2005

BT Cashes In To Goverment Money
BT have been enjoying government payouts to maintain their networks.
Interesting news for all those that thought it was many years since BT was an ailing monopoly to be propped up by a Labour government.
It was revealed in an answer to a parliamentary question (text below), that around £7 million has been paid to BT in England and Wales, and a contract for work in Scotland, that is not yet complete, should benefit the Telco goliath to the tune of a further £16.5 million. BT has also received undisclosed sums from the East Midlands Development Agency to extend broadband availability in the region.
Now this might come as a surprise to those who’ve got the impression that BT was doing this along with its investment in the so-called 21C network, as some sort of “Noblesse Oblige”.
Looking back over our archives for January of this year, it put a smile on our faces to see BT, when defending itself against smears of improper financial assistance related to the UK property rating system, responded to criticism leveled by those terrible bureaucrats in Brussels with…
“BT is surprised that the European Commission is to investigate the UK government over the property rates that BT has been paying. In BT’s view, any allegation of state aid would be groundless as BT has received no benefit from the UK government. BT is confident that the UK government will demonstrate the fairness of the UK ratings system.”
Expect smaller UK operators to cry foul – with some justification – as they see the dominant player’s position reinforced by government money, and BT’s competitive edge further strengthened in areas that include upgrading their network for TV delivery.
(Ed: Looking at this information, it feels wrong that BT are being given public money to maintain their network, one which they are directly gaining income from. This benefit isn’t passed back to the general public who are funding it, but instead to BT’s shareholders.
—-Fully text of the questions and answer.
Stephen Crabb (Preseli Pembrokeshire, Con)
To ask the Secretary of State for Trade and Industry what the total amount of financial subsidies and grants received by BT has been since 1997 for the purpose of extending broadband availability in the UK.
Alun Michael (Minister of State (State (Industry and the Regions)), Department of Trade and Industry)
Since 1997 BT has received the following financial sums to enable exchanges to extend broadband availability in the UK:East of England Development Agency paid BT approximately £500,000, to enable most of their remaining exchanges in BED A areas. This was awarded through the Broadband Aggregation programme.
Following a competitive tender South West Regional Development Agency awarded BT approximately £3900,000 to enable some exchanges in the Cornwall area.
Following a competitive tender, BT in Wales was awarded £3.6 million of European Structural Funding to upgrade over 40 BT telephone exchanges from UXD5, making ISDB2 services available to 99 per cent. of BT lines. The investment was also used to enable Digital Subscriber Lines, ahead of the commercial roll-out programme for the UK, in BT exchanges in market towns across Wales. It is estimated that the total project value was around £6 million.
Following a full EU Procurement Process to extend broadband availability in the North East region, BT was paid £1,830,345. This sum is subject to a downward adjustment, in accordance with a reverse contribution scheme, which operates to repay money to the Agency if broadband take up in the region exceeds a prescribed level.
£364k was awarded to Vale Royal Local Authority acting on behalf of the Cheshire Digital Development Agency who, following a competitive tender through the North West Regional Aggregation Body, awarded BT a contract to enable of a series of remote rural exchanges in Cheshire.
In Cumbria, Your Communications was awarded a large infrastructure project (Project Access) contract for approximately £17 million following a negotiated, state aid approved OJEU competitive tender. Your Communications sub contracted part of the contract with a value of around £1 million to BT for the early enablement of all the exchanges in Cumbria and specifically for the enablement of 14 exchanges in the remotest areas of the sub region.
In Scotland £16.5 million was awarded to BT following competitive tender. The roll-out has not yet been completed so not all the money has been paid as yet. The European Commission was notified under State Aid rules.East Midlands Development Agency has worked with BT on a number of sub- regional strategic partnerships, to extend broadband availability. As part of the contractual arrangements confidentiality agreements were signed by the sub- regional partnerships to protect information as commercial in confidence. Accordingly, this information is not be available for disclosure.
Hansard reference
1 December, 2005
Satellite Business Joins The Niche Club
The Legacy of Arthur C. Clarke, Review: IEE Lecture
Yesterday evening saw a celebration of The Legacy of Arthur C Clarke at the IEE in London.
Rightly so. His fame not only stretched across the globe, it spanned fathering the communication satellite, to great fiction. Who can forget the seminal Sci-Fi classic 2001- A Space Odyssey?
During the addresses given by the assembled industry heavyweights, pontification was rife as they pronounced on the effect of satellite technology advances and where the industry stood in the communication world today.
To boil it down – satellites would be an important part of the communications mix, but it was unlikely to be as dominant as it was once thought.
Getting stuck right in was Olof Lumberg, formerly Chairman of Inmarsat, remarking on how the cabling of the planet was making some uses of Satellite technology passé.
