Networking

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
BT Results Analysis: Stuck Between Rock And Hard Place
Poor old BT. Now that it’s reached a settlement with OfCom that allows it to keep retail and wholesale arms under one, some would say, severely stretched umbrella, commentators emerge from cover and say it might be better if it’d spit into two (or more) parts. The cost of Openreach has been put at £70m so far and in terms of efficiency in the UK telecoms market this could well be an ongoing sore.
BT has announced an IPTV offer for the retail market that some say offers too little too late. Early adopters of Digital TV are, in the main, already committed to Sky, who will look to rapidly integrate an Easynet download capability in an attempt to beat off the challenges from BT and a combined resurgent UK cable monolith formed by Telewest and NTL. The remnants of the consumer markets’ move to digital TV that BT will attract, are likely to be those less inclined to convert to a pay TV proposition, and they’re likely to be operating with tighter disposable incomes than those who have already left analogue TV behind.
Sky’s upcoming purchase of Easynet adds considerably to the pressure on BT.
Major Telcos in Europe have, by and large, a coherent mobile strategy and BT’s deal with Vodaphone is viewed as little more than a stop gap.
Where does this leave BT?
Interestingly enough, Telefonica’s bid valuation of O2 put the value of the former Cellnet constituent of BT above that of the remainder of the UK’s juggernaut Telco- perhaps BT Group could be of interest to another global suitor?
At present there’s a danger that not only will wholesale be delivering utility-style performance but that retail may be moving into a period of decline and could it be that the future of BT is again up for a re-evaluation by it’s major stakeholders?
14 November, 2005
Shoreditch Digital Bridge: Linking Residents
A project starting early next year in East London hopes to bridge the digital divide by broadband-enabling a number of housing estates.
The first stage of the Shoreditch Digital Bridge (SDB) will link-up 1,000 tenants of the Haberdasher and Charles Square Estates, Shoreditch before rolling out to the remaining 20,000 residents. Video Networks, who are best known for the broadband and IPTV service Homechoice, will be providing the connectivity.
Shoreditch/Old Street/Hoxton is a highly mixed area. It’s probably best known as a hip and cool area, mocked by some, celebrated by others and the source of the now-self parody Hoxton Fin haircut (pictured below). The flip side is deprivation. The apparent contrast makes sense. Artists moved into the area _because_ it was run down and the space they needed to paint in was cheap to rent, then over a ten year period it changed into a ‘destination.’
Happily, this project is focused on the original residents, not the ones who live in the £1/2m flats – sorry, apartments.
The functions available to the residents will be wide and ambitious.
The Education Channel will provide online learning, allowing students to submit homework assignments and work with virtual tutors. When this was used in Kingston upon Hull by KIT working with Kingswood school, it was a huge success.
One key part of closing the digital divide is the provision of a PC on TV, which will be operated adding a wireless keyboard using software such as Citrix. When we spoke to Homechoice about it, they told us this will be able to used with their current Set Top Box.
Interestingly, residents will be able to watch the CCTV cameras around the area – something that for years ‘the powers that be’ have said would never occur.
Additional services include a Health channel allowing patients to book GP appointments, provide virtual consultations and on-line health and diagnosis information; a Consumer Channel, allowing on-line group buying of common services such as gas, electricity and mobile phone tariffs; and an Employment Channel, providing on-line NVQ courses, local jobs Websites and virtual interview mentoring.
Satellite companies have for a long time had problems providing services to built up urban areas. Providing TV services over a broadband connection has for a long time made sense. The icing on the cake will be the Homechoice IPTV and broadband service, available at an additional charge.
We hope the SDB project will build on succeeded and lessons learned of previous pioneering work will be integrated.
The Shoreditch Trust
Shoreditch Digital Bridge
Hoxton Fin image courtesy of LondonCircus
Charles Square Image courtesy of Hackney Council
14 November, 2005
Homehoice Appoint CSFB To Fund National UK Expansion
This morning, Homechoice, the currently London-focused DSL-based VOD announced that they had appointed CSFB (Credit Suisse First Boston, as was) to raise new capital for their expansion around the UK.
Starting 2006, Homechoice plan to expand the number of homes they cover from the current 2.4m homes to over 10m. Homechoice state that this footprint is approaching the same size as that of the combined UK cable companies, which they’re close with, as ntl + Telewest actually have just over 12.6m.
New subscriber figures have also been announced by Homechoice, revealing 34,000, more than double the 15,000 previously disclosed and widely quoted this week when rurmours of Sky being interested buying them were circulating.
Roger Lynch pointed out, “We’re now the fastest growing pay TV service relative to our footprint ,” which, while it’s encouraging, would be expected given they started at such a small number of subscribers.
Their newly-announced ARPU (Average Revenue Per User) figures are impressive at £430, being considerably higher than Sky’s £384 (announced in 3 August 2005), but lower than Telewest’s £538 and ntl’s £477 (reported to ofcom, Q2 2005).
