Saturday, June 13, 2020

Less Change Than You Think, Early On; More than You Expect Later

It is not hard to find projections that the Covid-19 pandemic will create a new normal that radically reshapes key elements of life and work. One might note similar projections about 5G, artificial intelligence, virtual reality, edge computing, unmanned vehicles or internet of things. 


History and science suggest we ought to be cautious about early levels of change, but also remain open to greater than expected long term changes. 


There is a bit of business wisdom that argues we overestimate what can be done near term, but underestimate the long term impact of important technologies or trends. The reason is that so many trends are an S curve or Sigmoid function


Complex system learning curves are especially likely to be characterized by the sigmoid function, since complex systems require that many different processes, actions, habits,  infrastructure and incentives be aligned before an innovation can provide clear benefit. 

source: Rocrastination 


One practical implication of the S curve or Sigmoid function is that the search for the next wave of products must begin before the current wave is exhausted. John Chambers of Cisco was fond of noting the importance of catching such transitions.


source: John Lusink


Another practical implication is that we generally cannot reap the benefits of new technology immediately. A learning curve happens as firms and industries gradually learn how to use new technology to transform their core business processes. 


Friday, June 12, 2020

Video Seen as Top 5G Use Case in Enterprise; Fixed Wireless in Consumer Space

Enterprise information technology professionals widely believe video applications will be an early lead application for 5G, with 83 percent of 1,000 IT professionals surveyed by Parks Associates naming video detection and alerts as a 5G use case of interest. An equal percentage named video surveillance as a promising use case. The study was sponsored by Nokia. 

source: Nokia


A companion survey of consumers found fixed wireless cited by 76 percent of consumers as a “most appealing” use case. The consumers were surveyed in the United States, United Kingdom and South Korea. The study conducted by Parks Associates was sponsored by Nokia. 


At least in part, that might be because 41 percent of respondents believe they can buy internet access from just one service provider. Some 66 percent of respondents claiming they would subscribe to 5G FWA if it cost the same as their current broadband service and delivers the same or better performance.


source: Nokia


As always, consumer research on new products they have not used yet can be misleading. Many such surveys have consumers saying they are willing to pay more to use a proposed new product or service, with high interest in the new products. 


Actual consumer behavior can diverge significantly from survey findings, of course. But there was significant reported interest in a range of use cases, which appear to have been “prompted” choices. In other words, researchers picked the use cases and asked for opinions about the proposed use cases. 


That prompted approach also appears to have been used in the study of enterprise IT professionals. 


Wednesday, June 10, 2020

Mobile Teledensity is 5X Fixed Network Peak

Sometimes technology and policy changes really do have a big impact. Consider “teledensity,” measured for decades as the number of phone subscriptions for every 100 persons. Globally, teledensity rose until about 2005 globally, peaking about 2000 in the United States. Even at its peak, though, fixed network teledensity was less than 20 lines per 100 people. 


source: ITU


The technology disruption was mobile phones and networks, which rapidly shifted demand away from consumer fixed services. 


In 2020, there are about 8.3 billion mobile subscriptions in service, greater than world population. Mobile teledensity, in other words, is over 100 accounts per 100 people. 


source: World Bank

Monday, June 8, 2020

Building Networks to Handle Video Protected Experience During Pandemic

As it turns out, building access networks meant to handle entertainment video and content has other benefits, such as protecting user experience when a sudden spike in usage happens. That was not expected, back in 2009, and seems to have been a major reason why global internet access networks did not crash during the Covid-19 pandemic. 


Basically, ISPs and wide area network providers expect traffic to grow as much as 40 percent every year, and have built their networks to match. 


The other important change arguably is that lots of content, application and transaction platform firms build their own private global networks, which has the effect of adding much more capacity to the global network than would have been the case if the primary suppliers were telcos. 


In a serious pandemic, U.S. businesses, government agencies and schools could experience absenteeism (or forced dispersal of workers as precautionary measure) that could reach 50 percent or higher ranges, thereby displacing Internet access demand from normal daytime sites to homes, predicted a 2009 study by the Government Accountability Office.


The GAO expected residential internet access to be disrupted, as the networks are “not designed to handle this unexpected load.”


Of course, a pandemic did happen in 2020, did result in the shutdown of most of the economy, people did have to stay at home, away from school and work. But the feared internet access disruption never happened. 


In fact, the percentage of people required to stay at home vastly exceeded the 50 percent figure the GAO assumed. It was virtually 100 percent in most parts of the United States. But the networks proved resilient, in most parts of the globe, despite an immediate increase of internet access data volume between 30 percent and 45 percent. 


