless services. By placing ads via broadband as well, they'd become 'triple-play advertisers,' says Aditya Kishore, senior analyst at consultancy Heavy Reading. 'There's a lot of interest in that.' "
Atlanta Journal-Constitution, June 4, 2008"The sale of the Weather Channel is drawing closer, with the bidders down to two media giants. Time Warner, parent of Atlanta-based Turner Broadcasting System, and NBC Universal are the leading contenders, according to sources close to the deal. Landmark Communications put the Atlanta-based cable network up for sale last year.
"...'It makes a lot of sense for NBC,' said Alan Breznick, an analyst at Heavy Reading, a technology and media research firm. 'NBC already had a weather operation. It goes together with their information news channels.' "
Atlanta Journal-Constitution, March 25, 2008"Adding an HD feed should make the network [the Weather Channel] more valuable, said Alan Breznick, an analyst at Heavy Reading, a technology and media research firm. It's also more expensive to produce a show in HD. 'They are taking on the major expense of doing it now,' Breznick said. 'It's like fixing up the kitchen before selling the house.'
"...'High definition is become more and more the norm: The networks have gone that way, the sports networks have gone that way already, the movie networks have already gone that way,' Breznick said. 'I am surprised that the Weather Channel hasn't already done that.' "
Associated Press, May 22, 2008"Graham Finnie, chief analyst for the telecom research firm Heavy Reading, believes 13 percent of U.S. households will be connected to fiber by 2012. Since Verizon is the major builder, the vast majority of those will be in Verizon territory on the East Coast, Texas and California. 'That does beg the question: What happens to everyone else? There's going to be a huge community of people who are not getting FTTH in the next five years,' Finnie said.
"Not only are U.S. regions going to differ tremendously in how fast they get fiber, the differences between countries will also be huge. Apart from South Korea, Finnie cited Japan, Taiwan, Hong Kong and Sweden as other front-runners. He estimates that almost half of all Swedish households would have fiber by 2012, for instance. 'This is not a market where there's a smooth progression across countries and regions — it's going to be extremely variable,' said Finnie.
"Considered as a whole, the U.S. will be 'middling' in the international comparison, trailing the pioneers but well ahead of other developed nations like Finnie's home country, Britain, which he estimates will have 3 to 4 percent fiber-connected homes in 2012. The fiber buildout is going to take more time and be more patchy than the introduction of broadband because it's so much more expensive, Finnie said."
BusinessWeek, January 28, 2008"Comcast will be installing new equipment at subscribers' homes and in its network that adheres to a new standard called Docsis 3.0. 'I don't think it trumps fiber to the home but it keeps cable in the competition,' says Alan Breznick, senior analyst at telecom consulting firm Heavy Reading."
BusinessWeek, August 20, 2007"Companies have yet to release subscriber numbers for Pivot, which in some markets has been available for about half a year. But Alan Breznick, an analyst with consultancy Heavy Reading, estimates Pivot has picked up a meager 10,000 to 20,000 customers."
BusinessWeek, July 18, 2007" 'I'd assume that sooner or later the same thing [that happened to SunRocket] will happen to Vonage,' says Alan Breznick, a senior analyst at Heavy Reading, an industry consulting firm. Breznick notes that independent VOIP providers face mounting competition from cable TV companies such as Time Warner and Comcast, whose bundles of video, voice, and broadband Internet services are gaining traction. 'People who sign up for multiple services from a cable company very rarely leave,' says Breznick."
USA Today, October 18, 2006"Holding things up, says Rick Thompson, an analyst at Heavy Reading, is the ornery nature of the cutting-edge IPTV technology. He says nobody doubts that AT&T can make IPTV work, but it requires getting a circus of hardware and software — all of it brand new — to work together seamlessly.
"The largest IPTV deployment in the world, he notes, is in Hong Kong, where PCCW, a local broadband carrier, claims 650,000 users — about half the population of San Antonio. Thompson's point: Nobody knows for sure how the technology will hold up under the strain of millions of simultaneous users.
"...Nagging concerns about IPTV figured into Verizon's decision to go the costlier route of replacing all the copper and running high-capacity fiber all the way to the home, Thompson says. That allows Verizon to use a more traditional, more cable-like design to deliver video, making the system relatively easy to manage."
