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Showing posts from June, 2016

Special Access is a Prime Example of Ecosystem Tension

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For as long as I can remember, special access rates, conditions and terms of service have been contentious, for obvious reasons: there are sellers and there are buyers . The former want more freedom, the latter want less. The sellers are opposed to price controls, the buyers want them.
What might be sort of interesting in the latest round of discussions about regulating of special access is that Verizon, to a certain extent, is more concerned about being a buyer than a seller, as is Sprint, and virtually all competitive local exchange carriers.
There are some obvious nuances. Some might question the wisdom of prolonging a legacy service, in decline, when IP substitutes could be made available, and when a shift to Ethernet-based access is under way, in any case.
To a large extent, technology shifts are at issue here. Special access traditionally has been a set of products (T1, DS3) using specific protocols. Ethernet is the next generation protocol that is displacing the older forms of …

Freewheel to Shut Down

Freewheel, the Wi-Fi-only mobile service offered by Cablevision Systems Corp., is going to be shut down. What that means about consumer demand for any “mobile” service with connectivity limitations is the issue.
“Cordless” phones seem to have been well understood by consumers, who understood the value was “no cor d” while inside the home, talking on a fixed voice service.
“Mobile” phones likewise seem exceptionally well understood, offering nearly-ubiquitous communications “anywhere,” out and about or at home.
The issue, for some decades, is whether there is a substantial market for some form of service intermediate between “full mobility” and “cordless.”
Personal Handy Phone is the best historical example of a type of service that Freewheel resembled. The idea was a service that was “more than at-home cordless, but less than fully mobile.” Or, to put it another way, PHP was essentially a cordless phone that would work at home and also outdoors, with call handoff at pedestrian speeds.
S…

Average Global Internet Connection Speed Up 12% Since Last Quarter

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Almost nothing is more inexorable than an increase in global average connection speed from one quarter to the next. Akamai, for example, reports a  12 percent quarter over quarter increase in average global Internet connection speed  to 6.3 Mbps.
Global average peak connection speed increased 6.8 percent to 34.7 Mbps.
At a country/region level, South Korea continued to have the highest average Internet connection speed in the world at 29 Mbps, an 8.6 percent gain over the fourth quarter of 2015, while Singapore maintained its position as the country with the highest average peak connection speed at 146.9 Mbps, an 8.3 percent quarterly increase.
source: Akamai
Globally, 4 Mbps broadband adoption came in at 73 percent, up 5.4 percent from the fourth quarter of 2015.
Average mobile connection speeds (aggregated at a country/region level) ranged from a high of 27.9 Mbps in the United Kingdom to a low of 2.2 Mbps in Algeria in the first quarter of 2016, while average peak mobile connection s…

Many Enterprises Already Use IoT Apps and Services

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The majority of enterprises in a recent survey--especially in the utility and manufacturing industries--already have deployed Internet of Things solutions, according to a new report from 451 Research.
Some 65 percent of respondent organizations currently collect data from equipment, devices or other connected endpoints and use that data for a business purpose, 451 Research says.
As you might guess, equipment operating in data centers, reported by 51 percent of respondents,  is currently the most common source of IoT data collected.
Feeds from camera and surveillance equipment are collected by 34 percent of respondents.
Nearly half (49 percent)  of manufacturing organizations gather data from factory equipment and 49 percent of healthcare organizations report gathering data from medical devices.
Business value derived from these deployments include reducing risk (66 percent) followed by optimizing operations (63 percent), developing new or enhance existing products or services (33 percent)…

Public Cloud Forecast for Australia, New Zealand, South Korea, Singapore

The public cloud services market in Australia, New Zealand, Singapore and South Korea will  grow 12.8 percent in 2016 to total $8.11 billion, up from $7.19 billion in 2015, according to Gartner researchers.
By 2019, Gartner predicts that total public cloud services spending in the mature parts of Asia will rise to $12.4 billion.
Software as a Service is fastest growth segment of the public cloud services market in Australia, New Zealand, Singapore and South Korea with a projected growth rate of 22.5 percent, and a revenue projection of $1.67 billion

Public Cloud Services Forecast, Australia, New Zealand, South Korea, Singapore (US $Millions)
2015 2016 2017 2018 2019 2020 Cloud Business Process Services (BPaaS) 762.0 778.1 826.7 873.5 919.9 974.6

