Wednesday, September 22, 2010

Verizon's Seidenberg: Rapid Mobile Growth, OTT Threatens Cable TV

The mobile industry has entered a period of rapid innovation with step-function growth in services and revenues, said Ivan Seidenberg, Verizon's Chairman and CEO, speaking at the Goldman Sachs Communacopia XIX Conference.
Seidenberg expects the smartphone penetration rate in the U.S. to rise to 70% by 2015. Meanwhile, the overall mobile penetration rate with pass 100% as more people carry 2 or more connected-devices wherever they go. Seidenberg expects these trends to impact all segments of the consumer and business markets. He believes Verizon is well-positioned for this period of bullish growth.


Regarding the iPhone, Seidenberg said he would welcome it, but that the Droid is proving to be a great alternative and that the company is not suffering from an "iPhone deficit". He expects the upcoming 4G launch will be a great platform for manufactures to launch a new range tablets and phones.


As for 4G pricing tiers, Seidenberg agrees with AT&T's move to tiered data plans, but that Verizon's LTE network provides it with the ability to offer unique plans. Key advantages that he sees are Verizon's 700 MHz spectrum and a rapid rollout that will give national coverage over the next 24 months.


Seidenberg also predicted rapid change in the multichannel video market. He expects the cable operators are facing a downward trend as "cord cutters", especially the younger demographics, give up pricey monthly cable bills in favor of over-the-top content. He does expect a steady, paid TV client base in many segments especially for high-end 3D TV. However, he believes but that the OTT trend will impact the cable business much like how traditional voice service were hit mobile and VoIP substitution. He thinks Verizon is better positioned than its cable peers because the FiOS network is built to handle high data rates for carrying IP traffic and because the company's newer FiOS TV subscriber base has lower exposure in the market. He would like to see both the FiOS and 4G networks take advantage of these new content models.
http://www.verizon.com

FCC Bolsters E-rate Program

Following recommendations of the National Broadband Plan, the FCC upgraded and modernized the E-rate program, which funds Internet access in public schools and libraries across the country.


Although 97% of American schools and nearly all public libraries now have basic Internet access, the basic level of broadband connectivity is now too slow to keep up with traffic demands.

The FCC said its E-rate Order makes it easier for schools and libraries to get the highest speeds for the lowest prices by increasing their options for broadband providers and streamlining the application process.


Key elements of the new E-rate include:


Super-Fast Fiber: Participants may use E-rate funds to connect in the most cost-effective way possible, including via unused fiber optic lines already in place across the country and through existing state, regional and local networks.


School Spots: The FCC is opening the door to "School Spots" -- where schools have the option to provide Internet access to the local community after students go home. For instance, schools with 1 Gbps fiber access could help neighborhoods that otherwise lack such access. The FCC sees the School Spots as a major step toward the National Broadband Plan's goal of connecting an anchor institution in every community.


Learning On-the-Go: The FCC is launching a pilot program that supports off-campus wireless Internet connectivity for mobile learning devices. Education doesn't stop at the schoolyard gate or the library door. Digital textbooks and other innovative wireless devices allow students to learn in a real-world context, inside the classroom and beyond. Because of their low cost and accessibility, these mobile devices can also help advance digital equality, particularly for children from economically disadvantaged communities.


21st Century E-rate Program: The Order will begin indexing the cap on E-rate funding to inflation in a fiscally responsible manner, so that the program can more fully meet the needs of students and communities. Since 1997 when the E-rate program started, inflation has raised costs 30 percent but the program has remained capped, significantly decreasing its effective purchasing power. E-rate can also now be used for connections to the dormitories of schools that serve students facing unique challenges, such as Tribal schools or schools for children with physical, cognitive, or behavioral disabilities.


In addition, the FCC will codifying E-rate competitive bidding requirements and clarifying ethics obligations so as to stop waste, fraud, and abuse. It also promises to streamline the E-rate application process for educators and librarians.
http://www.fcc.gov

FCC Opens "White Spaces" Spectrum

The FCC issued an order that opens up vacant airwaves between TV channels for new unlicensed applications such as "super Wi-Fi." Specifically, a Second Memorandum Opinion and Order (Second MO&O) resolves numerous legal and technical issues regarding unlicensed spectrum usage. Notably, the Order eliminates the requirement that TV bands devices that incorporate geo-location and database access must also include sensing technology to detect the signals of TV stations and low-power auxiliary service stations (wireless microphones). It also requires wireless microphone users who seek to register in the TV bands databases to certify that they will use all available channels from 7 through 51 prior to requesting registration. Requests to register in the database will be public, thus allowing interested parties to weigh in on any given request.


The FCC order also includes steps to ensure that incumbent services are protected from interference from the use of white spaces in various ways. This includes reserving two vacant UHF channels for wireless microphones and other low power auxiliary service devices in all areas of the country.


FCC Chairman Julius Genachowski said "We know from experience that unlicensed spectrum can trigger unexpected but hugely beneficial innovation. For example, years ago, there was a band of low-quality spectrum that was lying fallow. Nobody could figure out what to do with this so-called "junk band," so the FCC decided to free it up as unlicensed spectrum.


