Digital-Lifestyles

Networking

  • Ofcom Strategic Review of Telecommunications Gets UK Parliament Inquiry

    The UK House of Commons launched an inquiry into Ofcom’s Strategic Review of Telecommunications (SRT) yesterday.

    Ofcom, the uber-regulator that among other things, oversees telecoms in the UK, started its SRT in January 2004. It was long overdue in the eyes of many, as it was the first comprehensive strategic review of the UK telecommunications sector for 13 years.

    Now the UK House of Commons, Trade and Industry Committee will be looking into the workings and results of the SRT, in particular how it relates to the “extensiveness and competitiveness” of broadband in the UK.

    The SRT is divided in to three phases; Current position and prospects for the telecommunications sector; Options for Ofcom’s strategic approach to telecommunications regulation; and Proposals; the first phase was published at the end of April.

    Ofcom identified two key problems in Phase One; an unstable market structure in fixed telecoms, dominated by BT and with alternative providers that are, in the main, fragmented and of limited scale; BT’s control of the UK-wide access network hadn’t been addressed to date. They then posed some questions; primarily about the future of BT.

    Phase Two was published in November 04 and used some relatively strong language (pretty diplomatic in the normal, non-Quango world), which we summarised as “Ofcom to BT: Equivalence or else”. It’s still open for public consultation until 3 February 2005.

    Yesterdays announcement from the Trade and Industry Committee, said in the light of the Committee’s Report on the UK Broadband Market, the inquiry will be looking into OfCom’s STR process to date, the interim conclusions reached in the Phase Two document, and the direction of the remainder of the Review. They’ll be paying particular attention how it relates to the competitiveness of the broadband market in the UK, including local loop unbundling, and the “functional separation of British Telecom”.

    A spokeperson at OfCom told us that they “had already briefed the Committee” and “welcomed their interest” in the SRT. When we asked about the previously expected Spring delivery of SRT Phase 3, we were told that they “still planned” to meet it. Frankly they were playing their cards pretty close to their chest.

    We called the office of the Committee, but given the 21 enquiries they have on currently, no one was available for comment at the time of publishing the story.

    If you have any view on the area covered by the Committee, they’re asking for written evidence on these or any other related issues by Friday 18 February 2005 via email ([email protected]). If you do write please CC ([email protected]) us in, we’d be interested in see the issues raised.


    Alerted by OfcomWatch
    Trade and Industry Select Committee
    Ofcom – Strategic Review of Telecommunications

  • SuprNova.org closed in MPAA, BitTorrent Action

    For the last six months or so, the film industry has been gearing up to take on file-sharers exchanging video content online. The owners of the films are not very happy about people around the world freely swapping their content, and them not making any money about it.

    The first legal actions were against individuals who were sharing films. Next they mounted their assault on BitTorrent, an application that can be used to download video content. Most recently they have passed their attention to sites that point users to content distributed using BitTorrent.

    Their first move has been to take down the most popular of these, such as the self-described Universal Bit Torrent Source, SuprNova.org and TorrentBits.com.

    The sites targeted do not contain the actual video files. Because of the way bitTorrent works, they simply contain a list of pointers to the content held in the bitTorrent format. The video files are themselves fragmented around the network of people running the bitTorrent application.

    There are other sites, like TVTorrents, still continuing to make content accessible.

    While BitTorrent, in and of itself, is not evil, the film companies are very putout that their films are travelling through it. BitTorrent also has legitimate uses. It is used to distribute many type of material. Digital Lifestyles has used it to distribute audio recordings in the past.

    We hope that while pursuing their legal action to regain control of the distribution of their content, the film companies are also keeping their eyes open to the opportunities of this type of technology.

    As we’ve commented previously, when video content, distributed over a shared network, is combined with a new content alert technology like RSS, the result is a blueprint for a form of TV delivery. Content automatically arrives at the viewer machine when it’s been published alowing them to chose which they will watch.

    MPAA
    BitTorrent

  • BT Wholesales 4m ADSL Connections

    BT has, through its arrangement with over 150 broadband providers, delivery four million ADSL connections in the UK. This figure also includes connections sold directly to the public by BT Retail.

    BT say they are connecting a new customer every 10 seconds, equating to an average of nearly 60,000 new connections each week.

    The last million milestone was only back in August 2004 when three million connections were announced. A million new connections in one quarter is pretty good.

    Currently there isn’t really any competition for BT Wholesale, although some companies are starting to make early moves with specialist services like UK Online.

