Month: November 2004

VoIP Threatens Traditional Telcos Revenue

It comes as little surprise that a new report from Analysys, global advisers on telecoms, IT and media, reports that over 50 million broadband users in Western Europe could potentially be using private Voice over Internet Protocol Applications (PVAs) by 2008. As a result, the impact on traditional telephony providers’ revenues could reach 6.4 billion euros (~$8.23Bn, ~£4.47Bn) in 2008, representing 13 per cent of the residential fixed-line voice market.

VoIP technology – used in excellent applications such as Skype – works by digitising voice in data packets, sending them over the Internet using TCP/IP networks, and then reconverting them into voice at the destination. As well as offering a ‘free’ alternative for voice conversations compared to traditional fixed lines, you can also compress voice packets, route them, convert them to a new better format, and so on – bypassing the existing PSTN network.

Digital signals are also more noise tolerant than analogue ones – a feature appreciated by users communicating overseas. With VoIP, you can also talk all the time with every person you want (as long as the other person is also connected to Internet at the same time) for no call charges. And, in addition, you can talk with multiple people (conference call) at the same time.

Analysys advises that incumbent public switched telephone network (PSTN) operators are highly vulnerable and should assess the weaker segments of their market and create targeted packages to retain valuable customers. They also advise that service providers should also make subscriptions the core of their service packages.

“The recent rapid take-up of Private Voice Applications (PVAs) using free downloadable software from providers such as Skype raises the possibility of the appearance of a critical mass of PVA users that could unleash a significant structural change in the voice market by the removal of a large proportion of PSTN revenues,” says report co-author Stephen Sale. “In the residential market, PVAs are typically used to make longer calls to friends and family, the core telephony business of fixed-line incumbents. In combination with increased mobile usage, this could render the PSTN subscription worthless for many broadband users. Fixed-line voice would face not only mobile substitution, but PVA substitution as well.”

The report, Voice Communications: From Public Service to Private Application, examines the potential impact of these applications on the residential voice market. It uses new market models to show that, given favourable future regulatory and other conditions, the rapid adoption of PVAs could generate direct revenues of over 3.5 billion euros (~$4.5Bn, ~£2.44Bn), the bulk (about 85 per cent) stemming from subscriptions, not call charges.

This emphasises the huge importance that the subscription element will have in a future multiservice mix and in establishing PVAs in the mass market. Further research from consultancy firm Mercer has suggested that Internet-based phone services could be in use by up to 30 per cent of homes in the UK and the US in the next three years.

The report is available to purchase online at http://research.analysys.com/stor, priced at £1,700 (approximately 2,500 euros).

First Jailed Spammer Gets 9 Years

Thirty-year-old Jeremy Jaynes, a US citizen settled in North Carolina, has been sentenced to nine years in prison for sending junk e-mails with fraudulent and untraceable routing information. His 28-year-old sister, Jessica DeGroot, has also been ordered to pay a fine of $7,500 for buying domain names to use for spamming, although a third defendant, Richard Rutkowski, was acquitted of similar charges. Formal sentencing has been set for February next year.

Prosecutors said Jaynes and DeGroot took advantage of the Internet and America Online (AOL) members to sell bogus products and services, such as a ‘FedEx refund processor,’ which they claimed would allow people to earn $75 an hour working from home. According to evidence, Jaynes received 10,000 credit card orders, each for $39.95, for the ‘processor’ during one month alone. They were convicted under a Virginia state law that limits the number of e-mails mass marketers can send, and like the federal CAN-SPAM Act, forbids them from using fake e-mail addresses. Each was found guilty on three felony charges.

David Oblon, Jaynes’s attorney, was shocked at the severity of the sentence. ‘Nine years is absolutely outrageous when you look at what we do to people convicted of crimes like robbery and rape,’ he said. It’s been suggested that this ‘excessive punishment’ was because it was the first time the law had been prosecuted. However, during the trial, Jaynes was said to have accumulated a fortune of some $24 million by selling via spam.

The ‘harsh’ sentence shows the US is serious about spam, a nuisance to millions of users worldwide. But it’s also a major problem for large and small businesses because the thousands of unwanted e-mails can create havoc on company e-mail servers. Some surveys have even suggested that spam represents as much as three quarters of all e-mail traffic, despite laws in several countries seeking to curb unsolicited e-mails. Spam is believed to cost billions of dollars to businesses in software aimed at blocking the messages.

Hantro Claim Better Mobile Video Compression

Finland-based Hantro has made further advances in the mobile video market with its new H.264 hardware accelerated video decoder. The technology can be implemented into regular consumer mobile handsets and promises to enable a dramatic improvement in the quality of video clips.

