Thursday, May 8, 2003

Connections: Digital Entertainment Distribution in the Home

Return rates for some home networking products are over 30%, a level that retailers will not continue to support, according to panel members at last week's Connections, The Digital Home Conference & Showcase, in San Jose. Market experience proves that if networked consumer electronic devices are not "rock solid," consumers will return them. Consumers want distributed entertainment in the home, but they demand simplicity, no interruptions and no reboots. It may require a shift in the industry's mentality before "networking" really extends into home entertainment.


Dave Kummer, Senior Vice President Of Engineering and Systems at EchoStar, said that the reliability and ease-of-use hurdle for home networking gear is even higher for service providers who have an ongoing relationship with their customers than it is for retailers and system companies making a one-time sale. EchoStar's goal is to provide more services throughout the house to achieve higher revenues and have a "stickier" customer. Networked set-top boxes will fully enable house-wide video on demand (VOD) and personal video recorder (PVR) services. EchoStar is looking for long-term networking solutions that can have a lengthy technological and reliability life in the home once installed.


Steve Craddock, Sr. Vice President at Comcast, shares the objective of offering more services. Comcast believes that the key is to help consumers manage complexity and make their home entertainment experiences simpler. Comcast is seeking home networking solutions that are much more intelligent than the typical Internet-sharing networks on the market today.


A media storage server must exist in the home, according to Vincent Izzo, Director of Advanced Home Services over Broadband at Motorola. Some say that device will be a PC, but Motorola believes that a broadband-enabled set-top box is a better solution. No matter what the system is, Izzo argues that the technology must be completely transparent to the user. The network cannot require any new wiring. Wireless will play a key role for handheld and remote devices, but the "heavy lifting" of video and audio media will be done by coaxial wiring that is already installed where TVs are in most homes.


Ladd Wardani, Vice President of Business Development at Entropic strongly supported the view that coaxial wiring provides the best solution for distribution of digital media in the home. He said that speeds of this network must be high. Current video streams can have peak rates of 15Mbps and HDTV will be far higher. To accommodate multiple simultaneous streams in the home, Entropic is developing 200 Mbps home networking solutions.


On the subject of digital rights management (DRM), the panelists felt that there are currently so many technologies and proposals on the table that it will take a long time before they settle down and there is a clear solution. In the mean time, home networks that share digital media will be rolled out anyway. Craddock hopes to see a rights system in which each home is a "trusted domain" in which media can move about between devices freely. Restrictions should come in only outside of that home domain.


Educating consumers is also a major challenge. These products and services require a shift in thinking and behavior, which will take time and effort. Trials by Comcast and EchoStar indicate that creative ways of introducing the concepts and opportunities for free trials and experimentation are needed before people will embrace these new digital entertainment possibilities in the home.
http://www.convergedigest.com

T-Mobile Bundles Wireless Voice And Data with Wi-Fi

T-Mobile USA is offering its HotSpot ‘Wi-Fi' service to mobile phone customers as a bundled option on their monthly wireless voice and data bill. New and existing T-Mobile customers can add the
T-Mobile HotSpot service to their existing monthly bill at a special rate of $19.99 for unlimited access. The normal rate for HotSpot service is $29.99 per month. In the coming months, T-Mobile plans to offer integrated GPRS and Wi-Fi service offerings. The T-Mobile Wi-Fi service is currently available in 2,300 hotspots across the US, including Starbucks coffeehouses, Borders Books and Music, airports and American Airlines, Delta Air Lines and United Airlines clubs and lounges. Kinko's locations nationwide plan to offer the service by the end of the year.
http://www.t-mobile.com/

Japan's Yahoo! BB Adds 184,000 DSL Subscribers in April

Yahoo! BB, the Japanese broadband service provided by Softbank and Yahoo! Japan, issued its latest month progress report.



















































