Sky/Easynet Purchase: Analysis

Possible Impact Of Sky Buying EasyNetAs we reported last week, Easynet has been bought by Sky – as long as they get shareholder approval, but since Sky have offered a premium on Easynet’s shares, this should be a done deal.

This is the first broadcaster (in the UK) to take control of the telecom’s infrastructure required to deliver a triple-play of voice, Internet and video, though it’s likely Sky will use the broadband piece to complement its satellite delivery channel. This does give them the much need backchannel that has been elusive so far (requiring dial-up to access SkyActive and other services).

This could be a major blow for THUS who provide telecoms services for Sky as well as hosting various services (THUS developed parts of the WapTV service with Sky). Sky accounts for around £30m of THUS’s revenue (about 10% of their total) which could potentially go to Easynet which would make a huge dent in THUS’s revenue figures, though a lot of it is very low margin.However it might put THUS in a poor financial situation when viewed by the city.

Possible Impact Of Sky Buying EasyNetEven though Sky are buying into LLU, Easynet only cover around 250 exchanges and currently all the voice goes to BT (Easynet use the shared metallic path LLU option), while Sky are likely to want to take the phone service as well (they already have a SkyTalk package using CPS provided by THUS). Sky will need to invest to make this a reality as well as increasing Easynet’s coverage. They have said they want to go into around 1000 exchanges, so that’s a build out of around 750 – which won’t be cheap (probably another £100m’ish at least).

For Sky that may be enough as it will cover all major city centres and that’s a big plus for Sky who estimate they can’t reach 20% of their potential audience due to issues with coverage (i.e. no satellite line of site due to buildings in the way, or no way to mount a dish, multi-tennant buildings etc). LLU will give them the means to reaching these people.

It still begs the issue of what’s going to happen when BT roll-out their 21CN and attack all 5,600 local exchanges and also offer a triple-play, but at least Sky will have a lead on them and already have the content ready to roll. BT are likely to be the winners longer term, but at least Sky may have a fighting chance in urban areas.

Sky Buys EasynetIf all the LLU players aggregated infrastructure and competed on services, they could build a 21CN of their own now. LLU competition is going to be fiercely competitive with Wanadoo, AOL, Sky and even Be offering a triple-play – all competing for the same customers. – as well as BT (who will have nationwide coverage) and not ignoring NTL/Telewest who are also going into LLU.

The LLU operators have got maybe a 2 year window before BT get their act together, if they don’t do something co-operative now, in 2 years a lot of them will just be passing memories.

Easynet
Sky

May You Live In Interesting Times, Festival Preview (2/2)

The first part of this preview was published last week.

May You Live In Interesting Times, Festival Preview (2/2)The festival has been developed by Bloc (Creative Technology Wales) and Chapter Arts Centre, Cardiff. They have managed to accommodate a large number of complex yet accessible projects. This collaboration is all the more impressive in its scale when you realise that both organisations have their own projects running concurrently (Bloc are developing Northern and Southern pilot projects in Wales with accompanying seminars; Chapter are hosting the first UK showing o the artists Olaf Breuning).

The festival will be based at Chapter but will spill out into the streets of Cardiff and various venues and unique spaces. Contemporary artists are increasingly engaged with, or inspired by, digital technology and such public spaces.

The public and communication technologies are attractive to artists because of their user friendliness and their massive global reach.

Artists tend to situate such work somewhere between public art and street culture. Digital technology is often claimed to go beyond physical limitations such as cyberspace, but it is always embedded in real spaces and places such as the home, the workplace and the street whether this is an individual user, or as part of a larger ever extending network.

These spaces in Cardiff include the Millennium Stadium, where Tim Davies’ Drumming will be shown on the giant digital billboards above the pitch. This shows the frenetic beating of a snare drum as a call to arms. The drumming echoes out throughout the stadium and beyond, echoing the roar of 70,000 Welsh fans.

If you see a number of futuristic-looking people being pursued down Cardiff’s Queen Street, don’t worry, that will be Blast Theory.

Renowned internationally as one of the most adventurous artists’ groups using interactive media, Blast Theory come to Cardiff to present the award-winning chase game Can You See Me Now?

Online players are dropped into a virtual Cardiff while Blast Theory runners, tracked by satellites in the real city, pursue you.