Hantro’s H.264 player runs on Series 60-powered handsets and is based on the 6100 software decoder and PlayEngine middleware. Running on a Nokia 7610 handset, full-screen video is capable of being played back at a resolution of 208×176 pixels (supports resolutions up to 720×576 pixels) at up to 15 frames-per-second. Unfortunately, the frame rate is still half of that of standard video playback, but it provides an important step forward in the development cycle of technology that will soon become standard on all phones.

H.264 is the latest video coding standard for improved compression over existing standards, such as MPEG-4 and H.263. With comparable bitrates, the increase in visual quality is significant, according to the company, which also means that you can maintain acceptable video quality (comparable to MPEG-4) with up to a 50 per cent reduction in file size. This makes the application ideally suited for wireless transmissions as it expands the potential of applications such as streaming video to mobile over GPRS, video downloads and mobile TV.

For instance, with improved transmission speed and playback quality, businesses could leverage their marketing to potential customers by sending short video clips instead of SMS alerts. By adhering to the existing file size limitations for MMS, the improved compression ratios should allow for approximately twice the length of video clip at the same visual quality to that of MPEG-4.

The software’s multimedia engine provides a high level API for fast application development, a completely modular design, support for both hardware and software MPEG-4/H.263 video codecs, as well as GSM-AMR speech and AAC audio encoding/decoding. Compatible with 3GPP streaming protocols (RTP/RTCP/RTSP/SDP), its core modules and application logic are OS independent, and are therefore easily ported to numerous operating systems and devices, if multimedia APIs are available. It can also encode 4-megapixel JPEG still images, which will further appeal to manufacturers of battery-operated handheld devices.

“We are very pleased with the performance that we have achieved with this product”, said Sami Niska, Product Manager, Hantro. “This software implementation clearly demonstrates the capability of H.264. By providing a short time-to-market, the 6100 software decoder is an ideal solution for device manufacturers and network operators looking to leverage the immediate potential of applications made possible by this new coding standard.”

Decoding H.264 with general purpose microprocessors and digital signal processors (DSPs) is much more complex than that of existing video standards, which can lead to trade-offs in supported image sizes and power management. To overcome this problem, Hantro has also developed silicon designs which, once integrated into a chip, support higher resolutions and will reduce power consumption considerably when compared to software implementations.

Hantro

Intel Move in to STB Chips

Intel is preparing a family of consumer electronics processors based on the company’s IA-32 architecture, the design underlying the vast majority of Intel’s desktop, laptop and server processors. The new chips are designed for running digital video and audio content while providing a robust, fast and transparent method for transmitting and receiving digital content between a variety of products including PCs, high-definition televisions, set-top boxes, digital VCRs and DVD players.

The benefit of faster processors that consume less power is that they offer new ways to view high-quality digital pictures and sound. Streaming content from mobile devices is also a major component in the digital transmission proposals that the entertainment industry is reviewing, regarding delivery of video and audio content.

It’s almost certain that the Intel chips will run at slower clock speeds compared to their desktop counterparts, as the processing power of consumer boxes is not as critical as desktop computers, laptops and servers – frankly for the replay of video, photo and audio, you don’t need that much power. The chips will also likely have a slower bus and smaller cache, as this is an easy way to reduce power consumption and costs. Slower processors leads to less power consumption, less heat generated, therefore less need for noisy cooling fans. Silent or near silent machines are vital in the lounge setting.

Set Top Boxes (STB’s) have until now been built to a low price, so they have been pitifully under-powered. This has lead directly to the interactive TV (iTV) applications that they can run frankly not looking that much better than an Atari 2600. New mass-produced powerful chips  are the first step towards changing this.

Intel already produces processors designed for low-power consumption and high performance processing for a wide range of wireless and networking applications and rich services. Based on a new core devised by England-based ARM, the XScale chips are currently used in both smartphones and PDAs, but it’s looking to offer faster processing power with the new IA-32-based parts.

It’s quite clear that Intel is a chip company focused solidly on its core business, regardless of where it takes it. The company is building up support for its new chips among consumer electronics manufacturers by developing reference designs, or blueprints, for various products. The next step will be establish well-known, robust public and symmetric key cryptographic technique that will provide manufacturers with a simple and inexpensive implementation, while allowing protect digital content in transit quickly and easily – something that Hollywood is very keen on, to say the least.