    We see this as another in the long running back and forth between BT and OFCOM. BT tells the press “No BT would equal No Broadband” (as Christopher Bland did to the Telegraph), OFCOM tells them to trim their prices. Is their any co-incidence that BT issued this news on the heals of OFCOM ordering BT to cut the cost of third party access to the customer, opening the market for strong competition for BT Wholesale?. As the Guardian commented

    At the moment BT is the gatekeeper to all but 16,000 of the UK’s 25m phone lines, and charges for access to them. The telecoms operator suffered a blow six months ago when it was forced to lower the prices it charges for access to its network. Ofcom is aiming to get a system in place next year that will see 1 million lines unbundled a year.

    Will BT continue to be so strong with meaningful competition?

  • Online Documentary Channel Planned by UK Channel 4

    The Chief Exec of Channel 4, Andy Duncan, has been floating the idea of launching an Internet-based documentary channel, that would carry archive footage from previously transmitted shows.

    Duncan also announced that Channel 4 is to “double the amount it spends on ‘public service’ Internet sites”, which he revealed was currently in the low millions, reported Brand Republic.

    We understand from Ofcom that the comments were made during their PSP pitching day.

    Andy Duncan moved from the BBC, where he was the mastermind of the highly successful Free-To-Air service, Freeview. He’s been speaking publicly a lot about re-positioning Channel 4, although not all of his comments have been well received.

    When Digital Lifestyles spoke to Channel 4 today about the Internet-based channel, there were still only sketchy details available; in their words it was “work in progress.” They did confirm that new programmes would be commissioned specifically for the site and that content would be downloadable.

    Channel 4 told us more details will become available in the New Year and the launch is muted for Spring 2005.

    Channel 4
    Ofcom

  • P2P OK with Most Musicians, Survey

    A survey by the Pew Internet & American Life Project has revealed that two thirds of musicians that they surveyed felt that peer-to-peer (P2P) file-sharing poses a minor threat or no threat at all to them.
    The author of the report, Mary Madden said, “What we hear from a wide spectrum of artists is that, despite the real challenges of protecting work online, the Internet has opened new ways for them to exercise their imaginations and sell their creations. To many, this feels like a new Digital Renaissance rather than the end of the world.”
    The findings of this survey are in stark contrast to the published findings of the US recording industry that claim that file-sharing hurts artists.
    We’ve found a drastic difference between the public stance of the record companies and their private actions. In our discussions with operators of file-sharing networks we’ve been surprised to hear that one of their largest paying clients have been record companies, who have become near-obsessed with using the networks to watch the speed to spread of new tracks giving them valuable feedback to the viability of bands.

    Pew Internet & American Life Project survey

  • MPAA Judge Finds ‘bulldozer’ approach ‘improper’

    Last week, members of the Motion Picture Association of America (MPAA) filed 11 lawsuits against hundreds of people they accused of using file-sharing networks to share infringing copies of movies. However, the Federal Judge ruled the ‘bulldozer’ approach improper, ordering that the case should be put on hold for all but one of the defendants.

    The move by the MPAA to group defendants into arbitrarily-joined actions was probably thought of as a ‘neat’ and easy way to get the message across to other US citizens participating in file sharing. ‘Bulk’ suing could also save a heck of a lot of paper shuffling and administration work.

    The MPAA sued groups of “Does” (John Doe) identified by numerical IP address and requested the discovery of names from the users’ Internet Service Providers (ISPs). However, Judge William Alsup ruled that because claims against the 12 defendants were unrelated, suing them together into one big case was improper. “Such joinder may be an attempt to circumvent the filing fees by grouping defendants into arbitrarily-joined actions but it could nonetheless appear improper under Rule 20,” the order states.

    The Electronic Frontier Foundation (EFF) has filed friend-of-the-court briefs, objecting to similar misjoinder in many of the cases filed by the Recording Industry Association of America (RIAA) against alleged infringers.

    “This decision helps to give due process rights to the Internet users accused of infringement,” said EFF Staff Attorney Wendy Seltzer. “Lumping them together makes it more difficult for everyone to defend against these claims.” EFF is also concerned about the movie studios’ failure to produce evidence of infringement against even Doe #1 in this case.

    In a separate case, Warner Brothers Entertainment has secured a $309,600 judgement against an actor for allegedly making promotional ‘screener’ copies of ‘The Last Samurai’ and ‘Mystic River’ available for bootleg DVD copying and unauthorised Internet trading.

    Carmine Caridi, a former recurring actor on ‘NYPD Blue,’ is accused of copyright infringement and is facing a default judgement of $150,000 per film and $9,600 in attorney fees. Caridi and co-defendant Russell Sprague were caught because the screeners were individually watermarked for each recipient.

    According to Warner Brothers, Carmine Caridi, as a member of the Academy of Motion Picture Arts & Sciences, signed an agreement before he received the 2003 awards season screeners promising not to circulate them. It is believed that he immediately sent the VHS screeners to another address where they were copied onto DVD and converted to digital files that were posted on the Internet.

