No Author (6.12.2007)
http://www.teleclick.ca/2007/06/embarq-keeps-an-eye-out-for-rural-telecom-acquisition-targets/
Embarq looking to advance their competitive position
Regional telephone provider, Embarq Corp., is positioning itself to acquire smaller competitors in the months and years to come, as the telecommunications sector continues to consolidate.
Buying up small rural phone carriers would help Embarq to slash costs and increase efficiency, said the company’s CEO, Daniel Hesse, in an interview late last week.
“Today you have roughly 800 local exchange carriers in the U.S., and we’re competing with much larger competitors — the wireless companies, the cable companies,” Hesse said. He acknowledging, however, that Embarq had yet to find any specific deals where cost benefits outweighed the likely premiums.
“We’re very well positioned to be an acquirer,” he explained, “but in today’s market, a lot of the prices are too high. And we have a very disciplined approach to looking at acquisitions.”
Embarq — which was spun off by wireless giant, Sprint Nextel in May 2006 — has experienced significant growth in the past year, with its stock price rising over 20% since debuting on the market. Hesse believes that a further increase in value could help his company put together an attractive acquisition proposal.
“The stock has moved up a lot in the past year, not only in absolute terms but relative to the industry. If we continue to perform that well, then all of a sudden our equity can become a currency,” the CEO said, referring to the possibility of an all-stock deal.
Embarq offers local, long distance, and broadband internet services in 18 states, primarily in rural areas, and faces strong competition from major cable and wireless providers.
Tuesday, June 12, 2007
Tuesday, June 5, 2007
Telcos Enter The Video Village
Sean Buckley (5. 29. 07)
http://www.telecommagazine.com/newsglobe/article.asp?HH_ID=AR_3210
Success Is Predicated On Consistent User Experience
Whether the video signal comes into the home over fiber, DSL, or hybrid coax/fiber, video delivery poses a number of technical and business challenges for telcos entering the video village.
One independent service provider perhaps summed up the challenge of delivering IPTV the best during last year’s TelcoTV conference: “Video is hard; it’s very hard and the first six months are terrible,” said Mike Knoll, CTO for Greenfield, Ind-based Hancock Telephone (see Hancock Telephone Takes on Video).
Hancock Telephone’s experience is far unusual. For one, the telco not only faces the challenge of delivering a better service than cable, but they also have to deal with acquiring content and building a profitable video service. On the technical side, the challenges are just as fierce. Telcos are faced with a dizzying array of network technologies to integrate, in addition to a diversity of home wiring environments to deliver video in a home and ensuring proper quality of experience (QoE).
Still, with cable operators eating away at the service providers’ cash cow voice service revenues, telcos are moving fast on the IPTV challenge.
In the U.S., all eyes are upon the two largest carriers’ IPTV efforts: AT&T and Verizon. Taking a walk before they run approach to IPTV, Verizon—clearly one of the most aggressive FTTP (fiber to the premise) advocates—is using an RF overlay architecture for its FiOS TV service, while putting in place the hooks to get to IPTV when ready.
Thus far, Verizon’s bet is paying off. In Q1 07, Verizon added 141,000 new FiOS customers. Ok, so an RF overlay might not be as exciting as IPTV, it does give Verizon a running start.
While AT&T has taken on more of a conservative approach to its access network choice--using FTTC/FTTN with VDSL2 bonding in existing markets and FTTP in Greenfield builds--Ma Bell plans to have the service available in 30 additional markets by the end of this year.
IPTV is not just for the big boys, though. Along with Hancock Telephone, VA-based NTELOS, an integrated ICP that’s using GPON-based FTTP, will launch its IPTV service later this year. While NTELOS might not be the size of an AT&T, the threat of Comcast coming into their RLEC territories drove it to move to launch new services such as IPTV and SIP-based voice services (see NTELOS’ Common Service Platform). If one thing’s for sure, the consumer appetite for TV is insatiable and users won’t tolerate any service degradation. At a time when the cable operators are set on delivering a quad play service package, not to mention IP-based video, a new telco video customer could become a former customer if they can’t deliver a consistent user experience.
http://www.telecommagazine.com/newsglobe/article.asp?HH_ID=AR_3210
Success Is Predicated On Consistent User Experience
While IPTV is certainly a compelling method to deliver a full set of interactive content services to end users, the market is still relatively nascent. According to Infonetics Research, there were only 7 million IPTV subscribers worldwide in 2006, but that number is growing quickly and will jump to nearly 48 million by 2010, says the analyst firm.
Whether the video signal comes into the home over fiber, DSL, or hybrid coax/fiber, video delivery poses a number of technical and business challenges for telcos entering the video village.
One independent service provider perhaps summed up the challenge of delivering IPTV the best during last year’s TelcoTV conference: “Video is hard; it’s very hard and the first six months are terrible,” said Mike Knoll, CTO for Greenfield, Ind-based Hancock Telephone (see Hancock Telephone Takes on Video).
Hancock Telephone’s experience is far unusual. For one, the telco not only faces the challenge of delivering a better service than cable, but they also have to deal with acquiring content and building a profitable video service. On the technical side, the challenges are just as fierce. Telcos are faced with a dizzying array of network technologies to integrate, in addition to a diversity of home wiring environments to deliver video in a home and ensuring proper quality of experience (QoE).
Still, with cable operators eating away at the service providers’ cash cow voice service revenues, telcos are moving fast on the IPTV challenge.
In the U.S., all eyes are upon the two largest carriers’ IPTV efforts: AT&T and Verizon. Taking a walk before they run approach to IPTV, Verizon—clearly one of the most aggressive FTTP (fiber to the premise) advocates—is using an RF overlay architecture for its FiOS TV service, while putting in place the hooks to get to IPTV when ready.
Thus far, Verizon’s bet is paying off. In Q1 07, Verizon added 141,000 new FiOS customers. Ok, so an RF overlay might not be as exciting as IPTV, it does give Verizon a running start.
While AT&T has taken on more of a conservative approach to its access network choice--using FTTC/FTTN with VDSL2 bonding in existing markets and FTTP in Greenfield builds--Ma Bell plans to have the service available in 30 additional markets by the end of this year.
IPTV is not just for the big boys, though. Along with Hancock Telephone, VA-based NTELOS, an integrated ICP that’s using GPON-based FTTP, will launch its IPTV service later this year. While NTELOS might not be the size of an AT&T, the threat of Comcast coming into their RLEC territories drove it to move to launch new services such as IPTV and SIP-based voice services (see NTELOS’ Common Service Platform). If one thing’s for sure, the consumer appetite for TV is insatiable and users won’t tolerate any service degradation. At a time when the cable operators are set on delivering a quad play service package, not to mention IP-based video, a new telco video customer could become a former customer if they can’t deliver a consistent user experience.
Broadband Subscriber Base to Double by 2011
Broadband subscribers to double over the next 5 years.
The number of broadband subscribers worldwide will nearly double over the next five years to more than half a billion, according to research analysis firm In-Stat.
About 65 million new subscribers signed up in the past 12 months, bringing the total to 285 million, In-Stat said. By 2011, the total will be 567 million.
By that time, 58% of all broadband connections will be delivered via DSL, In-Stat said. Nearly 10% will be delivered via fiber-to-the-home.
Today, however, about 92% of broadband connections come through either DSL or cable.
Wednesday, March 21, 2007
Court Backs FCC on VoIP Regulation
Ted Hearn (3.21.07)
http://www.multichannel.com/article/CA6426491.html
The court backs FCC in keeping telecommunications laws from applying to VoIP providers.
A three-judge panel of the U.S. Court of Appeals for the Eighth Circuit Wednesday upheld Federal Communications Commission rules that banned states from applying their telecommunications laws to a class of voice-over-Internet-protocol providers, such as Vonage Holdings.
The court concluded that the FCC acted reasonably in pre-empting state regulation and that the agency could assert its jurisdiction without first having to determine whether VoIP is an information service or a telecommunications service as those terms are defined in federal law.
The FCC’s rules were adopted in late 2004 under former FCC chairman Michael Powell, who wanted to shield nascent VoIP providers from complex and inconsistent state regulation. Minnesota’s effort to regulate Vonage triggered Powell’s moves at the FCC.
There is still a question about whether IP video should be treated as a traditional cable service subject to local franchising authority or whether it’s not a service subject to Title VI in the same way that voice-over-IP isn’t traditional telecommunications subject to all of the [common-carrier] regulations,” Martin told a telecommunications forum.
http://www.multichannel.com/article/CA6426491.html
The court backs FCC in keeping telecommunications laws from applying to VoIP providers.
A three-judge panel of the U.S. Court of Appeals for the Eighth Circuit Wednesday upheld Federal Communications Commission rules that banned states from applying their telecommunications laws to a class of voice-over-Internet-protocol providers, such as Vonage Holdings.
The court concluded that the FCC acted reasonably in pre-empting state regulation and that the agency could assert its jurisdiction without first having to determine whether VoIP is an information service or a telecommunications service as those terms are defined in federal law.
The FCC’s rules were adopted in late 2004 under former FCC chairman Michael Powell, who wanted to shield nascent VoIP providers from complex and inconsistent state regulation. Minnesota’s effort to regulate Vonage triggered Powell’s moves at the FCC.
There is still a question about whether IP video should be treated as a traditional cable service subject to local franchising authority or whether it’s not a service subject to Title VI in the same way that voice-over-IP isn’t traditional telecommunications subject to all of the [common-carrier] regulations,” Martin told a telecommunications forum.
“I think the decision [that] will come out of that [Vonage] case will be critical in trying to craft whether or not the commission’s authority to deal with all of these IP services will continue to be affirmed,” he added.
More reading:
Judges Back FCC Over Attempts To Regulate Internet Phones (Provides a nice history of the ruling)
Judges Back FCC Over Attempts To Regulate Internet Phones (Provides a nice history of the ruling)
FCC Asked To Keep Hands Off IP Video
John Eggerton (3.20.07)
http://www.broadcastingcable.com/article/CA6426258.html?display=Breaking+News
Network 2 has petitioned the FCC to stand down on IP Video regulation.
http://www.broadcastingcable.com/article/CA6426258.html?display=Breaking+News
Network 2 has petitioned the FCC to stand down on IP Video regulation.
Whether or not IPTV is left unregulated will effect the direction of television broadcasts in the future.
Internet TV company Network2 has asked the FCC to declare the commission has no authority to regulate video over the Internet.
The company has asked for an FCC ruling that its IP Video service is free of Title III regulations--broadcast regulations rooted in the scarcity argument--and Title VI regulations--multichannel video regulations rooted in the "gatekeeper" argument. Neither apply to Internet video, the company argues.
Jeff Chester, executive director of the Center for Digital Democracy, says such a ruling would be premature. "Multiplaform access rules will be needed for political speech on mobile and IPTV platforms," he says. "Rules protecting news and public affairs and advertising safeguards will be needed, including protecting children," he said.
Thursday, March 15, 2007
Ericsson: Tandberg Is Key to IPTV
Ray Le Maistre (3.9.07)
http://www.lightreading.com/document.asp?doc_id=119124&site=cdn
Ericsson is looking to purchase Tandberg Television and secure a hold in the IPTV market.
http://www.lightreading.com/document.asp?doc_id=119124&site=cdn
Ericsson is looking to purchase Tandberg Television and secure a hold in the IPTV market.
The successful acquisition of Tandberg Television would help Ericsson play catchup with some of its main telco TV rivals in terms of technology, customers, and deployment experience, says one of the executives behind the bid for the encoding systems specialist.
In addition to the high-capacity video encoding and compression systems for which it is best known, Tandberg TV also has important applications-focused technology, such as headend-based advert insertion capabilities.
Those capabilities would significantly bump up Ericsson's portfolio in terms of video-specific technology, integration experience, and reference customers, areas where Ericsson has some catching up to do.