May You Live In Interesting Times, Festival Preview (2/2)To join in you can access a number of computer terminals at the National Museum and Gallery or at one of the festival hubs at Chapter or g39 (cor). If you are unable to visit you can play from your own computer.

A number of residencies have already taken place across Wales, such as Jen Southern and Jen Hamilton who have been working at Creative Mwldan in Cardigan.

They have been setting tasks for locals and tourists while tracking their movements through GPS systems.

The evidence they collect will then be relocated to Cardiff, where they will be taking visitors on a boat trip in Cardiff Bay.

Grennan and Sperandio will be based in Cardiff, where they are keen to meet anyone interested in any aspect of gaming, from bridge clubs to computer game enthusiasts. They will be creating an online and actual card game based on interactions with historians, language experts, game enthusiasts as well as people from all walks of life in Cardiff.

Artists from Wales were encouraged to develop new work. Stefhan Caddick will be placing a portable digital road sign near Cardiff’s Old Library.

Usually used to display traffic information, viewers are asked to text their own messages which will be then displayed on screen.

Andy Fung’s work will be displayed on an advertising billboard on Leckwith Road near Cardiff’s Football ground.

May You Live In Interesting Times, Festival Preview (2/2)The artist group Second Site will be displaying new video works in the windows of a empty bank on Bute Street, while Chris Evans will project his interactive game onto St John’s Church in the centre of Cardiff.

Canton Labour Club becomes the ideal venue to host a series of discussions based around ideas of community and broadcasting.

The two-day conference will explore the themes of the festival, including the use of locative media, such as GPS systems and mobile phones. There will also be a look at the use and influence of video gaming.

With so many creative technologies on offer, it seems that we do indeed live in interesting times.

Karen Price is Arts Correspondent for the Western Mail.

The first part of this preview was published last week.

Chapter
Bloc
Cardiff Contemporary

Portable Games To Exceed $2 Bn In 5 Years: Yankee

Portable Game Business To Exceed $2 Billion In Five YearsThe portable game business will be worth a thumping great $2.3 billion in four years, according to a report released today by research firm, The Yankee Group.

Their ‘US Portable Entertainment Forecast’ report also found that half of all portable music players will be phone hybrids by 2009, yet mobile MP3 players will only account for only one-third of the portable music service revenue.

The Yankee Group predicts that dedicated digital audio devices like iPods and Walkmans will continue to be used more exclusively for their single purpose, while gaming hand-held devices and phone hybrids are both expected to grab revenue around the $2.3 billion mark by 2009.

Portable Game Business To Exceed $2 Billion In Five YearsWith the line between wireless handsets and portable CE devices continuing to blur, the Yankee Group used data from both their Video Capable Device Survey and the Mobile User Survey to come up with what they describe as “the most comprehensive view into the portable device market.”

The US Portable Entertainment Forecast discovered that the convergence of wireless handsets and CE devices will force mobile manufacturers to both compete and partner with consumer electronics manufacturers.

“Within this new market dynamic, it will be crucial for companies to have a firm grasp of consumer behaviour and the competitive landscape,” said Mike Goodman, Yankee Group, senior analyst, Media and Entertainment Strategies.

Portable Game Business To Exceed $2 Billion In Five Years“The major players must understand who will lead and who will follow in order to successfully plan future strategy and appropriately target their investments,” he added.

Yankee Group

Podcasting is Dead! Long Live Podcasting!

Marc Freedman of The Diffusion Group (TDG) makes good points here about Podcasting, including the now slack usage of the term to describe any audio that is downloaded from a Website.

We even thought it was good enough to leave in the ‘alternative marketing value,’ otherwise known as a plug (tip of the hat to Andy).

Podcasting is Dead! Long Live Podcasting!I come not to bury podcasting but to praise it. It is the creation, and victim, of its own success. It captured the imagination of the press and public with a hip pedigree and a huge wave of media hype. It will exit with a permanent mark on the media landscape.

Podcasting remarkably rose from inception to million users of users in less than two years. According to TDG’s (yes, our) recent analysis, Podcasting as an Extension of Portable Digital Media – Fact, Fiction, and Opportunity, more than five million US consumers will partake of podcasts by the end of 2005, growing to more than 60 million in 2010.

