Cable and Wireless Buy Bulldog – What’s the Threat to BT?

Cable and Wireless’ recent purchase of Bulldog means that they acquire four years of local loop unbundling experience, 38 ready-equipped exchanges and a number of well-marketed, innovative products. All for the bargain price of UK£18.6 million (€28 million) – though Bulldog’s net assets at the end of 2003 were only UK£1.6 million (€2.4 million). This puts C&W in a position to offer unique services, and not just resell products from BT Wholesale.

Bulldog have long been critical of BT, and have said some fairly dramatic things over the last few months. My own personal favourite quote was from Richard Greco, when talking to The Register in 2001: “Oftel needs to force BT to move. And if BT doesn’t, then Oftel should point the gun – and pull the trigger.” However, he was quite gushing about BT when agreed to carry their SDSL products some months later: “It really is a powerful combination.”

Bulldog’s frustration at BT stemmed from the glacial pace that the communications giant was unbundling the local loop. Bulldog have installed their own equipment into 38 exchanges, a figure that C&W now want to raise to 200. They will doubtless use this position to tempt more ISPs to jump from bitstream services to LLU – as C&W chief Francesco Caio said in a statement: “The acquisition of Bulldog will accelerate our ability to deliver directly connected DSL solutions for our existing and potential customers with an experienced team specialising in LLU services.”

Bear in mind that it’s not just BT that is causing frustration with LLU – across Europe the entire process has been slow and as yet only a small percentage of lines have been unbundled.

BT has already demonstrated that it’s worried about complaints about its LLU conduct and progress by making huge cuts to wholesale prices and promising faster progress. With C&W breathing down its neck even more, expect those exchanges to be unbundled faster than ever before.

About Bulldog

Paula Le Dieu on Providing The Fuel for a Creative Nation: With Joint Director of the BBC Creative Archive

As a follow up to our piece on the Creative Commons licensing of the BBC’s Creative Archive, we were fortunate to get an interview with Paula Le Dieu, Joint Director on the BBC Creative Archive project.


Why the Creative Commons licence?
The first thing to make really clear, is that this point in time we are heavily inspired by Creative Commons in terms of the approach that we are taking with our licence. We sincerely hope that we will end up with a Creative Commons licence, but there is a possibility that we will go with a separate licence, with the very real aim to make it at least interoperable.

Was it because the decision content has been paid for by the public, so should be there for the public to use?
We didn’t start from that premise. We started from the premise that we had this fabulous archive and we had a requirement in our last charter, the one that we’re currently operating in, that expressly asks us to open up our archive. There had always been a strong feeling that we hadn’t done that as well as we could. There were many reasons for that, but with the advent of what was seen as more sustainable distribution mechanisms and technologies that would allow us to digitise and distribute that content in a sustainable way, the organisation began to feel that there was an opportunity to genuinely open the archive up and make it more accessible. In doing that it wasn’t a significant leap to think about what people might want to do with this material. Once we started to think about what people might want to do with this material, we then started to realise that one of the key values of this material was as fuel for the creative endeavours of the nation.

Once you start to understand that you want to provide the building blocks, you want to provide the fuel for creativity, the next question that comes up is “How on Earth do you allow people access and licence that material in ways that allow them to be able create their own derivative works?”

Of course, at roughly the same time we were thinking about this the folks at Creative Commons were thinking around trying to come up with alternative licensing frame works that would facilitate precisely that kind of activity. It was a really nice meeting of minds there.

What do you think the BBC’s adoption of this licence for its Creative Archive might mean for Creative Commons?
I would be purely speculating. What I would hope that it would mean for Creative Commons and indeed for other alternative frameworks is that with the BBC undertaking this activity and with the BBC thinking seriously about using alternative frameworks that we add a legitimacy to it, that we add this notion that being able to access content in ways that are facilitated by Creative Commons-like licences we are actually providing this fuel for creativity. It’s not just about people wanting to get content for free.

What do you think the BBC’s initiative will mean to other content owners and broadcaster? How do you think it will influence them?
From our perspective we’d be delighted if there were other people out there in the industry who felt they could take the same step. We hope that many will follow, and potentially overtake us – we hope we provide both the inspiration for others to think seriously about whether this is something that they can and would do, and pragmatically share our own learning and experience with the industry such that they can perhaps feel more confident to take that step.
Hopefully this will prompt content providers to be as generous with their content as the BBC, particularly in a world where companies are being more restrictive over what can be done with content, though licensing and DRM.This is where frameworks like Creative Commons are so powerful because they offer alternatives. They’re not going to be appropriate for everybody, but they do give alternative and people can see a different way of doing things.

