In December 2005 the Australian Competition & Consumer Commission (ACCC) launched an inquiry into the future regulation of wholesale access on fixed networks. It has now announced a final decision, following a public inquiry, under section 152AL of the Trade Practices Act 1974 on six fixed-line services that had been due to expire at the end of this month. The following will remain declared services until July 2014... more
Today's blog talks about a critical part of the broadband network that most people don't know about -- carrier hotels. These are locations that have been created for the specific purpose of allowing carriers to connect to each other. The need for carrier hotels became apparent in the year after the passage of the Telecommunications Act of 1996. That new law allowed local competition for telephone service. more
Time to brush the dust off your Computer II notebooks. Are voicemail, electronic fax, and call forwarding enhanced services or telecom services? Today's case: FTC v. American eVoice, Ltd... The FTC brought an action against Defendants claiming that they were engaged in cramming, adding unwanted voicemail, electronic fax, and call forwarding services to consumers bills to the tune of $70 million. more
It is interesting to see telecommunications policy issues being covered by the general media. Of course, we expect to see coverage of communications issues in the business press. The sector is a large employer, makes massive investments in infrastructure and virtually every citizen buys communications products and services every month. Still, covering the sector in the business section is different from seeing coverage move to the front page or the general editorial pages. more
According to Data from TeleGeography's Wholesale Bandwidth Pricing Database, there are stark price differences around the globe for companies with large international bandwidth requirements. "For example, the median price of a 2 Mbps E-1 circuit between London and Johannesburg in Q4 2008 was nearly $15,000. For the same price, a bandwidth buyer could lease a 10 Gbps wavelength -- 500 times the capacity of an E-1 -- between London and New York." more
For years it's been impossible to go to any industry forum without meeting a few folks who predict that residential broadband will go wireless. This buzz has accelerated with the exaggerated claims that fast 5G broadband is right around the corner. I've seen even more talk about this due to a recent Pew poll that shows that the number of people that only use their cellphones for data has climbed significantly over the last few years – I'm going to discuss that poll in another upcoming blog. more
Most service providers are aware that there needs to be a simple, fast way to identify subscribers. Unfortunately, in reality, mapping IP addresses back to subscribers for identification purposes - such as lawful interception requests or acceptable use policy violations - can be complicated. It usually involves analyzing data sets, completing manual audits, or reliance on multi-step solutions. more
Opensignal recently published a report that looks around the world at the quality of cellular video. Video has become a key part of the cellular experience as people are using cellphones for entertainment, and since social media and advertising have migrated to video. The use of cellular video is exploding. Netflix reports that 25% of its total streaming worldwide is sent to mobile devices. The new Disney+ app that was just launched got over 3 million downloads of their cellular app in just the first 24 hours. more
When valuing a stock, analysts and shareholders evaluate always revenue and profit. Big tech COFs are sitting on assets worth tens of millions of dollars of annual profit (not just revenue, but true profit) in the form of unallocated IPv4 addresses. By not selling or leasing these out, they are incurring expenses to hold them and missing out on tremendous profits. At a 20X multiple (for context, Cisco is trading at nearly 18X earnings, Google at just over 33X earnings, Shopify at well over 700X earnings), big tech CFOs are actively preventing over $250 billion in market capitalization for their shareholders. more
"A radical review of cybersecurity in space is needed to avoid potentially catastrophic attacks," warn researchers at the International Security Department of UK-based thinktank, Chatham House. more
As Trump's horrific Administration of non-stop debacles and self-serving gambits headed toward the exit over the past few weeks, one last regulatory grab after another has been pushed out the door while the toddler-in-chief rants. Sure enough, the last of the 5G debacles just appeared in the Federal Register courtesy of the President's policy instrument, the National Telecommunication and Information Administration (NTIA). It was titled the 5G Challenge Notice of Inquiry. more
The classic view of a wireline or mobile carrier is that it was an "operator", it ran out cables, raised poles, installed switches, constructed central offices and base stations and the like. However, the figures from Nokia Siemens Networks (NSN) show that firm is making 45% of its sales from services, meaning it is constructing and managing networks on behalf of "carriers". NSN is "carrying" a lot of telecoms traffic. This has been accelerated by the global financial crisis... more
The telecoms industry has two fundamental issues whose resolution is a multi-decade business and technology transformation effort. This re-engineering programme turns the current "quantities with quality" model into a "quantities of quality" one. Those who prosper will have to overcome a powerfully entrenched incumbent "bandwidth" paradigm, whereby incentives are initially strongly against investing in the inevitable and irresistible future. more
"Peak telecom" is described as the maximum point of expansion reached by the traditional telecommunications industry before the internet commoditized the industry to a utility pipe. I had to think of this when I read the recent outcomes of the famous Ericsson Consumer Lab survey. The company used the result of the survey to counteract market criticism regarding the viability of the telco business models in the deployment of 5G. more
For the first time in my memory, broadband has entered into U.S. presidential politics. This is an important milestone for rural broadband – not because of the proposals being made by candidates, but because it indicates that the voices of those without rural broadband have reached upward to the top of the political system. I'm sure that when the presidential candidates go to rural areas, they are asked if they can help find a solution for the lack of broadband in many rural counties. more