Seeing quite how far Skype is disrupting businesses was interesting as key figures from the satellite industry noted that customer expectations brought about by Skype and similar VoIP technology had meant that the business model that ‘costs in’ the launching of huge satellites was becoming increasingly redundant.
Professor Barry Evans of the University of Surrey considered the 1980’s and 90’s were probably the golden age for communication satellites and predicted their future as an infill technology. Working alongside terrestrial delivery systems, with the possibility of satellite providing TV connectivity to mobile devices outside the fibred home.
Marcus Bicknell, Commercial Director of SES Global the satellite giant spoke about the importance of niche markets and revealed a new low cost satellite mobile phone designed to help parents locate their children.
Some were more optimistic. Sir Martin Sweeting, who heads Surrey Space Technology, a world leader in small satellite development, saw a future with far less expensive launches. This could lead to the creation of ’clouds of small deployable satellites,’ configurable to provide focused communication at times of disasters.
Happily it wasn’t all business predictions. Arthur C Clarke’s brother Frederick spoke charmingly about his brothers’ early enthusiasm in looking at the skies.
The crowning glory of the night was a recorded message from Arthur C Clarke himself, from his home in Sri Lanka. Projected onto a large screen at the grand, historic setting of Savoy Place, home of the IEE, Clarke’s lucid speech belied his eighty-eighth birthday, only a few day away.
Reassuring to hear that his commitment to technology remains.
IEE – Institution of Electrical Engineers
1 December, 2005
TiVo Announces Advertising Search For Television
TiVo has announced that it plans to offer the first TV-based advertising “search solution” early next year.
Starting in Spring 2006, TiVo’s new television search capabilities will, apparently, “enhance the TV viewing experience” by delivering targeted advertising to subscribers interested in viewing particular advertising categories.
Hotshot media and advertising agencies like Interpublic Media, OMD, Starcom Mediavest Group, The Richards Group and Comcast Spotlight have teamed up with TiVo to develop the product and help determine relevant categories of interest (cars, travel, telecommunications, and consumer packaged goods etc) as well as work out pricing models.
TiVo claim their new technology will allow companies to shunt on-demand, consumer targeted TV advertising to viewers without the limitations of traditional television media placement.
With punters able to search for products by category or associated keywords, TiVo sees big benefits for advertisers (obviously) and punters looking for information on products or services.
The (ahem) “heightened viewer experience” offered by the new service is claimed to deliver “non-intrusive, relevant, interactive advertising, on an opt-in basis.”
TiVo subscribers electing to use the search service will be able to retain control over their “viewing experience” by creating a “viewer contributed profile” via the set-top box that will enable them to receive advertisements based on their interests (we wonder if there’s a “begone hideous advertisers forever” profile available?)
“TiVo is once again introducing to the TV landscape a new and innovative advertising solution that is intended to deliver an even better viewing experience for subscribers,” purred Tom Rogers, President and CEO of TiVo.
Supping deeply on a morning brew of Buzzword Coffee, Tracey Scheppach, VP, Video Innovations Director at Starcom, enthused “The new TiVo application will provide both a needed platform for consumers to seek out relevant, searchable commercial content and an environment for advertisers to engage highly desirable and motivated consumers…it’s the first of its kind in the industry, and a platform that is clearly needed in this challenging advertising marketplace.”
The new service follows a successful interactive direct response advertising program on TiVo in August, where subscribers were able to respond to customised “calls to action” in select commercial spots.
Funnily enough, when we’re bombarded with advertising, the only “call to action” we get is to turn the ruddy thing off.
30 November, 2005
Legal Digital Music Downloaders Not Kids Shocker!
US analyst firm JupiterResearch has surveyed the American digital music market, and discovered that the bulk of paying downloaders come from the 25-44 age group.
The survey found that sixty-two percent of digital service users and 60 percent of subscribers are between the ages of 25 and 44.
More than half of the subscribers are women, but it’s the blokes who are predictably hitting the download button most, fuelled by a crazed desire to compulsively fill up their MP3 players.
JupiterResearch describes both types of buyers as coming from “music aficionados” segment – they’re the 13 percent of online adults who are “digitally active” and already spend a lot on music.
Online music buyers were found to still discover new music through traditional means, like radio shows and music videos shown on TV, with recommendations (both in stores and online) having an impact.
Online radio was seen to be a growing influence as were new tools like playlists and music blogs, but the report found that stronger integration with online radio and more promotion was necessary to make punters aware of these potentially powerful discovery tools.
Although still a minor earner in overall US entertainment expenditure, growth in the digital music market is explosive.
Spending on downloads and subscription services is expected to double in 2005, surpassing $750 million, with 20 million US music fans on course to buy digital downloads this year—mostly from Apple’s iTunes store.
But it’s not all smiles in the industry, with JupiterResearch’s European Music Consumer Survey warning that the music industry may be facing an unsure future with three times as many consumers using illegal file-sharing networks in preference to legitimate services.
