1 Million 3G iPhones Sold in 3 Days

Apple sold a million 3G iPhones in three days after its launch on Friday, July 11. iPhone 3G is now available in 21 countries—Australia, Austria, Belgium, Canada, Denmark, Finland, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the US—and will go on sale in France on July 17.

The App Store also experienced more than 10 million application downloads in less than a week.

IPTV Subs Increase 53%

IPTV subscribers have more than doubled for the second year running with an increase of 53.14 percent in the 12 months to 31 March 2008, and now stand at 15 million, according to Point Topic.

The statistics also show that worldwide broadband subscribers have reached over 370 million with DSL remaining the most dominant access technology with 65 percent of the world’s subscribers. However, fiber subscriptions have risen by 33 percent since the beginning of 2007, with over 10 million people connected to a fiber network. This increase in fiber subscriptions may be attributed to the increased popularity of bandwidth hungry services such as IPTV. However, the leading technology delivering IPTV today is ADSL2plus, with 12,049,817 subscribers.

Europe has over 8.4 million subscribers, making it the strongest market in terms of growth and total subscriber numbers.

DSL continues to be the most popular access technology with close to 240 million of the world’s subscribers. Cable subscriptions rates have slowed to 18 percent growth rate, while subscribers on FTTx rose 33 percent in the last year.

Mobile Phone Sales Slow Globally

Mobile phone sales began to slow in the second quarter, causing Gartner analysts to lower growth forecasts. said it cut its forecast for cellphone market growth in 2008 to 10 percent to 11 percent. Gartner previously had expected 10 percent to 15 percent growth.

"In the last month however, the economic environment started to negatively impact emerging markets as well as mature," Carolina Milanesi, head of mobile device research at Gartner, says.

It's iPhone Day

The App Store seems to be getting raves. So the issue is whether Apple can do for third party mobile apps what iTunes has done for music. So far games seem to dominate interest. But if other apps start to get traction, lots of entities will benefit.

Carriers will sell lots more data plans. Third generation and fourth generation networks will have a shot at creating revenue models for mobile Internet services and investments. Open platforms will get a boost, though international mobile calling prices will start to fall faster.

Innovation requires small companies. It also appears to require sponsorship of big companies. Apple and Google come to mind. But in sometimes halting fashion, so too the likes of AT&T, Verizon, Sprint and T-Mobile.

ISPs Agree to Block Some Content

AT&T will purge all servers containing child pornography Web sites and block user access to newsgroups that center around pornographic material relating to children. AOL, Verizon, Time Warner Cable and Sprint also have signed agreements with the state of New York doing the same.
The agreements point to the complicated nature of "blocking," "filtering," "traffic shaping," even anti-virus and anti-spam measures. In principle, most people would likely say they are in favor of "free speech" and therefore "no blocking" of Internet content.

In practice, there are lots of reasons nearly everyone would block some traffic, especially when it is harmful. The carriers have agreed to block some content lots of people think justified. That illustrates the complexity of Internet or other freedoms.

In other cases, as on most college campuses, though most people would say they favor free speech, some expressions of clearly political speech are deemed so odious the claim is made that there is "no freedom" for the expression of the clearly-political ideas, even though the same people might loudly protest other real or imagined threats to "free speech."
More than 40 years ago, in 1964, a "free speech movement" started on the campus of University of California at Berkeley in response to a ban on political activities. We may debate the later consequences, but there's little doubt rights of free speech were involved.

And 40 years later we may wonder how well those concepts are honored. These days, it is not university administrators but students and faculty that sometimes actively move to suppress ideas they disagree with. It is quite a turn of events.
The point, I suppose, is that defending free speech takes different forms in different eras. The term "political correctness" describes the current context within which free speech has to be evaluated. It might be helpful to remember that threats to free speech, historically and currently, have both left-wing and a right-wing sources. I don't think most people think left-wing suppression is any better than right-wing suppression.

I suspect most people think the carriers are doing the right thing. It's a legitimate thing to debate what free speech means in the current era. Strict constructionists might argue the "speech" to be protected is directly political speech, not any utterance, of any sort.

Carriers might take some heat for compliance with New York's rules. But it is the right thing to do. Rights are one thing. Responsibilities are another. Protecting the vulnerable among us might conflict with some notions of freedom.

In Catholic philosophy, freedom is the right to do the right thing. Ability to make a free choice is the issue, not the nature of the choice. Sometimes it might be the right thing to limit some expressions.
That isn't the same thing as blocking specific applications, or classes of applications, necessarily. But that's what makes net neutrality such a difficult concept.

So That's Why Internet Access Vaporized Yesterday

Workaround to Sudden Loss of Internet Access Problem

Date Published : 8 July 2008

Date Last Revised : 9 July 2008

Overview : Microsoft Update KB951748 is known to cause loss of internet access for ZoneAlarm users on Windows XP/2000. Windows Vista users are not affected.

Impact : Sudden loss of internet access

Platforms Affected : ZoneAlarm Free, ZoneAlarm Pro, ZoneAlarm AntiVirus, ZoneAlarm Anti-Spyware, and ZoneAlarm Security Suite

Where in Media Ecosystem does Google Sit?

There's absolutely no doubt that tier one communications service provider executives "fear" Google more than they fear competition from cable operators. For the most part, the concern is that Google (and other Web contestants) have the ability to "suck the air out of the room" as far as creating value for end users that translates into revenue and creates business models.

Nor is there much doubt that communications and media are ceasing to be two distinct businesses, already overlapping and in some cases destined to merge. Add in consumer electronics and you have a volatile and unstable business environment.

