Guide to VoIP or IP phone solution

There's a lot to consider when deciding on the right VoIP or IP phone solution. Use these buying guides and comparison sheets to see all your options and get all the facts before making your decision.

» IP Phones Checklist The information in this comprehensive document will help you effectively negotiate, lay out your business requirements up front, assess trade-offs and prepare for future possibilities. Access this free content » » The IP Phones Comparison Guide This easy-to-read guide provides you with all the information that you need to evaluate which leading IP phone solution is best for your unique situation. Get all the facts - features, support, pricing, weight, and so on - as well as the inside scoop on which solutions work best for which businesses. Access this free content » » Hosted VoIP Comparison Guide VoIP -News compares the basic functions and features of seven of the leading Hosted PBX providers for small businesses. Vendors compared include AccessLine, Aptela, Bandwidth, Covad, Global Phone, Packet 8, Speakeasy, Smoothstone and Vocalocity. This in-depth guide features side-by-side comparisons of multiple topics. Access this free content » » Hosted PBX Buyer's Guide Hosted PBX systems provide an easy way for small to medium (and even some large) businesses to move to VoIP and get a wide range of new features and capabilities for their phone systems. In this buyer’s guide you will find details on what to look for, how to buy, what you can expect to pay, and how to get the most out of your investment in VoIP. Access this free content » Contact telCade.com to supply xDSL filters, Cable & Wires needs!

2Wire and Thomson Gain Wi-Fi Market Share

2Wire and Thomson were big winners in the 2008 Wi-Fi market, growing their shipments by nearly 60% annually. Each significantly out-performed the overall market, gaining market share, reports In-Stat. 2Wire achieved 11% share, while Thomson’s share grew to almost 8%. Market share among the other leading competitors, Linksys, Netgear, and D-Link was flat or down in 2008 compared to 2007. In 4Q08, worldwide revenue for the overall WLAN market decreased by 2.4% year-over-year (YoY), down from $1.19 billion in 4Q07 to $1.16 billion in 4Q08. Despite the overall market decline in 4Q08, revenue and shipments of draft 11n products grew by over 80%. While all markets are challenged in the current economic climate,. We expect Wi-Fi to continue to do well as its low cost, flexibility, and maturity make it a valued technology for both businesses and consumers. Recent research by In-Stat found the following: Quarter-over-quarter (QoQ) worldwide Wi-Fi revenue declined by 5.2%, with shipments also declining YoY and QoQ. In the consumer/SMB category, D-Link, NETGEAR, Buffalo, and 3Com, all had increases of draft 11n AP shipments in 4Q08. Q4 2008 market share for Draft n NICs was 31.6%, 22.3%, 19.7%, and 12.5% for Linksys, D-Link, NETGEAR and Buffalo, respectively. The research, “WLAN Market Share Report” (#IN0904490WL), examines the WLAN market for 4Q08. Market shares for enterprise and SOHO/consumer vendors are provided, based on unit shipments and manufacturer's revenue for the quarter. The data is segmented by air standard and equipment form factor, including: Total, Access Points, NICs Multimode, 802.11g, Draft N By Region: North America, EMEA, Asia Pacific, ROW

The Future of Networked Warfare Begins with Apple

"The future of 'networked warfare' requires each soldier to be linked electronically to other troops as well as to weapons systems and intelligence sources," says a new report in Newsweek, and the product of choice appears to be the iPod Touch.

According to Newsweek, both the iPod Touch and to a lesser degree the iPhone are increasingly being used by the U.S. military because of their versatility, ease of use and comparative low cost.

The report notes that the iPod fulfils the military's need to give soldiers one device that can perform many different functions, and this device has the added advantage that it can often be controlled with one hand.

Software developers and the U.S. Department of Defense are busy developing military software for iPods in an attempt to gives soldiers even more functionality. A new program called Vcommunicator produces spoken and written translations of Arabic, Kurdish and two Afghan languages.

"Snipers in Iraq and Afghanistan now use a "ballistics calculator" called BulletFlight, made by the Florida firm Knight's Armament for the iPod Touch and iPhone. Army researchers are developing applications to turn an iPod into a remote control for a bomb-disposal robot (tilting the iPod steers the robot). In Sudan, American military observers are using iPods to learn the appropriate etiquette for interacting with tribal leaders," the report says.

According to an Army official in Baghdad, the devices have yet to be successfully hacked and at $230 a pop, the iPod may fit right into President Obama's 663.7 billion dollar defense budget.

The State of the Smartphone: iPhone is Way, Way Ahead

A new industry report from mobile analytics firm Flurry reveals some unique insights into the smartphone industry as of right now. Because their firm focuses not just on iPhone, but also on Android, RIM Blackberry, and JavaME, they have the ability to see platform-spanning trends, instead of just those tied to Apple. So what can we learn from their deep dive into their company's data? Anything surprising? Actually, what the report confirms is what we've been hearing for some time now: the iPhone is king, smartphones are the new laptops, and iPhone applications can and do make money.

iPhone Has a Commanding Lead

Perhaps what's most surprising about Flurry's report isn't simply how prevalent and popular the iPhone and iPhone applications are today, but how far ahead it is of its nearest competitors. From an application perspective, the iPhone is killing on all fronts: number of developers, number of applications, and number of consumers using these applications.