Red Herring, August 25, 2006"Nokia and Siemens on Friday announced the names of those who will head their merged unit, Nokia Siemens Networks... 'Nokia is the acquiring partner, and their management is retaining the upper hand here, that is quite clear,' said Patrick Donegan, senior analyst at Heavy Reading... 'Headcount reductions Siemens announced were small, not substantial. So it leaves open to question as to how they are going to be able to sustain profitability with that. I don't think it's obvious one way or another,' Mr. Donegan said."
EE Times, July 17, 2006"The 2.5-GHz band is set to be made available [in Europe for WiMax applications]... 'At the moment, that lower band [2.5 GHz] is explicitly reserved for W-CDMA, although the U.K. and Sweden are leading discussions at the European Union level to allow that spectrum to be opened to technology-neutral licensing,' said Patrick Donegan, senior analyst at Heavy Reading... 'When all is said and done, it is going to be WiMax infrastructure and terminal vendors that have to build and optimize that network together with integrated applications,' Donegan said. 'Anything that others in the value chain have to say about commercial launches is almost immaterial.' "
CNET News.com, June 13, 2006"After years of hype, HDTV, with its enhanced picture quality and superior sound, is finally becoming a reality... 'There's been a lot of talk about integrating all kinds of interactive features into TV,' said Rick Thompson, a senior analyst at Heavy Reading, an industry analyst group based in New York City. 'But in the short term, the biggest differentiator will be who has the best content package, and part of that will be how much HDTV you have.' "
CNET News.com, June 5, 2006"While the industry has been hyping IPTV for years, the technology will soon get its prime-time debut in the U.S.... 'IPTV is moving out of trials, and the basic viability of the technology has been proven,' said Rick Thompson, senior analyst at Heavy Reading. 'Now it's time to look at how well the service is performing and enabling new features to enhance the quality of the services.'
"...One of the biggest challenges for AT&T and other carriers will be having enough bandwidth available to deliver high-definition channels. HDTV eats up big chunks of bandwidth... 'Using MPEG-2 for HDTV pretty much blows all of AT&T's bandwidth budget,' said Heavy Reading's Thompson. 'And that's just for one channel. Most households in the U.S. have multiple TVs.' "
New York Times, March 24, 2006"Given Siemens' strength in Europe and Nortel's significant position in North America, 'there's a compelling logic for joining Siemens and Nortel,' said Scott Clavenna, the Boston-based chief analyst with the telecommunications equipment research firm Heavy Reading.
...But there are other companies that may want Nortel or Siemens for reasons of their own. The narrowly focused wireless-network products from Nokia, which has the financial ability to make a significant acquisition, and Motorola are likely to become less attractive as carriers move to single network systems. Eventually, said Patrick Donegan, Heavy Reading's wireless equipment analyst based in London, both Nokia and Motorola will have to leave the wireless infrastructure market or expand into the broader networking equipment business as the boundaries between wireless and wireline networks vanish.
'If Nokia or Motorola decide to step forward, what better way to do is there than with Siemens or Nortel?' Mr. Donegan said.
...[W]hile established firms like Nortel have technologies that may be of use to Cisco, few foresee interest from Cisco in acquiring a major company. 'It wouldn't open many doors for either party,' said Mr. Clavenna of Heavy Reading. 'And Nortel is encumbered with too much baggage.' "
Investor's Business Daily, March 24, 2006"A telecom equipment industry that already was rising got a shot in the arm Friday with confirmation that Alcatel and Lucent are discussing a potential merger... 'If this happens, it could trigger an inevitable consolidation among major vendors,' said Patrick Donegan, an analyst with U.K.-based research firm Heavy Reading.
...Donegan said a merger would be 'highly complementary.' Together, the firms would have a strong portfolio of products that work with the two most popular wireless technologies, he says. Alcatel is strong in GSM (global systems for mobile communications), which is the standard in Europe and parts of Asia and the U.S. Lucent is a leader in CDMA (code division multiple access), widely used in the U.S. and parts of Asia.
