Business FMC Still a No-No?

Major mobile service providers--in general--seem to remain cautious about fixed-mobile convergence for business customers, mostly because of continuing uncertainty about the business model impact.

In fact, many mobile executives continue to believe they stand to lose more revenue than gain if they get aggressive about allowing mobile handsets to communicate using fixed broadband facilities, say researchers at In-State.

"This is clearly the case in the United States, with the exception of T-Mobile, which has primarily been focused on the consumer market," says David Lemelin, In-Stat analyst.

In-Stat estimates that 20 percent of businesses with Wi-Fi use it to make voice calls, which is one reason mobile providers cannot be sure business users would not simply shift former mobile traffic back to the wired network if it is possible to do so.

Most executives would agree that adding FMC can be a marketplace differentiator. Clearly T-Mobile hopes it will be. But there seem to be more questions about whether FMC is anything more than a feature to attract and retain customers.

T-Mobile and Sprint Nextel have more incentive than Verizon and AT&T to try, however. T-Mobile and Sprint do not have fixed access accounts or usage to cannibalize. If either carrier can slice its churn by promoting FMC, especially to business users, that's probably enough reason to do so.

At a higher level, there obviously is some interest in determining the extent to which business customers can be convinced to abandon some or all traditional landlines in favor of wireless-only service.

FMC--as opposed to simply installing indoor signal repeaters (femtocells)--raises revenue issues. With the femtocell approach a mobile provider still can offer the benefits of better indoor signal quality, an advantage touted by FMC proponents.

And if the FMC attraction is lower calling costs, mobile providers can create "home" or "office" zones where calls are less expensive than on the macrocell network, providing the end user lower prices, without shifting traffic to the wired broadband network.

But FMC is likely to get more attention as mobile broadband usage grows and shifting some traffic--especially non-voice applications--to the landline network and off the mobile network.

Of course, that's why fourth generation wireless networks are being built: to handle all that new broadband traffic.

Still, Strategy Analytics thinks dual-mode mobiles with built-in Wi-Fi will proliferate. People will want to use the feature. But choices have to be made: femtocell or dual-mode? Cannibalize some wireless revenue or risk losing share? No wonder carriers are cautious.

Do Browsers Matter? Revisiting an Old Thesis

It has been quite some time since anybody seriously thought "control of the browser leads to control of the customer." But mobility and Web-based applications--especially on mobile devices--might be developing in a new way. In some cases, the browser could be the path to delivering applications to "locked" devices.

Consider the iPhone and Android and LiMo devices. The iPhone is now a true software platform with a rapidly growing installed base. But it isn't an "open" platform. There are things a developer cannot do, and users cannot access, for that reason.

As it turns out, though, the browser is the way around such closed or controlled environments. Web browsers from firms such as Mozilla and Opera obviously want to be available on every device, for example. And the browser, in a mobile environment, can create a different user interface and application experience.

Mozilla’s recently introduced Firefox 3.0 differs significantly in form and function from Apple’s Safari for Mac OS X and Windows. A different rendering engine and fresh take on a browser’s touchscreen-optimized interface might be preferable to to some iPhone users.

A third-party browser could incorporate one of the most-requested features not on the iPhone at the moment: an accessible third-party plug-in architecture that would allow the inclusion of Adobe Flash, RealPlayer and other apps.

We'll have to see where this goes. Still, it's an interesting development. Browsers might matter more in a mobile context than they do in a PC context.

Jaduka: Measurable Progress in Voice Mashup Business

Jaduka Voice Services, which provides Web-based voice services in mash-up mode, has surpassed four million minutes a month of end-user volume. That includes voice conferencing; Web-initiated phone calling; automated voice alerts and notifications; broadcast messaging; and VoIP-based PC-to-phone services.

That may not seem like much, but that's fair volume for voice mash-up applications with a commercial model.

Separately, Jaduka's transaction services initiative supports creation of 28 million new user accounts a day, processing of 300 million database queries a day, and processing 1,285 account transactions per second.

Additionally, Jaduka is interconnected with major global Point of Sale Activation (POSA) networks with connections to over 506,000 retail locations. If you are thinking stored value cards, you have it right.

Peering Potrential

In principle, most international voice traffic is amenable to interconnection using some type of neutral peering federation.

The reason is that it is expensive and time-consuming to negotiate separate bilateral interconnection agreements with the ever-growing number of carriers.