Keep in mind when viewing these numbers, we're looking at data from Flurry, a snapshot sample computed from 100 applications, 8 million consumers, and 4 platforms (Apple iPhone, Google Android, RIM Blackberry, and JavaME). While these charts can give you insight into the mobile trends, they can't necessarily be extrapolated to the entire mobile smartphone industry. For example, because Flurry only deals with a small number of Blackberry developers, they can't provide any statistically relevant numbers relating to Blackberry apps. But then again, notes Flurry VP Marketing Peter Farago, "why haven't Blackberry developers signed up for analytics?"

What you can glean from the info they've gathered, however, is that iPhone has a commanding lead over Android and the others right now. Unless Google has some big tricks up their sleeve, catching up with Apple's iPhone is going to be tough.

Smartphones are the New Laptops

Smartphones are the new laptops - we sort of knew this one already, didn't we? Although historically, only 10% of the installed-base used mobile applications on a daily basis, today, that number is changing...and changing fast. Smartphone applications are now heavily used and many are even used daily. Among those used daily, the frequency of use is also high with some applications being used as much as 20 times per day.

Are smartphones really replacing laptops and are applications really replacing web sites? Maybe "replace" isn't exactly the right word to use, but there is definitely a shift in user behavior occurring right now where people are using their smartphones more than ever.

Yes, iPhone Apps Make Money

According to Flurry, iPhone applications can and do make money. Not all apps make it, of course, but those that do can actually make goodmoney. A strong publisher with two titles a month can expect $10 million to $15 million in sales through the iPhone channel, if the titles are well-marketed, says the report.

But "well-marketed" is the key word here. The iPhone app industry is beginning to resemble the music industry with its "hit-driven" nature. One "hit" gets a developer on the map and gives them the chance to sell more apps. Successful apps often resemble successful songs: you need a good artist, a good producer, a strong distributor, and plenty of promotion.

Boosting Sales in a "Hit-Driven" Economy

It's also worth noting that you can't live forever off one "hit" alone. With iPhone games especially, users tend to get bored rather quickly. Flurry estimates that the average lifetime for a game is about 3 months. Publishers should keep that in mind when planning for their refresh cycles and updates.

But even still, refreshes provided by updates may not be enough. Flurry is seeing a trend that, to be honest, was surprising: only 10% of users are updating their applications after download. That means new features pushed out via an update aren't being seen by a large group of the app's users.

Instead of trying to drive engagement of your current user base through updates, it seems you may be better off going after new users. Cross-promotion of applications - that is, advertising for one app within your other app - is very effective. Giving away a free trial can boost sales of your paid application, too.

About Flurry

Flurry is a mobile analytics firm with a "freemium" offering. Right now their core product is free, but in the future some additional optional services including development support and monetization opportunities will be added. Their company offers some unique measurements for developers of multiple smartphone platforms. One such measurement is user path tracking which is a feature much beloved by user experience designers as it lets them see the path a user took to get through a game or application.

Another feature of Flurry's platform is the ability to track dynamic parameters, which are completely custom parameters designated by the developer. Flurry also sets themselves apart from some of their competitors by what they don't do. They don't do advertising and don't want to be an advertising network.

You can check out a demo of Flurry's full service with live reporting data here: flurry.com/demo or you can view this slideshow of Flurry's analytics platform instead.

Camera Phones, Embedded PC Cameras Propel Image Sensor Market - Aptina, MagnaChip,OmniVision Technologies, Sharp, Sony, and Panasonic

Continued uptake of cameras in mobile phones and notebook PCs is driving growth in the area-array image sensor market, reports In-Stat (http://email.in-stat.com/cgi-bin4/DM/y/hBQOy0NpQCa0K560DHgc0EH). Worldwide unit shipments of image sensors in camera phones continue to rise, mostly as a result of the continuing penetration of dual-camera phones in Asian markets. These phones utilize both a traditional point-and-shoot camera, as well as a second, inward-facing camera for two-way video communication or videoconferencing.

A worldwide image sensor shipment forecast graphic is available here.

A promising new image sensor application is also taking hold. Currently a small segment of the market, embedded PC cameras will surpass digital still cameras to become the second-largest application for image sensors by 2011. A few years ago, only Apple incorporated cameras into desktop and laptop computers; in 2008, nearly all major PC manufacturers offered embedded PC cameras in mobile PCs.

Recent research by In-Stat found the following:

• Camera phones comprised nearly 81% of area-array image sensor shipments in 2008, a share that is expected to shrink only slightly through 2013.
  
• Other key applications include: Digital Still Cameras, Camcorders, Security Cameras, Web Cameras, Consumer IP Cameras, Embedded PC Cameras, Embedded LCD Monitor Cameras, Toys, Automotive.
  
• CMOS sensors dominated image sensor shipments in 2008, with more than an 87% share.
  
• CMOS will make up 62% of security camera image sensors by 2013.
  
• While CMOS is gaining in digital still cameras, it will not surpass CCDs until 2013.
  