Neither firm has staked a solid claim in emerging third-generation, or 3G, wireless, says Donegan. 'The largest part of the global market going forward will be wideband CDMA (a 3G technology) and neither company is well positioned for that,' Donegan said. 'Coming together at this stage is potentially good for them long term.' "
The Santa Rosa Press Democrat, October 3, 2005
" 'Mahi, in effect, doesn't exist at all anymore,' said Scott Clavenna, a Boston-based analyst with the technology research company Heavy Reading....
"Meriton will acquire the Mi7 switch assets, but it is unclear how the technology will be used by the new company... Clavenna doubts it will be used at all. 'The Mi7 was a failure,' he said.
"The problem was the company 'bit off more than they could chew' by spending too much time developing a switch that tried to do everything, Clavenna said.
"This time lag allowed rivals like Ciena to take market share from the company. 'Ciena had such a corner on the market that the leftovers were just really tiny,' Clavenna said.
"The company's Mi7 switch hit the market in 2003, but sales were poor, Clavenna said. He estimates the company sold fewer than a dozen units, and few, if any, are being used by the major telecommunications carriers the company targeted, he said.
"The company also failed to recognize how difficult it would be to integrate its technology into existing telecommunications networks, he said. Competitors' switches were often preferred because of their simplicity and ease of integration, he said.
" 'The last time I saw it (the Mi7), it worked like a charm,' Clavenna said. 'It was just too late to the dance.' "
The Register, September 23, 2005
"...A separate piece of research claims that the world's largest telcos are increasingly hopping on the VOIP bandwagon. The main reason is the fear of losing punters and seeing a drop in revenues, according to research from Heavy Reading. More than 170 telcos, including BT, AT&T and Verizon, were quizzed as part of the research, which predicts a surge in VOIP traffic over the next two years. 'The single biggest reason for deploying VOIP is fear that traffic would otherwise migrate to competitors' networks,' said Graham Finnie, a senior analyst at Heavy Reading."
Dayton Daily News, September 11, 2005
"The [IPTV] deployment will be a challenge for telephone companies, said Rick Thompson, an analyst with Heavy Reading, a New York-based market research organization. Although some small telephone companies have begun offering IPTV to limited numbers of customers, it is still a new venture for the U.S. telecommunications industry and there will be problems to be worked out before large-scale deployment is practical, Thompson said."
Tekrati, August 25, 2005
"United Business Media (UBM) announced on 18 August 2005 that it acquired three businesses in line with its strategy of adding bolt-on complementary multimedia assets to its existing industry verticals. The businesses acquired include Heavy Reading's parent company, Light Reading Inc., for $27 million. [...]
"Light Reading provides a wide range of high-value information products and services to professionals responsible for building, deploying, managing and financing communications and enterprise networks. Its business comprises five market-leading online Websites, including: Light Reading, among the world's largest online telecommunications publications, with boasting rights of more than 400,000 unique users; Heavy Reading, a dedicated market research organization that has established a highly favorable reputation among Tekrati telecom/networking readers; a Web-based seminars business; a series of live events; and other related products."
Revolution Magazine, August 22, 2005
"United Business Media has bought online research, publishing and events company Light Reading for $27m (£15m), just months after it sold its research arm NOP World. [...] This includes heavyreading.com, a market research repository offering quantitative analysis and reports on telecommunications technology. The company will operate under UBM's CMP Media division."
Mr. Web, August 19, 2005
"United Business Media, former owner of NOP World, has acquired Light Reading Inc., a market research, events and publishing company for the telecoms industry. Light Reading will be an autonomous business unit within CMP Media, a division of UBM.
"Light Reading, which was launched in 2000, provides research and advisory services via its MR [market research] company Heavy Reading, as well as producing online publications, web- based seminars (webinars) and live events. The company hopes that CMP's strong position in the business market will help Light Reading further expand its reach."
USA Today, June 7, 2005
"Rick Thompson, an analyst at Heavy Reading, a market research firm, says [SBC's commercial launch of IPTV] could take even longer [than the end of 2006]. 'It's possible they might roll out in '06, but what that means to me is a few hundred or a few thousand in select markets, but realistically I expect '07 to '08 to be the service phase.' "
CFO Asia, May 2005
"The latest market study by U.S. research firm Heavy Reading shows how far Huawei has gone. In the 2003 survey of more than 100 wireline network operators worldwide, Huawei ranked number 18. In the survey conducted late last year, the company ranked number eight 'mainly on the strength of its growing visibility in the European market,' notes the report. Nine of ten respondents who had bought Huawei gear named it a price leader. 'But Huawei is beginning to be seen as more than a source of cheap goods,' says Dennis Mendyk, managing director of Heavy Reading. He notes that Huawei's overall rating for service and support is higher than incumbents like Marconi, Fujitsu, and Tellabs."
