Enterprise iPhone, Courtesy of Avaya

Avaya's one-X Mobile client software, expected to be available in Europe in the first quarter of 2008, will enable the iPhone to be integrated into most enterprise IP telecommunications networks.

From the first quarter of 2008, an easy-to-use, downloadable interface will convert mobile devices from Apple, RIM, Palm, Motorola, LG, Nokia, Samsung, Sanyo, Sony Ericsson and others into another endpoint on the corporate network. From the iPhone, users will have iPhone-optimized access to the Avaya one-X Mobile interface, making the iPhone their personal remote control for enterprise communications.

Increased Online, Event, Direct Marketing in 2008

According to BtoB magazine's 2008 Marketing Priorities and Plans survey, 60.1 percent of marketers plan to increase their overall marketing budgets next year predominantly in online, events and direct, despite the softness in the overall economy. Some 29.6 percent plan to keep budgets flat, and 10.3 percent plan budget decreases.

Last year, 62.6 percent of respondents said they planned to increase their marketing budgets in 2007; 29.4 percent said budgets would be flat, and eight percent said they planned to decrease their marketing budgets.

In 2008 the primary marketing goal is customer acquisition, cited by 62.4 percent of
respondents, followed by:

Brand awareness (19.3%)
Customer retention (11.7%)
Other objectives (6.6%)

Of those planning budget increases next year:

27.8% plan a 5% to 9% increase in spending
24.6% plan a 10% to 14% increase
12.7% plan a 20% to 24% increase
10.3% plan an increase of less than 5%

The biggest budget increases will be seen in online marketing, with 79.1 percent of marketers planning to boost their online budgets next year, up from last year, when 75.6 percent of marketers said they planned to increase their online budgets in 2007.

BtoB's survey found that the average percentage of the marketing budget spent next year on online marketing will be 33.8 percent, up from 26.5 percent in 2007.

Among the online areas that will see increases next year are:

Web site development (74.0%)
E-mail (70.1%)
Search engine marketing (64.3%)
Video (39.5%)
Webcasting (39.1%)
Banners (36.4%)
Sponsorships (29.6%)
Social media (26.2%)

Event marketing will see a spending boost in 2008 with 49.5 percent of marketers planning budget increases in this area, as will direct mail with 49 percent of respondents planning to increase their direct budgets in 2008.

LTE: 160 Mbps Bandwidth in Test by Nokia Siemens

Nokia Siemens Networks has completed the world’s first multi-user field trial in an urban environment, reaching speeds in excess of 160 Mbps.

The test of Long Term Evolution (LTE) technology, which supports mobile data rates up to 173 Megabits per second, was conducted in a real urban outdoor environment with multiple users using the new 2.6 GHz spectrum.

It confirms that LTE performance requirements can be met using 3GPP standardized technologies and it realized data rates of more than 100 Mega bits per second over distances of several hundred meters, while maintaining excellent throughput at the edge of typical urban mobile radio cells.

700-MHz Bidders Surface

Some 266 bidders for 700 MHz spectrum auction have surfaced so far. Not all the bidders will content for the national C block, though. Many of the bidders are small, independent telephone companies angling for local blocks of spectrum. But a few cable companies also are on the list. Of course, over time those fragmented allocations probably will be rolled up into larger networks, as has always happened in the past.

The bidders include Google (GOOG) Airwaves Inc.; Towerstream; Vulcan Spectrum;
Alltel; AT&T Mobility Spectrum; CenturyTel Broadband Wireless; Chevron; Cincinnati Bell Wireless; Cox Wireless; Iowa Telecommunications Services; MetroPCS 700 MHz; Qualcomm
Cablevision (CSC Spectrum Holdings); Verizon Wireless (Cellco Partnership) and Advance/Newhouse.

Google Apps on WildBlue Home Page

WildBlue Communications will be making Google Apps available to its broadband access service directly from the WildBlue.net home page in the first quarter of 2008. The apps include Gmail webmail services, Google Calendar shared calendaring, Google Talk instant messaging and Google Page Creator web page creation tools.

The new WildBlue.net home page will also feature a mix of news, weather, sports, and entertainment, plus powerful new customizable features from more than 2,000 available Google Gadgets that can be easily added to each customer's individual WildBlue.net home page.

To be sure, any Web user can access any of the Google Apps on their own. But the WildBlue deal should help increase awareness of, and use of, the Web-based apps. Some observers say most Web users aren't aware of Google Apps, so the deal will help popularize the tools.

The deal is reminiscent of the way the old SBC used Yahoo as a way to drive the usability of its Internet access services. Sure, the deal is not exclusive. Users can get access to the functionality some other way. But the packaging should help, in the same way that apps benefit from placement on mobile provider "main decks."

