Category: Broadband

Anything that uses or touches broadband

European Broadband Pricing Drops 23% in 2004

A new report, the European Broadband Pricing Report, researched by Quantum Web and distributed by BroadGroup, shows European broadband pricing (of speeds between 0.5Mbps and 2Mbps) dropping since January 2004 by around 23%. The numbers of supplier and packages available have increased considerably over this period with 0.5Mbps tariffs availability increasing 75%.

455 tariffs offered by 109 operators over 36 European countries were examined over the first three quarters of this year (2004).

At the higher speeds, 4Mbps and 8Mbps the price reductions have been less dramatic. Clearly at this premium-end of the market there is little competition and in their words “[leaves] more room for price elasticity for content providers.”

It’s interesting to note that non-DSL products make up 20% of the European market.
BroadGroup European Broadband Pricing Q3 2004 Graph
We find it surprising that, given the intense competition at the 0.5Mbps level, pricing hasn’t come down more than at 1 and 2Mbps levels. We wonder if this is due to the majority of connections being provided by wholesalers to markets, such as BT Wholesale in the UK. Without competition at this level, these wholesalers (normally the incumbent telco) don’t have much impetus to lower their prices dramatically, just gradually, to keep their telecoms regulator from getting angry.

When we asked the BroadGroup about pricing across the surveyed countries they said there was a considerable difference. Generally, the previous Eastern European counties have lower pricing, as do many of the Scandinavian countries. To us this points towards major fibre optic network runs equalling lower prices, as most of the former Eastern Europe frog leapt mainland Europe by replacing their antiquated phone system with fibre. Scandinavia is well known for their wisdom in laying copious amount of fibre. We suggest that those trying to make their countries competitive both in terms of the obvious – IT, and the less obvious – digital entertainment networks, pay attention.

BroadGroup – Broadband Pricing in Europe Q3 2004

Microsoft TV Attracts Older People To The Web

Microsoft is hoping its Web-based TV service will attract ageing users to surf the Internet, read e-mail and view digital photos – all without a computer. In what initially seems like a shot in the foot, Microsoft’s research indicates that the untapped market potential for older users is in excess of 40 million – a sizable figure even for the king of software.

As well as the older generation, Microsoft is also targeting first-time Web users, particularly in developing economies where the Internet is out of many people’s reach because of the cost of a PC. The major benefit of being able to view photos and read e-mail on your TV is that most people already own a TV, thus eliminating the prohibitive cost of a PC, as well as the hassle of installing and learning how to use it. Sitting in front of a TV is also usually a heck of a lot more comfortable than a computer.

“Our average user is 57 years old,” said Andy Sheldon, senior director of product marketing for MSN TV. “These people are getting to the age where they don’t want to deal with complicated ways of connecting to the Web.”

The service comes via a MSN TV 2 unit set-top box, bringing e-mail and the Internet to the TV. It includes a wireless keyboard and remote control and costs $199, in addition to a subscription fee, which costs around $22 per month. MSN TV 2 also includes a 56Kbit/s phone modem, as well as an Ethernet jack for connecting to an existing network or broadband connection. Of course, there’s also e-mail and instant messaging accounts and access to 200 radio stations and video clips. Viewers can also browse Web pages or even digital photos stored on memory cards.

MSN TV 2 is probably ideal for those who have yet to take their first step onto the Internet, but anyone interested in a home networking device can get more for their money
.

Ofcom to BT: Equivalence or else

After a long period of deliberation Ofcom, the UK regulator, has come to its conclusion on the Strategic Review of Telecommunications Phase 2 (SRT 2 to those in the know). It won’t be forcing the split of BT Retail and BT Wholesale.

For a very long time, most companies in the UK telecoms market have bemoaned BT Retail getting a better deal from BT Wholesale (they own the network) than they were able to achieve. In the competitor’s eyes, the market hasn’t been balanced. Many felt that BT has been expert in ‘playing’ the regulator, especially Ofcom’s previous rendition, OfTel – only making changes just before they were forced.