The National Post (Canada), May 25, 2005
"Scott Clavenna, chief analyst with research firm Heavy Reading, said Tropic has to beef up operations and prove its technology with potential customers. 'They have to be in a strong financial position to compete,' he said... Mr. Clavenna said there is a good chance Alcatel could buy Tropic if it believes the market has strong growth potential."
Pittsburgh Tribune-Review, May 17, 2005
"The low sale price [to ECI] indicates that Laurel was playing with a weak hand in negotiations, said Rick Thompson, a telecommunications industry analyst with research firm Heavy Reading. The price is about $20 million less than the $108 million pumped into six-year-old Laurel by venture capitalists and by Ciena Corp., another networking company. 'I was surprised at the number. I thought $100 million would be the low end,' Thompson said."
The National Post (Canada), May 3, 2005
"Meriton Networks Inc... won a key part of a US$19-billion contract with BT Group PLC over Nortel and other large telecom equipment suppliers. 'It is a serendipitous moment in the company's history,' said Scott Clavenna, an analyst with telecom market researcher Heavy Reading in Boston. 'This deal puts them on the map and puts competing vendors on alert.'
...Success wasn't always a foregone conclusion for Meriton... 'The market [for optical equipment] collapsed as soon as they got off the ground,' said Mr. Clavenna. 'There was a time where Meriton looked like it would be swept away.' Mr. Clavenna said the company survived by showcasing its technology to the right people and using its resources wisely."
Om Malik on Broadband, April 15, 2005
"The key driver of the sales many feel is going to be convergence and rollout of IPTV in many parts of the world including United States, says Rick Thompson, analyst with research firm Heavy Reading. He points out companies like Force 10 Networks and Foundry Networks are seeing a sharp increased in demand from ISPs and carriers for their 10G switches, because they are trying to circle their IP core routers with these switches, which are cheaper and easier to manage.
" 'Core IP networks and routers have been shrouded in lot of mystery and magic,' says Thompson. 'Ethernet is relatively simple and as a result you can have a simpler network. Ethernet... that's an interesting trend.' Metcalfe couldn't have said it better."
American Public Media's Marketplace, April 1, 2005
Heavy Reading "Analyst Stan Hubbard says Qwest has spent a lot of money upgrading its infrastructure -- now all it needs is MCI's customers. 'They need to get users. They need a lot more traffic on their network.' "
The Economist, March 3, 2005
"Last week came evidence that Huawei can compete on more than just price. A report based on a survey of over 100 telecoms operators worldwide, carried out by Heavy Reading, a market-research firm, found that Huawei ranked eighth among wireline-equipment suppliers, up from 18th last year. (Cisco came top.) Most strikingly, Huawei ranked fourth in service and support. The report calls Huawei's ascendancy 'astounding' and says it has already surpassed several incumbent vendors in perceived market leadership."
Austin American-Statesman (registration required), February 21, 2005
"[Broadwing] also announced it is expanding network capabilities by installing flexible routing equipment that can handle traffic in a variety of digital forms including the same Ethernet traffic in local computer networks... Heavy Reading analyst Stan Hubbard says the service gives Broadwing a capability that few rivals can match."
Daily Wireless, January 26, 2005
"Light Reading's first ever show about WiMax, called 'WiMax: Why Now?' attracted some 200-plus attendees in New York.
"Fixed and mobile wireless products were exhibited and presentations were made. Unstrung's WiMax Guide is the best overview I've seen on the technology.
"The all-day show was held last Thursday at the Union Square W Hotel in Manhattan. Heavy Reading analyst Rick Thompson hosted the event, which included demonstrations and speakers from Navini Networks, SR Telecom and Stratex Networks."