Comment
We find it slightly confusing that Homechoice is headlining this news release with their national expansion, which has been a long-stated aim for them and is therefore not news, and not CSFB’s appointment. They’re also putting out a whole lot of figures saying how well they’re doing. We’re not clear if this down to them wanting to make the most of the resent press interested the Sky rurmours have brought or a way of trying to cover that they’re need more money, or just genuine excitement of working the CSFB.
On the financing of the next stage of the roll-out, Lynch explained, “We’ve also reached the stage in our corporate development when we believe it’s right to raise capital from new investors. Hence our decision to appoint CSFB.
This could be read as saying that the current majority backer, Digital Explosion, which is owned by Chris Larsons, a Microsoft co-founder, doesn’t look like it’s prepared to fund the next stage. When we asked Homechoice, their spokesperson said Digital Explosion “Remained committed,” one further probing they wouldn’t be drawn on how much more money, if any they were prepared to invest.
We really hope that Homechoice is successful, we’ve always have been, and continue to be supporters of theirs – for their vision, their progress and their sheer bloody-minded determination to keep going.
Homechoice
3 November, 2005
Sky Sniffs Around Homechoice
The wires are hot with rumours that BSkyB is contemplating a bout of wad waving in the direction of the video-on-demand, broadband and telephone company Homechoice, which is reportedly finding things tres tricky in the increasingly competitive TV broadband market.
Homechoice’s parent company, Video Networks, managed to notch up hefty losses of £46.5m in 2004 – £1.5m worse than the year before – and faces an uncertain future of fearsome competition from the likes of Sky, the recently merged NTL/Telewest and BT.
Compared with Sky and NTL/Telewest’s subscription figures (7.8 m and 5.5m respectively), Homechoice’s last reported numbers of just 15,000 subscribers suggest that they could provide a tasty minnow for a major operator like Sky.
Homechoice currently provides a broadband Internet and telephone service, with on-demand programmes covering comedy, drama, music soaps, pay-per-view movies and home shopping.
Although Homechoice recently doubled the amount of homes that could receive their service to a more respectable 2.5m, there’s no guarantee that subscriber numbers will reach anywhere near that amount.
We got on the blower to Homechoice and were, not surprisingly, given the official line that, “There are no current plans to sell the business.”
City analysts, however, suspect that Sky could snap up the company as part of its plans for video-on-demand and broadband.
Homechoice
1 November, 2005
Sky Says Easynet Purchase “Solves All Problems”
BSkyB’s Director of Product Management, Gerry O’Sullivan couldn’t help sounding smug as he took centre stage at The Connected Home conference in London today.
“Those of you who read the papers may have noticed we bought a small Internet company last Friday,” he announced. “To have a combination of satellite distribution and broadband connectivity solves all problems”.
O’Sullivan’s presentation focused on Sky+ and stated the need for a “whole home solution” but he was keen to distance himself from existing IP-based offerings such as the Windows Media Player.
While Microsoft’s Cynthia Crossley and Telewest’s Mark Horley nodded collaboratively to Merlin Kister of Intel’s assertion that “We mustn’t be close minded and pick a winner. It’s important for all players to work together,” O’Sullivan looked disinterested.
“I’m a fan of Media Player – but my mum doesn’t want a reminder to renew her anti-virus subscription while she’s watching Coronation Street,” he said.
And, in response to an audience show of hands revealing nearly all had regular problems with programme crashes on their PCs, O’Sullivan added:
“There’s zero tolerance (among our customers) for that sort of unreliability and pain…we can only roll out products that you switch on and they work.”
And BSkyB has the money and ambition to keep turning out products it thinks consumers may need – the five day old Sky Gnome for example, enabling you to listen to satellite radio in the garden, or the new movies over IP service, Sky By Broadband – due to launch in the next two weeks.
The third generation Sky+ boxes have 160GB of space – only half are visible to the consumer – the other 80GB of disc space is for BSkyB to keep as a store for future ‘on demand’ programming, O’Sullivan revealed.
Horley mentioned that Telewest was launching its own 160GB PVR in early 2006, with the WHOLE disc available for recording “as we already offer video on demand”.
Sky can’t support true VOD – it’s satellite distribution network has limited bandwidth and lacks an intrinsic return path – but do consumers care?
With Sky+ proving a virtually churn-free proposition (apparently 90 per cent of viewers say they’re very satisfied), Easynet on board and plenty of money in its pocket, O’Sullivan can’t help but smile – looks like BSkyB is onto a winner.
The Connected Home 05
27 October, 2005
Networked Home “too confusing” for consumers
The futuristic vision of a connected home with content moving seamlessly from our TV to our PC and on to our mobile device is still a long way off, according to key speakers at The Connected Home conference in London today.
While David Sales (pictured right) from BT Entertainment waxed lyrical about broadband; Microsoft’s Elena Branet praised IPTV; and Mary Francia of Philips presented the Streamium product range; they conviently avoided the the area of interoperability.