What’s next for the Creative Archive?
At this point in time, the next step is to get some content out there, and we’re hoping to do that in September. There are a whole raft of areas that we need to cover off in order to do that and I think the licence is a really significant part of that. We have a number of production areas that we need to address in house also, we need to digitise the content and we need to think about how we’re going to distribute that content. The next big step for me is to get some content out!

What’s the distribution channel going to be? Are you going to build an massive extranet somewhere?
Initially, we are going to utilise the existing bandwidth that the BBC has available and not focus too heavily on setting up new or expanded infrastructure. Partly this reflects our interest in how audiences are going to use this material rather than trialling or experimenting with new technologies for the BBC.

For you personally, what’s the most exciting part of the archive? What are you most excited about seeing made available for people to use?
This is such a difficult question! It’s difficult for me because there are so many areas that I find thrilling around the Creative Archive. The licensing side of this is one of those areas that I never cease to be amazed and thrilled by. The depth of thinking that is taking place at the moment around alternative licensing frameworks really does start to point to a brave new world. At the other end of it, what that licence facilitates is a new way of the BBC engaging with its audiences and much more importantly, an new way for BBC audiences to be engaging with BBC material. With the Creative Archive, perhaps for the first time, not just invites but actively encourages our audiences to be part of the creative process. That for me is a really wonderful idea – the idea that we’re providing the fuel for a creative nation.

The BBC on the Creative Archive

Creative Commons

Intel’s New Approach to Selling Chips

Microprocessors are old news – they’re now so mainstream that it’s no longer a surprise to see them advertised on television or on billboards, as it was ten or fifteen years ago. Intel know that it’s just them and AMD in the consumer processor market – and now that you can’t win on clock speed, cache size or bus width any more, they need to make their products appear different and sexy to make those billboards interesting again. Let’s face it all those claims about clock speed were dubious anyway – there are too many factors involved and now that AMD don’t even bother publicising processor speeds, it makes a nonsense out of comparisons (that’s right – your Athlon 2800 doesn’t run at anything like 2.8gHz. That’s just a marketing number to make you think it does).

Cue a new shift in Intel’s product emphasis – it’s not the processor, it’s the chip set. Intel now want you to see the benefits of having a motherboard built round their platform. Now that chip sets are working harder for their money, being the gateway to your PC’s multimedia and communications features, Intel want you to know about it.

Grantsdale is heading your way in June, and is pitched to lead a new generation of entertainment PCs. Just the sort of thing that Intel want to see sitting in your living room.

Marketing a processor just wouldn’t give Intel the clout they need to displace other pieces of consumer electronics in the living room – they need to show the full range of functions that a chip set can perform to show that you’re going to be getting the DVD playback, encoding, games and internet performance that will merit a space under your television.

Grantsdale integrates a lot of features that would previously require more electronics to pull off – including Dolby audio and 3D graphics, allowing PC manufacturers to build smaller, cheaper, quieter boxes.

Intel will be spending a huge amount of money to make sure you know why chipsets are important and why you would want one of theirs. As AMD have no visibility in this area, they’re going to have to come up with something fast.

Oh, and apparently, Intel are making a special effort to train retail salespeople in Grantsdale’s benefits. I look forward to some amusing conversations with the staff in Dixons in the summer then.

More news on Grantsdale as it appears.

Intel’s Chipsets

Japanese Consumers Protest at Broadcast Flag

Japanese television viewers have begun complaining to broadcasters over the sudden removal of editing and copying freedoms they’re experiencing now that the country’s version of the broadcast flag has been rolled out on digital terrestrial and cable channels.

NHK and and the National Association of Commercial Broadcasters launched the broadcast flag on 5 April, limiting viewers to a single copy of programmes carrying the signal. As programmes can only be copied once, no editing can be performed either. Within a week NHK and other broadcasters had received 15,000 complaints and enquiries.

This move also means that Japanese consumers will not be able to remove adverts from programmes they have recorded for archiving, or make a backup in case an offline recording is destroyed.