  • Thomson: ContentGuard and Verisign deals

    Paris-based Thomson have been busy. They’ve done two deals that will have an impact.They have become a strategic investor in ContentGuard, a closely-held developer of Digital Rights Management (DRM) intellectual property. With this investment, Thomson enters into a partnership with current investors Microsoft and Time Warner Inc.

    Digital Rights Management describes a wide range of technologies that have been developed to allow movies, music and other digital content to be accessed by consumers over the Internet while protecting that content from unauthorised copying and counterfeiting – a technology championed by Microsoft and its Windows Media Player software.

    Thomson has agreed to purchase an aggregate 33 per cent voting stake in ContentGuard from Microsoft, Time Warner and Xerox, subject to customary closing conditions and regulatory approvals. The announcement follows Time Warner’s April 2004 purchase of most of Xerox’s stake in ContentGuard.

    The three companies (Microsoft, Time Warner and Thomson) are using the announcement to promote the development of inter-operable DRM systems, accelerate the deployment of consumer devices that support Digital Rights Management, and encourage content owners to launch new distribution channels.

    The move is also interesting because Thomson is a long-standing technology and services provider to content owners and network operators, thus bringing a unique perspective that should complement the interests of ContentGuard and its co-investors. Thomson also has a lot of experience in IP licensing, which should further help to support ContentGuard’s licensing activities and accelerate and broaden the acceptance of DRM and ContentGuard’s intellectual property.

    “The development of Web services and new content distribution systems requires a complete ecosystem of participants. Thomson’s investment alongside Time Warner and Microsoft shows that media, software, devices and services companies are committed to developing the infrastructure for Web services to flourish”, said Bill Gates, chairman and chief software architect, Microsoft. “This partnership will help propel the licensing of DRM intellectual property. With the participation of Thomson, a recognised leader in IP licensing, we add a European headquartered partner that will make this important technology more accessible in other parts of the ecosystem, particularly services and devices.”

    “Today’s announcement marks yet another important step in our work on DRM, and expands our collaboration with key partners on this strategic initiative,” said Ron Grant, senior vice president at Time Warner. “We look forward to working with Thomson, Microsoft and others on offering consumers exciting new digital media products and services while simultaneously protecting content.”

    In another move, Thomson and VeriSign have joined forces to create an authentication and authorisation service for movies, music and games delivered over digital networks. The new service, which will likely debut next summer, will be used to process secure transactions and for other back-office functions. It is geared at the subscriber digital entertainment market over broadband networks, which is a fast growing industry.

    VeriSign’s Internet transaction authentication and network infrastructure technologies will be used, while Thomson will capitalise on its experience in content security, management and distribution. Both companies also plan to develop proprietary technologies to authenticate and authorise digital content and to build an interface for home networking devices such as video recorders, mobile devices and computers. These features could help protect movies and other content from piracy.

    Thomson
    ContentGuard
    VeriSign

  • Universal Music Group Creates Digital-Only Music Label

    Another month, another digital music announcement. This time, however, a record label is actually thinking long term. Universal Music Group (UMG) are embracing online technology as part of its business model, rather than wasting its time, money and efforts suing a handful of consumers for downloading copyrighted material.

    Universal, which like other record companies, has heavily relied on profits from sales of CDs, will this week promote eight relatively unknown acts on a digital-only label (UMe Digital) through online services including Apple Computer’s iTunes, RealNetworks’ Rhapsody and Microsoft’s MSN Music. Online promotion is an alternative marketing option that’s nowhere near as expensive as traditional forms, but has the potential to be highly effective.

    It’s great news that Universal is taking these innovative steps, as it finally shows that music labels will have to adapt to online sales and marketing in order to survive, especially as sales of CDs have fallen over the last four years, record stores are moving from high streets, and more shelf space is being given to DVDs and video games.

    The move is also great news for bands because they can get relatively large exposure without having to spend a fortune on recording, making a video and then going on the road to ‘develop’. However, bands do not receive an advance or even the cost of producing an album. Having said that, they do retain full ownership of their master recordings and licence them to Universal for a limited time.

    Universal is paying the musicians around 25 per cent royalty on the retail price of the downloads, and if online sales of an artist’s music reach a certain point, say around 5000 copies of a particular song, the company has an option to pick up distribution of the CD to record stores.

    It’s now only a matter of time before digital-only independent labels start promoting bands online by creating a low-risk way to market them without producing a physical album or underwriting a tour or music videos. For consumers, gone are the days of paying £15 for a CD – a digital world means more choice and better value.

    Warner Music Group is developing a unit similar to Universal’s, initially to sign artists and finance recordings for online sales, with the potential for later CD releases.

    Universal Music Group
    Warner Music Group

  • 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
    .