Broadband

Anything that uses or touches broadband

BSkyB Moves Execs, To Enter ‘Adjacent Areas Of Business’
Sky has announced three of its top Exec will be altering roles, we suspect, as they prepare to become more than just a satellite TV company.
Using its best management speak, the UK Satellite-overlord is “aligning its organisational structure to support sustained growth towards its target of 10 million direct-to-home customers in 2010.”
The favoured three will be stepping it up a gear, and far beyond having the key for the executive toilet, we suspect they’ll be getting a whole suite of bathroom facilities.
- Dawn Airey, who has been Managing Director of Sky Networks since 2003, becomes Managing Director, Channels and Services with overall responsibility for Sky’s multi-platform content strategy. The existing Sky Networks structure will be joined in the Channels and Services group by an enlarged interactive team that brings together all of Sky’s new media content on interactive TV, online and mobile platforms. She’ll assume additional responsibility for Sky’s joint ventures, wholesale distribution arrangements with cable companies and commercial relationships with third-party channels on the satellite platform.
- Mike Darcey, who joined Sky in 1998 and is currently Group Strategy Director, becomes Group Commercial and Strategy Director with extended responsibility for a new group that combines Sky’s Strategy, Future Technology, R&D and Business Development teams. In addition, he’ll take on a further responsibility to manage and develop Sky’s major commercial relationships in support of the company’s strategic goals
- Jon Florsheim, who joined Sky in 1994, becomes Managing Director, Customer Group in addition to his existing title of Chief Marketing Officer. The Customer Group brings together all of Sky’s expertise in sales, marketing and customer operations to create a seamless brand, product and service experience for customers. This team will lead the continued development and implementation of Sky’s multi-product strategy, including the launch of the company’s broadband offering in the second half of calendar 2006.
We think Mike Darcey sounds like he’s going to have the most fun, and certainly the most toys to play with.
James Murdoch, Sky’s Chief Executive, touches on where BSkyB is planning on going, as they “exploit content on multiple platforms and expand into adjacent areas of business.”
With the strength of BSkyB’s relationships with their customers, fear will be struck into the heart of many execs in many industries by the words “adjacent areas of business.”
8 February, 2006
UK Satellite-Delivered Broadband Switched Off
Several thousand rural surfers across Europe suddenly found themselves sans le Internet after European-based satellite broadband provider Aramiska unexpectedly slammed shut its operations with just five hours’ notice.
The sudden announcement left thousands of customers – including small businesses and numerous community broadband operations – without any access.
Using the Eutelsat Atlantic Bird satellite, Aramiska was able to offer services across five countries (the UK, France, the Netherlands, Ireland and Spain), with the majority being in the UK.
A message posted on the Website of the UK-based Internet company Ehotspot, which used Aramiska to provide satellite links, confirmed that the Netherlands-based firm had gone into liquidation.
Jon Sprank, eHotspot’s MD, explained: “eHotspot would firstly like to apologise to our customers for lack of service. This came as a bolt from the blue with no notice – we have suspended all billing to our customers. This has only truly been dropped on us and we are currently spending our time sourcing an alternative backhaul supplier
The disappearance of the Aramiska service is expected to have a serious knock-on effect for community broadband providers who provide “second mile” backhaul connectivity.
The Community Broadband Network (CBN) is organising efforts to help Aramiska customers find an alternative satellite broadband supplier, with their director, Adrian Wooster, commenting, “The Aramiska issue totally caught our members unaware, and is causing many problems for rural businesses beyond simple connectivity; the Aramiska service was also hosting many Websites and has been offering file storage capabilities for businesses.”
Although there’s no shortage of alternative satellite broadband providers in the market, smaller, shoestring operations may find it difficult to get their users back online quickly.
The closure reflects the fragility of some companies in the satellite-based broadband service market, which is coming under increase pressure in some areas from the increased availability of conventional wired broadband.
