Is Wireless Cable's Achilles Heel?

In the early 1990s, Comcast and other cable partners invested in an earlier version of "SpectrumCo," a business that would eventually become Sprint PCS, only to pull out later in the decade when the going got tough. Cablevision, for its part, also flirted with creating its own PCS network, but ultimately decided against it.

In 2005, Comcast, Time Warner Cable (TWC), Cox (COX), and Advance/Newhouse Communications banded together with Sprint Nextel to creat the "Pivot" service.

Sprint CEO Gary Forsee says that it took longer than expected to get Pivot off the ground and subscriber numbers haven't been released. That logically suggests uptake has been slow.

Recently, Sprint abruptly withdrew from SpectrumCo, the entity that in late 2006 snapped up $2.37 billion worth of licenses to wireless airwaves. The acquisition had spurred speculation that together, Sprint and cable companies were planning their own wireless network.

All of which might suggest wireless continues to be the platform telecom competitors can use to parry cable's wireline thrusts. It is, after all, a simple line extension to add voice and broadband access to a cable network. It is a discontinuous jump to offer wireless services over a completely distinct network. And cable execs dislike discontinuities as much as any other exec.

And the evidence is growing that mobile is way people "do voice."

BitTorrent Throttled by Comcast

Internet Service Providers don't like BitTorrent because it basically destroys their business model (flat rate access) and stresses the very part of their network most vulnerable to high usage (the upstream). Many ISPs simply limit the available bandwidth for BitTorrent traffic. Cable operators that now seem to include Comcast go a bit further and disupt the "seeding" process that allows BitTorrent peers to act as better upload nodes. In Canada, Cogeco and Rogers Cablesystems also "step on" BitTorrent traffic.

If P2P traffic keeps growing the way Cisco predicts, and if no changes are made in the dominant retail pricing model, throttling of P2P applications will happen on a wider scale. P2P attacks network capacity at its weakest link.

Cisco Predicts Exabyte Networks

Cisco's recent forecast of global IP bandwidth consumption suggests a 37 percent cumulative average growth rate between 2006 and 2011, or about five times the 2006 level. That's aggressive, but you might expect that. You might even have expected the prediction that consumer usage will outstrip business usage, though business dominates at the moment. You wouldn't be surprised at all to learn that video will drive overall global usage.

You wouldn't necessarily be surprised to learn that Cisco forecasts at least 60 percent of all traffic will be commercial video delivered in the form of walled garden services. And a significant percentage of the remaining 40 percent of IP bandwidth will be consumed by IP-based video applications.

The next network, in other words, will be a video network that also carries voice and non-real-time data.

That would be a stunning change from the originally envisioned view of the Internet. But I think we have to recognize at this point that virtually none of the key developments in communications technology have developed as industry insiders, public policy proponents, technologists or entrepreneurs had supposed.

To be sure, all of the diligent work on Session Initiation Protocol will have a significant payoff. But that didn't stop Skype by rocketing past SIP using a proprietary approach.

The Telecommunications Act of 1996 was supposed to lead to an explosion of innovation by dismantling restrictions on "who" could be a provider of Class 5 switch services. Instead, innovation came from the Web. Perhaps despite the Telecom Act, all sorts of innovation has happened.

VoIP was supposed to transform the nature of communications. Instead, mobility, instant messaging and social networks are doing so. One might arguably look to all manner of text communications as the disruptive communications development of the past several decades, not voice.

And then there's electronic numbering and voice peering. Perhaps these approaches still will have some dramatic impact on global voice communications prices and ability to circumvent the "public network." But it's starting to look as though ENUM might be a next generation to provide the signaling system 7 function. That's not to say it is unimportant: only to say it was not what many had intended or expected.

So far, it would seem that the most disruptive impact of the whole basket of new technologies has been to disrupt our ability to predict the future. We've been wrong more than right, as we always are. IP networks are not now, and never will be, as closed as the old public network was. Neither are IP networks going to be "open," any-to-any networks in the old manner, with no intelligence or policies operating in the core of the network.

Lots of things can, and should, be done "at the edge." But increasingly, lots of things cannot. The transition of the global IP network to video also means a shift to real time services (and we aren't even talking about the same process at work for voice and visual collaboration). That spells the end of the completely "dumb network."