Furthermore, viewers have to insert a user identification card, B-CAS (from the company who manufactures them, BS Conditional Access Systems), into their digital televisions in order to watch broadcasts.

It’ll be interesting to see the scale of protest when America’s broadcast flag system rolls out in just over a year and a month – whilst not requiring an ID card to access broadcasts, the flag will tell all new television sets what can and can’t be done to a signal – right down to preventing any copying whatsoever.

Japan Times coverage

Slashdot debates the issue

BBC Creative Archive licensing to be based on Creative Commons

In a significant step forward towards the opening of a portion of the BBC’s archives, the BBC today made their intentions for the Creative Archives clearer to other UK broadcasters and public sector organisations. The Creative Archive,  originally announced by Greg Dyke in 2003, plans to offer the British public free access to some of the BBC’s audio and video programming.

This afternoon the first meeting of an external consultative panel, which included many UK media holders, heard the BBC’s decision that it will base the Creative Archive usage licence on the Creative Commons (CC) model. This confirmation follows some speculation on the subject. The CC model turns copyright on its head by explaining the ways that the content can be used rather than saying it cannot – or Some Rights Reserved as they put it. By happy coincidence, Creative Commons 2.0 was released yesterday.

By applying a CC-type license to the content, the BBC will enable individuals in the UK to download released content to their computers, share it, edit it and create new content. Commercial reuse of the content will not be allowed.

Professor Lawrence Lessig, chair of the Creative Commons project was clearly excited: “The announcement by the BBC of its intent to develop a Creative Archive has been the single most important event in getting people to understand the potential for digital creativity, and to see how such potential actually supports artists and artistic creativity.” He went to enthuse “If the vision proves a reality, Britain will become a centre for digital creativity, and will drive the many markets – in broadband deployment and technology – that digital creativity will support.”

Lessig has been invited by the BBC to be a permanent member of external consultative panel, which is wise because he is clearly at the centre of Creative Commons and politically wise in the BBC becoming closely associated with the whole movement. This announcement will also be a huge boost in profile for Creative Commons.

Paul Gerhardt, Joint Director, BBC Creative Archive explains: “We want to work in partnership with other broadcasters and public sector organisations to create a public and legal domain of audio visual material for the benefit of everyone in the UK.” Those attending today’s meeting included Channel 4; the British Film Institute; the British Library; ITN; JISC; The National Archives; the Natural History Museum; the Museums, Libraries & Archives Council; senior figures from the independent production industry; BBC Worldwide. The BBC plans to keep those attending abreast of the project, while encouraging them to follow the same route to opening their own archives.

This news will give further hope to those who feel the BBC is a leading light in the usage and availability of content in a Digital Lifestyles world. Gerhardt added “We hope the BBC Creative Archive can establish a model for others to follow, providing material for the new generation of digital creatives and stimulating the growth of the creative culture in the UK.”

Read our interview with Paula Le Dieu, Joint Director on the Creative Archive.

Creative Commons

AOL Leaves Japan to eAccess

AOL Japan is being sold to eAccess for 2.1 billion Yen (€15.38 million) in yet another shuffle. The division was once DoCoMo AOL, a joint venture between NTT DoCoMo and the US media giant Time Warner.

DoCoMo pulled out last November as subscription numbers to it’s PC/cell phone link service were thought disappointing.

eAccess says it will keep most of AOL Japan’s 200 employees along with the AOL branding.

Yahoo

Ofcom’s LLU Proposals

UK regulator Ofcom have published proposals intended to open up competition in broadband provision for data, content and voice services.

As predicted, Ofcom have announced a market review consultation of local loop unbundling (LLU) – it was the threat of this review that many believe prompted BT to make huge cuts in its charges for LLU. BT hopes to avoid regulatory intervention by improving access to the local loop and charging fairer rates.

To help with local loop unbundling Ofcom are also proposing the establishment of a Telecoms Adjudicator, who will be entirely independent of Ofcom and the industry.

Ofcom Chief Executive Stephen Carter said: “These proposals, combined with the recent proposals on migration charges, mark an opportunity to accelerate the prospects for sustainably competitive investment in Broaderband Britain. Furthermore, Ofcom particularly welcomes BT’s commitment to both price and process improvements in these key wholesale products.”

Ofcom’s release

RIAA’s Sales Claims “Suspect”

Neilsen Soundscan is reporting that CD sales are increasing, yet the Recording Industry Association of America claim that business is bad. So what’s actually going on?

