Monday, May 23, 2011

What Does 100 Mbps Cost?

Here's an example of what Internet access costs in the Research Triangle area of North Carolina. Policy advocates will tend to point to such examples to argue that municipalities should be allowed to compete directly with private Internet service providers. Commercial providers will tend to say government should not compete with private firms when a market for services clearly exists.

Whatever you think of the policy issues, there is something else equally important. It is one thing to argue that, as a matter of policy, everyone should be able to buy access, at affordable rates, it is quite another to get agreement on what "access" or "affordable" means.

"Reasonable cost" is at least in part a simple matter of price transparency. In a triple play, the actual "cost" of a component is an accounting exercise. Still, what is "reasonable" changes over time. At any given point in time, however, there typically is a gap between the pricing of consumer services and business services, at least in part because the business services are offered with quality of service assurances and a higher level of service overall.

But it wouldn't be unusual for price differences between a business class service and a consumer class service to amount to an order of magnitude. Even a municipal provider might have to maintain those sorts of price relationships.

http://www.dailytech.com/article.aspx?newsid=21696


Sunday, May 22, 2011

AT&T and Verizon: Where is the Growth?

Every now and then it is useful to reflect on actual revenue trends for the two U.S. telecom firms that represent the clear majority of all telecom revenue on an annual basis.

So put yourself into the position of running one of those two companies, take a look at where your revenue is, where the growth is, and then ask yourself how much money you'd be willing to invest in your various lines of business.

At Verizon, over the past two years, fixed line voice revenues have declined from 21 percent of total revenue to 19 percent. At AT&T voice revenues have dropped from 24 percent in 2010 to 21 percent in 2011.

At Verizon, wireless revenue has grown from 58 percent of total revenue in 2009 to 63 percent in early 2011. At AT&T, wireless revenue has grown from 46 percent to 49 percent in a year.

Equally important, mass markets revenue, which includes consumer and small business revenue, has remained flat at Verizon over the past year. So has "small business" revenue. Enterprise revenue likewise was flat, year over year.

At AT&T, though, business services revenue (IP data)  was up 19 percent. U-verse revenue was up , the most significant element being IP revenues, up 26 percent year over year.

A rational manager might well conclude that incremental resources should be plowed into wireless and enterprise services, resources should be decreased in voice and maintained in broadband access, since that is where the revenue growth is. Even within the "IP" services segments, though, video might be the single most significant product, in terms of growth.

Other service providers, with different customer profiles and assets, will have to consider different choices.  

Saturday, May 21, 2011

Verizon LTE: Another Outage?

There are reports of another Verizon LTE network on the morning of May 21, 2011, though the outages appear to be regional in scope. HTC Thunderbolt and Samsung Droid Charge users might be stuck using 3G for a while.

The upside is that users will appreciate their 4G connection even more after they've had to live with 3G for a bit. It's amazing how painful it feels.

78% of Tablets to Ship with 3G or 4G in 2015?

By 2015, about 78 percent of tablets will ship to retailers with an embedded 3G or 4G modem, according to In-Stat. That doesn't mean consumers will activate the connections, of course, but does suggest the potential for access subscriptions.

In-Stat - Press Releases

Best Buy to Support "Shopkick" Location Based Service

Starting May 22nd, 2011, Best Buy customers using the "Shopkick" mobile app on their Androids or iPhones will be rewarded with "kicks" currency when they walk into any of the almost 1,300 Best Buy stores.

Shopkick is a rewards program and place-based marketing service that automatically rewards users for entering stores such as Target, Best Buy, Macy's, American Eagle, Sports Authority, Crate&Barrel, West Elm and Wet Seal, in 80 major markets, or for eating at restaurants, for example.

Retail partners get a promotion vehicle, as offers and promotions are supplied to each user depending on where they are. Users get extra "kicks" by scanning barcodes of featured products, for example.

The Shopkick app works in combination with a supplementary signal shopkick broadcasts within the store, that is more accurate than either cell phone radio signals or even GPS. The inaudible sound verifys that a user is in the store, and rewards him or her with Shopkicks currency.



https://market.android.com/details?id=com.shopkick.app&feature=search_result

Friday, May 20, 2011

Email Leads to Most Shopping Cart Purchases

At the shopping cart, email represents more than half of the traffic (57 percent), while direct traffic contributes 18 percent and display advertising is a meager 1.7 percent, says SeeWhy. Given those numbers, it is not surprising that 67 percent of conversions came from email and 24 percent direct to the website.

Those findings came from a study of 60,000 completed e-commerce transactions across multiple sites in February 2011. You might wonder why those results are found, given the wide range of existing channels. 

SeeWhy says that customers that are familiar with the brand, having previously purchased or signed up for emails, are the best source of traffic for conversions when you email them. Direct traffic conversions might be explained by the suggestion that customers that enter the site directly already have done all their shopping research, and are about to make a purchase.The other caveat is that attributing a sale to the last channel used can be misleading, as one doesn't know all the preceding contacts a prospect has had with a brand.