DHT Behind Skype Crash?

Not that anybody really claims to know, but there's some thinking that the Skype outage was caused by some failure of the Distributed Hash Tables that Skype Supernodes apparently maintain. Some say "this is normally very slow and done over UDP," so restoration, even once the problem is identified, will take some time. So even as the ability to send instant messages and set up voice sessions is restored, other niceties, such as correct "presence" information, might take a little longer. The immediate problem, some say, is that if a Skype client cannot find a Supernode (and I am not a techie, but understand a DHT corruption would have something very serious to do with that sort of failure mode, then even if a client is authenticated by a central server, the user would not be able to get onto the Skype network.

All I know is that this failure mode would explain why I can communicate using text, and send audio, but my presence shows as "offline," when I am "online." I will test a live conversation tomorrow morning and see what happens.

This is a crisis management professional's dream: when your client is getting lots of bad press, some other bigger event occurs to overshadow it. So Skype now is sucking all the oxygen out of the "I'm mad my VoIP doesn't work" room.

Skype Sorta, Kinda Up

Though my status shows "offline" to Rich Tehrani, my Skype client seems to be up, though sending incorrect status information. Not many contacts seem to be visible at the moment.

Skype Outage Not Over

Skype initially said its outage is over, but that clearly is not the case everywhere, and we are nearing 24 hours since the log-in problem began. Now Skype warns that the outage is likely to continue through Friday. My U.S. log-in still hangs.

The service had been sporadic but gradually improving during the business day in Asia on Friday, some report.

"There are about 2.5 million people logged in right now, where normally there would be over 8 million, and it's been going on and off every 10 minutes," says Mark Main, senior analyst at Ovum in London.

You may draw your own conclusions about which other application or service providers might benefit, but urges to gloat should generally be suppressed. Nobody whose service uses IP and the public networks is safe from outages or service disruptions.

That's why businesses and networks have redundancy. People who scream and yell about losing their service have only themselves to blame if they didn't build some level of diversity and redundancy even into their personal communications. Use Skype, other IM applications, mobiles, POTS-replacement VoIP, and POTS, email and anything else you can get your hands on. Some of us use multiple mobiles from different providers and multiple broadband providers. But never hang everything on any one service or provider, especially if your business depends on it. Personally, I wouldn't even hang my personal communications on a "single provider" strategy.

Dark Skype

Skype Ltd. early today blamed an unspecified "software problem" for an outage that might make the service unavailable for as long as 24 hours. At 9 a.m. EDT Skype said the outage might last 12 to 24 hours.

Most people are finding it impossible to dial out or open an instant message session with any of their contacts. A "Connecting" message just hangs.

Skype rarely goes offline. The last reported outage resulted in the service going dark for several hours in October 2005.

Fred Pitts Back in Service with TeleBlend

It took 10 days, but TeleBlend customer Fred Pitts FINALLY is back in service.
"My first try to call home this morning continued with the "fast busy" signal; by midmorning, however, it was working," Pitts says. "So, while disappointed to have been without incoming service for such a length of time, I am thankful today that I am back up. I hope everyone else will be back in service soon as well."

A gracious comment, I'd say. At least some disgruntled SunRocket customers who picked TeleBlend as a replacement say they have churned to other providers such as Packet8 and Vonage.

A harrowing experience, to be sure. Perhaps it is only fair to note, though, that of the 60,000 transitioned customers, nearly all made the flash cut without much apparent disruption. Call it 99 percent. But one percent of 60,000 is still 600 customers, and it will be scant comfort to know that (hypothetically) 54,000 customers had no real issues.

That's the devil with mass market services, though, isn't it? Getting 99 percent of things right still generates thousands of trouble tickets (I'm not suggesting TeleBlend had issues with as many as one percent of its accounts, by the way. Just making the point that a very small failure rate in a mass market application or service can result in huge trouble ticket queues.)

Skype apparently still is having a major outage itself today, and as older posts today note, at&t and Cisco have had issues this month as well. S*** happens even to companies as large and sophisticated as Cisco and at&t.

And Cisco Goes Down, Also...