• Among the many competitors in this market are Aptina, MagnaChip,OmniVision Technologies, Sharp, Sony, and Panasonic.
  

The research, "Image Sensors 2009: Camera Phones Continue to Dominate Shipments" (#IN0904458MI), covers the worldwide market for image sensors. It includes:

• Worldwide unit shipment forecasts for CMOS and CCD sensors through 2013.
  
• Worldwide image sensor forecasts by product category through 2013.
  
• Analysis of the markets for various sensor applications.
  
• Profiles of image sensor suppliers.

J:Com Offers World’s Fastest Broadband at $20 Per Home. Comcast and Cablevision Lags.

By SAUL HANSELL

If you get excited about the prospect of really, really fast broadband Internet service, here’s a statistic that will make heart race. Or your blood boil. Or both.

Pretty much the fastest consumer broadband in the world is the 160-megabit-per-second service offered by J:Com, the largest cable company in Japan. Here’s how much the company had to invest to upgrade its network to provide that speed: $20 per home passed.

The cable modem needed for that speed costs about $60, compared with about $30 for the current generation.

By contrast, Verizon is spending an average of $817 per home passed to wire neighborhoods for its FiOS fiber optic network and another $716 for equipment and labor in each home that subscribes, according to Sanford C. Bernstein & Company.

Those numbers from Japan came from Michael T. Fries, the chief executive of Liberty Global, the American company that operates J:Com.

His larger point: “To me, this just isn’t an expensive capital investment,” he said.

The experience in Japan suggests that the major cable systems in the United States might be able to increase the speed of their broadband service by five to 10 times right away. They might not need to charge much more for it than they do now and they’d still make as much money.

The cable industry here uses the same technology as J:Com. And several vendors said that while the prices Mr. Fries quoted were on the low side, most systems can be upgraded for no more than about $100 per home, including a new modem. Moreover, the monthly cost of bandwidth to connect a home to the Internet is minimal, executives say.

So what’s wrong with this picture in the United States? The cable companies, like Comcast and Cablevision, that are moving quickly to install the fast broadband technology, called Docsis 3, are charging as much as $140 a month for 50 Mbps service. Meanwhile other companies, like Time Warner Cable, are moving much more slowly to upgrade.

Competition, or the lack of it, goes a long way to explaining why the fees are higher in the United States. There is less competition in the United States than in many other countries. Broadband already has the highest profit margins of any product cable companies offer. Like any profit-maximizing business would do, they set prices in relation to other providers and market demand rather than based on costs.

Pricing at Liberty varies widely by market. In Japan, its 160 Mbps service costs 6,000 yen ($60) per month. That’s only $5 a month more than the price of its basic 30 Mbps service. In the Netherlands, meanwhile, it charges 80 euros ($107) for 120 Mbps service and 60 euros ($81) for 60 Mbps. Mr. Fries said that he expected these prices would fall over time.

“Our margins go up,” he said. “But we are delivering more value.”

Cable executives have given several reasons for why many cable systems in the United States are going very slowly in upgrading to Docsis 3. There’s little competition in areas not served by Verizon’s FiOS system, which soon will offer 50 Mbps service. And some argue there isn’t that much demand for super-high speed.

Mr. Fries added another: Fear. Other cable operators, he said, are concerned that not only will prices fall, but that the super-fast service will encourage customers to watch video on the Web and drop their cable service.

The industry is worried that by offering 100 Mbps, they are opening Pandora’s box, he said. Everyone will be able to get video on the Internet, and then competition will bring the price for the broadband down from $80 to $60 to $40.

Aren’t you worried that the prices will fall too? I asked.

“Maybe,” he said very slowly. “We’ll see how it happens. We want to keep it up there for now. It is a premium service.”

In-Stat Applauds AT&T’s Move to Combine Home and On-the-Go Broadband Service

AT&T announced on April 1st a plan to sell a subsidized netbook in Atlanta for $50. As typically done in the wireless industry, the subsidized price requires a service agreement. In this case, agreeing to pay $60/month to AT&T will not only get the user a $50 netbook and 200MB a month of data on its mobile network, but also a DSL connection for the home and access to the company’s Wi-Fi hotspot locations. Since this was first announced during CTIA, all the focus has been on the wireless portion of the announcement, and the selling of a notebook in a traditional cellular phone manner. What has been totally overlooked is the combination of home and on the go broadband access as a single service. In-Stat feels the combining of home and on-the-go broadband is just as important a trend as the selling of subsidized netbooks. With growth in new home broadband service subscribers slowing, providers will need to steal existing broadband users away from other providers if they want to continue to grow their customer base. Our research shows that current broadband users would be willing to switch from their current broadband provider to one that could combine a home and on-the-go service. Clearwire has been using this strategy since last September to win subscribers in its two WiMAX markets. In a survey conducted in 2008 In-Stat found the following: Over 80% of respondents said they had some level of willingness to switch from their current broadband provider to one that combines both home and on-the-go service. Over 40% of respondents said they would be willing to pay their current home broadband provider an extra $10-15 a month for a home and on-the-go service. Network performance is important to users. Over 40% of both Wi-Fi hotspot and 3G laptop data users said they had been discouraged from using wireless broadband in the past due to poor or slow network performance. In-Stat’s research, Waiting for WiMAX — US Consumers Want More From Wireless Broadband (IN0803969WBB), covers what US consumers like and dislike about current broadband options and their desire to have a single service that combines both home and on-the-go service. It includes: Criteria used to select wireless broadband service. Measure of respondents’ interest in 3G cellular, Wi-Fi, and WiMAX services. The results from two surveys, one a general US consumer survey and another of just 3G laptop data users. The price is $3,495.