As reported in Digital Lifestyles last month, Neilsen is celebrating a 10% increase in sales, whilst the RIAA is still telling us that CD sales have plummeted because of copying and downloading.

It turns out that the RIAA’s claims are based on the total number of CDs shipped to record shops – not the numbers sold to customers, so this has no reflection on sales at all. Record shops are ordering less stock, but selling the stock they have faster. Having lots of cash sitting in your storeroom doing nothing isn’t good business sense when economies are suffering. Additionally, the RIAA also has a measure of control over the number of CDs shipped to stores, so it can influence the figure in any way it likes.

Soundscan recorded 146 million CDs sold in Q1 2003, against 160 million in Q1 2004 – an increase of nearly 10%. Figures for Q2, released this summer are expected to show yet another increase. The RIAA, on the other hand, are claiming a 7% decrease in revenue – but that’s purely through managing shipments and returns.

RIAA Radar

In-Game Advertising with Massive

I must confess, the first time I fired up WipeOut in 1995 and sailed under that Red Bull banner (scraping my way along the barrier), I was impressed by this new collision of real products and virtual worlds. Even though it’d been done before, this was, to me at least, the most impressive example at the time. Mind you, I’ve only just ceased being amused by the Dole logos in Super Monkey Ball.

Fast forward a few years and product placement and advertising is everywhere in games – sometimes it works, sometimes it’s intrusive. A football game without any ads on the pitch would look strange, yet fantasy RPGs with soft drink product placement would break the sense of immersion.

Massive Incorporated, a New York based company have come up with a solution for games development houses keen to acquire revenue through placing adverts in their games, and for advertisers desperate to reach all those gamers that don’t watch TV any more.

Massive Ad Server is a service for streaming advertising into games live through an internet connection – allowing more adverts in games, and hopefully keeping them focused. Advertising is traditionally hard coded into games, and so the ad is never updated – this gets fresh advertising in to games, and allows the sponsor and products to be changed and updated.

Massive back the service up with a sales team that have advertisers keen to reach gamers in-game, using information gathered about the game and its demographics. No point in streaming Barbie ads to young adults playing Grand Theft Auto: San Andreas, is there?

I’m not entirely sure how I feel about this one really. Given that 20% fewer men between 18 – 24 are watching TV these days, advertisers need new ways to reach audiences. Gaming is a good way to do it – but the second I see Link wearing Nike, I’m taking up croquet.

Massive Incorporated

Infinium Labs Sets Launch for Phantom Console

We have covered the on/off, is it real, is it vapour history of the Phantom Console a number of times.

We now learn that Infinium Labs are at E3 showing the Phantom Console on an 8,000 sqft stand and signing up game developer for the platform. They have also released their pricing plans.

The Phantom is essentially a sealed box containing a high spec PC that has been designed for gaming, so comes complete with a high end graphics card. What makes it different is that the games are loaded on to it via broadband, so not only are there no physical distribution cost for it, but the payment models for the games can vary from single play rental to ownership.

Following its planned 18 November launch, it will sell for $199 or for free, if two years of membership to the $29.95 per month broadband gaming service, Phantom Gaming Service, are signed up for. At the start of the service a large number of free games will be available.

The sleek-looking device will be manufactured by Biostar in Taiwan, and will feature a 40GB hard drive, AMD Athlon XP 2500+ central processing unit (CPU), the NVIDIA GeForce FX 5700 Ultra graphics processing unit (GPU) and the NVIDIA nForce2 Ultra 400 platform processor. It will also ship with gamepad, mouse and keyboard that they are labelling the Phantom Lapboard, which they claim gives easy control over the keyboard and mouse even when sitting on a couch.

There is plenty of innovative ideas in the Phantom such as the way the capacity of the hard disk is managed. The unit will notice when the drive is becoming full and will invisibly remove the least played games, automatically uploading them from the central server if the gamer request a play.

Kevin Bachus, president of Infinium Labs previously worked in a senior position at Microsoft in the Xbox division.

It is a brave company that takes of the likes of Sony, Nintendo and Microsoft, and all gaming consoles live or die on the support of the games developers – if there is no strong flow of quality titles, people will not buy. Mr Bachus is not alone in thinking it is a good idea; Infinium has just $46m in first round funding.

Infinium Labs