Intel

Nokia Integrate with Ford & Nissan

In many countries, particularly the UK, it is an offence to use a handheld phone or similar device when driving. Most of us know that if caught you get a £30 fixed penalty or up to £1,000 on conviction in court (£2,500 for drivers of goods vehicles, buses or coaches). As a result, mobile phone companies have been revelling in the opportunity for up-selling handset customers. This additional sales opportunity has now been extended to car manufactures, with a recent announcement that Nokia has devised a hands-free communications solution with Bluetooth connectivity for automobiles.

In the first mobile-OEM auto manufacturer partnership of its type to date, except for the CDMA-based ONStar system (but in this case the whole system was branded GM and not co-branded with the GSM radio provider), Nokia’s latest communications device is an integrated vehicle solution that will first appear in Nissan’s Primera. Ford has also announced that it plans to support the system in some of its Focus models. Long overdue, the system integrates into a vehicle’s central console and offers hands-free operation using an N-FORM control system with a large colour display. The system also features a baseplate onto which various mobile holders can be mounted, which should make it compatible with a wide range of mobile phones from different manufacturers.

The mobile phone is operated using the Primera’s N-FORM controls and 7-inch colour display, where you can also browse the built-in phonebook downloaded from your mobile phone, scroll through saved numbers either alphabetically or by speed dialling, initiate and take calls, as well as put a call on hold in order to answer a second call. Other phone functions can be voice activated, using various speaker-dependent or speaker-independent commands. An external GSM antenna should improve sound quality in hands-free operation.

“We are pleased that our co-operation with Nissan has brought such successful results. Together, we have found a perfect solution to completely satisfy even the more demanding users of automotive communications systems”, says Marcus Stahl, General Manager Automotive Accounts, Nokia Automotive. The integrated communication system is already available in Europe although it’s not clear at this stage if the device comes as standard with the cars, whether you have to change the base plate in order for it to work with other phone manufacturers’ products, or whether there will be a ‘standard’ interface devised at a later date for all car makers.

It’s also interesting that Nokia is now shifting from the handset production side to the hands-free kit side, if indeed the system supports all hands-free capable mobiles – including competitors. Bizarrely, this puts the company amongst competitors such as JCI, Lear and other third-party ‘integration’ companies who already do this for aftermarket install systems.

Nokia’s First NFC Product – Why it’s Important

Nokia NFC shellNokia has lifted the lid on the world’s first NFC (Near Field Communication) equipped mobile phone by adding the special NFC clip-on shell to their 3220, a tri-band camera phone that is available in two versions (Euro/Asia & America). With its build-in NFC shell, the phone is the latest step in the development of innovative products for mobile communications.

NFC is essentially a contactless technology that allows for short-range two-way wireless connectivity using a tag and a reader. Developed jointly by Philips, Sony and Nokia, it is based on short-range (10 cm, 3.9”) radio frequency (RF) technology, an NFC-enabled mobile device lets you access services or operate your mobile device by placing it near a tag or share information by bringing two devices close  to each other. When you’re near a tag, your mobile phone reads the tags content by emitting a short-range radio signal that powers up the tag’s microchip, allowing you to execute an action, such as opening a Web page, calling a number, or sending an SMS. The opportunities for the Media business, in particular advertising are immediately obvious. People passing posters, wanting to find out more information are able to directly request it there and then, at the point of impulse. It could them be immediately delivered by bringing up a Web page of info or received via email for later consumption. Vivendi Universal has also trialed selling tickets to films, simply by placing the phone on a NFC spot on a film poster. Similarly, by communicating with an enabled device such as a TV, the mobile device can send a picture to it  It is currently unclear to us how much bandwidth will be offered by NFC, but we would assume it will be low, being more along the lines of ZigBee than Bluetooth. If this is the case, transferring a 1Mpx image will be a slow and painful process.

NFC is different from other contactless or RFID technologies in that it has a very short operating distance and also allows two devices to interconnect. The effective distance of an NFC solution depends on the tag design and the reader, but is only a few centimetres in Nokia’s solution.

The potential benefits of the technology include improved usability, easier access to services and content via physical objects, convenient sharing of digital items between devices by bringing them next to each other – such as swapping electronic business cards with clients – and local payment and ticketing capabilities. This has already been trialed in the Frankfurt transport system.

“Touch-based interactions will improve the consumer experience of existing services and create new opportunities for users to benefit from their phones. This technology has the potential to significantly improve the way operators provide and users discover and activate different mobile services,” said Gerhard Romen, Head of Market Development at Nokia Ventures Organisation. ‘By introducing the new Nokia NFC shell, Nokia clearly demonstrates strong commitment to offer users an intuitive wireless experience.” Samsung Electronics has also mentioned that it intends to manufacture NFC phones.


