Digital Lifescapes

TelecomTV has a very informative interview with Simon Torrance of STL Partners, on a topic entitled "The Web 2.0 Threat " -- discussing the results that uncovers globally, and across functional organizations, telco constituents are frustrated that they're (collectively) puzzled by what their customers want, and where their business should be heading. The collective assessment exposes a major difference between how the telco sector will evolve in the European and U.S. markets. The implication: the U.S. government, specifically the Justice Department and the FCC, have essentially taken the approach of allowing industry consolidation that has recreated dominant monolithic companies -- AT&T and Verizon -- that are structurally best suited to the dynamics of a bygone era. If you believe, as I do, that the forward-looking economic viability of a nation is undeniably tied to enabling an appropriately evolving presence within the global networked economy, then there's re...

With all the talk about WiMAX, and the skeptical buzz about reality matching up with ambitious projections, the bottom line is not so much about what it can do as when it will ship and start bringing in revenue. Sky Light Research tracks wireless broadband revenue worldwide on a quarterly basis and WiMAX revenue has become a reality only recently. An interesting trend has developed in 2006 versus 2005 -- base stations are generating the bulk of the revenue, which is the opposite of what occurred in 2005. This is a strong indicator that the initial tire kicking of WiMAX is moving into the realm of commercial roll-outs or at least larger, more serious trials. Going forward, device sales will drive volume. Intel will be a main benefactor as WiMAX device sales should dwarf traditional desktop modem sales in the next 12 to 24 months. WiMAX base station revenue is on track to more than triple in 2006 as nascent networks are in initial stages of moving from trials to large scale trials or co...

Speaking at the Casual Connect Conference in Amsterdam, David Gosen, CEO of I-play, shared his vision that a mobile phone platform will be the ultimate gaming device of the future, rendering the in-home console as the platform for a niche audience. Mobile not only holds the key to the future of gaming, but convergence of casual gaming content between online and mobile will continue to drive the success of both platforms. According to data from Informa Telecoms & Media and Montgomery, mobile has five times the installed base compared to console, with the number of mobile subscribers forecast to reach 2.8 billion next year. "Its reach and multi-functionality positions mobile as the number one mass market entertainment device of the future," Gosen said. The number of mobile games sold was forecast to outstrip the number of console/portable games sold in 2006, according to data from IDC and Montgomery, with mobile games unit sales set to continue on a strong growth trajectory...

According to a new ABI Research Brief, network operators are slowly beginning to roll out all-IP next generation networks (NGN). The move to an Internet Protocol-based infrastructure is a natural evolution for the fixed network as broadband services, including Voice over IP (VoIP), take over from the legacy Public Switched Telephone Network (PSTN). Mobile communication networks have a parallel evolution to IP -- although at a slower pace -- but the standards work is accelerating. By the end of 2007 there will be full NGN standards for fixed and mobile networks allowing IP-based services to be deployed on NGNs, a process that ABI Research analysts expect to be largely complete by 2015 for a total cumulative investment of more than $1 trillion. "As we move to the end of the decade, bandwidth-hungry services such as IPTV will need an IP infrastructure to support them. Operators will also want to control operating costs by moving all services over an IP network," says ABI Researc...

Broadband service providers (BSPs) will be investing billions of dollars over the next five years on service delivery platforms (SDPs) in order to bring the benefits of on-demand IP services to their wireline and mobility customers, according to Insight Research. SDPs are computing and software platforms that support emerging standards such as IMS and SIP while continuing to inter-work with legacy protocols. According to the study, SDP adoption by carriers will facilitate the delivery of on-demand telecommunications services by integrating network element performance with critical business processes. Functionally, these SDPs will enable the adoption of a service-oriented architecture (SOA), making it possible to reuse individual service components in order to quickly build a new complete service offering, as well as to separate the creation and execution of new service applications from the underlying network. "These platforms will loosen the knot that ties network elements to bu...

Driven by increasing Telco IPTV deployments, demand for IP set top boxes (STB) is growing, and will reach 19 million units in 2010, up from 4.3 million in 2006, reports In-Stat. New STB vendors have entered the market within the past year, the high-tech market research firm says, but the important box features -- HD, DVR, and digital terrestrial tuners -- have not changed. Furthermore, if policy changes in the U.S. are any indication of a trend, it's not apparent to me how the vendors in this sector will be adapting to a marketplace where open-standard STBs will be sold directly to consumers. "There was consolidation in 2006, with Motorola buying Kreatel and Cisco integrating Scientific Atlanta with Linksys and KiSS," says Michelle Abraham, In-Stat analyst. "We see more definitive leaders emerging in IP set top boxes, though the leaders differ by geography." According to Kagan Research, starting on July 1, a Federal Communications Commission (FCC) mandate will n...

