Sunday, May 23, 2010
Bandwidth Implications of Online Video
The reason is the sheer cost impact of supplying enough bandwidth to support even a part of today's viewing requirements.
Video, in fact, is the chief reason there is a growing gap between ISP revenue from providing access services and the revenue that can be earned by providing such access (click image for larger view).
To be sure, multiple approaches will be taken to better match demand and supply. Price increases, retail price plans better tailored to actual consumption, wireless offload to fixed networks, signal compression and other efforts are likely.
Monday, February 11, 2008
How Much Bandwidth is Enough?
Sunday, January 27, 2008
TowerStream: 8 Mbps for $1,000 a Month
That effort failed. Similar spectrum then was touted by the likes of Winstar, Teligent and others as a solution for high-speed access in the business market. The effort failed.
Much spectrum then was acquired by firms such as Sprint Nextel, BellSouth and MCI and spend years essentially languishing. Now Clearwire and Sprint say the former MMDS spectrum will be the foundation for WiMAX.
We shall see. A smaller new company, Towerstream Corp., is selling 8 Mbps broadband connections for $1,000 a month in eight markets, and currently plans to operate in 20 cities within two years.
In its Seattle market, starting February 1, new customers will be able to buy 3 Mbps connections bandwidth for $499 a month, with free installation. Towerstream offers businesses a range of bandwidth options including T1, T3, 100 and 1000 Mbps connections
The company has established networks in Los Angeles, Miami, Chicago, Seattle, the San Francisco Bay Area, and the greater Boston, Providence and Newport, R.I.
Using WiMAX technology, the company can “light" a city with just a few antennas. Its New York City network uses four antennas, including one on the Empire State Building.
TowerStream undercuts competitor prices for a T1 line by 50 percent or better. The small antennas that the company locates at the customers’ premises are installed by contract DISH or DirecTV installers.
Provisioning intervals normally are two or three days, compared with three to six weeks for a T1 line from a telephone company or competitive local exchange carrier.
Mid-band speeds in the 8 Mbps to 10 Mbps range seem to be the "sweet spot."
TowerStream appears to be using both telesales and direct sales approaches. It is said to have a 180-seat telemarketing center and is in the midst of expanding its sales force to 160 people, according to Morgan Joseph analysts, who say the company won 27 contracts in eight days, on the strength of 58 proposals. The company appears to have 100 or so direct sales reps trained and ready to call on prospects.
So far, however, no single entity has managed to build a big business on the backs of fixed wireless broadband in the small business, medium-sized business or enterprise markets. And it may be that the path to success is precisely to operate as a niche provider, in high-density markets, without getting grandiose. That's typically where operators have stumbled in the past. But we'll have to watch and see.
In many cases the business case rests on prosaic concerns. LMDS operators found they had trouble getting access to rooftops once landlords decided they were sitting on a gold mine. It wasn't, but the incremental real estate access charges were enough to kill the business case.
Then there is the availability of riser and conduit space, access to it and the cost of new cabling. Assuming those sorts of issues can be managed, TowerStream might have a shot, at least in some markets, such as New York.
Bandwidth in the 8 Mbps to 10 Mbps range is a bit more than the 4 Mbps to 6 Mbps mid-band Ethernet service some other providers are finding attractive.
Sunday, January 6, 2008
How Much Bandwidth is Enough?
Motorola thinks about six percent of users require 58 Mbps by 2010, while a quarter of households will require 40 Mbps service. About 44 percent of households will be able to get by with just 19 Mbps.
Friday, January 4, 2008
HDTV Slingbox: More Stress on Upstream Bandwidth
Sling Media has announced a new version of its Slingbox Pro set-top box that has its own HD TV tuner and can send out a 1080i HD picture over the network. The Slingbox Pro-HD will be initially aimed at the U.S. market.
So forget about what P2P is doing to the backbone and access networks. Now users will be streaming HDTV from their homes, stressing the entire network at its biggest chokepoint: the upstream. Ouch!
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