Even Faster Wireless Broadband: Ericsson Demos 56 Mbps Network

by Om Malik

Wireless broadband keeps getting faster and faster. Ericsson, a Sweden-based telecom equipment maker todayshowed off a new technology that boosts High Speed Packet Access (HSPA) speeds to 56 Mbps. HSPA is part of the technology migration path for today’s 3G networks to what are generically termed 3.5G networks. The company had previously showed off a wireless broadband network with peak downlink speeds of 42 Mbps at the recent Mobile World Conference in Barcelona. Today’s HSPA networks can support speeds of up to 21Mbps.

The new peak downlink data rates of 56 Mbps were achieved through a combination of multiple-input-multiple-output (MIMO) and multicarrier HSPA technology. Ericsson is showing off the technology at CTIA in Las Vegas. HSPA multicarrier technology with MIMO, which is currently being standardized, is scheduled for commercial deployment in 2010. By the end of 2009, Ericsson will support commercial deployment of multicarrier technology with speeds up to 42 Mbps.

According to Ericsson:

Today’s commercial HSPA devices can make use of only one 5MHz channel at a time. With the introduction of multi-carrier consumer devices, data from two or more 5MHz channels can be received simultaneously by one consumer. The data stream is split over the used channels in the radio base station to get higher speeds. With MIMO, a base station can send data twice as fast via two different antenna paths on the same frequency to a single consumer.

In other words, it’s possible to see even faster broadband on wireless networks. Ericsson thinks that in the very near future, networks could run as fast as 84 Mbps. Of course, since all these are peak download rates, what you and I are actually going to get in terms of speed is a whole different ball of wax. That depends on the amount of bandwidth available on the backhaul networks.

CTIA 2009 Preview: Verizon's LTE Party

Verizon Wireless will undoubtedly bask in the Long-Term Evolution (LTE) limelight at this week's CTIA Wireless 2009 show now that the U.S. operator has selected equipment suppliers and announced deployment schedules for it ambitious proto-4G mobile broadband network.

Verizon's CTIA team should certainly take the opportunity to celebrate in Las Vegas this week because the hard part of the LTE process -- the network rollout, the nail-biting wait for devices, the pressure to meet the aggressive 2010 launch date communicated to the market, and the decision about whether to confuse the general public by using "4G" in its marketing -- lies ahead. (See LTE Phones Will Lag Behind Networks and MWC 2009: Verizon Picks LTE Vendors.)

Expect CTIA chatter about LTE to revolve around: the kind of embedded devices Verizon wants; the operator's Evolved Packet Core (EPC) architecture strategy; future support for voice services; hand-off issues between CDMA and LTE; and the operator's 4G backhaul strategy.

And, hopefully, Verizon will provide further details about what it plans to do with its LTE network and what the actual average peak data rates are likely to be. (See Operators Face LTE Deployment Dilemma.)

But Verizon won't be the only operator talking up LTE this week.

"Now that Verizon has selected LTE, all the other North American operators in its orbit are looking to do likewise," says Gabriel Brown, senior analyst at Heavy Reading.

U.S. cable operator Cox Communications Inc. announced this week that Huawei Technologies Co. Ltd. will supply a 3G CDMA network that, eventually, will be upgraded to LTE. The deal is an important win for Huawei in the U.S., where the Chinese vendor has been seeking a notable reference customer for some years. Cox is now looking for a second supplier for its mobile broadband network. (See Cox, Huawei Make Wireless Connection , BCI Gets Busy With Cox's 3G Buildout , and Cox Hires Wireless Ops Guru.)

MetroPCS Inc. (NYSE: PCS) has also entered the U.S. "4G" race and has talked about plans to deploy LTE in 2010. (See MetroPCS Chooses LTE for 4G Wireless Network.)

And AT&T Inc. (NYSE: T) revealed at the Mobile World Congress in Barcelona last month that it has accelerated its LTE deployment plans by a year with a network rollout slated for 2011. While AT&T said it'll upgrade its 3G network to 7.2 Mbit/s HSDPA and plans to implement 21 Mbit/s HSPA later this year, the operator may shed more light on its 4G ambitions this week too. (See Nextera Picks NexTone.)

Vendors love LTE too
It won't be just the service providers talking up LTE this week. Verizon's vendors -- Alcatel-Lucent(NYSE: ALU) and Ericsson AB (Nasdaq: ERIC) for radio access, AlcaLu and Nokia Siemens Networksfor IP Multimedia Subsystem (IMS), and Starent Networks Corp. (Nasdaq: STAR) for evolved packet core -- will be showing off their wares.