The result was a wave of new technologies -- baby monitors, cordless phones, and eventually a real game changer: Wi-Fi. Today, Wi-Fi is a multi-billion industry and an essential part of the mobile ecosystem. As compared to the airwaves we released for unlicensed use in 1985, this "white spaces" spectrum is far more robust -- traveling longer distances and through walls, making the potential for this unlicensed spectrum much greater.


"We share the FCC's enthusiasm about the potential use of TV white spaces for Wi-Fi," said Wi-Fi Alliance CEO Edgar Figueroa. "The new FCC rules will foster innovation that benefits end users, while continuing to promote co-existence among all users of the spectrum."


The Wi-Fi Alliance recently initiated an industry effort to create a certification program for Wi-Fi devices operating in the TV white spaces. This program will draw on the emerging IEEE 802.11af standard.
http://www.fcc.gov

Nokia and AT&T Launch $10M App Development Contest

Nokia and AT&T are kicking off an app developer contest
with US$10 million in cash and prizes. The 2010 Calling All Innovators, North America contest is open to developers from around the world to create apps for North American consumers. All submitted apps will be made available exclusively for download via the Ovi Store by Nokia.
http://www.callingallinnovators.com/10M/

Verizon Business Partners with TDC for Nordic Coverage

Verizon Business and TDC announced a partnership agreement under which the companies will provide joint service and support to multinational companies based or operating in the Nordic market. The preferred partnership calls for TDC to deliver in-country network and information and communications technology services and for Verizon to provide global communication services. http://www.verizon.com

Verizon FiOS TV Expands International Programming

Verizon FiOS TV has added STAR India PLUS, India's No. 1 Hindi channel, to its extensive channel lineup, which now includes nearly 40 other international channels covering more than 20 languages. The new channel began launching on FiOS TV this week and will be in all markets by Sept. 27.


FiOS TV's programming currently includes more than 520 all-digital channels with up to 140 HD channels and 18,000 monthly video-on-demand titles.
http://www.verizon.com

BICS's Pan-European Network Trials NSN's 40G CP-QPSK

BICS, which is a joint venture of Belgacom, Swisscom and MTN, has successfully conducted trials of 40 Gbps optical transmission over its existing fiber network between Zurich and Frankfurt using Nokia Siemens Networks' new 40G transponders.


The deployment features the Nokia Siemens Networks SURPASS hiT 7300 and hiT 7500 DWDM platforms, along with its new coherent detection 40G transponder, which uses CP-QPSK modulation technology.
http://www.nsn.com

Marvell's ARMADA 3-core Processor Targets Mobile Devices

Marvell introduced a 1.5 GHz tri-core application processor designed for delivering dual stream 1080p 3D video for Smartphones and tablets. The ARMADA 628 features three ARM-compliant CPU cores (including one optimized for ultra low-power), along with six additional processing engines to support 3D graphics, 1080p video encode/decode, ultra high fidelity audio, advanced cryptography, and digital photo data processing -- for a total of nine dedicated core functions.


The company said its ARMADA 628 could be used in mobile devices capable of playing more than 10 hours of full 1080p HD video or 140 hours of music on a single charge while still providing 3 GHz of raw computational horsepower. The ARMADA 628 is also designed to be the first mobile CPU to provide high-speed USB 3.0 connectivity, which offers 10x faster performance than USB 2.0.


Sampling is underway.
http://www.marvell.com

ALU to Resell Blue Coat's Content Delivery Products

Alcatel-Lucent will sell Blue Coat products, including Blue Coat ProxySG and CacheFlow appliances, to Alcatel-Lucent customers worldwide -- including tier-one telcos, managed service providers, regional ISPs and mobile operators.


Blue Coat's CacheFlow appliance reduces the strain of bandwidth-consuming dynamic Web 2.0 and video content by transparently caching such over-the-top content, providing bandwidth savings for carriers and a better experience for users. The CacheFlow appliance also helps service providers manage traffic spikes due to unusually high demand for content on breaking news or special events.


Alcatel-Lucent said it will leverage the CacheFlow appliance as a complement to its own Velocix Content Delivery Network solution. The Velocix Digital Media Delivery Platform manages the distribution of digital content and is based on open Internet based video standards.


"With this relationship we see significant opportunity to help service providers capitalize on growing consumer demand for access to high-speed video over the Internet by leveraging their existing infrastructure investments," said Paul Larbey, vice president of Alcatel-Lucent's Velocix Content Delivery Network solutions. "The Blue Coat platform is proven in some of the largest service provider and enterprise environments in the world, and it complements our existing products and services, giving service providers another tool to improve and simplify video delivery."http://www.bluecoat.com
http://www.alcatel-lucent.com
  • Alcatel-Lucent acquired Velocix, a supplier of content delivery network solutions, in 2009. The Velocix Digital Media Delivery Platform consists of a series of appliances that service providers can deploy to support their own dedicated advanced digital media delivery capability, as an alternative to relying on shared content delivering networks, helping improve quality and reduce cost. The appliances are designed and optimized for content publishing, storage, delivery, routing and utility (management and analytics).