Computer Zeitung, December 2004
"The coming years will be shaped by the standardization of fixed-network and mobile radio services, the analysts of Heavy Reading prognosticate… According to a study by market research firm Heavy Reading, FMC [fixed/mobile convergence] will begin to make the transition from theory to practice between 2006 to 2007. The unification of network components begins in the core network, according to Graham Finnie, author of the Heavy Reading study."
Network IT Week, December 10, 2004
"Global telecoms operators have stepped up efforts to eliminate the barriers between wireless and wired phone services, according to a newly released study. The research, conducted by Heavy Reading, predicts that the next three years will define the way that fixed-mobile convergence will take root in the world's telecoms networks.
"Graham Finnie, Heavy Reading senior analyst and author of the report, said: 'Vendors and service providers have consistently targeted 2006-07 as the period in which fixed-mobile convergence will make the transition from theory to reality. This means that the time to prepare is already at hand.' "
The New York Times, September 13, 2004
"...[S]ome argue that the new competition from companies like Huawei Technologies is a much more significant threat to established equipment makers than messy accounting or depressed share prices.
"...'It's very analogous to what happened in the electronics industry in the 1950's and 60's with the competition from Japan,' said Dennis Mendyk, managing director of Heavy Reading, a telecommunications market research firm in New York. 'It's not good news if you're an incumbent vendor in the West.'
"...Initially, Chinese exporters concentrated on becoming low-cost suppliers of products like optical networking equipment. But a study by Heavy Reading found they are increasingly moving into new product areas that Nortel and its competitors have marked for growth."
"According to Heavy Reading, Huawei, UTStarcom, and ZTE have all sold voice-over-Internet equipment to telecommunications service providers in Europe and North America. 'Anyone who thinks these companies will just produce cheap garbage is mistaken,' Mr. Mendyk said. 'They have a strategy of competing on price first and then following up by demonstrating quality and innovation.' "
xchange, Sept. 1, 2004
"Optical-electrical-optical conversions, or OEOs, as they are called, earned their bad rep for being expensive. Scott Clavenna, chief analyst for research firm Heavy Reading, explains: 'The driving force of all those optical innovations from 1998 until now was based on the assumption that when you stopped and did an electronic regeneration, you were spending a lot more money per bit than you would if you could push the photons along in an optical domain.' "
LANline, Germany, September 2004
"According to the study '2004 Enterprise User Survey on Ethernet Services,' by the American analyst house Heavy Reading, enterprises are growing ever more enthusiastic about Ethernet services – particularly with an eye towards reducing costs.
"...With 66 percent of respondents coming from the U.S., the study is rather tilted toward the American perspective, though ten percent of the participants were from Europe. According to Dennis Mendyk, Heavy Reading's Managing Director… some particular characteristics of the European market nevertheless turned up: 'European users have higher expectations for the cost-efficiency that Ethernet services supply,' said Mendyk.
"...In addition, the old continent is risk-averse: 'European enterprises generally regard Ethernet services as a rather significant risk in areas such as network and application security,' Mendyk says.
"...Nevertheless, Europeans are ready to pay a bit more for stronger quality assurances: 'European enterprises are somewhat more willing to pay for service-quality guarantees,' said Mendyk."
LANline, Germany, March 2004
"In a bitterly critical commentary, however, Dennis Mendyk, Managing Editor of the analyst organization Heavy Reading, calls Juniper's readiness to pay such an exorbitant sum an unmistakable sign of desperation. The speculation is: Juniper is convinced by now that it cannot compete seriously with Cisco without taking a daring step into the enterprise market, according to Mendyk. Using $4 billion worth of stock to buy a $300 million concern such as NetScreen is clearly such a daring step."
McDonald Report, by Jo Ann McDonald, Editor of CompoundSemi News, September 4, 2003: "Gluttons for Punishment Will Love Heavy Reading"
Jo Ann's praise is too effusive to reprint in full, but here are a few highlights: "Everyone in the telecom sector by now knows, and likely routinely reads, Light Reading. I certainly do. Primarily because they have way more editorial staff than we do, they're obviously well-connected with their huge core, and, well, they seem to be a fun bunch of people... Dealing with Light Reading often becomes a very personal activity. I like them. But they're not just 'Light' anymore. Light Reading has launched a new analyst service called Heavy Reading, and they've put Scott Clavenna in charge... Keep up the great work, guys (and gals). We need you, we read you."