Ericsson has also been working with its mobile handset partner, Sony Corp. , to develop IPTV user interfaces that "have the same look and feel as the Sony Playstation in terms of the look and feel for navigation. We're going to do a lot of customer research to find out exactly what consumers want."
All eligible for TV converter discount
Rachelle Youglai (3.12.07)
http://www.reuters.com/article/technologyNews/idUSN1235374420070312
Funding dollars are being allocated to keep free television free. This has implications mainly on low income families and broadcast emergency services.
All U.S. households with televisions that use analog technology will be eligible for $40 discount coupons to buy digital converter boxes, the Commerce Department said on Monday.
U.S. television stations are required to switch to only digital broadcasts by February 17, 2009. An estimated 20 million households now rely solely on free over-the-air television.
Some industry sources have estimated the price of a converter box could range between $50 to $60.
All households will be eligible to request up to two $40 coupons to be used to buy up to two digital-to-analog converter boxes until the $990 million program is exhausted. At that point, Congress could approve another $510 million for the program, but the discount coupons would be limited to households that rely on over-the-air analog TVs.
http://www.reuters.com/article/technologyNews/idUSN1235374420070312
Funding dollars are being allocated to keep free television free. This has implications mainly on low income families and broadcast emergency services.
All U.S. households with televisions that use analog technology will be eligible for $40 discount coupons to buy digital converter boxes, the Commerce Department said on Monday.
U.S. television stations are required to switch to only digital broadcasts by February 17, 2009. An estimated 20 million households now rely solely on free over-the-air television.
Some industry sources have estimated the price of a converter box could range between $50 to $60.
All households will be eligible to request up to two $40 coupons to be used to buy up to two digital-to-analog converter boxes until the $990 million program is exhausted. At that point, Congress could approve another $510 million for the program, but the discount coupons would be limited to households that rely on over-the-air analog TVs.
Wednesday, March 14, 2007
What the Verizon Verdict Means for Vonage
Olga Kharif (3.9.07)
http://www.businessweek.com/technology/content/mar2007/tc20070309_887320.htm?chan=technology_technology+index+page_today%27s+top+stories
887320.htm?chan=technology_technology+index+page_today%27s+top+stories
More on Vonage patent lawsuit, the larger implications for Vonage.
After a weeklong hearing in the U.S. District Court for the Eastern District of Virginia, a jury ruled that Vonage Holdings must pay Verizon Communications $58 million in damages and a 5.5% licensing fee per subscriber per month. Vonage's costs per line would increase by about $1.6 per subscriber, or almost 20%.
The company's stock fell 3.86%, to $4.85, an all-time low, the day the verdict was announced.
With its financial position corroded, Vonage, long rumored to be shopping around for a buyer, could finally become cheap enough for an acquisition by a cable company, or even a telco like Verizon, whose VoiceWing Web-calling service has so far failed to take off. Indeed, Verizon's 19-page complaint notes: "Vonage's expanded marketing and advertising of its infringing services threaten to shift more customers and goodwill to its business at Verizon's expense"
This decision carries huge implications for the $4.4 billion U.S. VoIP-services industry as a whole. "The message this sends to the VoIP industry is, if you build a patent portfolio, it helps you negotiate in these situations," Rabena. The number of VoIP-related lawsuits mounted by telcos and other entrenched players could rise. According to the U.S. Patent & Trademark Office, there are 2,273 patents related to VoIP, many of them belonging to telecom old-timers like Verizon, AT&T, Motorola, Broadcom, and Cisco. http://www.businessweek.com/technology/content/mar2007/tc20070309_887320.htm?chan=technology_technology+index+page_today%27s+top+stories
887320.htm?chan=technology_technology+index+page_today%27s+top+stories
More on Vonage patent lawsuit, the larger implications for Vonage.
After a weeklong hearing in the U.S. District Court for the Eastern District of Virginia, a jury ruled that Vonage Holdings must pay Verizon Communications $58 million in damages and a 5.5% licensing fee per subscriber per month. Vonage's costs per line would increase by about $1.6 per subscriber, or almost 20%.
The company's stock fell 3.86%, to $4.85, an all-time low, the day the verdict was announced.
With its financial position corroded, Vonage, long rumored to be shopping around for a buyer, could finally become cheap enough for an acquisition by a cable company, or even a telco like Verizon, whose VoiceWing Web-calling service has so far failed to take off. Indeed, Verizon's 19-page complaint notes: "Vonage's expanded marketing and advertising of its infringing services threaten to shift more customers and goodwill to its business at Verizon's expense"
And that spells more trouble ahead for small Web-calling service providers looking to retain their foothold on the market. In his closing arguments on Mar. 7, Vonage's lawyer said, "this case is about choice." Thanks to the Verizon victory and other potential legal action in the future, the choices for Vonage will be far fewer.
Vonage to pay $58 million in Verizon patent case
Marguerite Reardon
http://news.com.com/Vonage+to+pay+58+million+in+Verizon+patent+case/2100-1036_3-6165747
.html?tag=html.alert
Internet phone provider Vonage has been ordered to pay $58 million to Verizon Communications for infringing on three of the company's patents.
Vonage, which provides a service that turns broadband connections into phone lines, was found by a Virginia jury to have infringed patents that cover the technology used to connect these VoIP calls to the regular phone network, as well as some features for implementing call-waiting and voice-mail services.
The monetary damages and the ongoing royalties awarded Verizon could have a significant impact on Vonage, if it doesn't come up with a solution that doesn't infringe the patents. The Internet phone service provider has yet to turn a profit.
But the biggest risk for Vonage is that the company could also be forced to shut down its service. In addition to the damages, Verizon is asking the court for an injunction. On March 23, U.S. Judge Claude Hilton will hear arguments to decide whether Vonage's service should stop offering service until an acceptable licensing agreement can be worked out. Vonage said in a press release that it doesn't expect any interruption in service.
"Even though the damages could have been worse, the royalty fees and ongoing legal battle, will add more expenses," Moran said. "And that could impact the future profitability of the company."
http://news.com.com/Vonage+to+pay+58+million+in+Verizon+patent+case/2100-1036_3-6165747
.html?tag=html.alert
Internet phone provider Vonage has been ordered to pay $58 million to Verizon Communications for infringing on three of the company's patents.
Vonage, which provides a service that turns broadband connections into phone lines, was found by a Virginia jury to have infringed patents that cover the technology used to connect these VoIP calls to the regular phone network, as well as some features for implementing call-waiting and voice-mail services.
The monetary damages and the ongoing royalties awarded Verizon could have a significant impact on Vonage, if it doesn't come up with a solution that doesn't infringe the patents. The Internet phone service provider has yet to turn a profit.
But the biggest risk for Vonage is that the company could also be forced to shut down its service. In addition to the damages, Verizon is asking the court for an injunction. On March 23, U.S. Judge Claude Hilton will hear arguments to decide whether Vonage's service should stop offering service until an acceptable licensing agreement can be worked out. Vonage said in a press release that it doesn't expect any interruption in service.
"Even though the damages could have been worse, the royalty fees and ongoing legal battle, will add more expenses," Moran said. "And that could impact the future profitability of the company."
Wednesday, March 7, 2007
FCC rules speed telco video
Carol Wilson (3.5.07)
http://telephonyonline.com/home/news/FCC_video_rules_030507/
FCC finalized rules to speed up the local franchising process to a 90-day cap with mixed reactions.
The Federal Communications Commission today issued new rules designed to speed up the local video franchising process. The rules set a 90-day limit on the local government’s decision and prohibit extraordinary requests for deployment of hardware or for tying in of unrelated requests.
Major telecoms are excited about the news stating it will provide choices and create competition. FFC chairman Martin claims this increased competition will fight rising cable costs. Democratic Commissioner Michael Copps said the rules failed to promote genuine broadband competition and said he favored a provision which would have retained local franchise authority rights to impose specific build-out requirements and public programming.
Republican Commissioner Robert McDowell said, however, that the new policy seeks to address both sides of the issue. “This order strikes a careful balance between establishing a de-regulatory national framework to clear unnecessary regulatory underbrush, while also preserving local control over local issues,” he said.
The new rules may also face a legal challenge, either from the cable industry or groups representing local governments.
The FCC has agreed to announce within six months whether the 90-day rule will apply to incumbent cable operators that are seeking to renew their local franchises.
Further reading:
http://www.multichannel.com/article/CA6421729.html?display=Breaking+News
http://telephonyonline.com/home/news/FCC_video_rules_030507/
FCC finalized rules to speed up the local franchising process to a 90-day cap with mixed reactions.
The Federal Communications Commission today issued new rules designed to speed up the local video franchising process. The rules set a 90-day limit on the local government’s decision and prohibit extraordinary requests for deployment of hardware or for tying in of unrelated requests.
Major telecoms are excited about the news stating it will provide choices and create competition. FFC chairman Martin claims this increased competition will fight rising cable costs. Democratic Commissioner Michael Copps said the rules failed to promote genuine broadband competition and said he favored a provision which would have retained local franchise authority rights to impose specific build-out requirements and public programming.
Republican Commissioner Robert McDowell said, however, that the new policy seeks to address both sides of the issue. “This order strikes a careful balance between establishing a de-regulatory national framework to clear unnecessary regulatory underbrush, while also preserving local control over local issues,” he said.
The new rules may also face a legal challenge, either from the cable industry or groups representing local governments.
The FCC has agreed to announce within six months whether the 90-day rule will apply to incumbent cable operators that are seeking to renew their local franchises.
Further reading:
http://www.multichannel.com/article/CA6421729.html?display=Breaking+News
VoIP strives to co-exist with alarm systems
Joan Engebretson (3.5.07)
Leading alarm installing companies - ADT and Brinks Security Systems - have started making arrangements with VoIP providers to solve incompatibility issues.
Leading alarm installing companies - ADT and Brinks Security Systems - have started making arrangements with VoIP providers to solve incompatibility issues.
Current alarm systems do not work with VoIP services, forcing customers to choose one or the other. This is more evidence that companies and legislation are working to meet the demand for diverse broadband services.
About 25 million alarm systems have been installed nationwide, according to Gordon Hope, general manager of Alarmnet, a unit of security manufacturer Honeywell. Comcast, which uses VoIP for the Digital Voice service that the company offers over its cable network infrastructure, estimates that 25% of Digital Voice customers have alarm systems. Potential incompatibilities between VoIP and alarm systems are fourfold.
Issues that need addressing are: the results of a power outage, home wiring often needs updating, customer service conflicts, and network stability.
To date, ADT’s and Brinks’s acceptance of VoIP seems to be the exception, rather than the rule within the alarm industry. The NBFAA it still seeking a legislative solution, and John Chwat, NBFAA director of government relations, expects to get several provisions written into any telecom bill proposed this year. Some of these provisions—including a requirement that VoIP providers contact customers’ alarm companies if VOIP is installed--simply codify what many providers already are already doing. But another requirement—to provide 24-hour battery backup—could add substantially to the cost of VoIP service. Today, even VoIP providers that offer battery backup typically only provide it for a few hours.
FCC Clarifies VoIP-PSTN Interconnection Rules
Tom Tovar (3.7.07)
http://www.convergedigest.com/Bandwidth/newnetworksarticle.asp?ID=20786
The FCC has passed a petition that will allow CLECs to connect with ILECs.
http://www.convergedigest.com/Bandwidth/newnetworksarticle.asp?ID=20786
The FCC has passed a petition that will allow CLECs to connect with ILECs.
Opens up choice and potential for broadband voice communications.
FCC granted a petition from Time Warner petition that clarifies rules of how voice traffic can be exchanged between broadband providers and the PSTN. By granting the petition, the FCC affirmed that competitive local exchange carriers (CLECs) are entitled to interconnect with incumbent local exchange carriers (ILECs) pursuant to section 251 of the Telecommunications Act for the purpose of exchanging traffic on behalf of VoIP-based service providers.
FCC Chairman Kevin Martin stated: "Our decision will enhance consumers' choice for phone service by making clear that cable and other VoIP providers must be able to use local phone numbers and be allowed to put calls through to other phone networks."