For the week of March 15 to March 21, 2020, as people were ordered to stay at home,  internet access services in 200 U.S. cities maintained service levels, though 13.5 percent of cities had seen average speed dips of 20 percent of typical ranges, according to Broadband Now. 


In late March and early April, consumer traffic was up possibly 30 percent to 40 percent in affected countries where stay at home policies were in effect. 


The reason seems to be that internet service providers have built their networks to handle ever-growing traffic volumes. Doing so meant they had headroom to handle the sudden traffic upsurge. It arguably also helped that today’s networks are built to handle video bandwidth as a routine matter. 


Video is the widely-used app that is most demanding of network bandwidth, and also drives nearly zero incremental revenue unless the ISP owns the content, which in the streaming era only applies to a few big ISPs. Even then, no ISP owns more than a fraction of all the streamed content. 


The point is that the networks must be built to handle video, and lots of it. A byproduct is that bandwidth to support work from home, email, VoIP, web content, database access and conferencing is, if not trivial, relatively easy. 


An earlier  2007 DHS study was said to “confirm that the increased traffic generated in neighborhoods during a severe pandemic is likely to exceed the capacity of the providers’ aggregation devices in metropolitan residential neighborhoods.” That has not proven to be the case. 


Notably, the GAO report said that at 40 percent of absenteeism (workers forced to stay home),  “at the 40 percent absenteeism level, the study predicted that most users within residential neighborhoods would likely experience congestion when attempting to use the Internet.” 


The Covid-19 pandemic caused close to 99 percent stay at home behavior. 


The point is that predictions always are hard to make. In this case, ISPs built robust networks that were able to handle the absolute worst case scenario for internet usage caused by a pandemic, with only a slight slowing of peak speeds. 


That is most welcome, given the dire predictions GAO issued. "Increased use of the Internet by students, teleworkers, and others during a severe pandemic is expected to create congestion in Internet access networks," GAO warned. That did not happen. 


"Localities may choose to close schools and these students, confined at home, will likely look to the Internet for entertainment, including downloading or 'streaming' videos, playing online games, and engaging in potential activities that may consume large amounts of network capacity.” That did happen, but the networks were able to handle the extra load. 


"Additionally, people who are ill or are caring for sick family members will be at home and could add to Internet traffic by accessing online sites for health, news, and other information," GAO added. That seems to have added so little additional strain it would be very hard to measure. 


"If theaters, sporting events, or other public gatherings are curtailed, use of the Internet for entertainment and information is likely to increase even more," GAO said. Indeed, people turned even more to reliance on streaming networks. 


But the networks had been built to handle that demand, so keeping up with relatively low-bandwidth work from home demand was not a problem.


Saturday, June 6, 2020

Fixed Network Bandwidth Caps Might be Unnecessary, to Prevent Congestion

Many predictions prove quite false. Consider the 2009 study of pandemic impact on internet access by the U.S. General Accountability Office. That study warned that, in a serious pandemic, “increased demand during a severe pandemic could exceed the capacities of Internet providers’ access networks for residential users and interfere with teleworkers in the securities market and other sectors.”


Pointedly, the report said “DHS (Department of Homeland Security) has not developed a strategy to address potential Internet congestion.” As it turns out, internet service suppliers, in the normal course of supporting their businesses, built networks robust enough that measures to deal with internet congestion simply were not needed. 


It is worth noting that the report suggested “an influenza pandemic could result in 200,000 to 2 million deaths in the United States.” Though any loss of life is lamentable, that prediction has not proven close to correct. 


“Increased use of the Internet by students, teleworkers, and others during a severe pandemic is expected to create congestion in Internet access networks that serve metropolitan and other residential neighborhoods,” the report warned. 


Of course, a pandemic did happen in 2020, did result in the shutdown of most of the economy, people did have to stay at home, away from school and work. But the feared internet access disruption never happened. In fact, the percentage of people required to stay at home vastly exceeded the 50 percent figure the GAO assumed. It was virtually 100 percent in most parts of the United States. 


For the week of March 15 to March 21, 2020, as people were ordered to stay at home,  internet access services in 200 U.S. cities maintained service levels, though 13.5 percent of cities had seen average speed dips of 20 percent of typical ranges, according to Broadband Now. 


In late March and early April, consumer traffic was up possibly 30 percent to 40 percent in affected countries where stay at home policies were in effect. 


An earlier  2007 DHS study was said to “confirm that the increased traffic generated in neighborhoods during a severe pandemic is likely to exceed the capacity of the providers’ aggregation devices in metropolitan residential neighborhoods.” That has not proven to be the case. 