It took Dimitri Van Kets (pictured left), from Belgian telco, Belgacom, to voice what many were thinking by announcing that the networked home was “little more than a mass of standards” and “too confusing” for the average consumer. Unless the service providers get together and educate customers, he said, true home connectivity was never going to happen.
Sky Interactive’s Paul Dale, speaking from the audience, said he’d been annoyed when a perfectly legal DVD of Thomas The Tank Engine wouldn’t play on his Windows Media Player. Luckily he’d been able to hack into it – but clearly this wasn’t the preferred way forward!
Paul Szucs of Sony said that service providers should “try not to lose the plot with content protection”, adding that “consumers simply want their devices to work together and share content.”
The mood was best summed up by Peter King of Strategy Analytics: “We’re not going to move any further without a massive consumer awareness programme funded by all players in the chain.”
Even Microsoft’s Branet admitted there was a need to “focus on educating consumers”.
But until the key players stop operating in silos, this isn’t going to happen.
Microsoft
Streamium
26 October, 2005
BT Starts Trials Of 8mbps Broadband
BT is planning to turbo-boost broadband connectivity by quadrupling basic connectivity speeds to 8mbps nationwide and giving the service a snappy name, “ADSL Broadband Max”.
Compared to some of the competition, BT’s current 2mbps basic broadband connectivity speed (quadrupled from 500kbps to 2mbps earlier this year) makes a glacier look light footed, so the upgrade is desperately needed to keep customers from straying elsewhere.
The 8mbps service will see BT reaching the theoretical top ADSL speeds it announced when the broadband service first launched in 2000.
BT has said it will begin trials of its ADSL Broadband Max service next month in London, Cornwall, South Wales, Scotland and Northern Ireland, with the trials gradually expanding into a national 8mbps roll out starting in spring 2006.
Cameron Rejali, managing director for products and strategy at BT Wholesale, was on-message, “BT is committed to ensuring everyone benefits from the broadband revolution, whether they live in valleys, villages or city centres”.
With the industry rapidly consolidating, BT is coming under increasing pressure from newly merged uber-telecos like Telewest/NTL and Sky/Easynet, with the former already offering speeds of more than 8mbps for no extra charge on existing broadband subscriptions.
Elsewhere, BT has started trialling optical fibre broadband services in Wales, connecting business to ultra-high-bandwidth services using strands of blown fibre run along using existing telegraph poles.
This technology saves BT having to mess about digging optical fibre trenches to properties and reduces costs of delivering optical services in “the last mile”.
BT
26 October, 2005
Sky/Easynet Purchase: Analysis
As we reported last week, Easynet has been bought by Sky – as long as they get shareholder approval, but since Sky have offered a premium on Easynet’s shares, this should be a done deal.
This is the first broadcaster (in the UK) to take control of the telecom’s infrastructure required to deliver a triple-play of voice, Internet and video, though it’s likely Sky will use the broadband piece to complement its satellite delivery channel. This does give them the much need backchannel that has been elusive so far (requiring dial-up to access SkyActive and other services).
This could be a major blow for THUS who provide telecoms services for Sky as well as hosting various services (THUS developed parts of the WapTV service with Sky). Sky accounts for around £30m of THUS’s revenue (about 10% of their total) which could potentially go to Easynet which would make a huge dent in THUS’s revenue figures, though a lot of it is very low margin.However it might put THUS in a poor financial situation when viewed by the city.
Even though Sky are buying into LLU, Easynet only cover around 250 exchanges and currently all the voice goes to BT (Easynet use the shared metallic path LLU option), while Sky are likely to want to take the phone service as well (they already have a SkyTalk package using CPS provided by THUS). Sky will need to invest to make this a reality as well as increasing Easynet’s coverage. They have said they want to go into around 1000 exchanges, so that’s a build out of around 750 – which won’t be cheap (probably another £100m’ish at least).
For Sky that may be enough as it will cover all major city centres and that’s a big plus for Sky who estimate they can’t reach 20% of their potential audience due to issues with coverage (i.e. no satellite line of site due to buildings in the way, or no way to mount a dish, multi-tennant buildings etc). LLU will give them the means to reaching these people.
It still begs the issue of what’s going to happen when BT roll-out their 21CN and attack all 5,600 local exchanges and also offer a triple-play, but at least Sky will have a lead on them and already have the content ready to roll. BT are likely to be the winners longer term, but at least Sky may have a fighting chance in urban areas.
If all the LLU players aggregated infrastructure and competed on services, they could build a 21CN of their own now. LLU competition is going to be fiercely competitive with Wanadoo, AOL, Sky and even Be offering a triple-play – all competing for the same customers. – as well as BT (who will have nationwide coverage) and not ignoring NTL/Telewest who are also going into LLU.
The LLU operators have got maybe a 2 year window before BT get their act together, if they don’t do something co-operative now, in 2 years a lot of them will just be passing memories.
Easynet
Sky
24 October, 2005