Meanwhile, Motorola Inc. (NYSE: MOT) and Nortel Networks Ltd. (NYSE/Toronto: NT) will also put their LTE offerings on display. (See Moto Shows Off LTE.)

Nortel will wheel out its LTE demo with LG Electronics Inc. (London: LGLD; Korea: 6657.KS) , and the Canadian vendor, currently in the midst of a major reorganization, is also developing trial femtocell systems for LTE. (See Nortel Keeps LTE Dream Alive, No Femtos in Verizon's First LTE Rollout, Nortel Files for Bankruptcy Protection, and Nortel Appoints EMEA Administrator.)

Here's a snapshot of the LTE news for the week so far:

• AlcaLu Converges in RAN
• AT4 Tests LTE RF
• Forum Preps LTE Device Tests
• Camiant Sprinkles In LTE
• Tecore Touts 4G Upgrade
• Genband Joins VoLGA
• Starent Adds Smarts to LTE Core

Field Tests Show New DSL Extension System from CTDI Provides Telecom Industry’s Greatest Extended DSL Reach for Rural Areas

XCel-4e system’s unique rural DSL extension capabilities align with goals of American Recovery and Reinvestment Act’s $7.2 billion Broadband Initiative.

WEST CHESTER, Pa.--(BUSINESS WIRE)--Independent field tests recently conducted in four states have demonstrated that the XCel-4e DSL extension system from Communications Test Design, Inc. (CTDI) provides greater extended DSL reach for rural areas than any competitive extension product at comparable speeds. The new XCel-4e optimally addresses demand for broadband Internet access by delivering 8 Mbps DSL service to remote users, including subscribers located more than 100 kilofeet (kft) from a DSLAM. The tests were conducted over a five-month period in California, Illinois, Nebraska and New Mexico.

The XCel-4e’s capabilities make it ideal for inclusion in rural DSL extension projects for which $7.2 billion in federal funding is being made available as part of the American Recovery and Reinvestment Act, signed by President Barack Obama on February 17, 2009. The Act’s Broadband Initiative, aimed at providing ubiquitous broadband throughout the country, will provide grants to competitive local exchange carriers, independent telephone companies, power utilities and other organizations.

XCel-4e Service & Cost Benefits: The XCel-4e system transparently extends existing central office or remote DSLAM-based ADSL2+. Each XCel-4e system accepts four ADSL2+ subscriber lines from the DSLAM. These four lines are then carried on a single copper pair at a standard rate of 8 Mbps. Using line-powered repeaters, providers can reach four customers per system at a distance of more than 100 kft from the DSLAM*. As opposed to passive repeaters which simply amplify the signal, the XCel-4e fully terminates and regenerates the signal, allowing it to be repeated multiple times. For loops longer than roughly 75 kft, CTDI offers an express powered repeater to deliver ubiquitous broadband access targeted at 8 Mbps per user for all subscribers, regardless of location.

The XCel-4e is a cost effective addition to any rural broadband DSL extension system, requiring no fiber, less equipment, including less cable and fewer structures for CPE equipment, and less installation manpower.

“The recent field tests demonstrate that the XCel-4e is an exceptionally robust broadband DSL extension product,” said Brian Parsons, Director of CTDI’s Products Division. “Carriers that are considering submitting grant applications and proposals for the stimulus package’s Broadband Initiative may find the XCel-4e to be a perfect fit for their broadband expansion plans. CTDI has already invested its time and resources into understanding the Broadband Initiative, and our goal is to partner with our customers any way we can to expedite the grant-writing and application process.”

For more information about the XCel-4e, results of the field tests or the American Recovery and Reinvestment Act’s Broadband Initiative, visit www.ctdi.com or call (610) 793-8587.

* Rates and distance depend on the wire gauge.

About CTDI: A premier Telecommunications service company headquartered in West Chester, PA., CTDI has provided groundbreaking maintenance and product service solutions to the global telecommunications industry since 1975. Today, CTDI offers the most comprehensive Service Portfolio in the industry that includes: Wireline Repair & Logistics, Wireless Repair & Logistics, Engineering and Installation services, Global Supply Chain solutions and Product Engineering & Manufacturing. Today, CTDI services Original Equipment Manufacturers (OEM) and Carriers from 39 international strategic repair and logistics locations supported by an experienced team of over 3,500 telecommunications professionals. CTDI feels we are the best in the industry at what we do and has a company-wide commitment to achieving service excellence. CTDI has also developed a world-class suite of telecom products through focused engineering and strategic acquisitions, including the SwitchMAX, Phoenix Wireless, Verilink, GoDigital, AccessNode, and eLuminant product families. For more information, visit www.ctdi.com.

[Ars]Microsoft: broadband stimulus should help schools, hospitals

The Microsoft corporation has weighed in on how the government should spend its billions in broadband stimulus money. The software giant says that the stimulus cash should be used to extend fiber networks to critical public institutions.