In SRT 2 Ofcom investigated three options, Full deregulation; Enterprise Act investigation; BT to deliver real equality of access. They’ve come down on the side of the latter, in their words

“Ofcom calls on BT to provide prompt and clear proposals which will achieve these behavioural changes and bring about the level of confidence required.”

and if equality isn’t achieved, they threaten to use the second; an investigation into the market under the Enterprise Act 2002, with the potential for a subsequent referral to the Competition Commission.

In theory, when equal access to the network is given, the need for Local Loop Unbundling (LLU) to provide competing broadband services will be reduced.

When we spoke to Video Networks, the company behind the London-based IP VOD-services, they said the news today would “not impact their LLU plans”. EasyNet, a significant unbundler, didn’t get back to us before we went to press.

The SRT 2 is now open for public consultation until 3 February 2005.

It would appear that the threats from Christopher Bland, Chair of BT, in the Telegraph at the weekend that “No BT would equal No Broadband” were unnecessary.
Update: OfcomWatch comment

Motorola Moves into Mesh Networking

In a move aimed at boosting its broadband networking, mobile giant Motorola has announced it’s purchasing US-based equipment supplier MeshNetworks.

Acquiring the wireless mesh networking company “brings sales, support and brand recognition that a startup could never match in a million years,” says Rick Rotondo, vice president of marketing for the Maitland, Fla-based company. (We suspect he was exaggerating for effect – commonly called hyperbole).

The purchase by Motorola further legitimises the whole mesh networking concept. Only last month, North American rival Nortel announced its mesh networking product line, aimed at providing easier WiFi coverage without the need for multiple access points. In the UK, LocustWorld has been selling its Mesh AP boxes to hotels, hospitality venues and rural community broadband service providers with a great deal of success.vMesh networking provides an innovative method to build complex data networks very easily. Using the intelligence of each component, meshing helps them to join into a self-organising structure. This approach differs from the traditional “top-down” design of data networks, and provides many benefits, including flexibility, speed and ease of management, making it simply to deploy widespread networks with low overheads. It’s particularly suited to wireless networks, where the connections can’t be predicted in the same way as a wired network, catering for mobile nodes, instant growth and unpredictable variations in reception and coverage.

Mesh networking builds up a wide spread multi-hop network, making connections between neighbouring nodes on demand. Once connected the nodes can explore the network and establish their routes through it, finding the resources that they need automatically.

“The acquisition also represents another step in Motorola’s commitment to deliver seamless mobility to all of our customers,” said Greg Brown, president of Motorola’s CGISS. The purchase will benefit “all of our businesses ranging from mission critical and enterprise markets to automotive and home entertainment applications,” said Brown.
SP Comment: Mesh networks are far from a new idea. Groups such as London-based Informal.org have been enthusiastic about the possibilities of a wireless mesh for a long time. For over three years they have seen the possibilities of a wireless mesh supplimenting the wired networks offering free, ubiquitous access and when combined with VoIP, replacing traditional phone services. When viewed in these terms, it is incredible how long big business takes to catchup with grass roots ideas.

Motorola
MeshNetworks
Informal.org

First 8Mb Broadband for UK Homes from UK Online

UK Online are today launching the UK’s first 8Mb consumer DSL service. Called Broadband 8000, it will cost £39.99 per month and is subject to a £50 setup charge.

The previous fastest consumer service in the UK was 4Mb but the vast majority of ADSL connections run at 512k, making Broadband 8000 sixteen times faster. Upload speeds remain at 400k matching higher speed services.

UK Online, who were established in 1994, aim to offer the service to 230 exchanges spread around the UK during 2005. This will covers 18% of the UK population, or 4.4m homes.

As of today, the 8Mb service is available from four exchanges; Walton-on-Thames, Surrey; Kingswood, East of Bristol; St Albans, Hertfordshire and Dinsdale in the Midlands.

Alternatives to BT’s broadband service are possible due to “Local Loop Unbundling” (LLU), where other companies place their equipment in telephone exchanges. Working with their unbundling partner EasyNet, they are planning to convert 10 exchanges a week, with the other exchanges being chosen on a demand basis. Chris Stenning told us “we encourage people to pre-register at the site”. A smart and logical move on their part and one that BT used in the earlier days of broadband when choosing the exchanges it would convert.

