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.
Thursday, February 22, 2007
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.”
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