Other noteworthy aspects of the ruling:
- It doesn't apply directly to VoIP providers, therefore not giving them their own interconnection rights, but CLECs can provide them wholesale interconnection.
- CLECs must provide number portability to VoIP providers.
Don’t Don't Apply 1968 Telecom Rule to Wireless, Says AT&T
Drew Clark (2.26.07)
http://www.drewclark.com/2007/02/dont-go-back-to-1968-telecom-rules-says.shtml
AT&T and Verizon talk about national broadband and wireless regulation while speaking at the Technology Policy Summit.
AT&T’s Senior Vice President Jim Ciconni has acknowledged a need for national broadband. “We don’t have a national broadband policy, we have never had a broadband policy, and, given the importance of competitiveness, we should have one,” said Ciconni.
However, Tom Tauke, Verizon Communications Executive Vice President countered by saying “a national broadband policy would do more harm than good." But he encouraged government-private sector collaboration to obtain more data about broadband deployment.
Tauke referred positively to KetuckyConnect, an effort to compile statistics about regional broadband deployment. The government could provide subsidies and loans for deploying broadband in rural areas that enjoy a lesser degree of broadband deployment, he said.
They also discussed wireless regulation, with Ciconni claiming that things have changed since the carterphone, saying “there are a plethora of carriers and a wide variety of devices that are available” on wireless networks, thus any rule that hearkens back to 1968 will be rejected.
http://www.drewclark.com/2007/02/dont-go-back-to-1968-telecom-rules-says.shtml
AT&T and Verizon talk about national broadband and wireless regulation while speaking at the Technology Policy Summit.
This is the beginning of a potential push toward national broadband, which if instituted would force changes in legislation, and shift the focus of municipal wireless projects.
AT&T’s Senior Vice President Jim Ciconni has acknowledged a need for national broadband. “We don’t have a national broadband policy, we have never had a broadband policy, and, given the importance of competitiveness, we should have one,” said Ciconni.
However, Tom Tauke, Verizon Communications Executive Vice President countered by saying “a national broadband policy would do more harm than good." But he encouraged government-private sector collaboration to obtain more data about broadband deployment.
Tauke referred positively to KetuckyConnect, an effort to compile statistics about regional broadband deployment. The government could provide subsidies and loans for deploying broadband in rural areas that enjoy a lesser degree of broadband deployment, he said.
They also discussed wireless regulation, with Ciconni claiming that things have changed since the carterphone, saying “there are a plethora of carriers and a wide variety of devices that are available” on wireless networks, thus any rule that hearkens back to 1968 will be rejected.
Thursday, March 1, 2007
Faster WiMax on the Way
Dan Jones (2.14.07)
http://www.unstrung.com/document.asp?doc_id=117363
Wireless at 1-Gbit/s fixed and 100-Mbit/s data transfer rates is on the way dubbed 802.16m
The Institute of Electrical and Electronics Engineers Inc. (IEEE) has started working on a new version of the 802.16 standard -- the technology that WiMax is based on -- that could push data transfer speeds up to 1 Gbit/s while maintaining backwards compatibility with existing WiMax radios.
The muscle behind 802.16m will be multiple-input/multiple-output (MIMO) antenna technology on top of an OFDM-based radio system just like the upcoming "Wave 2" mobile WiMax products being plotted by several silicon vendors. The Wave 2 profile, which is being championed by Sprint Nextel Corp. is expected to achieve mobile speeds of around 5 Mbit/s by using a two-by-two antenna array. 802.16m could up those speeds, in part, by using larger antenna arrays.
The move to develop a faster spec comes even before products based on the current mobile WiMax specification are generally available. This once again indicates the way certain parts of the industry are trying to aggressively push WiMax forward as the only the possible choice for future 4G networks.
http://www.unstrung.com/document.asp?doc_id=117363
Wireless at 1-Gbit/s fixed and 100-Mbit/s data transfer rates is on the way dubbed 802.16m
The Institute of Electrical and Electronics Engineers Inc. (IEEE) has started working on a new version of the 802.16 standard -- the technology that WiMax is based on -- that could push data transfer speeds up to 1 Gbit/s while maintaining backwards compatibility with existing WiMax radios.
The muscle behind 802.16m will be multiple-input/multiple-output (MIMO) antenna technology on top of an OFDM-based radio system just like the upcoming "Wave 2" mobile WiMax products being plotted by several silicon vendors. The Wave 2 profile, which is being championed by Sprint Nextel Corp. is expected to achieve mobile speeds of around 5 Mbit/s by using a two-by-two antenna array. 802.16m could up those speeds, in part, by using larger antenna arrays.
The move to develop a faster spec comes even before products based on the current mobile WiMax specification are generally available. This once again indicates the way certain parts of the industry are trying to aggressively push WiMax forward as the only the possible choice for future 4G networks.
House Dems Eye Telecom Review
David Hatch (2.27.07)
http://www.njtelecomupdate.com/lenya/telco/live/tb-MJSN1172609975538.html
House Democrats are planning a thorough re-examination of telecommunications and media policies that will feature multiple oversight hearings and fresh legislation.
These re-evaluations could change current broadband regulations for local franchising,
Fostering high-speed Internet deployment, ensuring an open and accessible Internet, and overhauling the federal universal service program that subsidizes telecom connections in rural and impoverished areas are among the key issues to be addressed. The competitiveness of the video, telephone and radio marketplaces also will be explored, along with protecting the privacy of phone records and promoting efficient use of spectrum.
http://www.njtelecomupdate.com/lenya/telco/live/tb-MJSN1172609975538.html
House Democrats are planning a thorough re-examination of telecommunications and media policies that will feature multiple oversight hearings and fresh legislation.
These re-evaluations could change current broadband regulations for local franchising,
Fostering high-speed Internet deployment, ensuring an open and accessible Internet, and overhauling the federal universal service program that subsidizes telecom connections in rural and impoverished areas are among the key issues to be addressed. The competitiveness of the video, telephone and radio marketplaces also will be explored, along with protecting the privacy of phone records and promoting efficient use of spectrum.
A Feb. 15 FCC oversight hearing before the House telecom subcommittee was postponed. It has not yet been rescheduled. House Democrats plan to scrutinize several FCC policies, include the agency's review of media-ownership limits and its authority to investigate allegations that the National Security Agency conducted surveillance of phone records without warrants.
Also to be examined is a recent FCC decision relaxing local video-franchising guidelines. State regulators have complained that the new rules usurp their authority. Replacing local franchises with less cumbersome national agreements was the centerpiece of Republican deregulatory legislation last year, but it stalled after its Senate counterpart became mired in controversy.
Verizon expands 50-Meg footprint
Brain Santo (2.27.07)
http://www.cedmagazine.com/article/CA6419926.html
Verizon expands 50 Mbps in 6 of its 16 state FiOS coverage.
http://www.cedmagazine.com/article/CA6419926.html
Verizon expands 50 Mbps in 6 of its 16 state FiOS coverage.
The six states where Verizon's 50 Mbps tier is now available are Connecticut, Florida, Massachusetts, New Jersey, New York, and Rhode Island. Other FiOS markets will get the tier this year.
The mid-tier maximum connection rates in those six markets was increased from 15 Mbps downstream and 2 Mbps upstream to 20 Mbps down and 5 Mbps up, while the top-tier service was increased from maximums of 30 Mbps down and 5 Mbps up to 50 Mbps down and 5 Mbps up.
Verizon said that more than 6 million homes and businesses in parts of 16 states are now passed by its fiber network, but it declined to say how many of those could subscribe to the 50 Mbps tier. The TV franchise agreements Verizon has struck in the Tampa area cover only a few thousand households.
Report: VOIM Sounds Better Than PSTN
Mark Sullivan (2.23.07)
http://www.lightreading.com/document.asp?doc_id=118017
A recent study has found that voice over IM services such as Skype, Yahoo, and Google provide higher quality more realistic quality sound than TDM-based phone services.
http://www.lightreading.com/document.asp?doc_id=118017
A recent study has found that voice over IM services such as Skype, Yahoo, and Google provide higher quality more realistic quality sound than TDM-based phone services.
More support for IP telephony, and that traditional phone carriers will have to start making adjustments as interest grows in what VOIM can offer.
The codecs used in TDM-based voice systems cover an 8kHz band directly in the middle of the voice frequency range, explains Global IP Sound AB CEO Gary Hermansen.
By contrast, Hermansen says, new IP codecs cover a 16kHz swath of the frequency range, which better conveys the highs, lows and texture of a caller's voice. Hermansen says VOIM codecs can also compensate for packet loss, and cancel out echo and background noise.
The end result is that VOIM makes the human voice sound more, well, human than traditional telephony ever did.
"Carriers will ultimately need to reconcile traditional telephony with VOIM as they face increasing pressure from their customers to receive the same types of flexible services" that VOIM enables, report writer John Longo writes.
Thursday, February 22, 2007
FCC Opens Program-Access Rulemaking
Ted Hearn (2.21.07)
1992 Law, Extended in 2002, Set to Expire Oct. 5
Key features of federal program-access rules are scheduled to expire Oct. 5 unless extended by the FCC. The rules were extended for five years in 2002 in a ruling narrowly supported by FCC chairman Kevin Martin, who was a regular FCC member at the time. In recent weeks, Martin has indicated his support for a second extension.
Under a 1992 law, the FCC has required cable companies to sell satellite-delivered programming in which they have an ownership interest to competing multichannel-video-programming distributors. Thus, Time Warner has been forced to sell CNN and HBO to such competitors as DirecTV, EchoStar Communications’ Dish Network and Verizon Communications’ FiOS TV service.
1992 Law, Extended in 2002, Set to Expire Oct. 5
Key features of federal program-access rules are scheduled to expire Oct. 5 unless extended by the FCC. The rules were extended for five years in 2002 in a ruling narrowly supported by FCC chairman Kevin Martin, who was a regular FCC member at the time. In recent weeks, Martin has indicated his support for a second extension.
Under a 1992 law, the FCC has required cable companies to sell satellite-delivered programming in which they have an ownership interest to competing multichannel-video-programming distributors. Thus, Time Warner has been forced to sell CNN and HBO to such competitors as DirecTV, EchoStar Communications’ Dish Network and Verizon Communications’ FiOS TV service.
Future of Net phone firm Vonage hangs in balance
Leslie Cauley (2.20.07)
http://www.usatoday.com/printedition/money/20070220/vonage.art.htm
Verizon is taking Vonage to court for patent infringement on 48 counts.
Vonage claims Verizon's patents are too broad for any company to work around and still remain in business. Brooke Schulz, a Vonage spokeswoman, said Monday that Verizon's claims are baseless. "This is about Verizon trying to stifle competition," she said. "We have not infringed on their patents, period."
By the end of 2006, there were 8.6 million VoIP users in the USA, estimates JupiterResearch. By 2010, the number is expected to reach 22.5 million. Many of those customers are coming from traditional local phone providers such as Verizon and AT&T.
http://www.usatoday.com/printedition/money/20070220/vonage.art.htm
Verizon is taking Vonage to court for patent infringement on 48 counts.
This could stifle growing VoIP companies and have an impact on service and innovation in the future.
Vonage claims Verizon's patents are too broad for any company to work around and still remain in business. Brooke Schulz, a Vonage spokeswoman, said Monday that Verizon's claims are baseless. "This is about Verizon trying to stifle competition," she said. "We have not infringed on their patents, period."
By the end of 2006, there were 8.6 million VoIP users in the USA, estimates JupiterResearch. By 2010, the number is expected to reach 22.5 million. Many of those customers are coming from traditional local phone providers such as Verizon and AT&T.
William Bosch, a Vonage lawyer offered a prediction: "We think there is an extremely good likelihood this jury is going to find that (the Verizon patents) are invalid, that they never should have been granted in the first place."
