The telecoms industry is facing a systemic problem of high operational complexity and excessive cost. We take a look at the root causes, and how to tackle them. Every telco in the world wants to both increase the quality of their customer experience, and also save money by lowering opex and deferring capex. A pervasive industry barrier to achieving this is one of complexity, which exists at many levels. more
Doug Madory, Director of Internet Analysis at Dyn, is reporting that the Russian Internet traffic (including domestic traffic) was re-routed out of the country due to routing errors by China Telecom. more
In my recent blog on utilities and the NBN I mentioned that the ultimate prize would be a combination of the ONT (Optical network terminal: the network interface device used in fibre-to-the-home applications, which operates as a demarcation point between the local loop of the carrier and the wiring in the user premises) and intelligent gateway the electricity company need for their smart meters and home energy networks. Perhaps I should expand on this a little... more
Comcast enhanced the value position of its broadband subscriptions by increasing the monthly data allowance to 1 Terrabyte (1000 Gigabytes). See Comcast Announcement. As an independent, unsponsored researcher, I can say "Thank You Comcast" without adverse consequences and only a bit of irony. This company does much to displease, but an expanded data allowance offers a winning proposition. more
The mobile phone market is growing exponentially and will continue to evolve for years to come. Why has the Cable Industry not moved into the lucrative mobile phone market? It could definitely be a revenue bonanza, as it currently is for telecom companies. ... Verizon and AT&T's revenues, as a percentage of stock price by division, attributes mobile phone service up to 40-42% of total revenues. more
In a blog post today, Google has announced that they will begin a fiber network experiment of their own. From the announcement: "We're planning to build and test ultra high-speed broadband networks in a small number of trial locations across the United States. We'll deliver Internet speeds more than 100 times faster than what most Americans have access to today with 1 gigabit per second, fiber-to-the-home connections. We plan to offer service at a competitive price to at least 50,000 and potentially up to 500,000 people." more
When we first heard of the possibility of broadband from low-orbit satellites, there was a lot of speculation that the technology could bring affordable broadband to the masses around the globe. The latest announcement from Starlink shows that affordable broadband is probably not coming in the immediate future. Starlink announced a premium tier of service with a $500 monthly fee for 150-500 Mbps. more
A new report has been released by Analysys Mason suggesting recent proposals to regulate the global Internet will harm growth and innovation worldwide. The International Telecommunication Union (ITU) will hold a treaty conference, the World Conference on International Telecommunications (WCIT), in December 2012, which will revise a 1988 treaty, the International Telecommunication Regulations (ITR). more
The current internet versus telcos debate that is going to be played out at the WCIT conference in Dubai later this year is still following the old confrontational pattern. The telco industry, for all the right reasons, started off as a monopolistic one. With the limited technology and knowledge of that time this system has been able to deliver telephone networks to all the countries in the world, and the industry can be proud of that achievement... However technology and knowledge have progressed... more
That is what happens when you base your telecommunications policies on the wrong foundations. The problems with the telecommunications industry in America go back to 1996 when the FCC decided that broadband in America should be classified as internet (being content) and that therefore it would not fall under the normal telecommunication regulations. Suddenly what are known as telecommunications common carriers in other parts of the world became ISPs in the USA. How odd is that? more
Today, the Supreme Court will consider a challenge to the universal service subsidy program established soon after the introduction of telephone service by the AT&T Bell System and later officially adopted by the FCC as mandated by a 1996 law.1, 2 Universal service funding supports access to telephone and broadband service by subscribers in rural locales that commercial ventures will not serve absent a subsidy. more
When a service is constructed using diverse components, then the way in which service revenues are distributed to the various suppliers of the components of the service can follow a number of quite distinct models. There are various forms of revenue redistribution models where the revenue per transaction is distributed to the various suppliers according to their inputs to support each transaction. more
Over the last few years the increasing amount of discussion about telecoms reveals that the real competition for telecoms companies is not from other telcos, but companies such as Google and others. While I agree with this, obviously it is important to analyse it further. more
In January 2009 the US Congress began considering the American Recovery and Reinvestment Bill 2009 aimed at kick-starting an economy in deep recession. The package, passed into law on 17 February, comprised $787 billion of mainly tax cuts, unemployment benefits and spending in education, health care, infrastructure and energy. Included in the fiscal stimulus package was a relatively modest $7.2 billion for broadband and wireless in unserved and underserved areas... more
Jorge Luis Valdés Hernández, Director de Servicios Convergentes de la Vicepresidencia de Integración Comercial de ETECSA, described the forthcoming changes to their mobile Internet service in a recent press conference. (He also has a very long job title). To be honest, the press conference coverage left me a bit confused, but this is some of what he said as I understood it. more