BMI -TechKnoweldge has released its latest report, in which it has upwardly revised its previous forecasts for the South African broadband market. While ADSL is still expected to lead the way in terms of revenue growth, much of the new growth in terms of subscriber numbers is expected to come from wireless connectivity. By comparison with developed nations, very few of South Africa's BSP current offerings are considered true broadband, however, BMI -T does expect the specifications of all the major players offerings to be progressively upgraded over the forecast period. The BMI -T revised outlook recognizes that a tipping point has been reached in respect of growing subscriber demand, as competition intensifies and broadband prices continue to fall. Increased competition has come even more intensively than previously forecast from the mobile phone operators, particularly Vodacom and MTN, which have rolled out HSDPA ahead of the previously forecast schedule, and have d...

Broadband service providers could make sizable gains in the video services market if they appropriately target households that are moving or have recently moved, according to Parks Associates' latest research project "Households on the Move." This survey found 45 percent of the estimated 23 million U.S. households that move every 18 months make their first service call to the local telephone service provider. In addition, most people switch pay-TV service providers only when they move into a new home. These combined findings uncover a scenario where the telco giants could challenge cable and satellite operators in the pay-TV market by selling these potential subscribers a bundled package that includes video, as well as voice and Internet access services. "The telcos have invested heavily in upgrading their networks, and this strategy is the best shot they have to win the market," said John Barrett, director of research for Parks Associates. "Most consumers ...

Last year China surpassed the U.S. in DSL broadband service subscribers, and that event certainly shifted attention to the emerging Chinese communications market opportunity. Another emerging market that is worthy of deeper analysis and assessment is within India. The trends in the Indian marketplace will create some unique challenges, but that doesn't negate the huge opportunity for device manufacturers and network service providers to adapt to the economic nuances of this nation. Again, I believe that consumer segmentation and selective targeting strategy can help to create value that fits the market opportunity. The wireless phone subscriber base in India has already crossed the 100 million mark and will more than double to 265.2 million by 2010, reports In-Stat. Providers will continue to rake in profits, however, Average Revenue Per User (ARPU) levels have declined significantly, and the downward trend is expected to continue, the high-tech market research firm says. "The...

Some believe that broadband video isn't a threat to traditional broadcast TV's mass-market appeal, because of the preexisting consumer preference for professionally produced programs. However, perhaps the real threat is still a reduction in mind-share. Few vehicles are as effective at reaching large segments of the population as television, a fact that has established it as the favored medium for advertisers in many product categories. For as long as that has been the case, however, TV networks and ad agencies have been fearful of emerging competitors and technologies that threaten their route into consumer's minds. From the remote control to the Digital Video Recorder (DVR), there have long been predictions that live TV, linear programming, and its embedded advertisements were going to be adversely affected by a consumer's ability to bypass commercials. More recently, a different kind of threat has emerged from YouTube, the Internet's response to one-stop digital ...

In-Stat reports that due to the advancements in digital content distribution and delivery, a significant question for video and music production companies looms on the horizon: What is the future of packaged media? DVDs are the primary type of physical packaged media for video delivery, while broadcast TV, pay-TV services, downloaded video, and streaming video represent methods of electronic video delivery. In terms of audio, the CD is still the primary type of packaged media for music, and the evolution from CD to electronic distribution is well underway. Over the last two years, the Internet has become a well established platform for delivering music electronically. Still, In-Stat does not expect electronically delivered content to displace packaged media altogether. The apparent benefits of electronically delivered music are clear. It is immediate, it is affordable, and it is convenient. In addition, the music file sizes are small. However, In-Stat believes a certain se...

According to the Yankee Group, the managed IPTV services offered by telecom providers have been a primary investment focus during the last two years. IPTV services in Asia, Europe and North America have begun to take form in early field trials and commercial deployments. Only recently have the operational costs associated with these deployments come into focus. Service providers are spending billions to upgrade their networks to add IPTV applications in the home. Because the capital and operational investments to upgrade the network are so high, service providers need to keep their support costs as low as possible. However, installation and support costs are still very high, and service providers are looking for options that will decrease these costs in both the short and long term. Yankee Group analyzed the operational costs associated with IPTV deployments as part of a series of research initiatives examining service provider's approaches to deploying broadband and associated IP...

With a new year under way, IDC's global small and medium-sized business (SMB) analysts have pondered the key trends and industry developments likely to impact the SMB information technology (IT) market over the next 12 to 18 months. A variety of evolutionary and even revolutionary changes will drive opportunities forward on a worldwide and regional basis. Among the top 10 predictions are the following: - In North America, SMB IT will gain in local networking and broadband will set the stage for investment in security and storage. - Growing investment in technology for productivity enhancement in EMEA will transcend regional differences and variation in country support of SMBs. -The pace of technology expansion in China and India will spur SMB spending growth in 2007 to record levels. -In Latin America, Mexico, Brazil, Argentina, Colombia, and Chile will lead the way in regional SMB IT spending growth. "The opportunity to provide SMBs with advanced technology will continue to g...

