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

New HomeChoice Service Launches

The HomeChoice set top boxVideo Networks have launched the latest iteration of their HomeChoice service, available in the UK from 1st June.

The basic package includes 1mb of broadband (capped at 1gb per day downloaded – about 20,000 light web pages or 200 mp3s), more than 60 TV channels and a video on demand service. Films available on the on-demand service cost between £0.99 and £3.50 (€1.47 to €5.19) for the standard 24 hour rental.

The TV channels available are an extension of the standard Freeview fair, and include channels unavailable on Freeview such as E4, Discovery, CNBC Europe, UKTV Style and UKTV Gold. The are also some music offerings exclusive to Video Networks such as V:MX Hits and V:MX Dance. Interestingly, the service carries Club Zebra – a sort of exercise on demand (EOD – you heard it here first) channel where you can interact with keep fit and health programming.

The broadband component of the service can be upgraded to 2mb for an additional £15 (€22.26) per month – this takes the download cap to 45gb a month. The HomeChoice box comes with an Ethernet port in the back for connecting to your home network, but a rather smart wireless option is available for an extra £125 (€185.53). Including an Ethernet port makes the service a true competitor to existing broadband services. Beforehand, HomeChoice was really “VOD with broadband”, as the broadband connection from the box was USB: this iteration is more “broadband with VOD and content”, a much richer and flexible offering.The service is initially launching in West London to those with a BT phone line.

HomeChoice

VideoNetworks

BT Announce 70% Reduction in Local Loop Price

BT has been under considerable pressure for some time to reduce the cost access to the last mile of copper linking households to telephone exchanges, and it looks like they’ve finally done something about it.

The cost of Local Loop Unbundling has long been accused of preventing rival broadband providers from offering competitive products to BT. Ofcom are on the eve of announcement regarding BT’s treatment of the situation – hence BT’s timing, no doubt. BT hope to reduce the need for regulatory intervention – and this demonstrates that they would have been quite happy to sit there enjoying the status quo had Ofcom not accused them of overcharging.

BT chief executive Ben Verwaayen said in a statement: “Our announcement marks a major move towards the telecommunications market of the future. BT has always argued that a market needs to develop in which those who are willing to invest and innovate can reap the rewards. This is a significant step in that direction.

“We now have a far clearer idea of how Ofcom sees the market developing and we share their view that competition based at the infrastructure level will be good for everyone and for the UK in general.

“Their statements about regulatory certainty are crucial as we have enormously ambitious plans for the networks of the future and require that certainty for shareholders if we are going to invest the huge sums required.

“BT took a bold step forward two years ago when it cut the price of broadband and changed the shape of the broadband industry. This is an equally ambitious move and one we are confident will have long term benefits for both the UK and BT.”

The price cuts will take effect form 1 June – the monthly rental price for the existing LLU product will drop from £4.42 to £2.26 (€6.59 to €3.37), connection charges will now be £83.33 (€174.38), down from £117 (€124.20).

Ofcom

BT on the announcement

Are There Really 1.67 million Illegal Movie Downloaders in the UK?

The British Video Association (BVA) has surveyed 16,000 people between 12 and 74 and extrapolated that there are 1.67 million illegal film downloaders in the UK, as they believe that 4% of the population are indulging in the practice.

We think this gives an inaccurate picture. The entire population doesn’t have internet access, and downloading all of Kill Bill Volume 1 on a dialup is frankly insane, limiting this kind of piracy to broadband subscribers. Ofcom estimates that there are around 4 million broadband homes out there – so perhaps 4% of them are downloading, making it roughly 160,000 pirates (which we feel is more accurate), or perhaps 25% of broadband subscribers are pirates (which we doubt).

The BVA goes on to estimate that this downloaders cost the video industry £45 million (€) in lost revenue. A quick calculation on the back of an HP48 shows that this is roughly two full price DVDs per downloader – yet the BVA goes on to say that the average downloader grabs some 30 films and TV episodes a year. Since many downloaders like to collect and share files for kudos, we suspect the picture in the UK is of around 160,000 pirates downloading 30 films.