Verizon: No 3G Handoff for 4G Calls

Verizon Wireless does not plan to let voice calls placed over its LTE network roam on to its CDMA network when it introduces voice over LTE (VoLTE) smartphones next year. "VoLTE will not hand down to 1X," Verizon Wireless product development executive Marjorie Hsu said. 1X is Verizon's 3G network air interface.

That limitation will be a negative for some potential LTE users, at least up to about 2013, when Verizon expects to have its LTE footprint identical in coverage to its current 3G footprint by then.

But the decision does point out the issues of making a transition from one air interface to another. Verizon could handle the handoffs, but only at the cost of increased complexity.

3 Tablet Games for Cats




Nestle Purina's pet nutrition brand Friskies launched three HTML5- based web games for cats this week, designed for use on tablets and other touchscreen devices.

According to Friskies, the games, called Cat Fishing, Tasty Treasures Hunt, and Party Mix-Up, have been researched and tested to appeal to cats' presumably discerning taste in mobile entertainment. Accessible at Gameforcats.com, the games involve the player tapping moving objects as they maneuver about the screen, including fish and other animals, as well as Friskies products. Cats that use Facebook are also prompted to join discussion around the brand there. Indeed, there's a Facebook call-to-action on the home screen for all three games.
Though the demos of the games on the Friskies site all appear on iPad devices, the experiences are built entirely in HTML5, making them functional on almost any device or browser that supports the technology, such as Android tablets and smartphones.

Line of Business Execs Frequently Buy SaaS Services in Enterprise

A Forrester Research survey of 1,000 firms in North America and Europe recently found that 23 percent of firms use software as a service, with 11 percent of these respondents indicating that they are expanding usage. An additional eight percent planned to implement SaaS within a year’s time frame.

The greatest SaaS usage is in horizontal business process areas, such as customer relationship management or human relations, says Liz Herbert, Forrester Research analyst. But sales automation, customer support, recruiting and performance management in the cloud also are being used in a SaaS mode.

Lots of Marketing Statistics

Geosocial Business Hinges on Mobile Devices

If you look at this graphic, mobile devices are at the center, the applications enabled by mobile devices are orbiting.

That neatly illustrates the issue mobile service providers face. They are fundamental to the ecosystem, but it is the devices at the center, not so much the connectivity, though connections also are essential.

That observation also applies to direct revenue models.

Ghana, Kenya, Philippines, Tanzania Top Mobile Banking Countries in Developing World

Ghana, Kenya, the Philippines and Tanzania have achieved mobile banking adoption rates above 10 percent of their population, according to the World Economic Forum.

BilltoMobile Launches Global Carrier Billing

BilltoMobile, the leading provider of carrier billed payments for online purchases in the United States, is launching its BilltoMobile payment service globally, offering U.S.-based online digital goods and services merchants the ability to process web purchases on 200 carriers in more than 60 countries.

BilltoMobile says it is the leading e-commerce mobile payments platform in the U.S., and is contracted with the top three U.S. carriers (Verizon Wireless, AT&T and Sprint) for its "Direct Carrier Billing" service.

BilltoMobile merchants now have access to more than 200 mobile operators and billions of mobile subscribers in the EU, Asia and South America. The new global service offering will launch next month.

Liberty Media offers $1 billion for Barnes & Noble

Liberty Media has offered $17 per share to buy all of Barnes & Noble.

The company, which operates 720 bookstores, as well as a chain of college campus stores, might seem an unlikely fit for Liberty Media, an owner of video content networks. But sometimes one has to look under rocks to find diamonds, Liberty Media seems to think.

Liberty Media might see the value in the Nook reader and the app store, as well as the potential for online commerce. In that view, the bookstores are just a way to generate cash flow, while the strategic assets are the online commerce and apps capability, plus the Nook.

Can Telcos Build a Transaction Business Out of Their Platform?

Designing%20the%20Platform2.pngAs telco executives continue to look for significant revenue opportunities, they seem to have latched onto mobile commerce, payments and transactions as a logical possible business.

In fact, say analysts at Telco 2.0, seven questions can be answered by mobile network operators, and each answer can contribute to one or more revenue streams.


It also is worth noting that other application or device providers will be able to answer some, and in some cases, many of the same questions, though. 


That’s why Facebook, Google, Apple, Amazon and PayPal already are getting ready for their own transaction services and applications.



Still, the ability to answer questions still might prove the foundation for new transaction-based businesses. Among the key questions are:



Who are you?
Where are you?
How are you?
Do you have credit?
How can we reach you? Operators not only can reach you via their own communications services, but often can associate together multiple addresses or identifiers.
Who do you know?
Any questions?



http://www.telco2.net/blog/2008/03/telcos_future_in_seven_questio.html

On the Use and Misuse of Principles, Theorems and Concepts

When financial commentators compile lists of "potential black swans," they misunderstand the concept. As explained by Taleb Nasim ...