Tech Background to NFC – NFC technology evolved from a combination of contactless identification (RFID) and interconnection technologies. NFC operates in the 13.56MHz frequency range, over a distance of typically a few centimetres. NFC technology is standardised in ISO 18092, ISO 21481, ECMA (340, 352 and 356) and ETSI TS 102 190. NFC is also compatible with the broadly-established contactless smart card infrastructure based on ISO 14443 A, which is supported by Philips’ MIFARE technology and Sony’s FeliCa card.

Nokia 3220

Opera browser is about to get even faster

Oslo-based Opera Software, best known for its Opera Web browser, has announced that it plans to integrate SlipStream Data’s Web and e-mail acceleration technology into the next release of its desktop Web browser. Set to integrate into Opera 7.60, Opera claims that it will enable users up to six times faster browsing on dial-up and wireless connections, a particularly neat feature for those with limited bandwidth.

SlipStream Data’s Web Accelerator technology only accelerates certain text and graphics on Web pages, so it won’t speed up everything you do on the Internet. However, both companies claim that with Web Accelerator you will notice a significantly faster experience when you visit Web sites, send and receive e-mail, and perform other Web-based activities. To achieve this speed up, proprietary lossless compression is applied to text, HTML, XML, JavaScript and style sheets. Proprietary image compression is applied to GIF and JPEG images, as well as to Flash content.

SlipStream also accelerates e-mail traffic (POP3 and SMTP) using lossless compression, but does not speed up file downloads (over FTP or file sharing programs), streaming audio/video and HTTPS (secure Web sites). If you have a slow Internet connection (such as a dial-up or wireless connection) with a bandwidth of less than 300Kbit/s, you should experience a significant degree of acceleration using SlipStream, boldly claims the company.

However, SlipStream Web Accelerator does not increase the speed of file downloads such as music files, or streaming video or audio media. Opera 7.60 is set to usher in more innovative browsing features – something we’ve come to expect from its developers. The public release of v7.60 is planned for the end of 2004.

SlipStream is currently supported by over 900 ISPs worldwide, according to the company, with its popularity due to that way that it allows service providers to offer a faster and more flexible way of rolling out value-added services. SlipStream SE (Secure Enterprise) further optimises bandwidth and improves the performance of Web-based applications, accelerating secure access to e-mails, FTP and other critical business data.

“SlipStream is the dominant acceleration solution provider for ISPs in North America, South America, and Europe,” says Jon S. von Tetzchner, CEO, Opera Software. “Their innovation and reputation for service, makes them an ideal partner. We are eager to work together to deliver an improved experience in installation, operation, and support to enterprises and users wanting more Web speed and performance.”

“As Opera is known as the fastest browser on earth, the decision to consider the browser for this integration was simple,” says Ron Neumann, President, SlipStream Data. “Our goal is to offer a superior accelerated browsing experience on any platform and Opera’s multiplatform support helps achieve this. This integration gives ISPs increased support and speed for their users, and will also significantly increase the productivity of mobile workers. Such a partnership helps us continue to expand and embed our technology into new markets.”

As well as its speed, another key factor in Opera’s success that the browser is cross-platform and modular, and currently available for Windows, Linux, Mac OS, Symbian OS, Windows Mobile, BREW, QNX, TRON, FreeBSD, Solaris and Mediahighway platforms.

Yahoo Hires Former ABC TV Exec

What better person to appoint to head your media and entertainment division than a Hollywood executive with shows like ‘The Sopranos’, ‘Lost’, ‘Desperate Housewives’, ‘Wife Swap’ and ‘Boston Legal’ under his belt? Prior to this, he served as co-chairman of the division with responsibility for all creative, programming and business areas of the division, which encompassed Touchstone Television and ABC Entertainment.

The man in question is former ABC Entertainment Television chairman Lloyd Braum, and he will oversee Yahoo’s movies, TV, entertainment, music, games, finance, news and weather, sports, health and kids businesses. He will also do the negotiating with Hollywood to release exclusive content on Yahoo, as well as developing original new content within the company. It has been reported that he was fired from his ABC post in April following disagreements over the direction and management of the network, which had fallen to fourth place in the ratings.

His main task will be to convince movie, TV and music companies to distribute more content exclusively on Yahoo. His impressive pre-ABC resume reads like he is tailor-made to do some convincing – chairman of Disney’s Buena Vista Television Productions, president of Brillstein-Grey Entertainment, and partner at the law firm of Silverberg, Katz, Thompson & Braun.