Interestingly, according to the survey, the average downloader is under 35, male, and lives in the south of England – presumably because broadband is more prevalent there and not because they’re more prone to thieving.

The BVA’s report

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

Softbank losses grow

Japan-based Softbank Corp today announced widening losses for the 2003 year ending March. Declared a net loss of 107.09 billion yen ($94.2m, 79.8m), up from a 99.99 billion yen loss in the previous year, they blame what they called “substantial expenses” to lure customers to its broadband Internet service. Sales rose 27.2% over the period.

Unusually Softbank decided not to announce their financial predictions for the current year. Their stock fell around 10% against the Nikkei Average fall of 4.8%.

The broadband services, Yahoo BB, is a joint venture with Yahoo and has been held up as an example of what broadband could be given their provision of 45mbps coverage to some of their consumers. By March they had over 4 million customers and they are targetting 6m by September 2005.

Softbank (eng)

Flarion and Vodafone Trial High Speed Wireless Internet in Tokyo

It’s now over to the politicians. Nobody who has seen Flarion’s sales pitch has failed to be impressed by “what if?” this technology were available. Faster than 3G and covering more users at the same time, with far lower network latency – if we had this, there wouldn’t be all the discussion about WiFi phones. But the technology looked to be illegal. 

Now, in a deal with Vodafone which covers metro Tokyo Flarion is going to get the test bed it needs to convince the world’s Governments to allow this technology in existing spectra.

The barrier to Flarion’s Flash-OFDM wireless is that the GSM and 3G network operators are licensed, pretty much anywhere in the world, to provide a voice service using specific technology on their masts. And Flarion offers a pure IP network, which is neither WCDMA nor GSM.

Of course, you can carry voice over IP networks; but the small print doesn’t appear to explicitly allow a voice network to be done this way, and often, specifically insists on GSM or WCDMA technology. And politicians are wary of buying into a new technology, because there are powerful lobbies threatening to take real money off them if they do.

The problem is that in all too many countries, huge sums have been raised in 3G phone auctions. If the various Governments who conducted these auctions suddenly rendered 3G obsolete by licensing a new system, the calls for refunds would be loud and strident.

On the other hand, if the mobile phone companies initiated the move, they’d be effectively conceding that they didn’t care about the original high-priced licence rip-off.

The trial is being described as low key and routine, by Vodafone: “Vodafone undertakes technical trials of emerging technologies to ensure we are well positioned to drive future research into mobile system solutions,” said today’s announcement. “Such programmes also enable Vodafone to respond quickly to commercial opportunities with specific market requirements should the need arise,” said Professor Michael Walker, Vodafone Group Research and Development Director.

The mobile broadband trial will start in mid 2004 and will cover metropolitan areas of Tokyo. Vodafone “will conduct field tests of Flarion’s system performance, user mobility, subscriber scalability, robustness, and transparent delivery of enterprise and consumer applications over an end-to-end IP network infrastructure.”

The trial will use Flarion’s commercially available FLASH-OFDM PC card modems for laptops and PDAs, to field test broadband Internet access, enterprise productivity applications, as well as gaming.

No mention of voice in that, but if it works as described, VoIP (voice over IP) trials will certainly be part of it. That was demonstrated at CTIA in Atlanta, in March.

But this isn’t the first public trial. In America, Nextel has a customer paying network in the high-tech nexus of Raleigh-Durham, and that has been public since mid last year. that network is a commercial which covers 1,300 square miles, in which there are 1.1 m people including residential, small businesses, and four of the largest American universities. The intention is to have 10,00 subscribers by end of this year, and there are around 130 mast sites. So it is a large substantial network.

The Vodafone trial, by contrast, will be just 7-8 sites; for purely technical testing.

Exactly how well Flash-OFDM works in a live application is an issue that many experts have debated. In theory, in Flarion’s white papers, FLASH (Fast Low-latency Access with Seamless Handoff) has an average downlink speed of 1.5 megabits per second – somewhere between five and six times the data rate of WCMDA 3G phones. Also in theory, it can handle far more simultaneous users, between two and three times, according to Flarion’s own estimates.