Cisco's main www.cisco.com page was offline at 11 a.m. Pacific Time on Aug. 8 and stayed offline for more than two and a half hours. It returned at about 1:45 p.m. The outage was an unintended byproduct of routine maintenance.

at&t EDGE Network Outage

See what we mean? AT&T Inc. acknowledged a brief outage of its EDGE network Tuesday, Aug. 14, which was blamed on routine router maintenance. The EDGE network was also down on July 2 for about six hours.

EDGE (Enhanced Data Rates for GSM Evolution) is the wide area wireless network that services iPhones and many other devices, providing data service but also carrying voice traffic over the GSM protocol.

Voice Quality is Getting Worse: What Would You Expect?

Those of use who grew up with one phone company got spoiled by the reliability and quality of its communications network (despite "customer service" so bad it became an oxymoron)," says technology journalist Mark Stephens, whose pen name is Robert X. Cringely. "Those of us trying to save a few bucks by piggy-backing voice services on the Internet are starting to get what we've paid for."

Skype itself now is experiencing an outage that might take 12 to 24 hours to fix (Aug. 16).

There's a larger trend at work here, and it happens in virtually all formerly highly-regulated businesses when deregulation and new technology hit. Remember when airlines were highly regulated, and could not compete on the basis of price? How did they compete? Amenities and other non-price differentiators. Of course, prices were high and not that many people flew.

Deregulation hits and all of a sudden price becomes a key competitive weapon. Of course, when people start paying lots less, something has to give. Like amenities. But more people fly now.

So here's the problem communications service provider executives face: they can't afford to run "gold plated networks" for the same reason airlines cannot. Obsessive concern about voice quality and service availability are one thing in a highly regulated environment. Such concern is quite something else in a highly competitive marketplace where customers in fact choose to pay money for service that is quite a bit less intensive than it once was.

In a nutshell, the business problem is that operators cannot afford to maintain the same obsessive levels of quality when customers demonstrably don't care. Mobile communications is the best example. Everybody uses mobile service. And everybody knows it simply is not as reliable as wired phone service. Nor is the audio quality as good. But it's a wild success, anyway.

If people will not pay you to maintain a higher quality of service, can you afford to do it? That's the problem the global communications business faces. People are voting with their pocketbooks: buying services with lesser quality on some metrics because the overal utility of mobility is so high.

In other cases, such as over the top VoIP, they are voting with their wallets to buy cheaper services with less reliable service.

Get used to it. In virtually every deregulated, formerly monopolistic industry, overall quality will drop. Of course, there's another trend as well. New, higher cost alternatives will develop. Because some people need high quality enough to pay for it.

IP communications are very valuable. They are very useful. But they are not as robust as the old public switched network, if only because of things like latency. The services can be made more rugged, of course. It just costs money.

HNS Launches SpaceWay Satellite

Hughes Network Systems has successfully launched and deployed its new Spaceway satellite, expected to enable high-speed IP data networking across North America at rates of from 512 Kbps up to 16 Mbps upstream and as fast as 30 Mbps downstream. It is one of the largest telecommunications satellites ever built, and its design includes onboard dynamic multi-beam switching, which will deliver bandwidth-on-demand and direct site-to-site mesh networking.

In a small business application, Spaceway is expected to operate at about 2 Mbps in the upstream. It's a different sort of satellite, using on-board routers to control 780 downlink beams and 112 uplink beams aimed at U.S. market customers. Unlike earlier generations of satellites, Spaceway uses nothing but spot beams, allowing a high degree of frequency reuse. What that means is that a single Spaceway satellite offers capacity equivalent to eight to 10 conventional birds using a single beam with continental coverage.

Commercial operations are expected in early 2008.

Spaceway might not be a game-changing network in the broad consumer mass market, where cable and telephone companies are expected to dominate the access market. But it might well have significant impact in the enterprise market, for customers who need distributed, IP-based, broadband mesh networks, where Spaceway will excel.

Spaceway also sets up head-to-head competition with Wildblue, another provider also offering satellite broadband to customers largely based in rural areas.