Amazon DevPay: Getting Paid for Cloud Apps

Amazon DevPay is a simple-to-use billing and account management service that makes it easy for developers to get paid for applications they build on Amazon Web Services.

Amazon DevPay allows app providers to quickly sign up customers, automatically meter their usage of services, have Amazon bill users, and collect payments.

Amazon DevPay provides a simple Web interface for pricing applications based on any combination of up-front, recurring and usage-based fees.

To use Amazon DevPay, users develop using Amazon S3 or an Amazon EC2 Machine Image (AMI), register the apps with Amazon DevPay, provide a product description and configure your desired pricing.

The Amazon DevPay purchase pipeline is linked to the app Web site. Activity is
monitored on the Amazon DevPay Activity page.

There are no minimum fees and no setup charges. Activity is billed at three percent of the transaction amounts and $0.30 per bill generated.

Amazon SimpleDB: Boost for Cloud Computing

Amazon now offers SimpleDB, a Web service for running queries on structured data in real time. This service works in close conjunction with Amazon Simple Storage Service (Amazon S3) and Amazon Elastic Compute Cloud (Amazon EC2), collectively providing the ability to store, process and query data sets in the cloud.

Traditionally, this type of functionality has been accomplished with a clustered relational database that requires a sizable upfront investment. In contrast, Amazon SimpleDB is easy to use and provides the core functionality of a database--real-time lookup and simple querying of structured data--without the operational complexity.

Amazon SimpleDB automatically indexes data and provides a simple API for storage and access.

Amazon SimpleDB provides streamlined access to the lookup and query functions that traditionally are achieved using a relational database cluster, while leaving out other complex, often-unused database operations.

Amazon SimpleDB allows easy scaling of applications as well. For the Beta release, a single domain is limited in size to 10 gigabytes and 100 domains. Over time these limits may be raised, Amazon says.

The service runs within Amazon's high-availability data centers and fully indexed user data is stored redundantly across multiple servers and data centers.

Amazon SimpleDB is designed to integrate easily with other web-scale services such as Amazon EC2 and Amazon S3. For example, developers can run their applications in Amazon EC2 and store their data objects in Amazon S3. Amazon SimpleDB can then be used to query the object metadata from within the application in Amazon EC2 and return pointers to the objects stored in Amazon S3.

Developers and users pay only for what they use; there are no minimum fees.

Machine use costs $0.14 per Amazon SimpleDB Machine Hour consumed. Data transfer in
$0.10 per gigabyte. Data transfer out varies based on volume. Costs are $0.18 per GB for the first 10 TB per month; $0.16 per GB for the next 40 TB and $0.13 per GB over 50 TB.

Structured data storage costs $1.50 per GB-month.

The point is that it is becoming easier by the day to create, store and execute applications based entirely "in the cloud," without ownership or lease of data facilities, access pipes or servers to support those apps. At some point, highly-distributed workforces or end user bases will find it congenial in the extreme to support remote users with services always available through a standard Web browser, with the latest version, with no need for loading updates, patches or extensions.

As software becomes a service, computing infrastructure also is becoming a utility or service as well.

Channel Embraces SaaS

An IDC survey of members of the International Association of Microsoft Certified Partners suggests high expectations for software as a service.

IDC says 76 percent of solution providers who responded believe that SAAS will dramatically impact the partnering landscape, and more than 70 percent of solution providers view it as an opportunity. Solution providers believe that the most profitable opportunities related to SAAS will be in the area of deployment and implementation services.

But solution providers are also looking forward to the recurring revenue opportunity that comes with the SAAS business model.

SAP, Microsoft, Cisco Systems and IBM are among the application providers expected to be active in 2008.

Microsoft Gets Viacom Online Ad Deal

Viacom Inc. has selected Microsoft Corp. as its Internet advertising partner in a five-year agreement initially valued at an estimated $500 million, also involving online games, shows and movies.

Microsoft will help Viacom place advertising on Viacom's U.S. Web sites and be the exclusive seller of its remnant display advertising, or ad space Viacom has been unable to sell.

As part of the deal, Microsoft will also license on a non-exclusive basis long and short-form television and movies from Viacom for the MSN portal and the Xbox 360 game system's online network.

Microsoft has also agreed to buy ads on Viacom's broadcast and online networks over five years and help Viacom establish itself as a publishing partner on Microsoft's casual Internet gaming sites.