Yahoo!
BB Subscribers


  Apr-03 Mar-03 Feb-03 Jan-03 Dec-02 Nov-02 Oct-02
Yahoo!
BB lines installed
2,547k 2,363k 2,181k 1,972k 1,691k 1,461k 1,208k
Yahoo!
BB phone users
2,162k 1,974k 1,806k 1,585k 1,294k 1,028k 773k
Central
offices
2,146 2,144 2,135 2,098 2,045 1,822 1,549


http://www.softbank.co.jp/en/newsrelese/2003release/e030508.htm

Verizon's Network: Past, Present and Future

In a presentation at last week's Lehman Brothers Network Conference, Paul Lacoutre, president of Verizon's Network Services, outlined the planned evolution of Verizon's network to a next generation architecture. Key elements of the company's optical transport network will continue to include SONET and DWDM, deployed in both ring and mesh topologies. An optical control plane will be an enabler for SONET OCx services, dedicated/shared ring services, and optical ESCON/FICON/FC/Ethernet services. The switching layer of Verizon's next generation network will use an IP core based on MPLS to support traditional fast packet services (Frame Relay and ATM) as well as new offerings, such as switched Ethernet transparent LANs, IP VPNs and IP voice. Verizon's access network will encompass mass-market DSL; dedicated and shared fiber buildouts to enterprise customers; and new fiber builds to selected end customers. Enhanced DSL offerings will include static IP service, symmetrical DSL, wireless DSL, MSN8+DSL, and speed upgrades to 1.5 Mbps. Verizon is considering fiber to the premises (FTTP) to both new housing construction as well as for neighborhood overlay builds.
Seventeen slides from the presentation are online. Audio has not yet been posted.http://investor.verizon.com/news/20030508/

Wednesday, May 7, 2003

Connections Keynote: Using PC Technologies to Win in the Home

Microsoft's vision of the digital home centers on a "home experience server" that works with televisions, stereos, smart phones, notebooks, tablet PCs, watches, PDAs, and even automobiles, said Kevin Eagan, General Manager for Business Development and Marketing at Microsoft's Windows eHome Division, speaking at the Connections 2003 conference in San Jose. The PC-centric vision provides benefits to the industry and to end users, argues Eagan, because a common, centralized platform will make it easier for consumer electronics companies to develop and sell networked devices. Consumers want an integrated and consistent means of managing preferences, privacy, digital rights and security settings across all their devices, instead of the current, confusing collection of unique interfaces for each device. Eagan demonstrated a Windows Home Media PC delivering both live and PVR content to TVs, plasma displays, PC monitors, tablet displays and PocketPCs. The home server dynamically provides the user interface to each device. A wireless "smart display" functions as an intelligent controller, allowing the user to view media and access controls. Live TV can be paused and resumed on demand at any location. Incoming phone calls can be routed to PocketPC-based mobile phones, which function as local extension when detected by the home Wi-Fi network but would otherwise serve as conventional cellular phones when outside the home. Microsoft plans to enrich all devices in the home networked environment with instant messaging and calendar functions that are automatically synchronized with other devices on the network. Eagan believes that consumer demand for digital home products will be driven first by entertainment applications, followed by later by communications and home control solutions. Still, Eagan admitted that more reliability and innovation are needed, especially with device boot-up times, software updating mechanisms, quality of 802.11 wireless connections and authentication technologies. He also acknowledged that there would be challenges in convincing the mass consumer market.

Connections Panel: Standards Build the Foundation for Home Networking

Market researchers are forecasting up to 175 million multimedia network nodes in US homes by 2007, according to panelists speaking at Connections, The Digital Home Conference & Showcase, in San Jose. Connected devices will include PCs, conventional consumer electronic appliances and converged devices. Standards will play a key role in making it all work together. Some of the organizations active in this area include:


The Open Services Gateway Initiative (OSGi) Alliance is in its third release of standards defining an open service delivery platform for use in network-aware consumer devices. John Barr, representing the alliance, said OSGi has gained traction in Europe and for automotive telematics. For instance, OSGi is embedded in Philip's iPronto intelligent remote control device and BMW's iDrive electronics platform. http://www.osgi.org


Over 545 companies across the PC and CE industry are now active in The Universal Plug and Play (UpnP) Forum. UPnP is independent of operating systems and allows devices to be recognized and configured by other devices on the network. Its goal is to be seamless and invisible to the end user. A separate, non-profit UPnP Implementers Corporation has been formed for certifying products and promoting the technology. So far 40 products have been certified. Most are development tools, but consumer UPnP devices are expected by the end of the year. http://www.upnp.org


The HomePlug Alliance sees the first generation of its in-home wired network technology as a complement to Wi-Fi. The next generation HomePlug spec (an RFP went out last week) is expected to provide multi-stream entertainment at rates high enough for HDTV distribution from room to room. http://www.homeplug.org