Despite this, large areas of Europe still remain on the wrong side of the digital divide, and reliable wireless and satellite services are needed across the European Union to ensure that all its citizens can keep up with technological change.
Community Broadband Network
Aramiska users scrabble to find supplier after Web blackout
31 January, 2006
Pressure Builds – No Christmas Cheer For BT
BT has been hit by two further blows, bringing into stark relief the height of the mountain it must climb to achieve its TV ambitions. Secondarily, drawing into sharp focus the changing landscape for domestic phone calling, as the competition begins to consolidate.
The bad news for the BT TV proposition, is that BSkyb has got its 8th millionth customer. These customers are, by and large, the sort of customer BT badly needs for its triple play TV offering to be a success. They’re high-delivering ARPU (Average Revenue Per User) viewers that will delight the beleaguered BT finances.
Sky’s achievement of the 8 million target is also likely to be a blow to the ambitious NTL. Expect little let up from Sky as it battles to reach the 10 million mark by 2010 and continues to push its Sky+ and multi-room offerings.
Separately, a consolidating Carphone Warehouse has been on the acquisition trail and agreed the purchase of Tele2’s UK and Ireland operations, and separately, Onetel.
The deal with Tele2, the Swedish telecoms company, at a price of £8.5 million plus the £2 million cost of a planned restructure, will add around 188,000 customers in the UK and a further 36,000 in Ireland to Carphone Warehouse.
The deal appears to makes sense for Carphone Warehouse, and they expect the transaction to add to their earnings in the current financial year. They intend to migrate the purchased companies customers onto its own network, under the TalkTalk brand.
The purchase of Onetel from Centrica for £132 million includes £37.1 million, while will be delivered if Centrica deliver a targeted number of customers in the next three years via its British Gas operations. The Carphone Warehouse will also pay Centrica an additional £22.2 million if higher sign-up targets are met.
Onetel’s residential customer portfolio is made up of 1.1 million Carrier Pre-Select (CPS), 250,000 indirect access, 60,000 broadband, 40,000 mobile. There are also 50,000 CPS business customers. Carphone Warehouse are upbeat about this purchase too, saying the acquisition will “increase current year pre-tax profits by approximately £4m, and next year’s pre-tax profits by approximately £20m.”
Here at Digital Lifestyles, we expect competition to be even fiercer in 2006 as both BSkyb and the Telcos battle to capture high spending subscribers.
20 December, 2005
NTL Bids For Virgin Mobile: 1st Mobile Quad Play?
NTL is currently in talks to merge with Virgin Mobile in a deal that would create a potential rival to the now broadband-enabled BSkyB.
Virgin Mobile’s official word?
The Board of Virgin Mobile Holdings plc confirms that it has received an approach from NTL Incorporated that may or may not lead to a formal offer being made for the Company.
Shares of Virgin Mobile immediately climbed to a record high after NTL/Telewest announced its £835m ($1.44 billion) takeover bid.
If the bid is successful, it will create the first media group to serve up mobile and fixed-line telephony, broadband Internet access and pay-TV.
(Ed: It has a similar resonance as the deal between 3 Italia and Canale 7)
We’ve found that getting straight numbers of subscribers for each separate business is difficult. The figures that the Guardian are quoting for the merged Virgin/NTL/Telewest uber-company are impressive too, accounting for 10m customers, 3.3m television customers, over 5m mobile phone users, 2.5m broadband Internet customers and 4.4m fixed-line telephone accounts.
NTL/Telewest do have to do something pretty radical as they feel the pressure from other previously unrelated business getting in on their main business areas.
The new company will go under the Virgin brand, and would become the biggest Virgin-branded business in the world, outstripping the music retail business which launched Branson’s career and the Virgin Atlantic airline business.
In a fiercely competitive market, cable companies on both sides of the Atlantic are looking to outflank their satellite and phone company rivals by adding mobile phone services to their portfolio of voice, Internet and TV services.