The report blames non credit card-holding kids, claiming that 34 per cent of 15-24-year olds use file-sharing services, and this is “impacting the way they value music with many having little concept of music as a paid commodity.”
JupiterResearch claims that Da Kidz see CDs as irrelevant, crap value for money and so prefer to copy rather than buy CDs.
With a wagging finger, Jupiter Research warned the industry, “Unless these consumers are encouraged to develop music purchasing behaviour soon they may never develop meaningful music buying habits,”
JupiterResearch
30 November, 2005
SPH-V6800 Wi-Fi Multimedia Handset Announced By Samsung
With a passion for creating new phones that is beginning to border on pathological, Samsung’s overworked designers have just revealed yet another new hi-tech handset, the SPH-V6800.
Revealed to the world by an obligingly smiling model, the SPH-V6800 looks to be a very tasty number indeed, offering a ton of multimedia functionality, a pocketable form factor and built in Wi-Fi.
Sporting a familiar sliding keyboard design, the black and silver handset is dominated by a bright 320×240 pixel QVGA TFT display, packed into a two inch display.
There’s also a 1.3MP digital camera onboard with MPEG-4 video recording and MP3/AAC audio playback.
There’s also voice recognition built in, video-on-demand, TV-output, EV-DO, and the bit we really like, the built-in Wi-Fi wireless (802.11b, 11Mbps) LAN.
We used a Wi-Fi card with our chunky i-Mate JAM phone extensively on our travels to New York, and loved being able to send off email and surf the web on the move.
With the Samsung packing in wireless connectivity into its tiny 96.8 x 47 x 24.5mm dimensions, we could well be seduced by SPH-V6800 (if it ever makes it to these shores, of course).
The SPH-V6800 will be made available to Korean subscribers for around $477 (~£275 ~€402) and ambitious readers can try and make sense of the press release page in Korean here (we gamely ran it through babelfish, but the results sounded like an acid casualty reading a tech manual).
Samsung
29 November, 2005
Free Phone-Back Services Tested By Google
Google is testing a potentially lucrative sales tool that allows users to ring up advertisers located through a Google search – for free.
The system adds a new phone icon next to the Google search results of participating advertisers.
Users wishing to have a chinwag with the advertiser can click the phone graphic, enter their phone number and then click the ‘Connect For Free’ button.
Google then calls the number provided and when a user picks up their phone they’ll hear it ringing the advertiser’s office.
Once the advertiser picks up, both parties can chat for free with Google footing the bill for all calls – local and long-distance (their generosity may, however, stop at paying for some mobile calls).
Naturally, there are all sorts of potential privacy concerns brewing up here, but Google insist that they won’t share telephone numbers with anyone – including the advertiser.
Moreover, they claim that the number will be blocked from the advertiser during the call, with Google promising to delete the number from their servers after a short period of time.
This looks to be an attractive option, making it easier for both businesses to be contacted and for customers to get in touch.
It also means that Google could entice cash from companies with little or no Web presence, with the prospect of free calls from potential customers proving irresistible.
We also wonder if an extended scheme could put a spoke in the wheels of the recently announced eBay buys Skype deal.
As ever, Google are keeping Mum about the details, only offering a curt, “we don’t have any additional information to share at this time” in a statement.
Google Click To Call FAQ
29 November, 2005
3 Italia Buys TV Broadcaster: Now First Euro Hybrid Mobile TV Co
In a sure sign that TV to the mobile is the new European media battleground, 3G mobile operator 3 Italia have announced its plans to purchase the Italian national broadcaster, Canale 7. Reports have put the price of the acquisition at between €30-35m.
The addition of Canale 7, Italy’s fourth largest broadcaster, gives the company access to the country’s existing home TV business. Canale 7 currently broadcasts in analogue to around 40% of Italy, predominantly its north. More interestingly, it also has a terrestrial digital TV nationwide network operator’s license. This should provide coverage for over 70% of the country.
It is expected that 3 Italia will work to develop a Pay-TV and interactive services proposition for handhelds. We also understand their intention would be for Canale 7’s nationwide digital project to be integrated with 3 Italia’s UMTS mobile network to create a DVB-H network.
The company intends to offer a DVB-H mobile TV service from the second half of 2006. Indications are that there will be a minimum of 20 channels, although no line up has yet been decided. 3 Italia already carries Playboy adult entertainment and football via existing technology, and has worked with Mediaset and News Corp’s Sky Italia pay-TV operator.
Italy is already one of Europe’s leaders in mobile consumption and is considered to be a prime market for such services. Reports we’ve seen rather puzzlingly mention a “standard of video quality comparable to DVD” perhaps somewhat unlikely on the small screens that will be deployed for this sector – but we’re sure the picture will be absolutely bella.