Yahoo already took the Hollywood route a few years ago when it appointed former Warner Bros. chairman Terry Semel as its CEO in 2001. In recent months, the company has signed several deals to provide related Web content for popular television shows such as NBC’s “The Apprentice” and CBS’ “Survivor”.

It’s all about getting exclusive content. In September, Yahoo announced that it would produce, host and sell advertising for the official Web site of reality TV show, “The Apprentice,” in which contestants battle to win a job working for real-estate mogul Donald Trump.

HomeChoice now Quad-play, Adding Phones

Video Networks Ltd. (VNL) is upping their game with their HomeChoice service. It has announced the addition of a home phone service to its already rather ample HomeChoice bundle of broadband Internet, digital TV and video-on-demand, making it a serious contender for both home entertainment and communications. The service will be delivered using Carrier Pre-Selection, and VNL also plans to offer line rental in 2005. Carrier Pre-Selection entails them using BT lines to carry the phone traffic to VNL networks for delivery.

Currently the service isn’t using VoIP, but we understand from them that they may move to this in the New Year. They certainly have the equipment and bandwidth available to provide it.

HomeChoice customers can opt for either ‘Free Evening and Weekend’ calls at no additional cost, or have the option to upgrade to the ‘Anytime’ talk plan from £5 (~$9) per month. Both offering lower rates to UK mobiles and overseas numbers than similar plans from BT, TalkTalk, One.Tel, NTL and Telewest.

The ‘Free Evenings and Weekends’ talk plan offers, the obvious, free evening and weekend calls to all local and national numbers starting with 01 & 02, and a daytime rate of 2.5p to those numbers.

‘Anytime’ talk plan includes calls to all local and national numbers starting 01 & 02. It costs £9 (~$16) per month for 512Kb broadband customers, £7 (~$12) per month for 1Mb broadband customers, and £5 (~$9) per month for 2Mb broadband customers.

You don’t need a special box or a prefix code. You can use your existing phone and phone number, and the existing standard BT line in your house, for which you will still pay rental. But you have to take VNL’s broadband and digital TV services to avail of the free calls.

The first to offer four services in the UK, VNL geared itself up for this expansion earlier in the year by appointing Vijay Sodiwala, former managing director at Broadsystem Ventures, a News Corporation company, to develop the home phone services.

The service faces stiff competition from rival fixed line offerings such as Carphone Warehouse’s TalkTalk brand, One.Tel, BT, NTL and Telewest, but no doubt the £1 million (~$1,841,100) marketing push will give it a kick start, and hopefully (pardon the pun) ringing endorsements.

HomeChoice

Premier 3G Concert Broadcast

U2 special edition iPods, ‘phone cast’ Rooster concerts on 3G mobile phones, Robbie Williams new video premiered on 3 mobile phones – is rock becoming virtual?

Avoid the crowds, the heat, the general mayhem, (but sadly also the atmosphere) and virtually experience live gigs on your 3G mobile phone wherever you are, and make as many calls as you want during the intermission.

Yesterday in London, rock band, Rooster played the first ever concert broadcast by 3G mobile phone. Rooster was chosen because 3 is already in partnership with their record label, BMG. The 45-minute gig was really a trial run by 3 to discover more about how people use their video phones. 3, which already provides 1.2 million customers with 3G services in the UK, has already planned a series of gigs to happen throughout 2005, and is hoping that the move will lure more people into buying video phones.

The broadcast was trailed on Rooster’s Web site and on 3’s own phone-based news and entertainment channel, and about 10,000 people signed up for a free pre-gig reminder. Ten minutes before start-up, these 10,000 users were sent an SMS inviting them to visit a “virtual box office” where they could pay £5 to view the gig, and the first 1,000 were admitted.

Another world first was the release of Robbie Williams’ new video ‘Misunderstood’, exclusive for a week on 3 video mobiles before being premiered on the TV or the Web. The deal between EMI and 3 allows fans to either stream or download the video straight to their mobiles. This is a clever choice since the video for ‘Misunderstood’ – which features in the Bridget Jones sequel, ‘The Edge of Reason’ – includes clips from the forthcoming film.

Staying in the digital arena, Robbie Williams also recently announced the release of his greatest hits album on memory-card format for mobile phones, which will be released this month.

Some commentators might say these developments let fans get closer to artists, and if you were selling the equipment you would say that, wouldn’t you?

“It sounds exactly as you would expect a live band playing down a telephone line to sound”, says Alexis Petridis today in his Guardian review of the Rooster event – “a Library Of Congress field recording from the 1930s.”

http://www.roosterofficial.com http://www.guardian.co.uk/arts/news/story/0,11711,1342211,00.html