Distribution – Page 16 – Digital-Lifestyles

Backgrounder on Local Loop Unbundling in the UK Pt 2

With all of these moves towards digital delivery in entertainment, we thought it would be worthwhile understanding one of the key items in this process – how to get the digital content to UK households.

Steve Kennedy is an acknowledged expert in the telecoms and data networks field, so it was an obvious choice for us to ask him to write an overview of how other IP operators can compete with BT – by creating their own data network. To do this, they need to put their own equipment into the telephone exchanges that connect to peoples houses. That process is Local Loop Unbundling (LLU).

Over three days we’ll give you a full background in LLU in the UK.

Yesterdays piece gave an overview of LLU and which companies are players in the UK.

LLU Penetration
All the large operators are going into around 1,000 DLEs (those being the most densely populated), since there are only around 1,200 of them, all the operators are targeting the same DLEs and there’s a lot of overlap.

Backgrounder on Local Loop Unbundling in the UK Pt 2 Since the operators all want to get into the same exchanges, there’s overcrowding and BT have to install new hostel space (the space where operators can put their own equipment into) which causes delays. It can take more than 6 months from when an operator puts an order in to being granted access to an exchange.

LLU (un)Economics
When LLU was announced it was prohibitively expensive, mainly due to Ofcom (or Oftel as it was then) allowing BT to set the pricing models.

Over time the economics have become fairer to operators, with BT being forced to set-up BT Openreach which looks after the physical infrastructure. If they hadn’t formed Openreach, it’s likely Ofcom would have pushed for a split of BT.

Ofcom then made BT not reduce wholesale pricing for their broadband services to give LLU operators a chance to gain a foothold. BT would have to maintain their pricing until April 2007 or 1.5m unbundled lines, whichever came first.

In Dec 2006 there were 1,000,000 unbundled lines and last week Ofcom announced that 1,700,000 unbundled lines had been reached (there was no distinction between Option 2 and 4). BT Wholesale has over 9m broadband customers.

Also Carphone Warehouse (CPW) released their interim results showing they had 2.31m broadband customers, 700,000 utilising LLU.

So out of the 1.7m unbundled lines, CPW have .7m which means there’s 1m split between the rest (mainly the big players, Wanadoo, C&W, Easynet Pipex and Tiscali).

As a rough model that’s 1.7m lines, spread over 1,000 DLEs which makes 1,700 lines unbundled per DLE. There’s 6 big players which means around 280 customers per operator per exchange.

Backgrounder on Local Loop Unbundling in the UK Pt 2 Unfortunately the economics of LLU only work if there’s a lot of customers per exchange i.e. massive scale.

Now that the milestone of 1.5m unbundled lines has been reached, BT Wholesale will be allowed to reduce their pricing (which they’ve said they want to do) which will make the economics even worse.

To get the scale, further consolidation will occur which means fewer LLU operators in the future (Pipex has already put itself up for sale with CPW rumoured to be the front-runner for buying them). They need to do this in order to get the customer penetration per exchange.

The next and final section will cover the possibility of competition to BT and what could happen in the future

Images are courtesy of wb-internet and the BBC, respectively.

Backgrounder on Local Loop Unbundling in the UK

Over the next three days we’ll give you a full background in LLU in the UK.

Backgrounder on Local Loop Unbundling in the UK What is Local Loop Unbundling (LLU)?
LLU is the ability to put equipment into BT exchanges (know as DLEs – Digital Local Exchange) and take over the copper line into the premises.

There are two forms known as Option 2 (metallic path facility as BT call it) and Option 4 (shared metallic path facility).

Option 4 characteristics: –

Operator takes over the line and only offers broadband services (of course they can offer services on top of the basic connectivity).
BT retain control of voice services.
BT send out the “Blue Bill”, this includes line rental and voice traffic which means they can still market their services to the customer.

Option 2 characteristics: –

Operators takes over the line completely.
No BT blue bill.

Once the operator has put the equipment into the DLE, then they have to connect it back to their own network. BT can provide this using BES (Backhaul Extension Services) or the operator can use their own connectivity solution. Most operators don’t have the coverage to provide their own connectivity solutions.