Many in the industry scoffed at TDG’s predictions. Other research firms put forth podcasting forecasts significantly lower than TDG’s, arguing that podcasting will never move beyond the technological elite or “chic geeks” that gave podcasting its early buzz. But these same research behemoths were the ones that first said podcasting wouldn’t break the five million mark by 2010, only to triple their forecast in less than two weeks. Fair enough – they’re indecisive.

To be fair, TDG analysts simply see the world a little differently (and in this case more accurately). In the past two months alone, AOL, Yahoo, and Apple have integrated podcasting into their web sites and software. It is only a matter of time until podcasting is integrated into all major media players, much like other media technologies, such as Internet streaming and web music guides. Due to the widespread availability of podcasting services and the proliferation of portable digital audio devices, podcasting will enjoy rapid growth over the next 12 months as these services and products build upon one another in holy union.

Technology is a multiphase cycle of standalone development, integration, disaggregation, and resynthesis. At the moment, podcasting is its integration phase, arising about two years ago with application-specific search engines, directories, players, and other software (solutions that are now integrated into the online offerings of both legacy and new media firms).

Podcasting is Dead! Long Live Podcasting!Podcasting is in fact not one phenomenon but three. The first is its name. Mother Apple came to claim the child it midwifed when it folded podcasting into iTunes. Apple has successfully ridden the digital music rocket by staying at the forefront of technology. It ensured the future integrity of the iPod brand, as well as the podcasting name, when it added video to the iPod.

Despite widespread publicity, however, podcasting itself remains unfamiliar to most US consumers. According to TDG’s recent research, 64% of Internet users are not familiar with or have not heard of podcasting. Making matters worse, many music and audio publishers refer to their downloadable content as “podcasts” even though they are not tagged or do not provide subscriptions. Lastly, because Apple is so closely associated with the iPod, anyone that promotes podcasting is in essence promoting the Apple brand. Yes, the iPod has become the Kleenex of its time: it is more than just the brand of a particular product – it is now a product category in itself. That said, no doubt the podcasting name will be further diluted with time, competition, and new technologies, much like Internet broadcasting, streaming, and radio are often used interchangeably today.

The second phenomenon is mobile audio distribution. Podcasting was driven by the need to take advantage of the vast vacant space found on iPods and many other portable digital music players. Yes, mobile audio made podcasting. However, podcasting will itself become less about MP3 players and more about consuming subscription-based audio programming on desktop PCs, laptops. PDAs, and even cell phones.

The third phenomenon is media subscriptions. The automatic downloading of new content has returned as an essential form of consumer media distribution both for connected and mobile devices.

No doubt the name “podcasting” will fade as new forms of digital media distribution enter the fray, but the technology and tenets of podcasting will be permanent. The underlying technologies and the concept of subscription-based digital audio distribution will survive through many generations of consumer platforms and services.Podcasting’s ultimate legacy may in fact be the addition of ‘Subscribe’ to the typical media distribution options of ‘Find,”Play,’ ‘Rip,’ ‘Burn,’ and ‘Stream.’

– Podcasting: RIP 2007 –

BSkyB to Buy Easynet: Official

Sky Buys EasynetUPDATEDSky has today confirmed that it is offering £211m to buy publicly listed UK ISP, Easynet. This follows a period of general speculation, after Easynet issued an official statement on Monday past that they were subject to a possible offer.

Sky are offering 175p per share, around 81% above Easynet’s market price of a week ago.

Not surprisingly, the current Easynet price is now up 44% at 171p.

With this purchase, Sky buys straight into broadband in the UK, gaining a foothold in the Local Loop Unbundling (LLU) market, with 232 unbundled exchanges already under Easynet’s belt.

Importantly Sky have bought into Easynet’s expertise at unbundling exchanges, which, when combined with Sky’s financial clout, will lead to serious competition to the, (in our eyes), feeble rollout of DSL by BT. We also imagine that there will be sweaty brows at Telewest/NTL, the UK cable company over morning coffee.

Possible Impact Of Sky Buying EasyNetSky will gain income from broadband subscription and possibly entice further subscribers to their TV service taking them to their stated aim of 10m. Far more important is a new channel to deliver content through – one they have total control over. They like that.