The technology is based on work done in Bell Labs, and inherited by Lucent, which spun Flarion off in February 2000. So – after Qualcomm – some industry analysts are very nervous about building an industry standard around a single intellectual property owner again.

The real appeal, however is that FLASH-OFDM allows for low latency access. Latency, the time wasted by a network while it processes data internally, is down to LAN standards.

The latency of a 2.5 G network can be enormous. The GPRS standard actually permits delays of over 10 seconds – 800 ms and above is the agreed specification. Ten seconds is not that unusual, if the user is moving from one cell to another. Nearly all Internet based software will assume the link is broken if delays on that scale occur, and will time out or crash.

Latency of WCDMA is far lower, but still can reach large fractions of a second. In an unloaded network it would be 250 ms; as you load the net, it can be one second and above.

Flarion has said that average sustained latency of Flash-OFDM is below 50 milliseconds, and can be far lower. This will be one key factor which Vodafone will evaluate in live trials. Trials in Europe with “an operator” (Flarion can’t disclose which) ran at 28 ms average.

Also, Vodafone will want to assess IP Quality of Service (QoS), and Flarion’s claims of “high spectral efficiency and full mobility” and “ubiquitous, LAN-like user experience” claims, too. Flarion categorises standard Third generation (3G) mobile networks as “circuit-switched, hierarchical architectures.” You are connected to a given end-point during the whole of a call, rather than sending packets into a true packet switched IP network, they say: consequently “there is tension between the design objectives and the current environment of the wired Internet and mobile voice networks. The resulting design compromises of circuit-switched networks, which are optimised for voice, impair their ability to deliver high-speed, low-latency data cost effectively.”

If Flarion is right, the big saving is cost to the operator. “The resulting high cost-per-megabyte of data delivery over circuit-switched based networks will prevent the emergence of mass-market wireless Internet access. An alternative approach, focusing directly on high speed, low cost and low latency wireless data delivery is required. Flarion, through its innovative FLASH-OFDM airlink, addresses the challenge of delivering affordable mobile broadband.”

Joe Barrett, EMEA marketing director at Flarion, said that the politics of Flash-OFDM isn’t as sensitive as some people think. “European regulations don’t have the same force as the original GSM Directive, when it comes to 3G,” he told NewsWireless. “In any case, the recommendations on which the contracts were based for 3G have now expired. The contracts do mandate whatever they say, but there’s no regulation requiring that they can’t be varied.”

And, he believes, European legislators are becoming less prescriptive.

“They want to ensure that different bands are used for the purpose intended, but they aren’t insisting on technology any more,” he said.

Flarion site

© Newswireless.net.

Sony EyeToy gets Sociable

Slowly and steadily, Sony is building on the usage and application of the ground-breaking EyeToy webcam add-on for their Playstation 2. The latest announcement is EyeToy:Chat, which expands the tool into a far more social area.

As you probably already know, EyeToy is a low cost Webcam that plugs into Sony’s Playstation 2 and is placed on top of the television, pointing into the room. The player controls the game by moving their arms, body and head around, which in turn interacts with the games. There is no need to use a joypad. It was originally released as EyeToy:Play and came with twelve mini-games; Kung Fu – chopping opponents, the inevitable dance games – Saturday Night Fever-style arm waving, even Keep-up – using the head to keep a ball in the air and knocking it into objects.

EyeToy: Chat brings voice, chat, video mail, video chat and a selection of video-enabled simple games such as chess and checkers. Utilising the broadband adaptor the text chat rooms allow 256 people to talk together, with 16 people able to converse at one time in the voice chat rooms, as well as real-time video. When people are in one-on-one video chats, the options to play the simple games are presented. The video mail feature will allow users to send 30-second video messages to anyone on their buddy list.