NTL is the UK’s number two pay-TV operator after BSkyB’s Sky and is also the second-largest residential telephony provider after BT Group.
Long seen as a juicy takeover candidate, Virgin Mobile is the fifth-largest UK mobile phone carrier. The company operates on rented capacity on T-Mobile’s UK network.
Virgin Mobile current 4 million users (source Virgin Mobile) in the UK, puts them at less than a third of the UK market leader, o2’s, who have 15 million users.
NTL and Telewest have notched up around 5 million subscribers combined, next to BSkyB’s 7.8 million digital television viewers.
If the deal goes through, it won’t be the first time the two companies have worked together – in 1996 they launched the Internet service provider Virgin Net, which had an original owner ship of NTL with 49% and Virgin, 51%. The enterprise was fully taken over by NTL in 2000 but still trades under the powerful Virgin brand name.
Virgin Mobile
NTL
5 December, 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
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
MetroNet Bought By PlusNet in £1.7m UK Broadband Deal
MetroNet, UK broadband ISP, has been purchased by PlusNet in an all cash deal for £1.7m.
MetroNet, who came first in the most recent Which? survey of UK ISPs, happens to be the broadband provider to Digital-Lifestyles HQ. We’ve found them very impressive – the speed of the service is good, the customer services is rapid and responsive and their online software is solid.
MetroNet has grown since their start in 2003 to 16,000 subscribers, turning over £2.1m bringing an operating profit of £40,000 in the year ended 31 March 2005. They have net cash of over ~~£200,000~~ (update, final figures) £400,000. Bearing this in mind, we estimate that each subscriber has been valued at ~~£93.75~~ £81.25.
PlusNet have been running for over eight years, and were, out of interest, 7th in the Which? survey that MetroNet topped. They currently have 150k users.
Speaking to PlusNet about the future of MetroNet, we were told that short term nothing will change. But longer term, as the purchase sinks in, MetroNet subscribers will be moved over to PlusNet network and 24-hour support system. They thought that longer term translated to some time next year.
PlusNet offer a number of services that MetroNet currently don’t, including a SIP-based VoIP system called PlusTalk which connects to other open standard systems like SIPGate.
We, and we assume other MetroNet subscribers, hope that the high quality of service that we’ve received from them continues, without interruption, in the transition to PlusNet.
An interesting feature of the broadband market in the UK is that changing to another provider is relatively painless, which makes it all the more important that a consistently good service is delivered to the subscriber.
MetroNet
PlusNet
28 November, 2005
Mydeo Signs Tiscali In Home Video Sharing Deal
Mydeo, the UK consumer video streaming company, has teamed up with UK ISP Tiscali to offer streaming video sharing services to broadband users of the UK Tiscali Website.
Available within the Community, Members and Technology areas of the Tiscali.co.uk site, the co-branded service will let users add home videos to their Websites, blogs or personal Webspace areas, and send streaming video emails.
‘Streaming is perfect for sharing home videos on the web because it allows users to show people their videos without giving the files away. Downloading not only means waiting to watch but, for the publisher, it also means you lose control of your content,’ enthused Cary Marsh, Managing Director and Co-Founder of Mydeo.
‘We know how important this is to our members sharing personal and family videos,’ Marsh added, earnestly.
The accent is definitely ‘family videos’ here. Unlike some of the other services that have sprung up since Mydeo first started, the video on it are definitely on the respectable side. It’s the sort of place you’d be happy to point your family to without them seeing anatomy shots or someone having their head cut off.
Members will be able to stream their cinematic masterpieces on a pay-as-you-go basis, and will only have to shell out when they choose to upload a video. Users can pay in Euros, UK Pounds or US Dollars.
Once on the server, members can blast out their captivating home videos in customised video emails to lucky recipients.