"With less than $7 billion in recovery funds available, we believe it is impossible to blanket the nation with the broadband capacity that our local governments, anchor institutions, businesses and residents ultimately require," Craig Mundie, Microsoft's Chief Research and Strategy Officer wrote to the Federal Communications Commission on March 25. "The question therefore becomes one of how to maximize the near- and long-term return on taxpayers’ investment in broadband."

The answer: "Connecting schools, libraries and hospitals will generate the quickest, most impactful and most equitable distribution of social benefits." 
Of course, a cynic might note that this strategy would also help maximize Microsoft's ability to distribute software. "The Internet can carry increasingly effective educational tools," Mundie's letter added, "be they lectures from the nation’s best teacher-trainers or from leading experts in basic math, science, reading and special education - or be they new educational applications that enable students to interact with multimedia information (such as [Microsoft's] WorldWide Telescope) or interact with fellow students from faraway geographies."


But to be fair, most of the industry filings that the FCC has received on how to spend this broadband dough take a similar tone of enlightened self-interest.
The laws of economics

As Ars has reported, earlier this month the FCC in tandem with the Department of Agriculture released a call for comments on the development of a broadband strategy for rural America. Microsoft's filing responds to that invitation. The American Recovery and Investment Act offers 2.5 billion in grants and loans flowing from the USDA, and another 4.7 billion in broadband funding distributed through the Department of Commerce's Broadband Technology Opportunities Program (comments for the BTOP proceeding can be found here; Julian Sanchez's overview here). As Microsoft's remarks suggest, it all probably comes to a little less than 7 billion after expenditures for items like a national broadband map are factored in. 

The FCC document asks for a whole lot of advice on how to promote interagency harmony and encourage local/state government participation. But the majority of commercial responders to this call don't have much to say about any of that. They want rural broadband policy or the stimulus package structured so that they get a share of the relevant expanding markets. 

It thus should come as no surprise that Qualcomm recommends that a rural strategy boost mobile broadband. "The laws of economics cannot be repealed," the company told the FCC on March 25. "It is far more cost effective to provide mobile broadband in rural areas, as compared to any fixed or wireline solution." Meanwhile the American Cable Association says that its members should be able to apply for grants and loans. A rural broadband strategy should streamline the application process for small and middle size cabled operators who provide or can provide ISP services, ACA suggests, and weigh the awards system in favor of them as well. "Federal agencies should give consideration to existing broadband providers," the trade group urges.

The American Petroleum Institute asks the FCC to let its member outfits build their own broadband networks in rural areas. APA complains that these companies can't compete with carriers in license auctions, and are often required to vacate spectrum to make room for new commercial providers whose services sometimes don't even extend to the remote regions they tap for oil and natural gas. 

"The Commission should takes all steps necessary to create an exclusive, private, broadband spectrum allocation," APA concludes. "A private broadband allocation will kick-start the economy, create jobs, [and] promote employment of U.S. workers beyond the traditional city centers."

And the Satellite Industry Association wants rules for the USDA's Rural Utilities Services' broadband loan program changed to include satellite service providers. "The existing restriction that limits funding eligibility to rural areas only (as defined by the USDA) turns a distinct operational advantage - satellite’s unique ubiquity and cost-effective service delivery - into an unjustified disadvantage," SIA protests. 
Demand stimulation

Then there's Connected Nation, a southeastern based non-profit dedicated to encouraging broadband use. CN has come under fire from media reform groups, who charge that its broadband mapping proposals would privatize the process. But the outfit's 15 page filing in this proceeding makes some reasonable comments—among them that the challenge in rural areas isn't just broadband deployment, it's about "demand stimulation" (as we've reported, a Pew study indicates that two thirds of Americans without broadband appear to not to want it).

"Stated simply, the business case for broadband deployment is difficult in many rural areas where computer ownership and computer use skills are low," the group delicately explains. So the problem is as much about bringing people to the technology as bringing the technology to them. Verizon's comments seems in sync with this approach. At its Thursday, March 26 meeting with the FCC, its execs stressed a "demand side" approach to broadband deployment to encourage broadband adoption. 

It's unclear from Verizon's statement what exactly that means. Connected Nation says it runs "hundreds of community-based organizations which include projects that, for example, offer computer training and educate rural business leaders about the value that broadband can bring to their businesses." The Recovery Act reserves $200 million for boosting public computer centers at community colleges and libraries, but doesn't say anything about encouraging people to go to those places and get educated about high speed Internet computing.

March 25 was the last day for filings on the FCC's rural broadband proceeding. But in this very redundant process, the agency will next solicit comments on how to develop a national broadband strategy—that invitation to be unleashed at its upcoming Open Commission meeting, scheduled for Wednesday April 8.

Verizon Rents Out Its Fiber for LTE Backhaul

Stacey Higginbotham

We’ve noted that Verizon plans to use its fiber network for backhaul for its future Long Term Evolution network, and today it says that it will also rent out capacity on that fiber network to other wireless carriers as well. As our readers are quick to point out, backhaul is the elephant in the room when we talk about fast wireless data, because no matter how much capacity and speed can be theoretically delivered over the air, there’s still the matter of connecting a cell site back to the Internet.