Jeffrey Citron, Vonage's chairman and chief strategist, has been subpoenaed to appear as a witness — for Verizon. That has put him, potentially, in the awkward position of testifying against his own company. Vonage is fighting the subpoena, Schulz said.
Don’t Panic. Yet.
Broadcasters, Cable Operators Think They Can Prevent 'Tsunami of Public Outrage’ If Millions of Televisions Don’t Work Two Years From Now
By Ted Hern (2.19.07)
http://www.multichannel.com/article/CA6417227.html
On February 17, 2009, analog signals to TVs will be no more leaving many millions of TVs dark and millions more customers angry.
With this impending deadline, the way people receive TV might go through some radical overhauls depending on government subsidies, and innovations in IPTV, for example.
By forcing TV stations from their analog channels by a specific deadline, the DTV (digital TV) law cleared the way for the FCC to auction off what would become surplus analog spectrum for at least $10 billion, paid by companies, perhaps even cable companies, that want to grab the channels for wireless broadband services. The other channels are to go for free to fire, police and emergency organizations hungry for new frequencies.
One and a half billion dollars will be set aside to subsidize analogue to digital converters, but legislators and broadcasters believe this will not be enough, and many are speaking out against the hard deadline, saying it is too soon.
The other concern is making people aware of the switch date. On Jan. 31, the Association of Public Television stations released a survey showing that 61% of Americans polled “had no idea the transition was taking place.” The cost of this campaign to reach large channel stations to small local radio stations is estimated at 100 million dollars, and manufacturers have been ramping up production of converter-boxes to meet the deadline that is now just under 2 years away.
Wednesday, February 21, 2007
IPTV Market to Surge in Coming Years
Telecommunications Industry News (2.18.07)
http://www.teleclick.ca/2007/02/iptv-market-to-surge-in-coming-years/
The number of households using IPTV worldwide will grow to more than 80 million in 2011, from just 6 million at the end of 2006, according to a Strategy Analytics report, entitled “Global IPTV Forecast: Homes Users, and Subscribers.”
http://www.teleclick.ca/2007/02/iptv-market-to-surge-in-coming-years/
Interesting facts on the predicted use and distribution of IPTV, and further shows the impending bandwith crunch.
The number of households using IPTV worldwide will grow to more than 80 million in 2011, from just 6 million at the end of 2006, according to a Strategy Analytics report, entitled “Global IPTV Forecast: Homes Users, and Subscribers.”
IPTV revenue, however, will see considerably less growth over the same five year period, as many customers are given the service as a free perk with their broadband internet access. The number of paying IPTV customers in 2011 will only be around 40.9 million, the research firm predicts.
“The jury is still out on how much consumers are willing to pay telcos for IPTV,” commented Strategy Analytics vice president and principal analyst, David Mercer. “Most telcos will likely offer customers a mix of free, subscription and pay-as-you-go programming models.”
Strong Brand is Key to Future
Laureen Ong (2.8.07)
http://www.multichannel.com/blog/230000223/post/640006864.html
Laureen Ong argues that brands are becoming increasingly important as they codify attributes, personality, and attributes.
http://www.multichannel.com/blog/230000223/post/640006864.html
Laureen Ong argues that brands are becoming increasingly important as they codify attributes, personality, and attributes.
Shows interesting statistics about viewer habits based on number of channels available.
Recent studies have consistently shown that as the number of choices increase, the number of regularly viewed networks only increases at a fractional rate. It’s somewhat counterintuitive. More competing options actually results in a concentration of consumer choice. According to Nielsen, homes that receive about 75 channels watch less than 16 of them on average, just over 20% of the networks available. What happens when we double the available options to more than 150 channels? The consumer adds only four additional networks to their average viewing, for a total of about 20, or 13% of the networks available to them. These are indeed sobering statistics.
Wednesday, February 14, 2007
Spending Wave Buoys Makers of Network Gear
Bobby White (2.14.07)
http://online.wsj.com/article/SB117142538050108158.html?mod=technology_main_whats_news
New Web Services Spur Phone Firms to Invest In Increasing Capacity
Companies from Australia's Telstra Corp. to AT&T Inc. are buying up new gear to upgrade the "plumbing" that carries voice and data traffic around the globe.
In recent weeks, Cisco Systems Inc. and Juniper Networks Inc. have posted annual sales growth of nearly 50%, among their strongest performances in years.
http://online.wsj.com/article/SB117142538050108158.html?mod=technology_main_whats_news
New Web Services Spur Phone Firms to Invest In Increasing Capacity
Shows increased investment in not only increasing bandwidth capacity, but in alternative solutions to fix the seemingly never-ending demand for broadband. This article also supplies numbers about large telco investment in these technologies.
Companies from Australia's Telstra Corp. to AT&T Inc. are buying up new gear to upgrade the "plumbing" that carries voice and data traffic around the globe.
In recent weeks, Cisco Systems Inc. and Juniper Networks Inc. have posted annual sales growth of nearly 50%, among their strongest performances in years.
The good times look likely to continue for at least a while. Overall, North American telecom companies are projected to spend $70 billion on new infrastructure this year. While that's down from the $110 billion they shelled out during the boom year of 2000, it's up 67% from their 2003 total, according to industry tracker Infonetics Research.
World-wide, spending on new telecom infrastructure is expected to rise to $240 billion in 2008, up 19% from 2005. Moreover, a greater proportion of that spending is expected to be plowed into accommodating capacity-hogging Internet traffic like videoThe new spending telecom providers have earmarked for boosting capacity accounts for a relatively small slice of their capital budgets. But it has provided a crucial boost to Silicon Valley networking companies like Redback. In 2003, Redback, San Jose, Calif., filed for bankruptcy protection. Then, in 2004, Redback introduced a new product called the Smartedge router, a device that helps deliver phone, Internet video and other services through a single "pipe."
Redback's Smartedge router was among the first of the new-style gear. It consolidated functions that control video services and customer management into one box. Juniper, among others, is set to roll out a similar device in coming months. BellSouth network officials who now work for AT&T say they haven't used the Smartedge router to prioritize data traffic, but instead for other capacity-increasing functions.Charter Boasts of Big VOIP Gains
Alan Breznick (2.9.07)
http://www.lightreading.com/document.asp?doc_id=116905&site=cdn&WT.svl=news1_5
Charter Communications Inc. racked up its strongest growth yet in VOIP subscribers during the fourth quarter, even though its IP phone focus has increased its operating and capital expenses.
Like Comcast, Charter expects to run up even higher capital expenditures this year as it continues its nationwide VOIP rollout.
Charter said today it signed up 106,200 VOIP subscribers in the last three months, as opposed to 31,300 customers in the year-earlier period. With the increase, the MSO closed out 2006 with nearly 446,000 IP phone customers.
However, unlike Comcast and others Charter is not seeing consistently stronger subscriber gains for its other cable TV products. The good news there, according to Charter, is that about 75 percent of its annual capital costs were "success-based," meaning the costs were directly associated with adding new customers.
http://www.lightreading.com/document.asp?doc_id=116905&site=cdn&WT.svl=news1_5
Charter Communications Inc. racked up its strongest growth yet in VOIP subscribers during the fourth quarter, even though its IP phone focus has increased its operating and capital expenses.
Demand for VoIP is on the rise.
Like Comcast, Charter expects to run up even higher capital expenditures this year as it continues its nationwide VOIP rollout.
Charter said today it signed up 106,200 VOIP subscribers in the last three months, as opposed to 31,300 customers in the year-earlier period. With the increase, the MSO closed out 2006 with nearly 446,000 IP phone customers.
However, unlike Comcast and others Charter is not seeing consistently stronger subscriber gains for its other cable TV products. The good news there, according to Charter, is that about 75 percent of its annual capital costs were "success-based," meaning the costs were directly associated with adding new customers.
Charter said it expects capex to go up again this year, rising about $100 million to $1.2 billion.
Charter did not disclose specific earnings information, but it will do so on Feb. 28.
Google and cable firms warn of risks from Web TV
By Lucas van Grinsven (2.7.07)
http://today.reuters.com/news/articlenews.aspx?type=internetNews&storyID=
2007-02-07T230017Z_01_L0767087_RTRUKOC_0_US-CABLE-WEBTV.
xml&WTmodLoc=InternetNewsHome_C1_%5bFeed%5d-2
Internet TV will not be what consumers nor providers expect it to be and will quickly overload current broadband capacities.
"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress.
Google was welcomed with a mix of fear and awe by the cable TV companies, which are concerned that Web companies will try to steal their lucrative TV business.
Shares of cable operators trade at around nine times forecast 2007 earnings before interest, tax amortization and depreciation (EBITDA), while telecoms operators trade at around six times, said Charles Manby, Goldman Sachs' global co-head for the telecoms, media and technology industries.
Cable operators are set to return to capital investments of a modest 10 to 12 percent of revenues, but they can be forced to spend much more due to outside pressures from increased Internet consumption and from rival telecoms operators that upgrade their broadband Internet packages to fiber optic super speeds.
http://today.reuters.com/news/articlenews.aspx?type=internetNews&storyID=
2007-02-07T230017Z_01_L0767087_RTRUKOC_0_US-CABLE-WEBTV.
xml&WTmodLoc=InternetNewsHome_C1_%5bFeed%5d-2
Internet TV will not be what consumers nor providers expect it to be and will quickly overload current broadband capacities.
This article claims that cable incumbents need not fear telcoms taking over the TV market via internet TV anytime soon. Although cable operators will have to increase investment to match telcom's broadband packages.
"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress.
Google was welcomed with a mix of fear and awe by the cable TV companies, which are concerned that Web companies will try to steal their lucrative TV business.
Shares of cable operators trade at around nine times forecast 2007 earnings before interest, tax amortization and depreciation (EBITDA), while telecoms operators trade at around six times, said Charles Manby, Goldman Sachs' global co-head for the telecoms, media and technology industries.
Cable operators are set to return to capital investments of a modest 10 to 12 percent of revenues, but they can be forced to spend much more due to outside pressures from increased Internet consumption and from rival telecoms operators that upgrade their broadband Internet packages to fiber optic super speeds.
Eat Your Fiber, San Francisco; Plus, Privacy
By Glenn Flieshamn (2.8.09)
http://wifinetnews.com/archives/007380.html
There is a call among some San Francisco groups to replace the incoming muni Wi-Fi with fiber.
Public Net San Francisco wants the Earthlink deal to be canceled in favor of a publicly owned fiber network that would reach every home. SFLan’s Ralf Muehlen said, “300 kilobits per second is so 1997; it’ll be utterly ridiculous in 2023, which is how long Earthlink’s monopoly will last.” The ACLU also has issues with the privacy aspects of the Earthlink deal. The organization wants more limits and less ambiguity about what information is collected.
http://wifinetnews.com/archives/007380.html
There is a call among some San Francisco groups to replace the incoming muni Wi-Fi with fiber.
More evidence that people recognize Wi-Fi is a supporting element rather than reliable infrastrucutre.
Public Net San Francisco wants the Earthlink deal to be canceled in favor of a publicly owned fiber network that would reach every home. SFLan’s Ralf Muehlen said, “300 kilobits per second is so 1997; it’ll be utterly ridiculous in 2023, which is how long Earthlink’s monopoly will last.” The ACLU also has issues with the privacy aspects of the Earthlink deal. The organization wants more limits and less ambiguity about what information is collected.
Internet Technology
Carol Wilson (2.8.07)
http://telephonyonline.com/broadband/finance/qwest_earnings_iptv_020807/
Another take on Qwest's financial standing and IPTV investment.
The year 2006 was a milestone for Qwest Communications, as the company was able to post its first full year of earnings per share and net income in each of the four quarters, based largely on strong sales of data and Internet services.
Although they aren't agressively seeking out a video network, they are investing in their network. Qwest Chairman and CEO Richard Notebaert told financial analysts that “our facilities, our cable does not require a complete change-out in the last mile. ... We will follow a path where we will continue to upgrade the speeds and you have seen the investment we have made. Currently over 25% of our customers can get 7 Meg. We will continue to run fiber to the node, to the RT [remote terminal]. We are investing in increasing speeds and bandwidth. We aren’t following anybody when it comes to fiber-to-the-node. The RFPs, which were somehow made public, are part of the continuing effort to find if we can get a lower cost on the purchase of that fiber which we are and have been laying.”