Clearly safety will be a big concern for parents and Sony’s London Studios, the original inventors of EyeToy, who developed Chat and have spent considerable efforts in trying to make the product as safe as possible. User will need to register with Playstation Net to use it and will only be bale to take part once they enter the PIN that is send to their home address. With Chat rooms being moderated and a clear processes for grievances Sony feels “‘EyeToy: Chat’ is one of the safest communication packages available on any system on the market.”

The whole of the Digital-Lifestyles office is looking forward to its European Summer release.

Bringing the School into the Home via Broadband

As Britain moves closer to complete broadband coverage, communities around the country are beginning to explore the potential that interactive services offer and are partnering with technology companies and content providers to create some innovative services.

We decided to look at one of the best examples of community broadband TV: Kingston Communication’s collaboration with an East Yorkshire school which has led to an exciting project to engage pupils in interactive learning, both at home and in the classroom.

The Kingswood High School’s Broadband TV (KBTV) Project was conceived in 2001 under the UK Government’s Information Society Programme and Hull’s own Digital Learning Plan. Kingswood was chosen to collaborate with the BBC in its Headstart project.

The BBC provided the school with access to its film and video archive – and from this, using standard desktop tools like Premiere, pupils and teachers were able to create interactive content that formed the basis of many exciting and informative lessons.

Kingswood High went on to develop the idea into community broadband TV – with the aim of providing a range of interactive services via set top boxes (STBs).  The school secured enough funding for the project to provide a one-year trial of STBs for all the families in the local community with a suitable phone line.

We spoke to Andrew Fawcett, Head of Products and Services at Kingston Communications about the stealthy growth of broadband television: “IPTV has come of age, and it’s come of age in a non-linear fashion.  We’re on both sides of the equation, because part of our business is being a broadband ISP, and that’s been experiencing exponential growth, delivering one megabit of broadband to a consumer PC.  Since 1998, we’ve been delivering five megabits into the back of people’s television sets with a service that people don’t know is broadband.”

We asked him for some background to the Kingswood project: “Everybody who goes to Kingswood School, all the kids basically as part of their school work, use the KIT service – it’s given to them free of charge.  They’re creating their own content at school level.”

“The service covers 200 homes at the moment, but we have a proposal to roll it out to 2000.”

Staff at the school are finding that this new way of learning reaches and appeals to children who would not normally enjoy or benefit from traditional classroom teaching methods.

The interactive service provides immersive learning tools at school and at home. Andrew added, “They (the pupils) get the Kingswood Channel, a school’s TV channel with three elements to it.  One is that we deliver curricular materials – there’s a permanently available set of resources for all subjects that’s very video rich.”

“The second part is taking stock materials and turning them into their own programmes.”  Each (school) year has its own area on the service, though areas are accessible to everyone.”

As an example of this, Andrew showed us a documentary on arson that had been created at the school.  The film had been constructed from content that was put together by the school’s pupils and teachers.

Part of the experience of learning about arson includes the kids going out with cameras and interviewing people.  The idea of making children media literate is very powerful. I’ve seen kids who would be a nightmare in class, but this stops being class work, and becomes making a film – and more importantly it becomes a film that’s going to be on live telly when they get home.  You can suddenly engage kids at a level that’s incredible.  Very significantly, the school comes into the home.”

The film included an interview with victims of arson, and an arsonist – and was put together with standard desktop tools like Adobe Premier.

Interactive television like this also provides educators with valuable information on the effectiveness of services and lessons.  “Year Ten”, he told us, “will be asked to go home and watch this as homework.  We track usage for a select number of pupils who have chosen to opt in to the research elements in the programme.  We’re looking at Educational Family Footprints.  One of the key determinants of the success or failure in education is parental support.  We’ve taken families with different educational footprints – from homes where education is core to the family life, to others where education is less important.”

The third aspect of the service provides pupils with a virtual PC they can access using their television set at home.  The system runs a virtual PC using Citrix MetaFrame – all the processing is done at the server end of the network, which only sends screen updates to the set-top box.  The box essentially becomes a “dumb terminal”.  Pupils can access and save work stored on the school’s network, and use Star Office providing them with applications for word-processing, spreadsheets and presentations.”