With a T-1 connection or some other setups, reaching LTE’s theoretical speeds of 150 Mbps down is beyond ridiculous — and even the more realistic speeds of 10 Mbps down are unlikely. This makes backhaul the kink in the hose that can slow data speeds for wireless networks to a trickle. Fiber to a cell site is one option, and since Verizon is spending billions building out its FiOS network, it may as well rent out capacity to others and make some money off its $19 billion investment.

Verizon will offer access to its fiber networks through its Verizon Partner Solutions business. There are three options: Switched Ethernet Service, an all-Ethernet option, and an Ethernet over SONET choice. Verizon says that in each case data from the cell site is converted immediately to packetized data for transport to mobile telephone switching offices for distribution over appropriate networks.

3rd generation iPhone details trickle out

by Peter Ha on March 23, 2009

Let us all for a moment believe that last week’srumor of new iPhone hardware is true. With that in mind, let’s all settle in for the latest batch of rumors regarding the new hotness from Apple according to the Boy Genius. BGR’s sources within AT&T have revealed a slew of tasty morsels about the upcoming handset announcement.

First and foremost is the announcement date, which shouldn’t come as a surprise anymore – mid-June. AT&T and Apple have been working on a U-Verse app that will allow you to control your home DVR. The new iPhone will be much faster than previous generations with talk of wicked fast HSDPA. This next bit is a bit out there, but we’ll let you decide.

They said customers shouldn’t need to choose from AT&T’s high-end devices because of features, they should choose based on preferences. The gap in capability should be filled with the new iPhone. Ok, bets on slide out QWERTY, autofocus camera, video sharing, blah blah?

And on a completely unrelated note, AT&T will begin selling a $99 3G netbook this summer, but it won’t be packing Windows.

Cable demands “white space” revision

By Brian Santo
CedMagazine.com - March 20, 2009

The cable industry continues to fight against the FCC’s plan to permit use of white space – the unused spectrum between broadcast TV channels – for new wireless services and devices.

The NCTA said it hired Carl T. Jones Corp. (“CTJ”) to conduct two field studies, the results of which, the NCTA says, “make definitively clear that cable operations will be subjected to harmful interference from white spaces devices as specified in the new rules.”

The NCTA has filed documents charging that the FCC, when it approved the white spaces scheme, simply failed to adequately consider potential interference with existing and potential cable products.

The NCTA, in particularly blunt language, accuses the commission  of “virtually ignoring significant evidence in the record of direct pickup (“DPU”) interference that could affect not only video, but potentially even cable broadband and VoIP.

The association includes in its 144-page document engineering evidence to back up its claims.

The NCTA also asserts the FCC’s measures to prevent potential interference problems in cable headends “are inadequate and some provisions need further clarification.”

The NCTA said it is not seeking absolute protection from interference, but rather is recommending that the FCC re-evaluate and lower the maximum allowable power output of wireless devices that would be used with white space services.

Broadband Stimulus Awards: Lots of Questions, Lots of Contenders, Little Time

Posted by Carl Weinschenk Mar 20, 2009 6:38:29 PM

The telecommunications industry is weighing in on the broadband element of the stimulus, and its attitude was not hard to predict.

 

The telcos, as reported in this Reuters piece, are asking that the awarding of the stimulus money not be larded up with anything so silly as speed requirements. According to the piece, industry groups Comptel and The Wireless Communications Association "urged regulators not to mandate a super-faster Internet speed as a criterion for winning money."

The rationale is that setting too high a bar may render projects unprofitable. In other words, the industry gladly will take the money, but they don't want to actually be held to any standard. Others quoted in the story make the painfully obvious point that it is precisely this kind of market-driven approach that landed the United States behind scores of other nations in the quality of its broadband network.

The point is that those charged with setting and enforcing the ground rules will have their hands full with this and other types of nonsense. The early signs are that the government is being savvy. The Tricky Task of Giving Away $7.2 Billion, whose company was represented at one of several informational meetings the feds are running. The best news is that matching elements of the grants and the ability to use parts of the stimulus funds as loan guarantees to secure even more funding may make the final total greater than the $7.2 billion figure being thrown around to date. Sharer said that the government seems be open minded and to not be taking a paternalistic attitude. Still, this is a mammoth undertaking and there will be no shortage of self-serving  advice and bad suggestions.

 

A lot of the basics are not yet in place. For instance, the government in some cases may have to decide between “shovel-ready” projects – those that are ready to go and will provide jobs more quickly -- and those that conform more closely to the administration’s ideology. Of course, these goals often will not be in conflict. In some cases, however, they will be. The dangers are exacerbated by the fact – Concerns Raised by Broadband Element of Economic Recovery Plan – that dealing with cutting edge, quickly evolving technology such as telecommunications is not the government's strong suit. While Sharer’s position that the feds are being open-minded – a thought being echoed elsewhere – is a good sign, there still is a large possibility for missteps.