DLEs
BT have around 5,600 DLEs across the UK (i.e. telephone exchanges) and these have customers connected to them. Around 1,200 are in densely populated areas, another 800 or so with medium populations and the rest in rural areas.

Backgrounder on Local Loop Unbundling in the UK Any operator wanting to offer broadband (and possibly voice) has to put their equipment in these DLEs. However there is a cost to unbundling an exchange (around 100,000 including backhaul) which means operators are only targeting the most densely populated ones.

LLU Operators
Operators who have unbundled exchanges are: –

Any operator with a “-” after has been acquired by another player.

* AOL (UK) Ltd – CPW
* Be Unlimited – O2
* Bulldog Communications Ltd – Users to Pipex, LLU C&W
* Cable and Wireless Ltd
* Computacenter PLC
* Easynet – Sky
* Eaton Power Solutions
* eXstream Networks Ltd
* Groestar Ltd
* Kingston Communications (Hull) Plc
* Lancaster University
* Leanwood Communications Limited
* Lumison
* Nestor Electronics Ltd
* Opal Telecom (CPW)
* Pipemedia Ltd
* Pipex Internet Ltd – who knows, up for sale
* Tiscali
* T-Mobile
* UKBB
* Unisys Ltd
* Updata Infrastructure UK Ltd
* Videonetworks Ltd – Tiscali
* Wanadoo
* WB-Internet Ltd
* Zen Internet Limited

Some of the smaller players are conducting trials and some are just offering private services (like Updata who offer connectivity solutions to councils etc).

Tomorrow, the penetration of LLU in the UK and the economics of it.

UK PS3 Sales Down 82% In Second Week

The news for Sony and their PlayStation 3 just keeps getting worse.

UK PS3 Sales Down 82% In Second Week Early pre-UK-release signs weren’t promising, nor were they looking any better when the UK PS3 was selling for £100 under their release price, a couple of days beforehand.

On the positive side, Sony did claim to sell 165,000 consoles in the UK in the first week – making it the UK’s fastest selling home console to date.

Now the official Chart Track figures, that follow sales in the UK are reporting to gamesindustry.biz that sales of the PS3 in the UK have dropped by 82% during its second week of release.

Software sales are also suffering with “sales of the top two PlayStation 3 titles, Resistance: Fall of Man and MotorStorm, had dropped by over 60 per cent.”

It’s not looking much better for the PS3 in Japan, where Bloomberg is claiming that Sony has sold 812,000 PS3s since November 11, against a mighty 1.95 million Wii consoles by Nintendo.

Pace Celebrate 25 Years In Business

Our favourite UK Set Top Box manufacturer is celebrating their 25th birthday this year.

Pace Celebrate 25 Years In Business 25 years! Staggering how old the industry is now isn’t it?

Waaaaaay back in 1982 they started off selling modems and software. Their first product was a PSTN modem called the Nightingale and we can even remember Pace modems from back when 1200/75 baud modems appeared as an exotic advance from the 300 baud ones that were the standard.

For all of you young ones who weren’t around in those days, that’s 1.2/0.075 Kbps vs 0.3 Kbps. Scarily slow.

Following their modem and software successes, Pace launched their first satellite set-top box (SR640) in 1987 and like all design, it was a product of its time, with a fab HiTech feel about it.

From there, Pace really haven’t looked back. They’ve consistently carried out pioneering development, building up a large selection of industry firsts, including the first digital satellite receiver in the UK, the first PVR (personal video recorder) in Europe, the first low-cost digital terrestrial adapter (thereby creating the freeview market in the UK) and, more recently, the very first H.264 DVB-S2 high definition set-top box in the world.

Their latest and greatest product is a HD DVR, the HR20, which records using MPEG-4.

If you, like us, dear tech trivia fan don’t know the history behind the name of Pace, you’ll be excited to hear that the name Pace came from an innovative shipping company in Australia called the Pacific Australia Container Express.

The Next 25 years
Looking forward to the next 25 years, Neil Gaydon, CEO, give his views of where Pace will be innovating, “Soon we will see multiroom and home networking solutions coming through, that will allow you to watch anything you want from any screen in the house, including mobile TV. When you add the fact you will import your photos and internet entertainment to any screen, your music to any room in the home along with wireless technologies emerging, so removing the need for wires, we are at the early stages of a new TV revolution.”