If all one wanted to do was pass traffic back and forth between mobile networks, a company might have to negotiate more than 300 separate agreements.

The advantage peering federations provide is a simpler, faster way to create those business and technology agreements by joining a federated interconnection provider's community, much as Internet service providers peer with each other.

In principle, much interconnection now handled by bilateral agreements could shift, not to mention wholesale traffic, which generally isn't exchanged using a bilateral agreement because the cost of doing so is prohibitive.

Win Some, Lose Some for AT&T, Verizon, Qwest

Verizon grew consumer average revenue per unit by 9.6 percent during the quarter; AT&T grew ARPU 5.4 percent and Qwest grew ARPU 7.8 percent.

But there were gains and losses: video and fiber-based broadband were bright spots. Voice lines were not.

The former RBOCs added 2.3 million RGUs during the first quarter, helped by wireless.

During the first quarter of 2008, AT&T, Verizon and Qwest also lost lost 2.237 million access lines, though. So far, the tier-one telcos basically continue to trade market share with cable, gaining on the wireless front but not keeping up in wired services.

The quarter was by no means a disaster. But neither have the former RBOCs yet stabilized the market share battle on the wired services front.

33% Broadband Penetration at 10 Mbps = Half of Global Electricity

If a third of global citizens ever do wind up with some form of broadband access running at 10 Mbps, and current core network technology does not change, about half of all global electricity supplies will be consumed just for the transport and access of that bandwidth.

Obviously this doesn't scale. Among the solutions is use of more photonic techniques in the core and access networks.

Executives at ADVA Optical Networking argue it is better to use layer 2 rather than layer 3, and optical transport instead of layer 2, where possible.

High-density routers and switches in data centers also will help. In the access network, optical rather than electrical technology is preferable, especially passive optical networks.

What Video Does to Bandwidth Demand

When Facebook added video streaming features, there was a sharp spike in bandwidth consumed by Facebook users. That's one reason Cisco is so confident about its expectations for continued growth of global IP traffic. Video is coming, and video drives lots of bandwidth consumption.

There also seems to be a high degree of consensus that IP bandwidth demand is growing between 50 and 60 percent overall. Access and wide area network operators are reporting annual growth of about that amount on a fairly wide basis.

Downhill Slide for Yahoo?

Things seem to be going from bad to worse at Yahoo. First the controversial spurning of Microsoft's acquisition offer. And now news of major executive departures. The list includes Jeff Weiner, EVP, SVP Vish Makhijani and Brad Garlinghouse, SVP.

Some 50 top Yahoo executives have left the company since January 2007.

Observers and its own executives seem to have lost confidence in Yahoo top management, to say the least.

Cox, Qwest Ranked Highest for Data Communications Services

Cox Communications ranks highest in data service satisfaction among small and medium business customers while Qwest Communications ranks highest among large enterprise business customers in the same category.

Cox Communications leads the small and mid-size business segment, performing particularly well in five of six factors: performance and reliability; sales representatives/account executives; billing; cost of service; and customer service. Verizon follows Cox Communications in the segment rankings.

In the large enterprise business segment, Qwest ranks highest in customer satisfaction, receiving highest ratings from customers in five of six factors: performance and reliability; sales representatives/account executive; billing; cost of service; and offerings and promotions. Verizon also follows Qwest in the segment rankings.

Firefox 3 is Available, Seems Faster

The FireFox 3 beta does seem to execute faster, which is what Mozilla promises. Still some incompatibilities with apps such as Google Gears and Google Browser Sync, though. That's what happens in beta.

Mozilla says eight million copies have been downloaded in 24 hours. Mozilla also seems to be up past 12.5 million downloads in just a bit less than 24 hours.

Heavy Enterprise Web, Video Collaboration

In the UK, nine out of 10 large companies are using some form of virtual collaboration solution to enhance the quality of their communications, both within and beyond thebusinessn say researchers at Vanson Bourne .

Nearly two thirds have incorporated an element of video or Web collaboration, in addition to audio conferencing.

The survey of UK manufacturing and service businesses also found 90 percent of businesses employing 1,000 or more people have adopted a conferencing/collaboration tool as part of their communications strategy.

For businesses with 3,000 or more employees, 96 percent have done so. About 74 percent use integrated multimedia conferencing tools to some degree, with only 26 percent exclusively using audio conferencing solutions.