“On IPTV, we are watching, we are learning, we are letting other people work the issue and we will benefit from their investment in future technology,” he said. “We believe that with time shift, that you can do on video and with the fact you can get content on demand – if you watch ’24,’, you can pull it down the next day, that’s all part of this.”
http://telephonyonline.com/broadband/finance/qwest_earnings_iptv_020807/
Another take on Qwest's financial standing and IPTV investment.
The year 2006 was a milestone for Qwest Communications, as the company was able to post its first full year of earnings per share and net income in each of the four quarters, based largely on strong sales of data and Internet services.
Although they aren't agressively seeking out a video network, they are investing in their network. Qwest Chairman and CEO Richard Notebaert told financial analysts that “our facilities, our cable does not require a complete change-out in the last mile. ... We will follow a path where we will continue to upgrade the speeds and you have seen the investment we have made. Currently over 25% of our customers can get 7 Meg. We will continue to run fiber to the node, to the RT [remote terminal]. We are investing in increasing speeds and bandwidth. We aren’t following anybody when it comes to fiber-to-the-node. The RFPs, which were somehow made public, are part of the continuing effort to find if we can get a lower cost on the purchase of that fiber which we are and have been laying.”
“On IPTV, we are watching, we are learning, we are letting other people work the issue and we will benefit from their investment in future technology,” he said. “We believe that with time shift, that you can do on video and with the fact you can get content on demand – if you watch ’24,’, you can pull it down the next day, that’s all part of this.”
Qwest Treads Slowly in Fiber Rollout
Roger Cheng (2.8.07)
http://online.wsj.com/article/SB117090418422001834.html
Qwest is cautious to enter fiber market, allowing AT&T and Verizon to set the course. Many believe Qwest doesn't have the financial stability to make the upgrades necessary to be competitive against U-Verse and Fios.
AT&T and Verizon have poured billions of dollars into upgrading their systems to fiber. Verizon is spending $18 billion to connect many of its homes to the fiber-optic network. The company hopes to make FiOS TV service available to 18 million homes out of the 33 million homes in its landline operating area by the end of 2010.
AT&T is spending $4.6 billion to upgrade parts of its network with fiber-optic lines while using software to increase the speed of its network, enabling an Internet TV service called U-Verse. It hopes to make U-Verse available in at least 19 million homes by the end of next year.
Dan Yost, who runs product development and marketing for Qwest, said the company is working to replace copper lines with fiber ones in some markets, though he acknowledged the deployment was "not that extensive" in Qwest's 14-state operating territory.
Qwest has recently sold off assets giving them more financial flexibility to potentially put more dollars toward fiber investment; however for the time being they will still depend on DirecTV for television services and Sprint Nextel for wireless phone services. Most would agree that the push for more bandwidth will force Qwest to invest in upgrades regardless of their financial standing sooner than later.
http://online.wsj.com/article/SB117090418422001834.html
Qwest is cautious to enter fiber market, allowing AT&T and Verizon to set the course. Many believe Qwest doesn't have the financial stability to make the upgrades necessary to be competitive against U-Verse and Fios.
Depending on development area, Qwest's slower adoption of fiber will effect choices of service providers for developers. This also shows the increased spending on fiber for faster and greater content to meet and exceed future demand.
AT&T and Verizon have poured billions of dollars into upgrading their systems to fiber. Verizon is spending $18 billion to connect many of its homes to the fiber-optic network. The company hopes to make FiOS TV service available to 18 million homes out of the 33 million homes in its landline operating area by the end of 2010.
AT&T is spending $4.6 billion to upgrade parts of its network with fiber-optic lines while using software to increase the speed of its network, enabling an Internet TV service called U-Verse. It hopes to make U-Verse available in at least 19 million homes by the end of next year.
Dan Yost, who runs product development and marketing for Qwest, said the company is working to replace copper lines with fiber ones in some markets, though he acknowledged the deployment was "not that extensive" in Qwest's 14-state operating territory.
Qwest has recently sold off assets giving them more financial flexibility to potentially put more dollars toward fiber investment; however for the time being they will still depend on DirecTV for television services and Sprint Nextel for wireless phone services. Most would agree that the push for more bandwidth will force Qwest to invest in upgrades regardless of their financial standing sooner than later.
Thursday, February 8, 2007
Big MSOs Embrace the Evolving Set-Top
By Alan Breznick (2.7.07)
http://www.lightreading.com/document.asp?doc_id=116644
Three of the nation's largest MSOs are introducing set-top boxes which will open the way for more IP-enabled services in the home.
Docsis Set-to Gateway (DSG) set-tops can act as residential gateways, VOIP terminals, and other IP-enabled devices, supporting such new convergence services as video email and caller ID on the TV screen. They also can be used for unicasting, or delivering a unique video stream to each home and even set-top.
Richard Rioboli, VP of product platform engineering for Comcast, said the MSO's embrace of DSG technology is part of the company's drive to standardize different configurations. Without such standardization it would be tough for the company to introduce new cable services and applications quickly on a national basis.
Time Warner, Comcast, and Cox are beginning to introduce OpenCable Application Platform (OCAP)-equipped set-top boxes and TV sets in select markets. The OCAP middleware stack enables cable operators to offer the same interactive and on-demand services throughout the country. Plus, interactive application developers can create a single piece of software to run their applications on many different cable systems.
http://www.lightreading.com/document.asp?doc_id=116644
Three of the nation's largest MSOs are introducing set-top boxes which will open the way for more IP-enabled services in the home.
Docsis Set-to Gateway (DSG) set-tops can act as residential gateways, VOIP terminals, and other IP-enabled devices, supporting such new convergence services as video email and caller ID on the TV screen. They also can be used for unicasting, or delivering a unique video stream to each home and even set-top.
Richard Rioboli, VP of product platform engineering for Comcast, said the MSO's embrace of DSG technology is part of the company's drive to standardize different configurations. Without such standardization it would be tough for the company to introduce new cable services and applications quickly on a national basis.
Time Warner, Comcast, and Cox are beginning to introduce OpenCable Application Platform (OCAP)-equipped set-top boxes and TV sets in select markets. The OCAP middleware stack enables cable operators to offer the same interactive and on-demand services throughout the country. Plus, interactive application developers can create a single piece of software to run their applications on many different cable systems.
Comcast executives plan lab trials to start this winter as well as live OCAP deployments in several undisclosed markets before the end of the year. Meanwhile, Cox has begun testing several interactive TV services in Gainesville. Plans call for expanding the OCAP trial to other Cox cable systems later this year. In those new markets, Samsung intends to try out OCAP-based HD set-top boxes as well.
Rep. Markey Laments State
By Andrew Noyes (2.7.07)
http://njtelecomupdate.com/lenya/telco/live/tb-ZCQL1170792302989.html
In the next few years, House Energy and Commerce Telecommunications and the Internet Subcommittee Chairman Edward Markey wants his subcommittee to "fashion together a policy blueprint" that includes broadband that is affordable and fast, with an open architecture that supports Internet freedom.
The FCC counts as broadband any speed of more than 200 kilobits per second, or one-fifth of one megabit per second, he said. Japanese homes can receive up to 100 megabits per second. In a number of other benchmarks, the United States also trails the United Kingdom, Sweden, Denmark, the Netherlands, Finland, Australia and Canada.
The agenda of Markey's panel in the 110th Congress "will be the unfinished business" that got stuck in previous legislative sessions, he said. The subcommittee will look at strengthening the e-rate program, which subsidizes Internet access in schools and libraries, and will discuss ways that all Americans can get broadband access.
http://njtelecomupdate.com/lenya/telco/live/tb-ZCQL1170792302989.html
In the next few years, House Energy and Commerce Telecommunications and the Internet Subcommittee Chairman Edward Markey wants his subcommittee to "fashion together a policy blueprint" that includes broadband that is affordable and fast, with an open architecture that supports Internet freedom.
The FCC counts as broadband any speed of more than 200 kilobits per second, or one-fifth of one megabit per second, he said. Japanese homes can receive up to 100 megabits per second. In a number of other benchmarks, the United States also trails the United Kingdom, Sweden, Denmark, the Netherlands, Finland, Australia and Canada.
The agenda of Markey's panel in the 110th Congress "will be the unfinished business" that got stuck in previous legislative sessions, he said. The subcommittee will look at strengthening the e-rate program, which subsidizes Internet access in schools and libraries, and will discuss ways that all Americans can get broadband access.
Tuesday, February 6, 2007
Cisco to Phase Out Scientific Atlanta Name
Todd Spangler (2.5.07)
http://www.multichannel.com/article/CA6412207.html?display=Breaking+News
Cisco Systems plans to rebrand all the products under its Scientific Atlanta subsidiary with the Cisco name within the next year.
Initially, Cisco is putting the parent company’s name on Internet-protocol-TV set-tops, but it will eventually rebrand all of SA’s lines as Cisco products -- a process likely to happen in the next 9-12 months, said Wilson Craig, manager of public relations for Cisco’s service-provider segment.
Cisco hasn’t determined yet whether SA will continue to operate as a subsidiary after the rebranding process is completed or whether it will be merged into Cisco’s service-provider unit, SA director of PR Sara Stutzenstein said.
http://www.multichannel.com/article/CA6412207.html?display=Breaking+News
Cisco Systems plans to rebrand all the products under its Scientific Atlanta subsidiary with the Cisco name within the next year.
Initially, Cisco is putting the parent company’s name on Internet-protocol-TV set-tops, but it will eventually rebrand all of SA’s lines as Cisco products -- a process likely to happen in the next 9-12 months, said Wilson Craig, manager of public relations for Cisco’s service-provider segment.
Cisco hasn’t determined yet whether SA will continue to operate as a subsidiary after the rebranding process is completed or whether it will be merged into Cisco’s service-provider unit, SA director of PR Sara Stutzenstein said.
Cisco completed its $6.9 billion acquisition of SA -- which has been one of the cable industry’s top equipment suppliers for three decades -- in February 2006. SA posted $584 million in sales for the quarter ended Oct. 28, 2006.
Cisco inks key rural IPTV deal
Ed Gubbins (2.5.07)
http://telephonyonline.com/independent/news/telecom_cisco_inks_key/
Cisco Systems is vying to become a one-stop shop for rural telcos planning to offer IPTV.
The vendor announced a partnership this week with SES Americom, the satellite video provider that will supply rural telcos with prepackaged video content through a unique deal with the National Rural Telephone Cooperative. Cisco will act as a chief infrastructure supplier and integrator for customers of that offering.
In recent months, Cisco has also voiced an interest in becoming a more intimate strategic partner to carriers, convincing them to standardize their networks on Cisco architecture.
Cisco says it's willing to use other vendors' gear in some cases if individual customers want it. And it will offer two choices of middleware providers: NDS and Siemens. Although VOD is not yet a part of the IP-Prime offering, Cisco expressed an interest in adding its own VOD offerings to the mix in time.Lightspeed's Slow Start
Business Week Online
http://www.businessweek.com/magazine/content/07_07/b4021067.htm?chan=technology_
technology+index+page_more+of+today%27s+top+stories
Despite AT&T proclaiming that it will pump $4.6 billion into building enough fiber-optic cable and supporting technology to reach 19 million homes by the end of 2008, many to believe that AT&T will have a hard time cornering the internet/TV market as soon as they claim.
Technology glitches hobbled the rollout of Lightspeed last year. And though the TV service is up and running in fewer than a dozen markets with prices that undercut cable bills, a growing chorus of rivals, analysts, and engineers are skeptical that the network will offer enough bandwidth a few years from now to handle phone service, high-speed Internet, and multiple streams of high-definition TV.