30 Billion IoT Endpoints by 2020, Verizon Predicts

With an addressable market that includes more than 150 million cars that are not currently connected, over 300 million utility meters, nearly one million vineyard acres and 45 million people sharing goods and services in the United States alone, the Internet of Things (IoT) is now mainstream according to Verizon.
The “State of the Market: Internet of Things 2016 report, authored by Oxford Economics, suggests the worldwide Internet of Things market will grow from $591.7 billion in 2014 to $1.3 trillion in 2019 with a compound annual growth rate of 17 percent.
The installed base of IoT endpoints will grow from 9.7 billion in 2014 to more than 25.6 billion in 2019, hitting 30 billion in 2020, the report suggests.
In 2015, enterprise IoT startup companies outpaced funding for consumer startup companies by 75 percent.
Verizon’s experts say that enterprise IoT startup companies will raise two to three more times in capital in 2016 compared to their consumer IoT counterparts.

1/2 of Asia Mobile Operators Partner with OTT App Providers

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Just over half of 60 Asian mobile service providers  surveyed by Alepo have working partnership agreements with over the top app providers in place today, while nearly all expressed interest or intent in creating partnerships.

Most of the agreements seem to center on OTT voice and messaging, but content revenues are growing.

Over-the-Top (OTT) services represent a $28 billion market worldwide, projected to double to $54 Billion by 2019  In the Asia Pacific region alone, Alepo says.

OTT TV and video revenues are expected to reach $18 Billion by 2021,


Displacement of existing voice and messaging revenue streams by OTT substitutes is driving the interest in partnering.  underscored the severity of operators’ revenue loss to OTT providers.

“Proliferation of over-the-top (OTT) content services such as Skype and WhatsApp amongst others could trigger a whopping 30 percent to 50 percent revenue hit on telecom companies’ voice services,” said Rajan Mathews, Director General of the Cellular Operat…

US. 600-MHz Auction Bidding Will Begin in July

The first stage of the Federal Communications Commission’s 600-MHz auction, clearing former TV broadcast spectrum, might end soon, with some indication of how much spectrum TV broadcasters are willing to give up, and therefore setting minimum bids for the follow-on auction to mobile service providers.
The forward auction is expected to begin in July 2016, and might--some observers believe--generate about $30 billion in bids on the low end, and possibly as much as $70 billion on the high end.
Perhaps more than has been the case in important mobile spectrum auctions, alternatives will be part of the bidding calculations participants make. More than is typically the case, other options for gaining spectrum arguably exist.
T-Mobile US widely is expected to be sold, at some point, so acquiring T-Mobile US not only gives the buyer spectrum assets, but also operating cash flow and customer base.
Sprint has excess spectrum it almost certainly would be willing to sell, and many now believe Dish N…

Value and Price Misaligned?

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To a certain extent, one always has to discount consumer responses to surveys, since people often do not do what they indicate they will do, and just as often do what they say they will not. 

Still, it is shocking how little many consumers say they will pay for "premium" video network fare. 

Of course, one might also not that "value" and "price" might, in this case, be misaligned. Many of us would be willing to bet that many consumers would actually value HBO, Showtime or Starz at some number above "zero." The issue is what that number will turn out to be. 

Developers Working on IoT Apps Up 34%, Year over Year

The number of developers currently working on Internet of Things (IoT) applications has increased 34 percent since last year to just over 6.2 million today, according to a study sponsored by Evans Data Corp.
In addition, the increase of development for mobile devices, up 14 percent since last year, has led to smartphones being the most commonly connected IoT platform.
Asia will lead, in terms of most developers, to 2021, the study suggests. Growth in India and China will be key, in that regard.

Alphabet (Google) Might Win Smart Cities Transportation Business Model

And the winner of coming smart cities initiatives might well be…..Google. Sustainable business models are the key problem for smart cities initiatives. By some estimates, up to 30 percent of U.S. urban car traffic is created by people looking for parking spaces.
In the U.S. “Smart Cities Challenge,” Columbus, Ohio has won a $40 million grant from the U.S. Department of Transportation to develop a smart transportation capability.
Sidewalk Labs (part of Alphabet, formerly part of Google) is one of many U.S. firms working to support parts of the Columbus project. Sidewalk is initially offering its Flow software to Columbus.
Flow applies Google’s expertise in mapping, machine learning and big data to urban problems such as public parking. Sidewalk says Flow would use camera-equipped vehicles, like Google’s Street View cars, to count all the public parking spaces in a city and read roadside parking signs.
Then Flow would then combine data from drivers using Google Maps with live information…