Anyone who thinks this is going to be easy should read this piece in BroadbandCensus. The subject is a roundtable sponsored by the Department of Commerce's National Telecommunications and Information Administration (NTIA) and the Department of Agricultures' Rural Utilities Service (RUS) on the definition of broadband. The writer offers little commentary but provides, in staccato fashion, the views of eight people who spoke at the meeting. The definitions go from the definitive to the fuzzy. Mark Lloyd, the vice president of strategic initiatives at the Leadership Conference on Civil Rights, said that “definitions should focus on hard speeds.” However, Piggah Communication Consulting principal Stagg Newman backed a definition that seemed much more dependent on a series of variables. The takeaway is that if folks can't agree on something as fundamental as this, they may not agree on much of anything.

A taste of what is to come – or, more precisely, what already is happening – can be found in this DSL Reports piece that discusses just a few of the companies angling for funds. Cable operators suggest that they could push Data Over Cable Service Interface Specification 3.0 (DOCSIS 3.0) into more rural areas, IBM is pushing broadband over powerline (BPL), Qwest says that it can provide advanced digital subscriber line (DSL) to 95 percent of its customers for $1 billion, and two companies -- AlphaStar International and Computers & Tele-Comm – say they can combine satellite and WiMax to cover the lion’s share of the country. The piece links to a Telecompetitor story on the latter initiative.

The bottom line is that the government has two jobs: Decide the conceptual guidelines around the stimulus and pick the best projects that fall within those rules. There will be no shortage of options on both counts.

SmartQ introduces HDTV Player, lets it explain itself

from Engadget by Darren Murph

Generally speaking, SmartQ has stuck to what it's best at -- mediocre portable media players -- without deviating an inch. Finally, someone at the company conjured up enough courage to take a risk, and we think the outcome is pretty decent. The simply titled and not-at-all-confusing HDTV Player is the firm's very first set-top-box, which aims to play back a litany of high-definition files on one's HDTV. As predicted, the box offers up an HDMI 1.3 port for getting all that lovely 720p+ content onto your screen, and there's also a pair of USB 2.0 ports for connecting external HDDs and the like. Beyond that, details are astonishingly sparse, but we get the feeling it'll be quite some time (read: forever) before this thing floats far from the shores of Asia.

AT&T Can't Cover 3G iPhone Demand At SXSW

By Jack McCarthy, ChannelWeb
9:20 PM EDT Mon. Mar. 16, 2009

The South By Southwest Music Festival in Austin is getting to be a well known and well liked gathering for music, independent film and interactive technology, including its Interactive Web Awards. But the rush of 3G iPhone users at the festival quickly overwhelmed AT&T (NYSE:T)'s networks over the weekend, outraging festival goers at the "unprecedented" the tech failure.

An embarrased AT&T had to act fast to try to remedy the situation, with spokesman Seth Bloom sending this message Sunday to GigaOm:

"To accommodate unprecedented demand for mobile data and voice applications at SXSW, we are actively working this afternoon to add capacity to our cell sites serving downtown Austin. These efforts are ongoing, but we anticipate that customers should see improved network performance this evening and for the remainder of the event. We will continue to monitor network performance throughout the event, and will do everything possible to maximize network performance throughout. We apologize to customers who were inconvenienced during this surge in local network demand."

The carrier said it was acting quickly to restore capacity to its network in downtown Austin and promised to get service restored as soon as possible.

While festival goers wait for service, at least they can check out the music and films.

Is Apple Feeling The Netbook Impact?

The Channel Wire

March 16, 2009

Whether you love netbooks or love to hate them, their impact on the laptop PC market is undeniable, particularly when it comes to pricing.

Even Apple, it seems, is not entirely immune.

Research firm NPD Group released its latest sales figures, which among other things showed pricing on laptops of both the PC and Mac variety dropped in February. The average selling price of Mac laptops fell roughly 7 percent to $1,512, according to NPD.

While that pales in comparison to the gigantic dip in the average selling price of Windows-based laptops--down 22 percent to $560, where netbooks are more clearly having an impact--a drop is still a drop.

I have to believe that the combined factors of a struggling economy and the buzzworthiness of low-cost Windows-based netbooks will make it increasingly difficult for Apple to keep its laptop prices from slumping. No doubt, diehard Mac users will remain as such and will willingly plunk down the extra dough for Apple products. But for all those "independents" and all of the current PC users who might be Mac-curious, it's not so easy to justify spending $1,000 more for Apple's cool factor when netbooks are forcing laptop PC prices down, down, down.

Apple sales also are not invulnerable. NPD says unit sales of Macbook laptops dropped 7 percent in February, while Windows-based laptops, including netbooks, grew 36 percent. Even if netbooks are excluded, unit sales of Windows laptops still grew 16 percent, Reuters reported.

Apple CEO Steve Jobs has been widely quoted as saying the company doesn't know how to make a sub-$500 computer "that's not a piece of junk," which seemingly indicates that netbooks are not on Apple's horizon. Of course that hasn't stopped rumors that the company is looking to jump on the netbook bandwagon with a lighter, cheaper notebook (as opposed to the lighter, pricier MacBook Air, which starts at $1,799).

Whatever Jobs' plans, one thing seems certain: The emergence of the netbook has turned laptop pricing on its head, a trend that not even Apple can ignore.

Judge dismisses Broadcom patent lawsuit against Qualcomm, Broadcom keeps on suing

from Engadget by Donald Melanson