Xohm Pricing Model

It's hard to say what might develop if and when the new Clearwire, incorporating Sprint Xohm and Clearwire assets, actually launches new unified offers. For the moment, as Sprint rolls out its WiMAX network in Baltimore, we should expect a la carte usage plans, much on the casual Wi-Fi model.

Sprint has said it will break with the traditional mobile model and offer service without contracts and termination fees.

So far, it seems as though monthly service will be priced around the going rates for comparable digital subscriber line and cable modem services.

Ofcom to Thread Fiber Through a Needle

Ofcom, the U.K. communications regulatory authority, will try to thread a needle this fall as it prepares to create a new framework encouraging fiber-to-customer deployment. On one hand, it wants to convince BT that a reasonable financial return can be earned if it deploys fiber-to-customer network.

On the other hand, Ofcom seems committed to a wholesale regime that allows competitors access to the network. And therein lies the problem. BT will want some assurance that wholesale rates resemble as closely as possible those it might get at commercially negotiated rates. That likely means relatively minimal price control.

BT's competitors will want healthy discounts that mirror what they currently can get for DSL infrastructure. Ofcom likely won't allow that, as such discounts arguably create too much uncertainty about rate of return.

That's a pretty tight needle to try and thread.

We Hold These Truths to be Self Evident

We hold these truths to be self evident; at all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness.

Broadband Growth Strongest in $20,000 to $40,000 Households

Broadband adoption rates between 2007 and 2008 were highest among households with annual income between $20,000 and $40,000, according to new research by the Pew Internet and American Life Project.

The only income group to experience declining broadband penetration was the less-than-$20,000 income group, which includes college students as well as other lower-income households.

The other notable divergence from growth rates in the 15 percent to 24 percent growth rates were among households with annual income above $100,000, where four percent growth was the norm. It is probably fair to say that wealthier households largely have adopted already.

Microsoft Enters Consumer Software as a Service Business

Microsoft Corp. has unveiled Microsoft Equipt, an all-in-one security and productivity software subscription service for consumers. The new offering is a move by Microsoft into the software as a service business.

Microsoft Equipt is $69.99 (U.S.) estimated retail price for a one-year renewable subscription. Each subscription will be good for three home PCs.

Microsoft Equipt will be sold in nearly 700 Circuit City stores in the U.S. starting mid-July 2008.

Microsoft Equipt includes Microsoft Office Home and Student 2007; Windows Live OneCare, the all-in-one security and PC management service; Windows Live tools, such as Windows Live Mail, Windows Live Messenger, Windows Live Photo Gallery and so they can connect and Office Live Workspace, a new service from Microsoft that makes it easy to save documents to a dedicated online Workspace and share them with friends and classmates.

What's Up with AT&T's Satellite Deal?

You are free to take your pick: AT&T has terminated its current contract with Dish Network simply to negotiate better terms; or AT&T has done so because there is a real chance it might partner with DirecTV. Either thesis has some merit.

AT&T represents about 15 percent of Dish Network’s gross subscriber adds, so losing the deal would likely lead to negative subscriber growth for Dish in 2009. From AT&T's perspective, switching providers would entail some costs, as well, so the most-logical scenario is simply that AT&T will use the new competition to extract better terms from Dish.

It wouldn't be the first time a major supplier has been played as a card against an existing supplier. At the margin, some would argue, DirecTV offers a richer menu of on-demand and HDTV programming.

But a value-price argument can be made for either satellite provider. There are the switching costs to consider, of course. But there could be more going on under the surface than is apparent.

One never should discount what Liberty Media Chairman John Malone (Liberty Media has a controlling interest in DirecTV) might be thinking, strategy-wise. At his best, he is a move or two ahead of everybody else. I don't know whether that is a factor this time around, but anytime he does decide one of his assets has a strategic opportunity, one pays attention. He does.

Nationwide Sprint Femtocell Deployment?

Broadband Reports says Sprint is launching its "Airave" femtocell service nationwide on July 15, 2008. The in-home terminal reportedly will cost $1,000, and allow any Sprint mobile handset to communication over the fixed broadband connection attached to the femtocell box.

A single user can expect to pay $15 a month. Families can expect to pay $30 a month for unlimited domestic calling using the femtocell.