A virtual PC service like this has many advantages, as the customers don’t have to maintain a PC at home and so security against spyware, hacking and viruses is taken care of by a qualified IT department at the school.  It also ensures that pupils all have access to the same computing platform.

Andrew is justifiably proud of this aspect of the service, “Of all these things we’ve done with KIT, this brings everything together.  It brings the localness and on-demand aspects of the service together, and it emphasises the difference of broadband TV – you could never provide an application like this with satellite TV.  It’s wholly back-channel dependent.”
Kevin Beaton, Head Teacher at the school explains why they wanted to get so involved in a service like this:  “The rationale for the whole project is that the school becomes the local hub that is able to provide the surrounding community with access to digital services. Initially the focus will be on education, so that we can prove to everyone involved that the principle of on-demand access to information and interactive educational content really is viable.”

Vein continued, “The school is currently developing material to be used on KBTV, and we’ve identified a number of logical and consistent uses for the system. Lessons in several departments are already being developed using our very latest interactive ‘White Boards’. This in turn means that teaching methods and the style of learning are changing, and more and more lessons will begin to make use of film and video as a stimulus to greater creativity. Some of the items will only be produced for homework purposes; hence students would be expected to watch educational material on film, and then complete set work on the film at home. Other material will be work from lessons at school, which can be completed at home, or perhaps reviewed at a later stage as part of a planned revision programme.

“Yet other material will be demonstration work from subjects like Design Technology, where soldering small intricate parts can be clearly be shown to pupils in close-up mode. In the field of Art it would be possible to view many different examples of paintings and sculptures, with the key points that ensured the success of the work clearly demonstrated.

“Another interesting aspect of the KBTV on-demand channel is that parents would have independent access to vital school information concerning their children. This would include attendance records, term dates, coursework deadlines, examination entries, parents’ evenings, exhibitions and school music and drama productions. In addition, direct contact could be made with school staff via e-mail, with the possibility of video conferencing for those parents or guardians who were unable to physically visit the school for whatever reason.”

And what about the future for services like Kingswood?  Andrew Fawcett told us what was up next: “There was a very small budget for this – by squeezing things, as we tend to do, we managed to deliver it to 200 homes, to get a reasonable feel for the potential.  This stage of the trial finishes in June – our intention is to look for additional sources of funding.”

Kingswood High and Kingston Communications are compiling information on the before and after effects of the KBTV initiative – hopefully benefits of this sort of programme will inspire more partnership and research in the educational possibilities of our broadband future.

Kingswood High School

Kingston Communications

BBCi Humber

BT Abandons Broadband Pre-Registration Scheme, Promises Coverage to Rural Britain

BT’s preregistration scheme for broadband has been dropped, because of high demand for the service throughout the country. Instead, the telco has promised to make an additional 1128 exchanges broadband-enabled by 2005 – providing coverage to 99.6% of the UK. Coverage is at about 85% today.

Alison Ritchie, BT chief broadband officer, said in a release from the company: “BT has continued to innovate in order to drive broadband as an enabler for tomorrow’s society and to deliver a truly Broadband Britain.

“The broadband registration scheme has been a powerful tool for us to match investment to demand and its fantastic success, with the support of local campaigners, has set the way for other countries to follow. Now, as we move into more and more rural areas and we have a clearer picture of growing demand, there are real benefits to be gained through a planned roll out. This means we can deliver broadband to far more people in a shorter timeframe.

“This approach also means we can use the best engineering solution for the whole network to efficiently manage costs and future growth. Together with our plans to extend the reach of broadband from a local exchange, this takes us significantly closer to universal availability.”

The previous initiative, where an exchange was only converted if there were enough preregistered customers to make it worthwhile, prompted BT to upgrade over 2000 exchanges.

The company will now be undertaking a systematic roll-out to all but the very smallest exchanges. As for the remaining 100,000 UK premises that won’t be covered by the new exchange upgrades, BT has promised to continue to find other ways to deliver broadband internet access to remote locations.

BT’s press release