VoSKY, Skype Gateways Available Globally

The Skype VoSKY Exchange family of rack-mountable PBX-to-Skype gateways are now available worldwide, VoSKY says. The gateways allow businesses to make and receive free Skype-to-Skype calls with customers and partners, as well as between company offices, as an adjunct to existing business phone systems and calling services.

The co-branded Skype VoSKY Exchange 9040 and 9140 also add VoIP applications such as Click-to-Call, PBX Remote Access, Multi-site PBX Networking and Skype Trunking to existing phone systems.

Some will question whether the gateways are widely suitable for enterprise use. Well, they certainly are suitable for small and mid-sized business use. Enterprise policies might be more challenging, partly in terms of security, partly when complete call logging or recording is required.

For organizations without stringent call recording or logging requirements, the VoSKY gateways are an augmentation solution, used with existing phone service, not as a replacement. If the Skype network goes down, all calls simply are handled by the IP or TDM phone system as they normally would be.

XO Communications, Tech Data in Distribution Deal

XO Communications has signed a distribution deal with Tech Data Corporation, giving Tech Data partners IP communications services for small and medium-sized businesses.

Tech Data will offer its resellers and systems integrators XO's converged IP voice and data services, including XO SIP, which delivers converged voice and data services to businesses with IP-PBX systems over a single, high-speed connection.

XO SIP delivers converged voice and data services to businesses with IP-PBX systems over a single, high-speed connection. XO SIP features include unlimited local calling; unlimited site to site calling; long distance; dedicated Internet access; optional voice compression and online management.

Sale Ahead for EarthLink?

EarthLink Executive Vice President Mike Lunsford, who acted as interim CEO after the death of former CEO Garry Betty, is leaving the company at the end of the year. Earthlink CTO Jon Kerner also is said to be leaving, as is Vice President of Production Operations Eric Alfaro. Kip Morgan, former EarthLink Vice President for Direct Marketing, Access and Audience, also has gone elsewhere.

When such things happen, one normally expects a sale of assets, which is what many observers expected when Rolla Huff took over at EarthLink.

T-Mobile, 3 Join 3G Networks

T-Mobile and 3 are pooling their U.K. 3G transmission networks, a move expected to reduce mobile tower sites by about 5,000 and save £2 billion in capital spending.

Kevin Russell, 3's UK chief executive, said the joint venture deal includes contingencies should either company be taken over, but both expect it to be a long relationship.

The move is not unprecedented, but still is unusual. Though not dictated by regulatory requirements, the move essentially creates a wholesale entity both retail networks will use to operate their businesses. It is not a structural separation, but certainly a functional separation.

By the end of 2009 the two companies plan to have 13,000 sites, covering 98 percent of the population with a mobile broadband network capable of speeds up to 7.2 Mbps.

Wireline Substitution, Mobile Plans, Broadband

KPN seems to have found a way to take market share in the German wireless market: give customers unlimited calling for a flat fee, avoid phone subsidies or selling phones, and keep things simple. The growing number of wireless-only customers apparently is helping, as one obviously needs more minutes in the plan to cover the additional volume when all calls in and out are taken on the mobile.

For $108 a month, Base subscribers can make unlimited free calls anywhere in Germany. A comparable offer by Vodafone costs $144. The sister E-Plus brand KPN supports also has shifted to this "no frills" approach.

In the third quarter 2007 subscriptions wereup 16 percent year-over-year, to some 14.1 million. E-Plus operating profit also rose 79 percent over that period, with profit margins of 38 percent.

Of course, KPN will have to figure out how to translate that success into similar good fortune in the mobile broadband segment, where it might not be quite so easy to maintain robust margins of this sort. Still, KPN's approach to the market is an example of what a carrier can do in an environment where phones are unlocked.

As Verizon moves to "unlock" its CDMA network, and as the C block 700-MHz spectrum goes into operation, also with an "unlocked" approach to device use, one wonders how soon somebody will try this in the U.S. market as well. Cricket Communications, one might argue, already has been chasing the wireline replacement market, but without the unlocked phone component.

FCC Reimposes Market Share Cap

The U.S. Federal Communications Commission has voted to impose a limit on the size cable operators can reach on a nationwide basis, limiting any single company from controlling more than 30 percent of total subscribers. The FCC in the past has maintained such a rule, but the limit was invalidated by a court decision in 2001.

Consumer groups say a strict limit on cable television system ownership is needed to prevent them from dominating television programming and Internet services and from blocking video competitors.

As a practical matter, the FCC action could affect merger deals Comcast Corp. would like to pull off, as Comcast already has about 27 percent. The rule might also affect smaller operators like Charter Communications and Cablevision , as it might rule out their acquisition by Comcast.