Best of luck to Pace in the coming years, may they continue their success.

Pace Jubilee

Over Half Of UK Adults Have Home Broadband

Industry body Ofcom has published its Digital Progress Report, the result of taking a long goosey gander at current trends in the UK broadband industry up until the end of last year.

Over Half Of UK Adults Have Home Broadband The report found that half of all UK adults live in broadband-connected households, up 11% from 12 months ago and a hefty seven times increase from 2002.

Folks connected to broadband lines are getting good use of it too, with 63% of adults using it daily, while 30% went online at least once a week.

Video content was viewed by 51% of adults with broadband at home, with 26% watching video clips every week.

Over two thirds (70%) of broadband-connected adults bought products or services online, and over half had carried out banking transactions.

Broadband users were found to spend on average 9.1 hours online per week, over double the amount of people still connecting via screechy modems in dial-up.

Over Half Of UK Adults Have Home Broadband Although just under half of users had no idea how fast they were connecting to the Internet, the report put the average headline connection speed at 3.8Mbps (up from 1.6Mbps in 2005).

Voice over IP (VoIP) services like Skype have seen an increased take up, with one in ten adults making calls over the Internet, double the amount compared to the end of 2005. Of those using VoIP, 14% said they were making calls daily with a further 30% making calls several times per week.

Bundling
Bundling was found to be an important factor for consumers choosing their ISP, with 40% of all adults with broadband at home using other communications services from the same provider.

Wi-Fi
Ofcom found that just over a fifth (21%) of of all UK adults owned a Wi-Fi enabled laptop in February 2007, with a third of that total using public hotspots to access the internet. The amount of available public hotspots was counted at around 12,000 in September 2006, up 32% from the previous year.

Mobile Internet
The report found that despite one in three UK adults saying that they owned an Internet-enabled mobile phone in February 2007; only half had ever actually used the thing to go online.

It seems that a ‘lack of need or interest’ put off the majority of users (43%), with cost the second reason (31%).

Ofcom

VBox: Virgin Free TV DTT Launched By Virgin Media For Non Cable Customers

Virgin Media Launches Virgin Free TV For Non Cable Customers Virgin Media has ramped up the availability of its quadplay (broadband, phone, mobile and TV) services beyond its cable franchise network with today’s announcement of a new digital TV service.

Using the digital terrestrial television platform (DTT), Virgin will be offering a new set-top box to lure customers with the promise of over 40 free-to-air TV channels and over 25 digital radio stations, an eight-day, Virgin branded, on-screen TV guide, interactive content (via the trusty red button) and plug ‘n’ play installation.

Perhaps cocking a snoot to Sky’s energy-scoffing box, Virgin say that their set top box will offer low power consumption and use just 1/15th of the energy of a standard 60W light bulb (we could work that out as a percentage for you, but it’s still Monday morning).

The box is a wee little puppy too, measuring up around the same size as Ye Olde VHS tape (19cms by 9cms) and comes with a remote control and a nifty remote control extender so you can still use the remote if the box is hidden away somewhere.

Virgin Media Launches Virgin Free TV For Non Cable Customers

Virgin will be dishing the boxes out for free to any non-cable customers subscribed to their twenty quid 8 Meg broadband and Talk Anytime phone bundle, or there’ll be a £40 charge to non-cable customers taking a broadband service on it’s own.

Philip Snalune, managing director of non-cable (bit a duff job title that, no?) at Virgin Media, said:
“Launching a basic TV service into non-cable areas enables us to expand availability of our quadplay of broadband, phone, mobile and TV. This is just the first step and our aim is to offer more advanced TV services in all areas throughout 2008.”

Virgin Media

BBC TV & Radio Trial On UK 3G

The BBC are going to start of a trial to syndicate a range of its television channels and radio networks via 3G to mobile phones within the month.

BBC TV & Radio Trial On UK 3G Three UK operators will be taking part, Orange, Vodafone and 3 giving subscribers to the trial the ability to watch BBC One, BBC News 24 and BBC Three streamed on their mobiles. Beyond some sports programmes and programmes where they don’t have the necessary rights.