UK Online have wisely recognised that the broadband requirements have risen for many multi-occupancy households. As DSL users realise how much better the broadband experience is, their demand for usage increases. When a household has a number of members using the broadband connection at the same time, the currently standard 512k connection isn’t up to it.

We’re big supporters of any service that increases bandwidth to consumers. The more bandwidth available, the more willing people will be to take their video entertainment from online sources.

The real bandwidth hog is video, but as with all of these things, multi-room TVIP services will demand higher bandwidth than 8Mb per household.

Justin Fielder, CTO of UK Online told us that 8Mb is the fastest service that can offered in the UK with current regulation. Faster services, such as ADSL 2+, would require approval from UK regulator, OFCOM. ADSL 2+ uses higher frequencies, so it needs to be ensured that these would not cause interference within the network. This process is currently being undertaken by OFCOM and when complete, promises speeds of up to 18-24Mb. Fielder tell us that upgrading their customers to that, would only require a software update at the exchange and a new modem which would be shipped to the customer.

UK Online Broadband 8000

Utilities Switch On Broadband Over Powerlines

Broadband over Powerline (BPL) is an emerging technology that may shake up the competitive world of broadband Internet and Voice over Internet Protocol (VoIP) services. It offers high-speed access to your home through the most unlikely path, a common electrical outlet, allowing you to plug your computer into any electrical outlet in your home and instantly have access to high-speed Internet.

Combining the technological principles of radio, wireless networking and modems, the technology can be used to send data over power lines and into homes at speeds equivalent to DSL and cable. In Singapore, Pacific Internet is one of two ISPs trialling the technology in conjunction with Singapore Power. The Singapore trial is currently sustaining connection speeds of 2.2Mbit/s – faster than Telstra ADSL. Elsewhere in the world, power lines are running at 4.5Mbit/s, and ultimately the technology supports speeds of up to 10Mbit/s. It also allows utilities to tap existing infrastructure cheaply, fill market gaps in underserved regions and benefit from plummeting equipment costs.

For instance, the city of Manassas in Virginia has signed a deal with local utility Communication Technologies to extend broadband services across the city’s powerlines to 15,000 residential and commercial locations for less than $30 (£16) a month. Revenue is then shared between the city and the utility, as long as they adhere to powerline radiation-emission restrictions and follow consistent and repeatable measurement guidelines set out by the Federal Communications Commission (FCC).

It’s not all been going smoothly for the new technology though. The two test plants near Rochester, NY, both pulled the plug on their setups when the cost analysis came in. There was a major interference issue on BPL also, but the final argument was decided due to the money.

Vonage & Linksys Connect on VoIP WiFi Router

Vonage Voip Linksys WRT54GP2Linksys’ consumer and small-business oriented Wireless-G Broadband Router is unusual in the way that it offers four devices in one box: a Wireless-G access point, built-in 3-port switch to connect wired Ethernet devices, router so that multiple users can securely share a single cable or DSL Internet connection, and two standard telephone jacks (each operating independently) for carrying Voice-over-IP (VoIP) calls. It also comes with Vonage’s Internet telephony service, so you can start making high-quality low-cost phone calls over a broadband connection out of the box – even when you’re browsing the Internet.

With the added Vonage service, US-based users should get low domestic and international phone rates, Caller ID, Call Waiting, Voicemail, Call Forwarding, Distinctive Ring, and lots of other available special phone features. You can also choose any free local dialling US area code, regardless of where you live, add a virtual phone number in any area code, or even a US-wide toll-free number. Vonage offers price plans ranging from $15 to $50 a month, depending whether you want primarily local or long distance calls, how many inclusive minutes you want, and whether you are a consumer or business buyer.

“Recognising the need for residents and small businesses to have myriad of options when setting up their networks, Vonage is excited to partner with Linksys to continue to lead the way in transforming how people communicate,” stated Jeffrey A Citron, chairman and CEO of Vonage Holdings Corp. “More importantly, the Wireless-G Router bundled with Vonage’s service is the next step in modernising an archaic telecommunications network. No longer will people be stuck in the past and tied down to communications systems that fail to offer true mobility.”