This move puts BT’s broadband IPTV service on a less secure footing, which, as we broke at the end of September, plans to launch in Summer 2006. At the very least, BT won’t have it all their own way.

Sky has been talking for a while about broadband-delivery ambitions as well as other paths, indeed Sky COO, Richard Freudenstein confirmed as much just over a month ago.

Brace yourself. The news is going to be awash with opinion pieces second guessing what this all means to the future of broadcast and broadband in the UK …

Easynet
Sky

Skype Integrated Into Eniro, Swedish Phone Directory

Skype Integrated Into Eniro, Swedish Phone DirectoryEniro, the Swedish equivalent of Yellow pages and the phone directory have integrated the Skype URL, callto:, in to their online directories.

This boon for Skype users, gives browsers the ability to simply click on the targets details to use Skype to open a voice call with them.

Currently the only examples we could find used ‘normal’ phone number, so clicking on them connects your Skype to their phone number, using your SkypeOut minutes – much to the joy of Skype we’d assume.

MSN and ICQ ID can also be listed, but these don’t have the same simple click to use functions.

Skype Integrated Into Eniro, Swedish Phone Directory“It’s important for us to add all types of contact information and that makesadding Skype to that logical”, says Cecilia Geijer-Haeggström, VP ofproducts and market at Eniro.

This is currently only available for contacting individuals, but it is planned to offer the same through Yellow Pages for companies.

Skype Integrated Into Eniro, Swedish Phone DirectoryWe also understand that they’ll be printing the Skype ID’s in the printed directories for a small fee.

Many phone directories are owned by the countries incumbent telco, making it highly unlikely that they would offer similar services, as it ‘steals’ call revenue out of the pocket of their telco owners.

The Swedes are as high tech as you like, but we suspect that the fact that Skype CEO, Niklas Zennstrom is from Sweden somewhat smoothed this deal.

Eniro
Skype

Wi-Fly; ISS Falling; i-Tunes 6 – Teenage Tech News Review

Internet BalloonWi-Fly
BBC news is reporting that BT is testing wireless broadband. What was that I heard? Been done already? Ah well, this is a new twist on a relatively old concept: These guys are using a balloon flying at 24km of altitude to send and receive wireless internet signals. This could mean a new way of accessing data: Although there are currently a number of ways of accessing the Internet on a laptop while on the move, these involve either overpriced GPRS connections over mobile networks, or few and far between Wi-Fi access points, which are not necessarily free either.

What this technology might enable, if it takes off (sorry, bad pun), is to enable laptop users to be finally able to use an affordable data service on the move that doesn’t suck speed-wise and doesn’t cost an arm and a leg to use.

Guess what else? The team doing the initial research on the project are from my local university, literally five minutes down the road!

ISS International Space StationIs it a bird, is it a plane…
…No, it’s the ISS falling from the sky. ITAR-TASS reports that the latest ship to dock with the ISS has failed to boost it’s altitude, as it’s rockets failed after burning for only 3 minutes.

The ISS floats at around 350km above the earth, and at this point in space, there is still a significant amount of drag caused by the earth’s atmosphere. What this means when it’s at home, is that the atmosphere causes friction on the ISS, which means that the space station is constantly losing altitude. What prevents the ISS from falling from the sky are occasional boosts from visiting spacecraft. There is a graph of the ISS’ height and it is clearly visible that it is currently at the lowest that it has ever been at. If the space station’s height deteriorates lower than 300km, it is easily possible that it will fall out of the sky and land on earth, or burn up in the atmosphere.

Although the ISS is kinda cool, I do still have my doubts as to it’s usefulness: What the hell is it actually good for? This is the view of a lot of people in the scientific community, and a lot of people think that it might as well be de-orbitted and the money spent on it every year spent on a better cause. Imagine if the $6.7 Billion that NASA is spending annually on the ISS and the shuttle program went to better causes. Imagine what impact that money would make.

Besides, I want a space elevator, dammit!

iTunes 6 ScreenshotOooh Aaargh, ‘cos we’re pirates!
A few days ago, Digital-Lifestyles covered the new video enabled iPod and accompanying iTunes 6 software. iTunes 6 allows you to download selected TV shows and other content for a fee from the iTunes music store. What if you want to add other recording and stuff to your iPod? Hack-a-day has an article on how to automatically download TV shows via Bittorrent.

