Tue 20 May 2008
Broadweave has repeatedly hammered on the existing providers on iProvo for not owning their own phone-switching equipment. According to their statements, the breakdown in call quality and reliability comes from iProvo, the retailer and the outsourced voice provider all pointing fingers at each other. It's funny, then to hear that Broadweave currently outsources its video operations in Sienna Hills to a company called Avail Media. I wonder what happens when video problems pop up for the 20 or so customers down there?
This means that Broadweave truly has zero experience operating a video head-end or delivering a video product on their own. How will they do so for the 6,000 or so existing video customers on iProvo? The odds are certainly against them.
4 Responses to “ Broadweave’s Double-Talk on Equipment Ownership ”
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Pingback from Letter to Provo’s Municipal Council » Free UTOPIA!
June 3rd, 2008 at 8:04 am[...] preach. (See: http://www.freeutopia.org/2008/05/19/broadweaves-double-talk-on-open-networks/ and http://www.freeutopia.org/2008/05/20/broadweaves-double-talk-on-equipment-ownership/) It is even rumored that they have tax liens filed against them by the state for failure to pay [...]
May 20th, 2008 at 3:20 pm
So why didn’t Broadweave buy a full-blown head-end solution in Sienna Hills, and why can’t they afford to provide video service at Traverse Mountain? Because they spent all of their investment capital on their fancy Broadsoft switch at Traverse Mountain, and there’s no money left to purchase a video solution.
Seems to me that the providers who are investing incrementally as their customer base grows are the smart ones. Outsource while you’re small, and take the big plunge only when you can justify the return from your current revenues.
Once again, Broadweave’s strategy is making little sense. Acting like a big fish doesn’t make you one.
May 20th, 2008 at 4:05 pm
thats a pretty big assumption that they will have 6,000 iprovo customers after the sale ………
May 20th, 2008 at 5:06 pm
There is a lot Broadweave hasn’t done. The key to their success is to hire iProvo employees who know how to do this stuff. If they can’t keep the right people around their bacon is fried.