3 Italia, which is owned by Hong Kong-based Hutchison Whampoa, has so far invested €9bn in its 3G network since obtaining a license from the Italian government in 2000. It currently has around 4.8 million Italian subscribers. Hutchison Whampoa also own 3G licenses in other countries including the UK.
3 Italia
Canale 7
29 November, 2005
NBC Take First Pop At TivoToGo Enhancement
As we predicted last week, the US TV networks are not taking the new TiVo enhancements to its TivoToGo lying down.
NBC are making the early running, with a spokesman telling the Hollywood’s Daily Variety trade paper, “TiVo appears to be acting unilaterally, disregarding established rights of content owners to participate in decisions regarding the distribution and exploitation of their content. This unilateral action creates the risk of legal conflict instead of contributing to the constructive exploitation of digital technology that can rapidly provide new and exciting experiences for the consumer.”
Legal types though, are quoting the landmark Sony v. Universal Studios case of 1984, citing it as a precedent where time shifting was expressly found to fall within fair use. Although this particular case has come under the microscope recently, during the Grockster case, where the the US Supreme Court ruled that companies could be liable if they deliberately encourage customers to infringe on copyrights.
It could be, that time will prove TiVo have announced prematurely this new augmentation, without fully taking account of the wide ranging business and legal implications. But in this fast moving sector, innovation is a necessity rather than an option.
TiVo
29 November, 2005
Teenagers Don’t Like Retro
All too often articles about the things teenagers are interested in are written by people old enough to be their parents and teenagers thinking isn’t represented. Lawrence Dudley gives you a point of view that you won’t find in other publications. You see Lawrence _is_ a teenager.
A Whole New Meaning To Retro
As a teenager, retro is your dad when he insists on playing his absolutely appalling Cher records. Not that my dad listens to Cher, of course, unless he only does that in secret, which I wouldn’t blame him for. Anyway, so retro is anything but cool as a teenager. In fact, most people my age that I know are very technology-conscious, and new phones, games etc. are common playground talk. What isn’t talked about is all that old stuff that dad’s seem to always talk about. You can imagine then that I almost choked when I read about people in China hacking old Motorola DynaTAC 8000x phones to feature colour screens and GSM-compatibility.
The 8000x was one of the first mobile phones around, and had quite an impressive feature set: A whole 30 minutes of talk time and 8 hours of standby along with a price tag of $4,000. They’re also the size of a house brick. Why on earth then are the chinese fitting these antiquities with colour screens? Well… The original Engadget entry for the story had a link to the original article, sadly for us, it was in Chinese. Using the Babelfish translation engine, I gleaned a vital piece of information from the nonsense-filled, automatically translated page. The following quote surely explains everything: “However, everybody could not forget it the standard use: Defends self the person!”.
Ah ha! So that’s it: These “mobile phones” are actually weapons. Guess that means the end of taking my phone on the plane then! Still… The smiling Chinese man talking on his glorified, colour LCD display-equipped brick does look so innocent!
While this article is not intended to be taken entirely seriously, it does highlight the weirdness of some of the stuff people do and how stuff like that spreads as a result of the Internet.
While I accept that some strange people might want their phone to look like a car battery with buttons, I can only hope that no-one attempts to resurrect Cher, because let’s face it: There’s no reason to.
Ed: We’ve got a few of the old Motorola Bricks around the Digital-Lifestyles office, that we picked up at DefCon seven years ago. We’d love to them converted for current use. But then again, we some of us remember them the first time around.
28 November, 2005
UK Broadband To Peak At 60% Adoption: Datamonitor
Broadband adoption in the UK may soon be reaching its peak, according to a new report from Datamonitor.
The analyst firm says that although consumer adoption of broadband is at its fastest rate yet in Europe, it expects national broadband adoption to peak at around 60 per cent.
Broadband is currently used by at least half of all internet users in the UK, but looks set to follow the US market where broadband take-up has slowed sharply.
By the end of 2005, nearly eight million UK households should be hooked up to a broadband connection with report author Tim Gower predicting “a good eighteen months to two years of strong penetration increases across Western Europe before markets begin to mature.”
Although we’re nearly broadbanded out in Europe, the report sees excellent opportunities for growth in less mature markets.
“The current situation in many markets is best described as one of rapidly increasing penetration, where broadband has effectively entered its growth sweet spot,” observed Gower.
“With some markets potentially experiencing changes in the household penetration of broadband of up to 10 per cent in a calendar year, service providers must be well positioned to take advantage of the forthcoming penetration acceleration, prior to the inevitable slowdown,” he added.
The report found that DSL and ADSL were the most popular broadband technologies, with adoption being driven by cheaper access rates, marketing campaigns and the growing popularity of broadband-reliant applications like iTunes.
Datamonitor
28 November, 2005