Across the top five Western European countries, broadband access revenues will increase from less than $17 billion in 2006, to in excess of $24 billion by 2010, according to a new market study from Understanding & Solutions. "We're looking at a 45 percent increase in just four years," said Cesar Bachelet, a consultant and telecoms specialist with Understanding & Solutions, "but we'll see subscriber numbers increase at a greater rate over the same period, from 55 million last year to 83 million by 2010, and that's due to the increasingly high levels of competition within the marketplace." As a result of this intense competition, broadband access is now a commodity, and broadband service providers (BSPs) are using value-added services (VAS) to differentiate their products. These include security software, home networking, VoIP, online gaming, music and video content provisioning. Indeed, faced with the commoditization of their core broadband access...

According to Kagan Research, starting on July 1, a Federal Communications Commission (FCC) mandate will now ban cable companies from forcing their subscribers to use proprietary integrated set-top boxes, with few exceptions. This change requires cable set-top boxes to employ a removable and universal 'CableCARD' to decode signals. The modular approach aims to foster a 'digital cable-ready' landscape by allowing cable subscribers to use open standard solutions from third parties of their choice. Three weeks ago, the FCC delivered a mixed bag of decisions for cable operators who were seeking waivers, leaving the cable MSOs with little choice but to focus on implementation, notes Kagan Research. Cable companies argue that the mandate will simply drive up costs because one-piece integrated set-tops are less expensive, more secure and more reliable. Ironically, it's a similar argument that the Bell System used, before that long-time monopoly over exclusi...

I'm a willing advocate for the products and services that are essential to my digital lifestyle. I write about my positive experiences, and I also share my enthusiasm with friends and business associates. You may assume that the leading product and service providers go out of their way to have me use and apply their latest new gadget or service offering. In fact, few companies contact me with offers to trial their new products or services, I'm guessing it's because they just don't understand the value of influencer seeding -- getting their latest creation into the hands of people like me. In contrast, every day my email in-box fills with mundane press releases that rarely answer my fundamental question -- so what's the key application benefit? The U.S. wireless service providers are still the most clueless marketers, in this regard. According to the new Strategy Analytics research report, 'Liberating the Laptop: 5-Year Market Outlook on PC Cards & Embedded ...

Despite falling average revenues per user (ARPU) for mobile operators, the mobile content and services market will continue to grow dramatically as services and applications reach maturity and new services begin to gain traction, according to a study by Informa Telecoms & Media. The latest edition of the Informa 'Mobile Content and Services' report reveals that the introduction of a whole host of new players into the value chain presents new opportunities for growth in the mobile content and services market, while simultaneously posing a threat to mobile operators who face losing control of the billing relationship with their customers. The mobile web heralds a new age mobile handset and network technology has now evolved to a point where true mobile web access is possible. Informa anticipates that by 2011, just under half of all mobile subscribers worldwide will use mobile browsing -- a trend it sees developing with new European operator offerings such as the T-Mobile ...

The rise of Portable Media Players (PMPs) and downloadable content is compelling car makers and their electronics suppliers to rethink 'automotive infotainment' by adding connectivity to what have been standalone audio and video systems. Consumer demand for traditional in-vehicle infotainment systems such as CD players is declining in favor of products that support downloadable content, such as the Apple iPod. To accommodate this trend, auto makers are embracing connectivity as a means to bridge the gap between cars and the new-generation of multimedia consumer electronics products. According to iSuppi, the easiest way these companies can accomplish this is by supporting the most widely accepted protocols: wired USB and wireless Bluetooth. These connectivity gateways are set to generate a major market for both consumer electronics manufacturers and the automotive industry, while giving consumers what they have been demanding from their automotive infotainment systems. Fueled by...

comScore Networks announced that their audience data for online advertising networks can now be segmented into broad consumer-focused categories through its 'Media Metrix' service. This capability enables online advertisers to better understand advertising opportunities within specific content areas. "This enhancement provides advertisers and agencies with the ability to make side-by-side comparisons between individual Web sites and advertising networks, in order to select the optimal mix of media vehicles with which to achieve their goals," commented Jeff Hackett, comScore Networks director of agency relations. "It enables advertisers to gain deeper insight into the most effective vehicles for reaching consumers within a particular content area, while publishers and advertising networks can now quickly identify and evaluate competitors within their content category. In addition, it can be an effective tool for media planners intending to capitalize on the Inter...

Voice over Internet Protocol (VoIP) telephone services, which last year counted less than 38 million subscribers worldwide, should have a subscriber base of over 267 million in 2012, according to a new study released by ABI Research. "Hosted service providers, the pioneers of commercial VoIP, are going to grow to some extent, but it will be cable operators and other broadband providers trying to leverage their high speed data networks who will really push VoIP in the future," says principal broadband analyst Michael Arden. These operators want to add value to their broadband pipes, and they will generate new revenues over and above what they earn from their basic net access services. While traditional telcos have been slow to embrace VoIP due to their huge investment in conventional telephone networks, their desire for total control of service quality and their fear of upsetting their existing customer relationships, the development of VoIP markets will play out differently i...