As well as the TV channels, eight radio stations will also be included – Radio 1, 1Xtra, Radio 2, Radio 3, Radio 4, 6 Music, BBC 7 and Asian Network.

Appropriately enough the announcement by Richard Halton, BBC Controller of Business Strategy, was made at the Broadcast Mobile TV Congress.

The BBC haven’t done a great deal of content on mobiles, not that they’re not keen on it, as you’ll be able to tell from the comments of Richard Halton, “The BBC believes that mobile content is an important part of the broadcasting landscape and is looking at ways in which mobile devices will shape services of the future for licence fee payers.”

They hope to learn lots from this trial, as Ashley Highfield, Director of Future Media and Technology at the BBC said, “The findings, combined with quantitative and qualitative consumer research, will inform the BBC’s future mobile strategy.”

We’ll keep our eyes on this.

Xbox 360 Elite Announced

There’s been lots of speculation going around the various blog sites about the release of a new version of Microsoft’s Xbox 360.

Xbox 360 Elite Released Yesterday Microsoft confirmed that the Xbox 360 Elite is a real product and will begin arriving in US stores on 29 April with an expected retail price of $480.

The confirmed spec of the 360 Elite is a combination of a 120Gb hard drive, new accessories bundled in, and to all of those HD TV fans, an HDMI port built in. Oh, and a return to a black case like the original Xbox. Microsoft tell us that the retail price of all of the bundled bits is over $600 if bought separately.

The HDMI port is an interesting move – yes it will make it simpler to get High Def screens connected (if you have a screen with an HDMI in port), but importantly it will let Elite owners play protected HD-DVD discs on the long-discussed add-on HD-DVD drive. HDMI connection is needed for the HDCP content protection scheme.

The new, large hard drive is a big step up from the previous version of 20Gb to 120Gb – all the more space for Microsoft to sell you TV shows, films and software to download – oh … and save you game positions to as well of course.

The hard drive is detachable and will also be sold separately so standard Xbox users will be able to get hold of them too. Expected US price is $180.

Alongside the goodies above are an Xbox 360 Wireless Controller in black and a headset, in … err, black. Do you get the black theme? There’ll be a couple of other new bits available separately too, a Play & Charge kit for the the wireless controller ($20) and a black rechargeable battery ($12)

Xbox 360 Elite Announced Peter Moore, Corporate Vice President – Interactive Entertainment Business, Microsoft, turned the hyperbole meter way up to deliver the following, “Today’s games and entertainment enthusiast has an insatiable appetite for digital high-definition content. Xbox 360 Elite’s larger hard drive and premium accessories will allow our community to enjoy all that the next generation of entertainment has to offer.”

It’s worth noting that the first shots of the Elite, while looking slightly underground, are in fact taken by ‘Major Nelson,’ the pseudonym for Larry Hryb, Xbox Live Director of Programming. So ‘leaked’ photos are now coming from official sources!

Images courtesy of Major Nelson

TVMini Express Shipping With The Tube Software

For those of you who have been wondering who will be supplying the software to Miglia following their falling out with Elgato, you need wait no longer.

TVMini Express Shipping with The Tube Software Miglia have not only signed a deal with software suppliers Equinux, but have a package available already with the software, called The Tube. They’re calling the hardware and software bundle the TVMini Express.

Simon Ellson, CEO, Miglia Technology enthused about their new partners, “‘TV from a different perspective’ is our mantra and Equinux undoubtedly provides the most effective ‘starter’ application to allow Miglia customers to watch, record and put TV on their iPod, easily.”

TVMini Express Shipping with The Tube Software Equinux are confident with the swift reaction of the software, as they tell us it was written “from the ground up” in Cocoa, Apple’s object-oriented application environment designed specifically for developing Mac OS X-only native applications. ie it wasn’t written for Windows and ported over to the Mac.

All of our US readers who might be getting excited about this will have to bite their hands in frustration. As Equinux point out at the bottom of their page, “DVB-T is not available in the US, Canada and some other regions, so TubeStick will not work in those countries.”

TVMini Express is available now with a retail price of £39.95, €49.95 or $69.

TVMini Express