“By providing customers with both the hardware and service they need to make high-quality phone calls over their broadband connection, customers get a better overall value and user experience,” said Mike Wagner, Linksys director of worldwide marketing. “Marketing the product and service together enables us to educate more customers about the benefits and cost savings VoIP can provide.”

Other key features of the Wireless-G Broadband Router (54 Mbps), with the oh-so-catch name of Linksys WRT54GP2, include support for Session Initiation Protocol (SIP), along with a range of voice compression algorithms with echo cancellation, DTMF tone detection and generation. It can also handle FSK and DTMF caller ID, and FSK voicemail. There’s also 256-bit encryption and support for both Wired Equivalent Privacy (WEP) and Wi-Fi Protected Access (WPA), and the router can serve as a DHCP server, has a built-in SPI firewall to protect your PCs against intruders and most known Internet attacks, supports VPN pass-through, and can be configured to filter internal users’ access to the Internet.

US buyers will also get a $50 rebate slip that they can use against the Vonage service after their initial 90 days of service.

:SP: Vonage are pushing hard to expand their VoIP offering. They are spending large amount of money on advertising in the US (rumoured to be around $88m), and now, with this tie-up with Linksys, taking it directly to consumers who are buying broadband equipment. The support for both WiFi and SIP leaves the door wide open for expanding in to wire-free calling too.

Vonage Linksys WRT54GP2

Taipei Bathed in Wi-Fi in 2005

Taipei plans to make wireless Internet access available across the Taiwan capital by the end of 2005, joining a small number of cities offering Wi-Fi networks. According to a Reuters article, the network will reach almost 90 per cent of the capital’s population of 3 million and aims to make accessing the Internet as easy as using a mobile phone. The system will enable subscribers to easily access information and services from governmental agencies and other service providers wherever they may be in the city – either by 3G mobile phone, personal digital assistant (PDA) or laptop computer.

Joining a handful of cities offering Wi-Fi networks, a connecting system may soon become vital in attracting and retaining businesses, as well as catering to students and other youngsters. City-backed wireless networks also help to ensure that all neighbourhoods have equal access to the system. The downside is that government-backed projects like this will hurt the private sector, and many will believe that installing Wi-Fi using tax-payers money is a waste when most would rather see taxes go towards putting more police on the street or cleaning up the city – especially those who already have broadband in their homes.

“In most cities in the world the coverage is small, but Taipei’s [network] is designed for a population of 2.6 million,” said Andy Lai, project leader for a Hewlett-Packard consulting team working with the Taipei City Government. Taiwan’s Q-Ware Systems, which won Taipei’s tender to build the network, plans to spend US$70 million on infrastructure, setting up 15,000 to 20,000 access points around the city, according to HP. Other companies involved in the project include Intel, Microsoft and Cisco Systems.

Q-Ware will charge users for access. Qware has to foot the expense of installation and pay the Taipei City Government royalties for the right to run the subscription business for a period of nine years, while the Taipei City Government must provide administrative assistance and give Qware Systems the right to use public facilities such as utility poles, bus stations and overpasses for system installation.

The number of subscribers of the new WLAN system is expected to reach 500,000 by the time the system is completed and increase to 1.1 million by the end of 2006. It will provide a platform for the government to better serve citizens and for the citizens to obtain information easily at a very low cost, which in turn should attract more subscribers and thereby generate more online business opportunities. New York, San Francisco, Amsterdam and Jerusalem are among cities offering or planning city-wide networks.

Cisco CTO challenges WiMax

Cisco Systems CTO Charles Giancarlo has announced that his company will not be backing WiMax (IEEE 802.16) technology. The announcement came during his brief keynote address at the Next Generation Networks conference in Boston, where Giancarlo asserted that Cisco will only be “providing the backbone infrastructure that may be behind any WiMax deployment. Cisco has not invested in WiMax. DSL and cable are already there, and they are much more deterministic.”