This pattern is especially strong in manufacturing businesses, with 81 percent of respondents using multimedia tools.

Companies are also using virtual collaboration tools more frequently. Some 29 percent of respondents are using conferencing on a daily basis. About 45 percent use it every week.

Financial services businesses are most active, with 83 percent using conferencing tools weekly or more frequently.

Some 30 percent of respondents say they would use their conferencing solution more frequently if it could more effectively replace face-to-face meetings.

Tangible evidence of cost savings and ease of use were also seen as significant barriers to greater usage by 22 percent of respondents.

New Role for In-Home Networks

“By 2012, over 33 million U.S. households will have connections of 10 Mbps or more," says Parks Associates analyst Kurt Scherf. Broadband penetration exceeds 50 percent of homes.

And with household digital camera penetration at 67 percent, MP3 player penetration at 41 percent, PC penetration at 80 percent and mobile penetration at 87 percent, a new environment is being created where in-home and wide-area networks have new opportunities.

“No product is sold in isolation anymore,” Scherf says. “A device connects to a network, which brings content and applications to the consumer both in and outside the home."

Opportunity exists as well for technical support services for the digital home, which will be a $1 billion market by 2011,” Scherf forecasts.

As of 2007, 50 percent of U.S. Internet households were watching short video clips online, and 25 percent were downloading short video files. DVR household penetration reached over 40 percent of the U.S. online population in 2007, further increasing the place-shifting aspect of video consumption, Scherf notes.

Just Say "No" to Associated Press

The Associated Press wants to charge you $12.50 to quote five words from news stories published by the news agency. Michael Arrington says TechCrunch simply won't link to, or quote AP.

Of course, you can go their Web site and pay them. On this score, I agree with Michael. Just say "no." I prefer Reuters in any case.

PhoneGnome Virtual PBX Launched

PhoneGnome has introduced a new “PhoneGnome for Business” product with a “virtual receptionist” feature, allowing PhoneGnome boxes to be used by small and medium business or other small organizations.

The service works with or without the PhoneGnome box, an appliance-based way to integrate IP telephony with standard telephone service.

However, when the virtual attendant function is used in conjunction with remote users also equipped with a PhoneGnome box, any existing telephony number with the Virtual Receptionist, used as a company’s main number, gets free inbound minutes.

"If you set up each virtual location with the box, all inter-office calls and transfers will be 100 percent free - even if those locations are oceans apart," says David Beckemeyer, PhoneGnome CEO.

"And what’s nice about the PhoneGnome approach is you don’t have to be a SIP or VOIP expert to set it up," says Beckemeyer. "The box self-configures when you connect it, doesn’t need a computer, and you use your existing regular phone numbers to call and transfer."

Beckemeyer is an astute observer of user behavior, and obviously has figured out that one of the most-popular features of any IP phone system, in a smaller business setting, is the virtual attendant feature.

So what he's done is take a simple IP telephony appliance and add the single most valuable feature for many small businesses.

Of late, when observing the ways communication habits seem to be forming among younger users, I have asked the question of whether it will necessarily be logical for business managers to buy PBXes. If you assume everybody already has a smart phone, then you are talking about some software that creates business personalities for users, without requiring dedicated hardware.

Virtual Attendant is an interesting way to add a very-popular feature to a very low cost way of integrating IP telephony with standard POTS in a smaller business setting.

AP Screws Up

AP seems not to get it. Michael Arrington at TechCrunch is so incensed about what many of us consider dumb policies that TechCrunch now refuses to link to or even quote Associated Press.

AP apparently hassled the Drudge Report (also not a smart move) for linking to their stories along with short quotations via reader submissions.

Drudge Retort is doing nothing different than what Digg, TechMeme, Mixx and dozens of other sites do.

AP does not want people quoting their stories, despite the fact that such activity very clearly falls within the fair use exception to copyright law. They claim that the activity is an infringement.

A.P. vice president Jim Kennedy says they will issue guidelines telling bloggers what is acceptable and what isn’t, over and above what the law says is acceptable. They will “attempt to define clear standards as to how much of its articles and broadcasts bloggers and Web sites can excerpt without infringing on The A.P.’s copyright.”

Those that disregard the guidelines risk being sued by the A.P., despite the fact that such use may fall under the concept of fair use.

It's just a bad move by an organization that seems not to understand how journalism is changing.