They also have an article up on how to use the Tivo To Go software which accompanies the Tivo to transfer Tivo recordings to your iPod.

These hints should help all you cheap skates out there to enjoy a nice, free, iPod video viewing experience. Of course, it also means that it will be possible to watch shows on the iPod not yet available for purchase from the iTunes music store.

Enjoy!

Possible Impact Of Sky Buying EasyNet

Possible Impact Of Sky Buying EasyNetSky have been mulling about an IPTV service for a while. They were in discussions with THUS who provide the telecoms back-end for their SkyTalk service and helped Sky with their WapTV services, they were talking about doing an IPTV trial with THUS, but THUS pulled out of the LLU arena due to lack of cash. They were looking at spending £20m+ on just a trial.

Though Sky have 7.3m+ subscribers, they estimate around 20% of households (in the coverage) areas cant get Sky due to dish or coverage problems (including multi-tennant buildings). City centres tend to be problematic due to high buildings obscuring the satellites. There’s also a major problem if the building is in anyway listed.

Possible Impact Of Sky Buying EasyNetSky have got the resources to bolster a depressed telecoms market and put the necessary cash into a company to achieve a reasonable roll-out. Of course they also have the content that consumers want. If another “triple-play” broadband provider wants to get into the game (including BT Retail), Sky can make it very difficult for them by not licensing Sky content (of course Ofcom may force them to, as they have done in the cable industry).

Sky have also been talking to other high-speed broadband providers such as Be who also want to offer a triple-play.

If Sky do purchase Easynet, it’s likely they’ll move all their telecoms and Internet activities to them too, which will put THUS in a difficult position as a large ammount of corporate revenue comes from the Sky account.

Possible Impact Of Sky Buying EasyNetSky are also in an odd position as they’ll probably utilise MPEG-4 as the coding system, which means they’ll have to modify (or supplement) their existing transmission systems which are all based on MPEG-2. They’ll also have to introduce a new IP based set-top-box. However they’ll have to be carefull as to not make it too feature rich compared to existing STB’s used to decode the satellite transmissions or existing users will want to migrate to the broadband version – which will cost Sky a huge ammount as the exisitng boxes are considerably subsidised.

Whatever route they go, Sky moving into triple-play will have a major impact on broadband and LLU in the UK.

May You Live In Interesting Times, Festival Preview (1/2)

We find it hard to explain how excited Digital-Lifestyles is about ‘May you live in interesting times’, the pseudonym given to the Cardiff Festival of Creative Technology starting in Cardiff on 28.Oct. Karen Price does a great job of capturing the range of events that make it up.
Watch out on Digital-Lifestyles after the event for a series of podcasts from there.
Part two of this preview is also available.

Close Encounters Of The Creative Kind – Part OneIt’s a fact of life – almost everywhere we turn we are surrounded by technology. From mobile phones and digital cameras to TVs and video games. But as well as making our lives easier and providing us with entertainment, more and more artists are now turning to everyday technologies when they create their work.

This will be highlighted during a new three-day festival which is taking place in Cardiff 28th-30th October 2005.

May You Live In Interesting Times – a title taken from a phrase used in a famous speech once made by Robert F Kennedy – is being staged across the Welsh capital as part of the Cardiff 2005 celebrations, and is a major highlight of Cardiff Contemporary, which is promoting the visual arts throughout this month.

Despite being the first event of its kind in Wales, it includes a line-up of international artists, speakers, sponsors and partners who will take part in a series of residencies, commissions, and a two-day conference.

This is all supported by a programme of artists’ projects, outdoor events, screenings, music, performances and projections.

Close Encounters Of The Creative Kind – Part One“The event will be held at various sites across the capital and will illuminate the city with dynamic and individual work using a range of new and existing technologies,” said festival co-director Emma Posey.

“The festival will provide a platform for national and international audiences to access the very best works that utilise digital technologies.”

It is already being recognised as a major international event, attracting attention as far and wide as Brazil, Holland, Japan and the USA.

The festival’s Website offers browsers from all over the world the chance to take part online via its live streaming and pod casting.

“We have received lots of positive responses so far both from inside and outside Wales,” said Posey.