Other operators have taken advantage of this slow start. Verizon is placing the most ambitious and risky bet. It plans to spend $18 billion—three times as much as AT&T—to lay fiber to every one of the 18 million homes it hopes to cover by 2010. AT&T is laying fiber into neighborhoods but is using existing copper phone lines to carry video the last few thousand feet. As a result, it will cost Verizon $1,750 to connect each home, vs. $450 for AT&T. Despite the higher price tag, ubs Investment Research expects Verizon to produce a return on its investment by 2011. The reason? It believes the Verizon network's higher bandwidth will lure more phone, Internet, and video customers—at higher prices—and thus generate about four times as much revenue as Lightspeed. On Jan. 29, Verizon backed up the theory when it announced that it ended its first full year of operations with 207,000 TV customers, representing 9% of the 2.4 million homes capable of receiving its video service in 2006. Just a few months ago, the company was hoping to finish 2006 with 175,000 video customers.
Doubts about AT&T's video project are fueling speculation it will have to buy one of the two U.S. satellite operators, DirecTV Group Inc. (DTV ) or EchoStar Communications Corp.(DISH ), to accelerate delivery of TV service.
AT&T remain confident in their decision to bet on a system that's more technically complex than Verizon's, arguing it will result in a TV service superior to anything else on the market.
http://www.businessweek.com/magazine/content/07_07/b4021067.htm?chan=technology_
technology+index+page_more+of+today%27s+top+stories
Despite AT&T proclaiming that it will pump $4.6 billion into building enough fiber-optic cable and supporting technology to reach 19 million homes by the end of 2008, many to believe that AT&T will have a hard time cornering the internet/TV market as soon as they claim.
Technology glitches hobbled the rollout of Lightspeed last year. And though the TV service is up and running in fewer than a dozen markets with prices that undercut cable bills, a growing chorus of rivals, analysts, and engineers are skeptical that the network will offer enough bandwidth a few years from now to handle phone service, high-speed Internet, and multiple streams of high-definition TV.
Other operators have taken advantage of this slow start. Verizon is placing the most ambitious and risky bet. It plans to spend $18 billion—three times as much as AT&T—to lay fiber to every one of the 18 million homes it hopes to cover by 2010. AT&T is laying fiber into neighborhoods but is using existing copper phone lines to carry video the last few thousand feet. As a result, it will cost Verizon $1,750 to connect each home, vs. $450 for AT&T. Despite the higher price tag, ubs Investment Research expects Verizon to produce a return on its investment by 2011. The reason? It believes the Verizon network's higher bandwidth will lure more phone, Internet, and video customers—at higher prices—and thus generate about four times as much revenue as Lightspeed. On Jan. 29, Verizon backed up the theory when it announced that it ended its first full year of operations with 207,000 TV customers, representing 9% of the 2.4 million homes capable of receiving its video service in 2006. Just a few months ago, the company was hoping to finish 2006 with 175,000 video customers.
Doubts about AT&T's video project are fueling speculation it will have to buy one of the two U.S. satellite operators, DirecTV Group Inc. (DTV ) or EchoStar Communications Corp.(DISH ), to accelerate delivery of TV service.
AT&T remain confident in their decision to bet on a system that's more technically complex than Verizon's, arguing it will result in a TV service superior to anything else on the market.
Democrats Press F.C.C. Chief on Enforcement
By Stepehn Labaton 2.1.07
http://www.nytimes.com/2007/02/01/business/media/01cnd-fcc.html?_r=
2&hp&ex=1170392400&en=1c489a102dd0e2da&ei=5094&partner=homepage&oref=slogin&oref=slogin
FCC Chairman Martin has recently undergone tough questioning and harsh criticism by the newly appointed Democratic Senate.
http://www.nytimes.com/2007/02/01/business/media/01cnd-fcc.html?_r=
2&hp&ex=1170392400&en=1c489a102dd0e2da&ei=5094&partner=homepage&oref=slogin&oref=slogin
FCC Chairman Martin has recently undergone tough questioning and harsh criticism by the newly appointed Democratic Senate.
In their first appearance before a Senate Commerce Committee under Democratic leadership, Kevin J. Martin, the commission’s chairman, and the other commissioners faced sharp criticism from some of the committee’s senior Democrats on their handling of the recent acquisition of BellSouth by AT&T.
The lawmakers also questioned the agency’s recent practice of not thoroughly reviewing applications by radio and television stations to renew their broadcast licenses.
And the lawmakers’ questions indicated that there is no broad political consensus on a range of recent legislative proposals.
But the aggressive questioning by the panel’s senior Democrats suggested that the lawmakers would be exerting significant pressure on the commission’s policymaking apparatus.That could, at the very least, temper any deregulatory action that Mr. Martin and his fellow Republican commissioners have been contemplating, particularly as they prepare to consider measures that would make it easier for media conglomerates to own newspapers and television stations in the same cities.
Thursday, February 1, 2007
Comcast: Full FCC Set-Top Review
Todd Spangler (1.30.07)
http://www.multichannel.com/article/CA6411747.html?display=Breaking+News
Comcast has pressed forward for a full review of the FCC's Media Bureau denial of their waiver requesting only a partial ban on the set-top box card requirement.
Comcast sent a letter to the Federal Communications Commission Tuesday seeking an “expedited full commission review” of the agency’s denial of the company’s waiver request for certain low-cost set-top boxes.
The FCC’s Media Bureau Jan. 10 turned down Comcast’s waiver request to have three low-end digital set-tops exempt from the ban on set-tops with integrated security features, set to go into effect July 1.
FCC’s Media Bureau issued the denial 266 days after the operator filed its waiver request and pointed out that the Telecommunications Act of 1996 requires the agency to act on such requests within 90 days. “The failure of the bureau to act in a timely fashion on a soundly reasoned request for waiver … is inexplicable,” the company added.
See also:
Comcast Appeals CableCARD Ruling
No Waiver for Comcast
http://www.multichannel.com/article/CA6411747.html?display=Breaking+News
Comcast has pressed forward for a full review of the FCC's Media Bureau denial of their waiver requesting only a partial ban on the set-top box card requirement.
Comcast sent a letter to the Federal Communications Commission Tuesday seeking an “expedited full commission review” of the agency’s denial of the company’s waiver request for certain low-cost set-top boxes.
The FCC’s Media Bureau Jan. 10 turned down Comcast’s waiver request to have three low-end digital set-tops exempt from the ban on set-tops with integrated security features, set to go into effect July 1.
FCC’s Media Bureau issued the denial 266 days after the operator filed its waiver request and pointed out that the Telecommunications Act of 1996 requires the agency to act on such requests within 90 days. “The failure of the bureau to act in a timely fashion on a soundly reasoned request for waiver … is inexplicable,” the company added.
See also:
Comcast Appeals CableCARD Ruling
No Waiver for Comcast
FCC ruling changed phone industry in 1968; it could happen again today
Kevin Maney (1.30.07)
http://www.usatoday.com/money/industries/technology/maney/2007-01-30-carterfone_x.htm
FCC chairman to enforce a provision in the 1996 Telecommunications Act that will force cable carriers to provide descrambling codes to competitors. This may also have effect on similar cellphone-carrier links in the future.
Cable companies will have to unbundle the cable system by sharing the descrambling code with other device makers. The cable industry has gotten deadline extensions ever since 1996, but the current extension runs out on July 1, and Martin says he doesn't want to allow another one.
One certain outcome: A TiVo or Microsoft will be able to sell a box that connects to the cable line and the Internet. It will pull in cable channels, Web-based video and downloadable movies, mix them all together and present them on screen in a single menu. (Cable companies despise that because they lose control of the viewing experience.)
FCC Chairman Kevin Martin believes this deregulation will inspire innovation in the cable industry. It is also known that he has is looking next to the similar monopolies network providers have over cellphones. Though no action has been taken to allow cellphones to work across all networks, both consumers and manufacturers have expressed this desire.
http://www.usatoday.com/money/industries/technology/maney/2007-01-30-carterfone_x.htm
FCC chairman to enforce a provision in the 1996 Telecommunications Act that will force cable carriers to provide descrambling codes to competitors. This may also have effect on similar cellphone-carrier links in the future.
Cable companies will have to unbundle the cable system by sharing the descrambling code with other device makers. The cable industry has gotten deadline extensions ever since 1996, but the current extension runs out on July 1, and Martin says he doesn't want to allow another one.
One certain outcome: A TiVo or Microsoft will be able to sell a box that connects to the cable line and the Internet. It will pull in cable channels, Web-based video and downloadable movies, mix them all together and present them on screen in a single menu. (Cable companies despise that because they lose control of the viewing experience.)
FCC Chairman Kevin Martin believes this deregulation will inspire innovation in the cable industry. It is also known that he has is looking next to the similar monopolies network providers have over cellphones. Though no action has been taken to allow cellphones to work across all networks, both consumers and manufacturers have expressed this desire.
Tuesday, January 30, 2007
687,000 FiOS Customers
http://www.dslreports.com/shownews/81280
"Verizon's fourth quarter earnings are in, and we'll skip right to the part we're interested in: Verizon says that FiOS TV was available to 2.4 million households at the end of last year. According to Verizon, 89,000 customers signed up for FiOS TV in the fourth quarter, bringing their total TV customers to 207,000. There's 687,000 FiOS customers in total, with 165,000 added in the fourth quarter. "Verizon Telecom added 142,000 more net broadband and video customers during the fourth quarter 2006 than it lost in primary wireline voice access lines," states the company."
"Verizon's fourth quarter earnings are in, and we'll skip right to the part we're interested in: Verizon says that FiOS TV was available to 2.4 million households at the end of last year. According to Verizon, 89,000 customers signed up for FiOS TV in the fourth quarter, bringing their total TV customers to 207,000. There's 687,000 FiOS customers in total, with 165,000 added in the fourth quarter. "Verizon Telecom added 142,000 more net broadband and video customers during the fourth quarter 2006 than it lost in primary wireline voice access lines," states the company."
Cable Confronts Bandwidth Crunch
Alan Breznick (1.24.09)
http://www.lightreading.com/document.asp?doc_id=115344&site=cdn&WT.svl=news1_1
Cable companies are finally recognizing impending bandwidth limitations, and gathering resources to address the problem.
Cable operators are now drawing up plans to boost capacity at both the headend and plant levels. Instead of debating whether the coming bandwidth crisis is genuine, they're looking at ways to confront the crisis by splitting fiber nodes in half, converting systems over to more efficient switched digital video delivery, testing pre-Docsis 3.0 channel-bonding technologies, and expanding their systems' RF capacity to 860 MHz or 1 GHz.
Cable technology strategists are also looking at boosting their QAM power, instituting out-of-band spectrum overlays, and upgrading to MPEG-4 video compression standards. They're even weighing such previously unthinkable moves as building fiber-to-the-home (FTTH) networks and adopting PON architecture, just like some of the big phone companies.
At a conference sponsored by PK Worldmedia Inc. in Houston Tuesday, found that increasing bandwidth consumption is threatening to overwhelm even their fastest broadband piplines. Conference speakers also noted that such prime cable rivals as DirecTV Group Iinc. and Verizon seem determined to outflank MSOs by offering several dozens or, in DirecTV's case, even hundreds of HD channels to their customers.
Dom Stasi, CTO of TVN Entertainment Corp., pointed out that his company now supplies 3,500 hours a month of VOD content to cable operators, up from a mere 150 hours per month in 2001.
http://www.lightreading.com/document.asp?doc_id=115344&site=cdn&WT.svl=news1_1
Cable companies are finally recognizing impending bandwidth limitations, and gathering resources to address the problem.
Cable operators are now drawing up plans to boost capacity at both the headend and plant levels. Instead of debating whether the coming bandwidth crisis is genuine, they're looking at ways to confront the crisis by splitting fiber nodes in half, converting systems over to more efficient switched digital video delivery, testing pre-Docsis 3.0 channel-bonding technologies, and expanding their systems' RF capacity to 860 MHz or 1 GHz.