The WiMedia Alliance is targeting very high bandwidth wireless applications using ultra-wideband (UWB) type technology in peer-to-peer, ad hoc networks. For example, a business traveler might like to purchase and download a full-length DVD quality movie into a notebook computer from a kiosk at an airport gate. By scaling up to hundreds of Mbps, WiMedia could be used for such connections. http://www.wimedia.org


Believing that small is beautiful, the Zigbee Alliance is promoting a standard for very small, very low-cost wireless devices with ultra-low power requirements. Zigbee would enable wireless connections up to 256 kbps in button-size devices. Tiny batteries would provide useful lifetimes measured in years. Bob Heile, representing the Zigbee Alliance, said such devices could be embedded into intelligent light bulbs, motion detectors, wireless smoke and Co2 detectors, or wireless universal remote controls. More creative applications could include Zigbee-enable shoes, which would use the tiny device to transmit data on footsteps taken, distance walked, body temperature, pulse rate, etc. The shoe manufacturer might specify a shelf life of several months before the shoes are purchased and then a useful shoe life of several years. Zigbee devices for industrial applications are expected in the first half of 2004. The first consumer devices based on Zigbee might appear in 2005. http://www.zigbee.org

Connections Keynote: Any Device, Any Time in The Digital Home

"Everything is going digital," said Louis J. Burns, Co-General Manager, Desktop Platforms Group at Intel speaking at Connections, The Digital Home Conference & Showcase, in San Jose. It is clear that digital media has already become the preferred format or music and photos. The same is happening with home video and broadcast entertainment. Home networking is the second global trend revolutionizing the PC and electronics industries, said Burns, and these trends clearly converge. The hottest new product bridging these megatrends is the digital media adapter, an 802.11 appliance that allows conventional TVs and stereos to access media on a home PC. HP already has a digital media adapter on the market. Linksys is expected to release one such appliance priced at under $200. Intel is also working with Dell, Sony, Samsung, Philips, Microsoft and others on such media adapters. Similar wireless capabilities are coming to home theater systems, TV and even DVD players. Burns demonstrated a Windows Home Media PC connected to a home stereo, a plasma screen TV, and a tablet PC. The Media PC functioned as a PVR and media server, delivering locally stored and Internet-based digital photos, music and video to multiple displays at once. However, while demonstrating live, streaming TV over the WiFi network, one of the tablet PC displays froze up.
  • The Connections conference is presented by Parks Associates and the Consumer Electronics Associations.

EarthLink Launches Extended Reach DSL to Compete with T1 Service

EarthLink launched Extended Reach DSL targeted at business customers as an alternative to T1 lines. The service is available in 91 cities, and there are no limitations on subscriber distance from a serviceable central office. Extended Reach DSL offers a 99.99% uptime SLA, symmetric speeds, 10 e-mail accounts, eight static IP addresses and unlimited EarthLink dial-up Internet access. The service is priced at $349, $449 and $549 a month for speeds of 384K, 768K and 1.5M respectively. It includes a router with built-in firewall and VPN capabilities, an on-site visit by a field technician to configure the router and firewall, 24/7 access to technical support and domain name registration.
http://www.earthlink.net

Lucent Offers Professional Services for Cable Operators

Lucent Technologies announced a suite of professional services and a multi-vendor integration lab that will allow cable operators to add voice capabilities to their networks. Lucent Worldwide Services (LWS) will provide network design and consulting, implementation and network security and reliability optimization tools that will help cable operators offer 'Triple Play' voice, data and video services. A multi-vendor integration lab in Holmdel, New Jersey will support softswitch, gateway and integrated Class 5 packet switch vendors. In addition to Lucent's own portfolio of network gear, LWS is working with other equipment vendors like Cedar Point Communications.
http://www.lucent.com