Notably, the GAO report said that at 40 percent of absenteeism (workers forced to stay home),  “at the 40 percent absenteeism level, the study predicted that most users within residential neighborhoods would likely experience congestion when attempting to use the Internet.” 


The Covid-19 pandemic caused close to 99 percent stay at home behavior. 


The point is that predictions always are hard to make. In this case, ISPs built robust networks that were able to handle the absolute worst case scenario for internet usage caused by a pandemic, with only a slight slowing of peak speeds. 


If nothing else, the stay-at-home orders put into place to combat the Covid-19 pandemic have stress-tested consumer internet access networks. 


That raises the question of whether data caps for fixed line services actually are necessary for the oft-stated reason of preserving quality of experience by reducing potential congestion. 


Most consumers seem to understand that mobile networks likely require more management, have less bandwidth and are more prone to actual congestion than fixed networks. At least that is what a Government Accountability Office survey might suggest. 


Fixed networks might be another matter. To be sure, use or non-use of usage caps is a business issue, not a technology issue. The pandemic performance pretty much confirms that. To wit, bandwidth caps are not needed, on today’s fixed networks, to prevent congestion. The consumer networks were able to handle the sudden and unexpected demand creating by nearly everyone staying away from work and school. 


The next question is whether a significant number of large ISPs will decide there is market advantage to be gained by dropping the bandwidth caps, increasing them substantially (it should not matter, in terms of congestion), or abandoning caps altogether. 


The performance of networks suggests it is technically safe to do so. The issue is whether business policies will change, or not.


Friday, June 5, 2020

Only AT&T U-verse Loses No Net Video Subscribers in First Quarter 2020

It will not surprise you that leading cable and telco subscription video providers lost customers in the first quarter of 2020. What might surprise you is that AT&T’s U-verse service lost zero customers in the quarter. That was the exception to the rule, which was that service providers lost customers in the quarter. 


Pay-TV Providers

Subscribers at end of 1Q 2020

Net Adds in 1Q 2020


Cable Companies



Comcast

20,845,000

(409,000)

Charter

16,074,000

(70,000)

Cox

3,820,000

(45,000)

Altice

3,137,500

(41,700)

Mediacom

693,000

(17,000)

Atlantic Broadband

306,252

(2,386)

Cable One

303,000

(11,000)


Total Top Cable

45,178,752

(596,086)


Satellite Services



DIRECTV

15,136,000

(897,000)

DISH TV

9,012,000

(132,000)


Total DBS

24,148,000

(1,029,000)


Phone Companies



Verizon FiOS

4,145,000

(84,000)

AT&T U-verse

3,440,000

0

Frontier

621,000

(39,000)


Total Top Phone

8,206,000

(123,000)


Streaming Service



Hulu + Live TV

3,300,000

100,000

Sling TV

2,311,000

(281,000)

AT&T TV NOW

788,000

(138,000)


Total Streaming

6,399,000

(319,000)


Total Top Providers

83,931,752

(2,067,086)


source: Leichtman Research


Tech Workers Like Work from Home, But Worry Their Careers Could be Affected

Human preferences always matter when evaluating the future of trends such as work from home, which conventional wisdom suggests “must” increase dramatically in the wake of the Covid-19 pandemic. 


That might not be as big a trend as many expect. A survey of workers from leading technology firms found, as have other surveys, that most professionals prefer remote work to office work. Some 53 percent of respondents say they would rather work remotely. 


On the other hand, 33 percent of those respondents also believe remote work will affect their career progression. Some 41 percent of Uber and Facebook professionals are concerned about their career progression.


That was true of 37 percent of respondents at Amazon, LinkedIn and Salesforce. 


About 35 percent of new hires also fear that remote work will negatively affect their career progression. But about a third of all the respondents, with work tenures ranging up to more than 10 years, also say they worry about career impact.  


Are you concerned that the new work dynamics will impact your career progression?

Yes

No

Too soon to tell

Grand Total


1236

1172

1392

3800


33%

31%

37%

100%

Are you concerned that the new work dynamics will impact your career progression?

Yes

No

Too soon to tell

Grand Total

Amazon

37%

27%

36%

310

Microsoft

33%

31%

36%

291

Google

35%

25%

40%

194

Facebook

41%

24%

35%

133

Uber

41%

24%

36%

76

LinkedIn

37%

25%

38%

65

Salesforce

37%

23%

40%

52

Intel Corporation

20%

35%

45%

49


source: Blind


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