Cable technology strategists are also looking at boosting their QAM power, instituting out-of-band spectrum overlays, and upgrading to MPEG-4 video compression standards. They're even weighing such previously unthinkable moves as building fiber-to-the-home (FTTH) networks and adopting PON architecture, just like some of the big phone companies.
At a conference sponsored by PK Worldmedia Inc. in Houston Tuesday, found that increasing bandwidth consumption is threatening to overwhelm even their fastest broadband piplines. Conference speakers also noted that such prime cable rivals as DirecTV Group Iinc. and Verizon seem determined to outflank MSOs by offering several dozens or, in DirecTV's case, even hundreds of HD channels to their customers.
Dom Stasi, CTO of TVN Entertainment Corp., pointed out that his company now supplies 3,500 hours a month of VOD content to cable operators, up from a mere 150 hours per month in 2001.
Tuesday, January 23, 2007
Provo Broadband Stumbles
Steven Titch (2.1.07)
http://www.heartland.org/Article.cfm?artId=20537
http://www.heartland.org/Article.cfm?artId=20537
After only two years, the municipal broadband system in Provo, Utah has begun to show the pattern of losses and declining net asset value experienced by other cities that have mounted expensive fiber optic networking projects, according to a report published by the Reason Foundation in December.
iProvo, the $39.5 million system launched in July 2004, has had to request $1 million in additional funds from the Provo electric utility to meet its costs.
The report made four principal findings, all of which tend to be endemic to municipal systems:
- iProvo is behind on its business plan and being forced to borrow more money.
- iProvo’s wholesale plan attracted only one retail partner, HomeNet Communications, in its first year of operation. That relationship proved a disaster that ended with HomeNet pulling out of the market in July 2005 and declaring bankruptcy.
- Cable and Internet prices charged by iProvo partners are not significantly lower than pricing from Comcast or Qwest.
- There is little evidence to suggest iProvo has generated any significant growth in broadband usage or penetration in Provo.
While iProvo pointed to revenues of $2.1 million in fiscal year 2006, numbers that were available after principal research had been completed on the Reason report, it did concede losses “were larger than expected.” The municipal utility lists several reasons for the shortfall, stating that processes took longer to set up than anticipated, construction began later, transport fees were lower than expected, the retail partner failed, and the customer mix did not meet forecasts.
Municipalities, however, tend to run into these factors, in part because they function as an arm of local government, not under the market demands of a commercial company. Seven issues that are likely to be significant in municipal provision of Internet service are price competition, performance competition, the pressure for continuous improvement, technological change, obsolescence, risk, and uncertainty.Council OKs tough approach with Cox
Rob O'Dell (1.18.07)
http://www.azstarnet.com/metro/165119
Formal franchising process will begin with Cox if compromises are not met.
The City Council voted 5-2 Wednesday to put Cox Communications through the costly and time-consuming federally mandated license-renewal process for the company to maintain its Tucson cable franchise.
The formal process could be suspended if Cox and the city can agree on several remaining sticking points:
http://www.azstarnet.com/metro/165119
Formal franchising process will begin with Cox if compromises are not met.
The City Council voted 5-2 Wednesday to put Cox Communications through the costly and time-consuming federally mandated license-renewal process for the company to maintain its Tucson cable franchise.
The formal process could be suspended if Cox and the city can agree on several remaining sticking points:
● Five public access, education and government channels (PEG), down from the current nine, but more than the four Cox is offering.
● A nine-year franchise agreement, down from Cox's offer of 12 years.
● Requiring outside agreements made with the University of Arizona and Pima Community College to run for nine years — the same length as the franchise agreement. This would in effect give the city seven PEG channels.
● If the agreements for the higher-education channels expire before nine years, Cox would be required to give the city back one PEG channel.
Councilwoman Karin Uhlich is hopeful for a speedy resolution, but believes the vote shows the council's willingness to go through with formal processes, while Councilmen Steve Leal and Jose Ibarra voted no. Leal said the city should negotiate harder and should look at denying Cox's license and buying its cable system.
Councilwoman Karin Uhlich is hopeful for a speedy resolution, but believes the vote shows the council's willingness to go through with formal processes, while Councilmen Steve Leal and Jose Ibarra voted no. Leal said the city should negotiate harder and should look at denying Cox's license and buying its cable system.
Cities fighting Qwest's bid for statewide video
Kimberly S. Johnson (1.17.07)
http://www.denverpost.com/headlines/ci_5033844
Local municipalities are fighting back against proposed legislation that would give Qwest a statewide cable-franchise agreement to offer video services.
The bill, being sponsored by state Rep. David Balmer, is expected to be introduced next week. Balmer, a Centennial Republican, has said the goal of the legislation is to increase competition. Arvada Mayor Ken Fellman said legislators should oppose the upcoming bill because it takes too much authority away from local cities and towns.
"The legislation is designed around streamlining the process around obtaining a franchise," said Chuck Ward, Qwest's state president. "This is a bill about bringing competition to the cable market in a faster manner than what we've been able to achieve so far."
Many Colorado officials feel that this bill is no way to create competition and that local franchise processes do not hinder competition.
Regardless, the authority of individual municipalities to control permits and other matters related to any new video network should be respected, Arvada Mayor Ken Fellman said.
Comcast also opposes the bill.
http://www.denverpost.com/headlines/ci_5033844
Local municipalities are fighting back against proposed legislation that would give Qwest a statewide cable-franchise agreement to offer video services.
The bill, being sponsored by state Rep. David Balmer, is expected to be introduced next week. Balmer, a Centennial Republican, has said the goal of the legislation is to increase competition. Arvada Mayor Ken Fellman said legislators should oppose the upcoming bill because it takes too much authority away from local cities and towns.
"The legislation is designed around streamlining the process around obtaining a franchise," said Chuck Ward, Qwest's state president. "This is a bill about bringing competition to the cable market in a faster manner than what we've been able to achieve so far."
Many Colorado officials feel that this bill is no way to create competition and that local franchise processes do not hinder competition.
Regardless, the authority of individual municipalities to control permits and other matters related to any new video network should be respected, Arvada Mayor Ken Fellman said.
Comcast also opposes the bill.
Thursday, January 18, 2007
Council to vote on Cox's cable offer
Eric Sagara (1.17.07)
http://www.tucsoncitizen.com/daily/local/38889.php
City officials and Cox communications argue over public access channels in Tuscon.
Cox's informal offer would reduce the number of public, education and government channels available to the city, make viewing those channels more expensive for some customers, and remove a requirement for the cable company to provide free service in Tucson schools.
City officials are willing to compromise on the number of PEG channels available to Tucson, but the dispute lies in how many should be removed from the airwaves, and say Cox's offer does not meet the needs of the community and hope that a formal process can bring about a better deal for Tucson. However, they must reach an agreement with Cox before July 1, when a new state law engineered in part by Cox takes effect.
http://www.tucsoncitizen.com/daily/local/38889.php
City officials and Cox communications argue over public access channels in Tuscon.
Cox's informal offer would reduce the number of public, education and government channels available to the city, make viewing those channels more expensive for some customers, and remove a requirement for the cable company to provide free service in Tucson schools.
City officials are willing to compromise on the number of PEG channels available to Tucson, but the dispute lies in how many should be removed from the airwaves, and say Cox's offer does not meet the needs of the community and hope that a formal process can bring about a better deal for Tucson. However, they must reach an agreement with Cox before July 1, when a new state law engineered in part by Cox takes effect.
The law will limit the number of PEG channels available to cities to four and place a cap on the fees cities can charge cable companies to use their rights of way to install cable.
The City Council is expected to make its decision during today's study session after a closed-door meeting to review a study conducted by the city.
Tuesday, January 16, 2007
Qwest cable help push bill to bypass municipal franchise requirements
By Andy Vuong
/print_article.jsp?articleId=4996960&siteId=36
State Rep. David Balmer said Thursday he will introduce legislation that would allow Qwest to seek a statewide cable-franchise agreement.
Qwest currently has to seek franchise agreements with individual municipalities before it can offer video service to compete against cable companies such as Comcast. So far, the Denver-based company has reached agreements with only a few communities in Colorado.
Balmer, a Republican from Centennial, said the legislation is aimed at increasing competition. Balmer said he will introduce the bill "shortly" but has until the end of the month to do so.
The key issue between Qwest and individual municipalities has been network build-out requirements. City leaders want Qwest to offer its video service to every home, a requirement also placed on Comcast, the incumbent cable-TV provider in the metro area. Qwest wants the freedom to pick which neighborhoods it will offer its video service to.
The build-out requirement "is a barrier to competition," said Chuck Ward, Qwest's state president. He said Qwest shouldn't have to build out to every home, because it is the second entrant into the market.
"There is every opportunity for new entrants to enter the market today under the existing rules without any special franchising deals or special legislative loopholes," Comcast spokeswoman Cindy Parsons said.
Darryn Zuehlke, director of Denver's telecommunications office, said the Denver City Council insists that Qwest offer its service to every resident but is flexible on the time frame in which that requirement is met.
Some states, including California, have already passed statewide franchising legislation. Other states in Qwest's 14-state service territory will also likely see similar legislation this year, including Iowa, Minnesota, Utah and Idaho, Ward said. In addition, Qwest's Oregon president Judy Peppler has said a franchising bill will be introduced there this year.
Thursday, January 11, 2007
Cox renewal bid comes up short, council say
By Rob O'Dell (1.10.07)
http://www.azstarnet.com/metro/163983
http://www.azstarnet.com/metro/163983
The City Council unanimously declared a proposal from Cox Communications for its cable franchise renewal insufficient in six key areas on Tuesday.
It set a deadline of Jan. 17 — the same deadline Cox has set — to come to an agreement in informal negotiations. If the deadline is missed, the council vowed to take Cox through the costly and time-consuming federally mandated license-renewal process.
It set a deadline of Jan. 17 — the same deadline Cox has set — to come to an agreement in informal negotiations. If the deadline is missed, the council vowed to take Cox through the costly and time-consuming federally mandated license-renewal process.
The result of that process could be denial of Cox's franchise renewal and the city seeking another cable provider — although people on all sides say that's unlikely and would lead to litigation.
The council listed concerns about public access channels, the proposed length of the agreement, new public channels for education, the "digital divide" that would charge non-digital users higher bills to get access channels, unpaid license fees and issues with providing cable for schools.
Broadband video-to-TV trend seen roiling business models
By Kenneth Li (1.9.07)
http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyID=
Technology unveiled at CES last week allows people to more easily access Internet and PC content via their TVs potentially driving demand for bandwidth to supply high definition streaming content as well as creating new potential business partnerships.
At the Consumer Electronics Show in Las Vegas this week, electronics manufacturers from Sony Corp. to start-ups such as Sling Media unveiled a raft of new products to allow consumers to play Internet videos, or media files stored on PCs, directly on their TV screens.
"There are a lot of companies looking to bypass cable," said Bob Greene, executive vice president of Liberty Media Holding Corp.'s Starz Entertainment network.
Consumers are currently unwilling to pay more for a device that lets them view PC content on TV screens, according to a poll of 5,000 U.S. homes by Forrester Research. Moreover, the bandwidth constraints of current broadband services essentially rule out any downloading or streaming of high-definition programs.
Some big cable operators have conceded they need to craft a response to the growing trend in watching PC-based Internet videos on big screens, one media executive said. On a panel discussion, Chase Carey, chief executive of No.1 U.S. satellite TV provider DirecTV Group Inc., said he saw more opportunities than challenges. DirecTV is also in discussions with top online video sites YouTube and News Corp.'s MySpace to allow viewers to watch clips directly on TV screens.
http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyID=
Technology unveiled at CES last week allows people to more easily access Internet and PC content via their TVs potentially driving demand for bandwidth to supply high definition streaming content as well as creating new potential business partnerships.