Close Encounters Of The Creative Kind – Part One“We want to create a vibrant creative technology sector in Wales, with the festival celebrating this every two years.”

The festival’s other co-director Hannah Firth is keen to stress the accessibility of new technology and its use by artists and the public in their everyday lives.

“New forms of technology are commonplace, from mobile phones, computers, digital cameras, videogames and the way we watch television,” she said. “These technologies influence every aspect of our lives, if we like it or not. The festival looks at how artists are using this everyday available technology, not for its own sake, but as an additional tool in expanding their ideas.”

Richard Higlett, Visual Arts Coordinator for Cardiff 2005 added “May You live in Interesting Times is an important addition to the Capital’s cultural calendar and an opportunity to see art made using digital technologies by Welsh and Internationally respected artists. The festival is a reflection not just of the way art is made today but is about art which is resonant, depicting the current condition of society at the start of the 21st century.”

Karen Price is Arts Correspondent for the Western Mail.

Part two of this preview is also available.

May You Live In Interesting Times
Chapter
Bloc
Cardiff Contemporary

Nokia Unveils L’Amour Collection

Nokia Unveils L'Amour CollectionMobile phone giants Nokia have announced three new phone models aimed at the “style-conscious” market.

The new models, the 7360, 7370 and 7380, are to form part of Nokia’s ludicrously named “L’Amour Collection,” expected on the market in the first quarter of 2006.

Alastair Curtis, Vice President of Design at Nokia’s Mobile Phones division was on hand to trot out the airy-fairy waffle, “For many consumers, the mobile phone has truly become an extension of their personal style – it is a fashion statement as well as an advanced communications device.”

Like Laurence Llewelyn-Bowen on steroids, Curtis continued, “Every detail of these products, from the nature-inspired graphics to the velvet-lined pouches, has been carefully considered with the style-conscious individual in mind. We are very confident that consumers who appreciate design and attention to detail will fall in love with the L’Amour Collection.”

The PR team were clearly caught up in the general arty-fartiness, trotting out a load of tosh about how the Nokia 7380 was a “reflection of discerning taste”, the Nokia 7370 “designed to make heads ‘turn’ and the Nokia 7360 somehow managing to exhibit “charming, graceful and compact” qualities.

Trying our best to avoid the loud klaxon noise emanating from our nearby BS Detector, here’s the phones in more detail:

Nokia 7380
Nokia Unveils L'Amour CollectionDesperately described as a phone for “trend-setting men and women who enjoy being the centre of attention,” the highly distinctive 7380 looks like it’s come from the same bonkers design studio as the 7280.

Sporting a keypad-less form and clad in leather with a mirrored display, the slimline fashion phone packs in a 2-megapixel camera with 4x zoom, an MP3 player and intuitive voice dialing.

Fashionistas can expect to fork out around €500 (~£340, ~$600) for the 7380 and should be able to start strutting around and making dramatic mobile fashion statements in Q1, 2006.

Nokia 7370
Nokia Unveils L'Amour CollectionEmploying a sliding keypad, the Nokia 7370 comes with a 2-inch QVGA colour screen (320 x 240 pixels), stereo speakers with 3D sound effects and a 1.3 megapixel camera (8x zoom) onboard.

The designers have gone to town on the fascia, emblazoning it with “beautiful patterns, etched into the elegant metal trims” which are contrasted by “leather-inspired faceplates” which, somehow, add a “romantic appeal and an element of the exotic.”

To be honest, we’d be a bit worried if we met someone who found their mobile phone romantic, but I guess it takes all sorts.

The Nokia 7370 comes in two colour schemes, coffee brown and warm amber, each with matching graphics and screensavers.

The phone should be knocking out for around €300 and available in Q1, 2006.

Nokia Unveils L'Amour CollectionNokia 7360
Looking somewhat more conventional but still, apparently, a phone for “trend-conscious men and women” (albeit cheapskate ones), the bottom of the range Nokia 7360 comes with an integrated VGA camera, stereo FM radio and MP3 ring tones.

It also sports the same silly ‘designer tag’ sticking out the side of the phone as the rest of the range, and is available in the two “signature L’Amour Collection colour schemes”, i.e. brown and amber.

The phone will cost around €200 and gyrating down the nearest catwalk in Q1, 2006.

Nokia