We’ve learnt that the deal with Tiscali is a one-way exclusive, i.e. Tiscali can’t use another video sharing services, but Mydeo can work with other ISPs. It’s our understand that Mydeo are in discussion with other broadband ISPs, who we’re told are showing a lot of interest in carrying the service.
‘We are very pleased to be able to bring such an exciting and innovative service to our users. Streaming video and broadband are a natural fit,’ purred a deeply chuffed Alex Hole, commercial director of Tiscali UK.
“Mydeo is really easy to use and offers lots of help and support for our members who may be putting video on the Web for the first time,” Hole insisted.
With the Mydeo service already integrated into the popular Windows Movie Maker 2 package, the process of uploading videos should be fairly straightforward for Windows XP users.
Mydeo are the only European supplier of streaming services to Microsoft Windows Movie Maker 2.
The company claims that their service lets the “humble home video maker” enjoy the “quality and reliability of a world-leading streaming network, something they would never have been able to purchase as an individual.”
Mydeo
Tiscali
23 November, 2005
UK Gov Wants Your Views On Content Protection And More
Ladies and Gentlemen, start your word processors …
The House of Commons’ Culture, Media and Sport Committee today announced a new inquiry into the challenges and opportunities for the creative industries arising from the development of new media platforms.
For the purposes of the inquiry, the term “creative industries” includes music, visual broadcasts, sound broadcasts, film, graphic art, design, advertising, fashion and games software.
The Committee is particularly interested in receiving evidence on the following issues:
- The impact upon creative industries of recent and future developments in digital convergence and media technology
- The effects upon the various creative industries of unauthorised reproduction and dissemination of creative content, particularly using new technology; and what steps can or should be taken – using new technology, statutory protection or other means – to protect creators
- The extent to which a regulatory environment should be applied to creative content accessed using non-traditional media platforms
- Where the balance should lie between the rights of creators and the expectations of consumers in the context of the BBC’s Creative Archive and other developments
Written submissions are invited from any interested organisation or individual by Thursday 19 January 2006.
Submissions should give the name and postal address of the person sending the memorandum and should state whether it has been prepared specifically for the Committee. If the memorandum is from an organisation rather than an individual, it should briefly explain the nature and membership of the organisation. The Committee may publish some of the submissions it receives.
For more guidance on the preferred format, see http://www.parliament.uk/commons/selcom/witguide.htm
Submissions should be sent to the Clerk of the Committee at the address below.
Kenneth Fox
Clerk of the Culture, Media and Sport Committee
House of Commons
7 Millbank
London SW1P 3JA
[email protected]
Luke Gibbs writes for Ofcomwatch.
16 November, 2005
Will ADSL2+ deliver in the UK?
The rollout of ADSL2+ in the UK appears to be going through a reverse-hype process, with people saying it’s not going to deliver high speeds to most people. That may be partially true, but in urban areas where people are within 1.5Km of the exchange they should get 20Mb/s+.
These speeds are enough for multi-channel HDTV. At the extreme end (extremely optimistic end?), we’ve seen Microsoft demonstrate what they call near-HDTV running at 1.5Mbps. A more ‘normal’ size for HD will be running at 2.5-4Mbps.
We can see that the delivery to the home isn’t a problem, but the back-haul (speaking between the exchange and the content provider) is another matter. Unless intelligent delivery and caching is used, shipping that amount of content to all of your customers gets very expensive.
Most people do seem to be ignoring QoS though, as having 20Mb/s downstream and 1.3Mb/s upstream is still useless for VoIP unless some of that bandwidth can be guaranteed so the voice traffic doesn’t get mixed in with everything else.
Using traditional CoDecs and then packetising them uses more bandwidth than over traditional telephony links. VoIP bandwidth can be squeezed to much lower levels, but then the calls are not what’s called toll-grade.
Broadband providers moving into VoIP are going to need to look long and hard how they actually implement services such that they are competitive (in terms of call quality) with existing analogue lines.
15 November, 2005