WiMAX is a third-generation wireless technology that provides high-throughput broadband connections over long distances. Wi-Fi and WiMAX are actually complementary technologies, according to Intel, as WiMAX is a ‘last mile’ technology – it connects businesses and homes to the high-speed Internet. Wi-Fi provides the wireless LAN connectivity within a building or a home. The two technologies have been built as close cousins, and should work together to provide the best connection for the users needs. The technology may well find its way into airport hotspots, for instance, but it’s unlikely service providers will invest in building two parallel wireless broadband networks.

An implementation of the IEEE 802.16 standard, WiMAX provides shared network connectivity at speeds of up to 75MB/s and as far as 30 miles, which should be enough bandwidth to simultaneously support more than 60 businesses with T1-type connectivity and hundreds of homes at DSL-type connectivity. However, on the average a WiMAX base-station installation will likely cover between three to five miles, so home networking is not the compelling application for WiMax. Today, last mile connections are typically made through cable, DSL (digital subscriber line), fibre optic connections and even standard phone lines. The ability to provide these connections wirelessly, without laying wire or cable in the ground, promises to greatly lower the cost to provide these services.

A further benefit of the WiMAX standard is that it relies mainly on 2GHz to 11GHz bands as opposed to the ‘overcrowded’ 2.4GHz band used by WiFi. The specifications of WiMAX avoided many of the mistakes that went into the WiFi standard, allowing longer reach, Non Line Of Sight (NLOS), greater bandwith, and better encryption. However, the 30 mile radius should be taken with a grain of salt, as it would most probably only apply to a true line of sight point-to-point connection under ideal atmospheric circumstances.

Giancarlo reminded listeners at his speech that many wireless technologies have come and gone over the years without finding success. “This is what went wrong with MMDS (multichannel multipoint distribution system) and LMDS (local multipoint distribution system). The economics became very bad very quickly.”

However, this hasn’t stopped Telabria, who has already announced plans to build the first WiMAX network in the United Kingdom. The network, which is now under construction, will deliver high-speed wireless broadband services to residential, business and enterprise customers in the South East of England, and provide backhaul for Telabria’s growing installed base of WiFi hotspots in the region. The service will commence trials in January, with a commercial launch by mid 2005. “We’re extremely excited about the network we’re building,” said Jim Baker, Telabria founder and Chief Executive Officer, speaking at the WiMAX World Conference in Boston. “WiMAX is a revolutionary standard which, over the next few years, will fundamentally change the structure of broadband networks”.

BT Offer Public WiFi for £1/month

It’s just bargain after bargain, as companies keep pushing out the barriers to attract new customers or hang on to existing ones, using every technological and communications innovation available. Now BT is offering its new and existing, business and consumer broadband customers, public wireless broadband for just £1 a month. Remember that BT already have a Bluephone in the offing – a mobile phone that will provide cheap Web-based phone calls from Wi-Fi hot spots anywhere in the world.

The service is called BT Openzone and there are two introductory discount deals of £1 per month for up to 500 minutes available to BT Business Broadband customers and BT Broadband and BT Yahoo! 500 minutes is only eight hours a month though, and this may not be enough for some people. It is offered to BT customers, who sign up before December 31, 2004. After the first three months, customers can continue using the exact same service for a further 12 months for £5 a month.

Aimed at people on the move who need to keep in touch, customers can log on to BT Openzone with their Wi-Fi enabled laptop or PDA when within range of over 7,000 hotspot locations across the UK, including hotels, airports, railway stations and coffee shops. With cable companies, mobile operators and VoIP providers always offering trendy alternatives, Telcos have to keep going back to the drawing board.

But (she asked, scratching her head), why would you bother paying £5 or even £1 per month if all you have to do is hawk your laptop down to the nearest café, and get the whole lot for free, plus a really well-made cup of coffee?

Thousands of BT Openzone hotspots can be found in the UK and Republic of Ireland, in motorway service stations, airports, conference centres, hotels and cafés. Also, a Wi-Fi roaming agreement with BT Openzone, has increased the number of T-Mobile UK hotspots to 1,900, and customers of BT Openzone will now also have access to T-Mobile’s 600 UK Wi-Fi hotspots, as well as thousands more across Europe and the US. Now all we have to worry about is wireless security!

BT Group plc