Z-Tel Technologies Reports Revenue and Customer Growth

Z-Tel Technologies, a CLEC based in Tampa, Florida, reported Q1 revenue of $60.3 million, versus $57.3 million for the first quarter of 2002. The company reported EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.7 million for the first quarter of 2003, its fourth consecutive quarter of positive EBITDA. Net loss for the first quarter was $3.1 million, or $0.09 per share. As of 31-March-2003, Z-Tel reported approximately 244,000 active retail lines in service, up from just over 200,000 at the end of 2002. The company credited an aggressive advertising campaign for the increase in customers, as well as its Personal Voice Assistant service, a voice-activated calling and emailing feature that Z-Tel offers at no additional charge to its residential customers and that is not currently available to consumers from any other local services provider. Trey Davis, Z-Tel's CFO, said the competitive landscape is changing, with many providers now offering flat rate, unlimited local and long distance usage packages similar to Z-Tel's bundles. Z-Tel said its key differentiator would continue to be value-added services, such as voice-activated access to an online address book from any phone.
http://www.z-tel.com

mPhase to Bundle Lucent's Stinger in its TV-over-DSL Solution

mPhase Technologies signed a reseller agreement that allows it to bundle Lucent's Stinger DSL Access Concentrator into its own TV-over-DSL solution. mPhase said emerging markets, particularly those in Eastern Europe, Middle East and Africa (EMEA), are areas of high growth for video over DSL because they are not currently served by extensive cable networks.
http://www.mPhaseTech.com

TI Outlines DSP Solutions for Streaming Media for Consumer Appliances

Texas Instruments announced the availability of its digital signal processor (DSP) based platform of streaming media products and reference designs. The chips are designed for a myriad of home networking products such as portable handheld devices, streaming media televisions, digital media centers, set-top boxes and residential gateways. Such appliances would enable consumers to manage, store, display and distribute several media formats inside the digital home. The DSPs decode locally, making the content format virtually invisible to the consumer and expanding the inherent functionality of the streaming media appliance. TI announced reference designs with numerous partners.
http://www.ti.com
  • HP's Digital Media Receiver is based on TI's DSPs.

Level 3 to Provide Dark Fiber Services to Internet2

Level 3 Communications was awarded a multi-year, multi-million-dollar IRU agreement to supply intercity dark fiber services to the National Research and Education Fiber Company (Fiberco), a new organization established by Internet2 to purchase and distribute fiber-optic assets to regional advanced networking organizations and research universities throughout the U.S. The Level 3 inter-city fiber network spans 16,000 route miles in the US and approximately 3,600-miles in Europe.
http://www.Level3.com

Laurel Networks Expands into Asia

Laurel Networks announced expansion into Asia and the launch of a Global Reseller Partner Program for its multiservice edge routers. The company now has offices in Japan, Hong Kong and South Korea. Laurel's European headquarters is based in the UK, and supports deployments and trials across Europe.
http://www.laurelnetworks.com

BT Announces MPLS Network Expansion in the Americas

BT is planning to expand its IP backbone in the Americas with the addition of 14 new MPLS nodes, bringing the total number of nodes to 23. BT said that almost half of its top 2,000 target customers are U.S. headquartered multi-site corporations that have global requirements and extensive operations throughout Europe. New MPLS nodes will include: Charlotte, Cincinnati, Cleveland, Denver, Detroit, Mexico City, Miami, Minneapolis, Phoenix, Seattle, St. Louis, Tampa, Toronto and Washington, DC. Buildout is current underway.
http://www.bt.com
  • BT's MPLS network currently extends into 70 countries with access from more than 1,000 PoPs. The MPLS network includes more than 19,000 ports and services about 1,200 customers globally.

Comcast Names Motorola Broadband as a Primary Supplier

Comcast awarded a multi-year digital cable agreement to Motorola, naming Motorola as its primary provider of digital cable technology and network support services. Motorola will provide Comcast with a broad spectrum of solutions, including two advanced interactive set-tops from the recently announced DCT6000 line supporting HDTV and PVR. The new Motorola set-tops feature 1394-DTV and DVI interfaces for direct digital connections to consumer High-Definition receivers, as well as integrated DOCSIS functionality. Motorola will also provide Comcast with a complete range of network service functions to support the complex software and system management processes associated with deploying advanced interactive services. Financial terms were not disclosed.
http://www.motorola.com
http://www.comcast.com

Comcast Reaches 4M Data Subscribers, Reverses Previous Loss of CATV Subscribers

Comcast reported consolidated Q1 revenue of $5.52 billion as compared to $2.667 billion reported in the first quarter of 2002 while consolidated EBITDA more than doubled to $1.638 billion from the $808 million reported in the first quarter of 2002. Changes in EBITDA, depreciation and amortization and interest expense primarily reflect the acquisition of AT&T Broadband in November 2002. Some highlights of the quarter:

  • Comcast added 417,000 high-speed Internet customers in Q1, ending the quarter with over 4 million cable modem subscribers, up by over 50% compared to this point last year. Comcast has been adding subscribers at an average weekly rate of over 32,000, double the rate of a year ago. The company now projects 1.6 million net cable modem subscriber additions for the year, which would give it approximately 5.2 million cable modem subscribers by year's end. ARPU for the service is $42. Penetration is 13% compared to 10% a year ago. To date, Comcast has been capturing over 75% of new broadband subscribers in its markets. Regarding recent DSL price cuts, Comcast said it takes the competition seriously and that will continue to be aggressive with introductory pricing, while leaving its ARPU target in tact. Secondly, Comcast believes its network is inherently lower cost than its RBOC peers, giving it wider availability and efficiency.


  • Comcast Cable added 56,900 basic cable subscribers during Q1, a significant improvement over the combined loss of 139,000 subscribers in 2002. Comcast ended the quarter with 21.3 million basic subscribers. The company said it is extremely pleased to have reversed the basic cable TV subscriber loss trend of last year. It credited various advertising and customer relations programs with the turnaround.


  • Comcast Cable added 168,500 Digital Cable subscribers to end the first quarter with 6.787 million Digital Cable subscribers, a pro forma increase of 23.4% over the same prior year period, representing a penetration rate of nearly 32%.


  • VOD is now available to 6 million subscribers and HDTV is now available to more than 9 million subscribers. VOD is expected to be available to 11 million by the end of the year.


  • Comcast had 1.4 million cable telephony customers at the end of Q1, down by 20,000 compared to the previous quarter and up 22% compared to a year ago. Pro forma cable phone revenue totaled $224 million, a 27.9% increase from Q1 2002, reflecting higher customer levels compared to the prior year and a 1.4% decline in average revenue per subscriber. The company said it is attacking the inefficiency of its cable telephony operations and addressing customers with poor credit.


  • CAPEX for Q1 totaled $953 million as Comcast Cable upgraded over 12,200 miles of plant to end the quarter with more than 86% of its footprint upgraded to provide two-way digital and high-speed Internet services. The company is ahead of schedule in its effort to rebuild 46,000 miles of plant this year. The rebuild currently costs about $31,000 per mile -- compared to costs of $40,000 per mile spent last year for rebuilding the network. Digital set-top boxes and cable modems are also significantly cheaper this year.
http://www.comcast.com

Tuesday, May 6, 2003

BT Announces Further Wholesale ADSL Price Cuts

BT cut the price for its wholesale, consumer IPStream ADSL service from £14.75 to £13.00. Wholesale business ADSL services were cut by more than 50%. Nearly 20 service providers, including Demon, Zen internet and Nildram, have already passed savings on to their customers. BT said there are currently more than 100 ISPs using its IPStream service to provide ADSL to more than 800,000 customers. The pricing changes were first announced in early April.
http://www.bt.com

Optinel Launches Optical Transport System for MSOs

Optinel Systems, based in Elkridge, Maryland, launched its PLEXiS MFX Transport System for cable MSOs. The company said its system is capable of supporting from just a few to more than 60,000 video streams over distances of greater than 300 miles (500 km). The optical transport system accommodates multiple traffic formats, including Gigabit Ethernet, SONET, QAM and analog video. Both CWDM and DWDM are offered in the single-chassis system.
http://www.optinel.com
  • In December 2002, Optinel raised $22.4 million in second round venture funding. Investors include Court Square Ventures, Teknoinvest, Birchmere Ventures, SilverHaze Partners, Four Seasons Ventures, the Dinner Club, Isis Capital, OCG Ventures and Novak Biddle Venture Partners.


  • In October 2002, Optinel announced that Adelphia Communications had successfully completed its field trial of Optinel's PLEXiS MFX Transport System. The field trial demonstrated a drop and forward network architecture utilizing Optinel's Fractional Optical Multiplexer, which enables all-optical sharing of traffic among several sites.

UTStarcom Signs $20 Million with Jiangsu China Telecom

UTStarcom announced a $20 million expansion contract with China Telecom in Jiangsu province. The contract covers further deployment of UTStarcom's IP-based PAS (Personal Access System) platform in the city of Suzhou. This expansion contract comes just four months after the initial launch of iPAS service in January 2003 in Suzhou, where subscriber numbers have already topped 200,000 customers.
http://www.utstar.com