Channel partners might also want to take note that HNS, for the first time in its history, has created a channel program and is willing to sell to enterprise customers with fewer than 500 to 1,000 sites, its traditional market, using its existing VSAT network. That doesn't mean HNS is terribly interested, if at all, in two-node networks. But it undoubtedly is willing to entertain service for networks with as few as 20 to 50 nodes, something it never has been willing to do before.

DirecTV Adds Broadband Over Powerline

DirecTV will wholesale broadband over powerline broadband access services from Current Group no later than the beginning of 2008. The move gives DirecTV the ability to create a triple play bundle of voice, video and high-speed data access in the Dallas/Fort Worth area, reaching 1.8 million homes and businesses over the next several years.

The move shows the necessity of providing a triple play offering in the mass market, whether one approaches that market from the legacy voice or legacy entertainment video business. Both DirecTV and EchoStar have been weighing their terrestrial options for some time, though both have marketing deals with the leading incumbent telephone companies as well.

DirecTV might have additional concern about those relationships since at&t bought BellSouth, which had been a DirecTV partner. It isn't clear yet whether EchoStar or DirecTV will continue to be at&t's partner in the future, but EchoStar's longer history with at&t (formerly SBC) should carry weight.

Interesting bit of trivia: The just-launched Hughes Network Systems Spaceway satellite was originally supposed to be the third bird in the fleet of IP-enabled spot beam satellites. But when DirecTV was sold off to News Corp. by the holding company that still owns HNS, the first two birds went to DirecTV.

Perhaps sadly, those two birds are used for conventional TV broadcasting rather than the mesh networking applications the satellites originally were designed to support. Linear TV, including the high-definition sort, obviously is the foundation for businesses consumers consider important.

For some of us, though, broadband Internet access is the most important application, if one could only choose a single service remain available (and that includes landline voice, mobile phone, television and fax). The spot beam and on-board router capabilities of the first two of three "Spaceway" birds wound up in the dustbin.

I don't know that the owners of those two birds would have made more money, or garnered more strategic advantage, if all three Spaceway satellites could have been used for their original intended purpose. I will say that given a choice between devoting scarce spectrum to television, when it can be used for communications (including IP and Web applications), seems like a suboptimal choice.

That said, there's little question but that DirecTV has used the capacity provided by those two former "Spaceway" satellites to shore up its competitive position in the high-definition TV area, compared to its cable competitors. "Highest and best use," I believe property assessors call it.

Learning to Deal with Failure

Virgin Mobile, the only customer for BT Movio, will go dark at the start of next year. So will BT's Movio service, which provided the transport for Virgin and it was hoped, other mobile TV services.

Tier one carriers are going to have to get used to such failures, as that is the price of experimenting with new services for which demand is unproven. Fixed-Mobile Convergence services have not fared any better in western Europe of late.

That hasn't stopped researchers from predicting a robust market for mobile TV services.

Informa Telecoms and Media predicts that there will be 124.8 million broadcast mobile TV users worldwide by 2010, with an inflection point expected in 2009 as network rollout and device availability allow for the market to reach some level of critical mass.

for the next few years, the most advanced networks will be S-DMB and T-DMB services, dominating broadcast TV handset sales worldwide from its strongholds of South Korea and Japan.

By 2010, there will be 18.11 million terrestrial DMB subscribers, compared with 15.02 million satellite DMB users worldwide.

"Despite its slow start, DVB-H will become the dominant format in 2008, reaching significant levels worldwide reaching 74.03 million users by 2010, equating to almost 60 percent of all broadcast mobile TV users", says David McQueen, Informa analyst.

It didn't help that the European Commission has backed a rival transmission standard for mobile broadcasting. The EU chose Digital Video Broadcasting — Handheld (DVB-H) as the standard it wants used. BT Movio was based on the rival Digital Audio Broadcasting — IP (DAB-IP) standard, which reused digital radio spectrum to deliver a handful of TV channels and a range of digital radio stations.

Service Not Entirely Restored

"Make it 10 (days without service), says TeleBlend customer Fred Potts. "Last Friday, Bill Fogg of Teleblend posted a reply after a comment I made on your blog. He sent an email follow up asking for a number where he could reach me. I sent my cell number and have sent follow up emails to him each day. The silence is deafening."