At the Consumer Electronics Show in Las Vegas this week, electronics manufacturers from Sony Corp. to start-ups such as Sling Media unveiled a raft of new products to allow consumers to play Internet videos, or media files stored on PCs, directly on their TV screens.
"There are a lot of companies looking to bypass cable," said Bob Greene, executive vice president of Liberty Media Holding Corp.'s Starz Entertainment network.
Consumers are currently unwilling to pay more for a device that lets them view PC content on TV screens, according to a poll of 5,000 U.S. homes by Forrester Research. Moreover, the bandwidth constraints of current broadband services essentially rule out any downloading or streaming of high-definition programs.
Some big cable operators have conceded they need to craft a response to the growing trend in watching PC-based Internet videos on big screens, one media executive said. On a panel discussion, Chase Carey, chief executive of No.1 U.S. satellite TV provider DirecTV Group Inc., said he saw more opportunities than challenges. DirecTV is also in discussions with top online video sites YouTube and News Corp.'s MySpace to allow viewers to watch clips directly on TV screens.
Tuesday, January 9, 2007
Localizng the Internet: 5 Ways Public Ownership Solves the U.S. Internet Problem
By Becco Vargo Daggit, Institute for Self Reliance
http://www.newrules.org/info/5ways.pdf
This 32 page document, Localizing the Internet, outlines the benefits of publicly owned fiber lines. It summarizes quickly both pre and post-Telecommunications Act of 1996 regulations, the basics of broadband techology, the risks involved, and case studies of successful implementation of public owned fiber.
Their 5 arguments for public ownership are:
http://www.newrules.org/info/5ways.pdf
This 32 page document, Localizing the Internet, outlines the benefits of publicly owned fiber lines. It summarizes quickly both pre and post-Telecommunications Act of 1996 regulations, the basics of broadband techology, the risks involved, and case studies of successful implementation of public owned fiber.
Their 5 arguments for public ownership are:
- High-speed information networks are essential public infrastructure.
- Public ownership ensures competition.
- Publicly owned networks can generate significant revenue.
- Public ownership can ensure universal access.
- Public ownership can ensure non-discriminatory networks.
U.S. Broadband Penetration to Hit 60% in 2007, Led by DSL Growth
SILVER SPRING, MD -- (MARKET WIRE) (1.8.07)
http://www.marketwire.com/mw/release_html_b1?release_id=200951
About 60 percent of all U.S. homes will subscribe to broadband service by the end of the year, but cable operators will come precariously close to losing their majority market share, Pike & Fischer concludes in a new report published by its Broadband Advisory Services unit.
Cable operators will see their share of the high-speed Internet market fall to slightly more than 50 percent as adoption of standard DSL and, to an increasing extent, fiber to the home or node (FTTx), continues to help the major telephone companies net the largest number of new broadband customers, Pike & Fischer forecasts in its "Broadband Business Outlook 2007."
However, a growing array of on-demand and high-definition programming, together with aggressive promotional offers, will lead digital cable subscriptions to make up the majority of the industry's core video customer base.
http://www.marketwire.com/mw/release_html_b1?release_id=200951
About 60 percent of all U.S. homes will subscribe to broadband service by the end of the year, but cable operators will come precariously close to losing their majority market share, Pike & Fischer concludes in a new report published by its Broadband Advisory Services unit.
Cable operators will see their share of the high-speed Internet market fall to slightly more than 50 percent as adoption of standard DSL and, to an increasing extent, fiber to the home or node (FTTx), continues to help the major telephone companies net the largest number of new broadband customers, Pike & Fischer forecasts in its "Broadband Business Outlook 2007."
However, a growing array of on-demand and high-definition programming, together with aggressive promotional offers, will lead digital cable subscriptions to make up the majority of the industry's core video customer base.
Comcast To Launch Upstream Powerboost
broadbandreports.com (1.9.9)
http://www.dslreports.com/shownews/80834
"A company insider informs us that Comcast is expected to announce plans for deployment of PowerBoost upstream speed enhancement sometime in the first half of 2007 for all 6Mbps/384kbps and 8Mbps/768kbps residential subscribers. Users will see upstream bursts up to 1Mbps and 2Mbps, respectively, for the 384kbps and 768kbps upstream speeds. While scheduled launch is expected to begin in February, as with downstream Powerboost deployment, specific dates will vary by market. "
http://www.dslreports.com/shownews/80834
"A company insider informs us that Comcast is expected to announce plans for deployment of PowerBoost upstream speed enhancement sometime in the first half of 2007 for all 6Mbps/384kbps and 8Mbps/768kbps residential subscribers. Users will see upstream bursts up to 1Mbps and 2Mbps, respectively, for the 384kbps and 768kbps upstream speeds. While scheduled launch is expected to begin in February, as with downstream Powerboost deployment, specific dates will vary by market. "
Qwest to view video options
By Andy Vuong (1.7.07)
http://www.denverpost.com/business/ci_4968128
Qwest is looking into upgrading copper lines to fiber to be able to provide its own IPTV service.
Qwest is quietly taking steps toward a major upgrade of its network that would ultimately allow the company to offer its own video service on a broader scale.
http://www.denverpost.com/business/ci_4968128
Qwest is looking into upgrading copper lines to fiber to be able to provide its own IPTV service.
Qwest is quietly taking steps toward a major upgrade of its network that would ultimately allow the company to offer its own video service on a broader scale.
Kermit Ross said the deadline for responding to Qwest's RFP was late last month. He said Qwest will probably spend two to three months reviewing proposals before selecting a vendor.
Qwest's capital expenditures have hovered around $1.6 billion annually in recent years and are expected to remain at that level for the foreseeable future, Jon Lentz said. Much of the company's spending has gone toward improving the reach and speed of its high-speed Internet Digital Subscriber Line offering.
J:COM to bond with 160 Mbps Internet service
By Jeff Baumgartner (1.5.07)
http://www.cedmagazine.com/article/CA6404675.html
http://www.cedmagazine.com/article/CA6404675.html
J:COM, the largest cable MSO in Japan, will use pre-DOCSIS 3.0 channel bonding techniques to deliver a super-fast Internet service that caps downstream speeds at 160 Mbps, and upstream speeds at 10 Mbps.
The service, which carries the provisional brand of "J:COM.NET 160 Mbps," will be offered to individual homes and customers beginning in April 2007.Tuesday, January 2, 2007
AT& T-BellSouth deal called 'breakthrough' for consumers
Leslie Cauley (1.2.07)
http://www.usatoday.com/printedition/money/20070102/fcc02.art.htm
FCC's ability to get net neutrality sets precedent
The FCC's approval of the merger between AT&T and BellSouth on Friday allowed the deal to close immediately. To secure the FCC's blessing, AT&T agreed to a list of consumer-friendly concessions. Among them: For the next 30 months, AT&T agreed to sell "naked" DSL — meaning consumers don't have to buy any other service from AT&T to get the DSL service — for just $19.95 a month. That's less than half the $44.95 that AT&T now charges.
AT&T also agreed to a "net neutrality" provision that will require the company to treat all broadband services, its own as well as rivals', equally for the next two years. That means AT&T can't favor its own traffic, in terms of transmission speed and quality.
In addition, AT&T agreed to sell some unused wireless spectrum. That could enable a new rival to enter the market, creating more options for consumers.
http://www.usatoday.com/printedition/money/20070102/fcc02.art.htm
FCC's ability to get net neutrality sets precedent
The FCC's approval of the merger between AT&T and BellSouth on Friday allowed the deal to close immediately. To secure the FCC's blessing, AT&T agreed to a list of consumer-friendly concessions. Among them: For the next 30 months, AT&T agreed to sell "naked" DSL — meaning consumers don't have to buy any other service from AT&T to get the DSL service — for just $19.95 a month. That's less than half the $44.95 that AT&T now charges.
AT&T also agreed to a "net neutrality" provision that will require the company to treat all broadband services, its own as well as rivals', equally for the next two years. That means AT&T can't favor its own traffic, in terms of transmission speed and quality.
In addition, AT&T agreed to sell some unused wireless spectrum. That could enable a new rival to enter the market, creating more options for consumers.
Adelstein called the settlement a "breakthrough" for consumers in that it establishes a new standard of behavior for the USA's communications giants. Big companies such as AT&T and Comcast "have told the FCC that they can't live with a net neutrality provision in place," Adelstein said. "They can."
Internet telecom blossomed, but payoff was elusive in '06
Bruce Meyerson (12.28.06)
http://www.azcentral.com/arizonarepublic/business/articles/1228biz-telecom1228.html
While 2006 showed less than stellar returns for IP telephone services like Skype. With Skype and similar innovators cable companies are prepared to strike back at in 2007.
No doubt the main event for 2007 will be the impending smackdown between the traditional phone and cable TV industries. The regional Bell companies, after losing millions of customers to rival phone services from cable providers in 2006, are just starting to ramp up their risky push into TV.
Verizon Communications Inc. expects its FiOS TV service will be available to 1.8 million homes by January. AT&T Inc. finally appears to be pushing past technological holdups with U-verse, maintaining the IP-based service will be offered in parts of 15 markets by the close of December.
The competitive response couldn't come a minute too soon, as cable companies have had a field day in the phone business thus far. Just over 6 million homes will have switched to cable phone service by the end of 2006, a gain of 2.5 million for the year, the industry research company TeleGeography estimates.
TeleGeography estimates that Skype users are on track to make over 27 billion minutes of computer-to-computer calls this year, with about half of them used for international long distance (all free).
While that sounds like a lot, it still represents just 4.4 percent of total international traffic in 2006, up from 2.9 percent in 2005.
http://www.azcentral.com/arizonarepublic/business/articles/1228biz-telecom1228.html
While 2006 showed less than stellar returns for IP telephone services like Skype. With Skype and similar innovators cable companies are prepared to strike back at in 2007.
No doubt the main event for 2007 will be the impending smackdown between the traditional phone and cable TV industries. The regional Bell companies, after losing millions of customers to rival phone services from cable providers in 2006, are just starting to ramp up their risky push into TV.
Verizon Communications Inc. expects its FiOS TV service will be available to 1.8 million homes by January. AT&T Inc. finally appears to be pushing past technological holdups with U-verse, maintaining the IP-based service will be offered in parts of 15 markets by the close of December.
The competitive response couldn't come a minute too soon, as cable companies have had a field day in the phone business thus far. Just over 6 million homes will have switched to cable phone service by the end of 2006, a gain of 2.5 million for the year, the industry research company TeleGeography estimates.
TeleGeography estimates that Skype users are on track to make over 27 billion minutes of computer-to-computer calls this year, with about half of them used for international long distance (all free).
While that sounds like a lot, it still represents just 4.4 percent of total international traffic in 2006, up from 2.9 percent in 2005.
FCC ruling helps AT&T; upsets towns
By Anna Marie Kukec (12.28.06)
http://www.dailyherald.com/search/searchstory.asp?id=264177
http://www.dailyherald.com/search/searchstory.asp?id=264177
The National League of Cities and the Illinois Municipal League are upset with recent FCC rulings and are likely to sue the federal agency for overstepping its boundaries.
The National League of Cities and the Illinois Municipal League said the FCC’s decision blocks local governments from exercising their franchising process, earning revenues, offering services to all residents and protecting public rights of way.
“We believe the FCC has overstepped its authority,” said Ken Alderson, executive director of the Illinois Municipal League.
The FCC last week ruled municipalities cannot unreasonably refuse companies from competing with cable operators. This includes unreasonable requests for “in-kind” payments that attempt to subvert the 5 percent cap on franchise fees, drawn-out local negotiations with no time limits and other situations.
The towns contend AT&T is required, just like Comcast, to follow the same franchising process, pay the same fees for public rights of way, allow for services to all residents regardless of ability to pay and provide local access channels.
AT&T has argued it’s not a cable company and shouldn’t be treated like one.
Peter Collins, information technology manager for Geneva, and Gary White, media manager for Wheaton, said their towns still need to review the FCC order, expected in about a month, before determining what it means to their franchising process and to the AT&T lawsuits.
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