We continue to see consolidation in the broadband market and various games played by the cablecos and telcos to thwart competition or undermine network neutrality. Until regulators create true structural separation between infrastructure and service providers the chances of seeing genuine broadband competition are slim. It is interesting to note telecom regulators in North America have imposed structural separation in the past. more
There are a number of stimuli which are pushing Canada's burgeoning FttH market, and the government and telcos alike have made significant steps to improve the reach and capacity of broadband infrastructure. These measures will show real benefits for consumers in recent years. From the government's side, its Economic Action Plan, launched in 2009 as a response to the global financial crisis, included a pledge to provide $225 million over three years towards its Broadband Canada Program, geared to extending broadband coverage to underserved communities. more
Representatives of both AT&T and Verizon have stated that their companies will soon offer "toll free" broadband services. So far they have not provided much detail, but the prospect for customer and content provider surcharges should trigger concern, even outside the context of the network neutrality debate. First let's consider the frame the carrier reps use: "Toll Free." This is an old school "Bellhead" reference... more
The Mexican telecoms and broadcasting magnate Carlos Slim -- the wealthiest man in the world and owner of the business conglomerate Grupo Carso -- has put a 28% bid for the Netherlands' incumbent telco KPN on the table. This is a very interesting and significant move. As is often the case, new winners tend to arrive when previous winners become losers, especially when they are becoming weaker and thus easier to attack. more
Sprint's vision along with determined action says everything. They are fighting for mobile market relevance, thumbing their noses at detractors, moving beyond being relegated to a distant 3rd ranked carrier in a fast growing market. It's acquisition of the iPhone and agreement to spend $15.5 Billion over four years for the privilege has investors squawking bankruptcy sooner rather than later. First quarter earnings reveal that Dan Hesse's decision to purchase iPhones back in October 2011 is paying off in solid contracts. more
The Aspen Institute released the IDEA Common Statement and Principles as a do no harm Hippocratic Oath for Internet governance. The Aspen report describes the present moment as an inflection point for "the most robust medium of information exchange in history". Reed Hundt outlined the risks associated with Internet governance changes favored by China and a group of developing nations through the ITU. more
This month, France Telecom's Lower Indian Ocean Network 2 "LION2" fiber optic cable has been put in service, bringing the total number of cables in East Africa to four. In South Africa it is expecting West Africa Cable System to go live next month. This huge growth in fiber optic cables connecting Africa means that bandwidth costs can go further down but there are many questions for internet service providers, regulators and policy makers... more
The business world today features many complex global service activities which involve multiple interconnected service providers. Customers normally expect to execute a single paid transaction with one service provider, but many service providers may assist in the delivery of the service. These contributory service providers seek compensation for their efforts from the initial provider. However, within a system of interdependent providers a service provider may undertake both roles of primary and contributory provider, depending on the context of each individual customer transaction. more
A number of conversations have recently converged on a single problem: how to match applications to network access. Let's unpeel this issue... When I was Chief Analyst at Telco 2.0, we proposed there was a significant untapped market opportunity for network operators to bundle together access with content, applications or services. The revenue opportunity is to charge the providers of those services for delivering fit-for-purpose data at bulk wholesale prices. This is the "postage problem"... more
I recently shared the idea that there is a new category of network architecture, the Network of Probabilities. This differs from classical circuits (Network of Promises) or best-effort packet data (Network of Possibilities). I personally believe it's the next revolution in telecoms. What's new is that it provides a trading space for allocating contention between flows, and does this with some novel applied mathematics. more
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