Volatile in many ways because traditional industry and segment boundaries are being erased. There's little argument to be made that Google is part of the media ecosystem, for example.

The tough part is figuring out the extent to which Google itself has become media. It's a hard question to answer because Google now has operations in the ad placement business (Web, newspapers, radio), which makes it part of the classic "ad agency" business, owns YouTube, which makes it part of the video business, and blog hosting, which makes it a distribution channel, akin to a magazine, radio or TV station or programing network.

If the definition of "media" is content supported in whole or part by advertising, then search now is "media." Where Google has stretched our notions is that it is a "non-traditional" form of media and also is part of the "advertising agency" business: it creates media and also places the ads.

That's the broader problem service providers grapple with as well. It is hard to see how far network-based businesses can move in the direction of becoming media. It is hard to foretell how much "over the top" distribution will displace any existing distribution method and business model. And it is hard to estimate how network services providers will be able to create new revenue out of relationships with Web-based services and applications.

The monetization issues Google is having with YouTube, and the relatively small sums it now generates in the newspaper and radio ad placement business, mirror the steps network service providers also are taking to capture space in adjacent markets such as video distribution.

This is more like a 10-year process than a five-year process, one suspects. And though advertising today represents a relatively small proportion of cable operator revenues, at about four percent of total revenue.

You might wonder why cable operators now are spending so much time on targeted advertising efforts, then. The thinking is that global ad spending is going to keep shifting, towards the Internet and mobile formats. Of the current $510 billion spent on advertising, there is general consensus that newspaper share, 15.9 percent or about $132 billion, is highly vulnerable, as share has been shrinking for more than a couple of decades. The other big bucket of spending is television, which gets 37.6 percent of all ad spending, or about $192 billion.

Cable operators now are thinking they can grow a new ad format by taking share from newspaper and other TV media. As TV and newspapers between them represent $324 billion, or 64 percent of all advertising, you can see the attraction.

To the extent that network service providers more familiar with voice and data also are in the entertainment video game, and also have the same targeting opportunities as cable operators do, it is fairly easy to predict growth in targeted ad capabilities at some point.

Google is media. So, ultimately are telcos, in their roles as video and Internet service providers. the only issue is how much in that direction telcos will move.

Madison River, Comcast

So what does "Madison River" have in common with "Comcast"? Both might wind up being examples of Internet service providers formally punished for blocking Internet traffic.

There are reports Federal Communications Commission Chairman Kevin Martin will recommend that Comcast be fined for previous traffic-shaping practices that delayed peer-to-peer traffic. The vote is scheduled for Aug. 1, 2008.

87% U.K. Multi-Channel Video Penetration

Multi-channel video entertainment service penetration in the U.K. hit 87.2 percent in March 2008, Ofcom, the U.K. communications regulator, reports. To the extent there are differences between the U.S. and U.K. markets, it is the greater market share held by satellite services in the U.K. market, compared to the U.S., where cable is a more-important factor.

RCN Will Boost Access to 50 Mbps

RCN Corp. plans to boost its consumer cable modem service up to 50 Mbps "by the end of next year," Jeff Baumgartner, Cable Digital News editor says. RCN CEO Peter Aquino promises RCN will remain competitive with Verizon, Time Warner or any other contestant in its markets.

Midband Ethernet to Grow 120% through 2011

Infonetics says worldwide Ethernet service revenue sequentially grew 33 percent to $12.5 billion in 2007, and IP MPLS VPN service revenue grew 20 percent to $13 billion.

Service revenue for mid-band Ethernet, which includes the 1-10 Mbps and 10 Mbps to 50 Mbps speed bands, will jump 120 percent from 2007 to 2011, Infonetics predicts.

Hazards of Connected Life

One of the hazards of modern life is the stability of one's broadband access infrastructure. Circuits and services go down, from time to time. For some of us, that means acting as our own personal system integrators, creating fail-safe mechanisms.

As sometimes happens, my Covad T1 line died yesterday morning, an apparent software corruption to my Windows operating system caused one of my PCs to crash, necessitating restoring the machine to an earlier software load, and requiring me now to ignore all messages to install the latest upgrade to the operating system.

Today the cable connection was fluttering in and out of service. So while the T1 was down and the primary PC inoperable, I reverted to the backup PC and the backup broadband connection (Verizon 3G).

Comcast got the connection restored without me having to call in a trouble ticket and Covad's tech support has been superb, as usual. One never wants to have a service go down, and this isn't the first time the T1 has died. What matters is how fast service gets restored, and how attentive tech support is. On that score, Covad continues to rank as the single best service provider I've ever had.

Experiencing problems isn't unusual these days. Having a service provider respond promptly, expeditiously and with great courtesy is the key. Well, that and making sure you have a way to keep working while things get sorted out.

Update: the technician was unable to get the third Cisco router to work, so we are switching to a Netopia router instead. He says he isn't sure what the issue is, but the Netopia works, and the Cisco box does not.

A Tongue-in-Cheek Proposal

As long as we are being obsessive about the weight of aircraft (US Airways is going to remove onboard in-flight entertainment systems), why not other measures? Removing the entertainment systems removes 550 pounds of weight.

Some other airlines had removed magazines for the same stated reason: to cut weight. We understand other weight-reducing measures, such as using lighter service carts, also are being looked at. The amount of water for the lavatories as well as the amount of fuel in plane tanks already have been optimized. Bag weight also now is an optimizable element in fuel consumption.

Each jet can save perhaps 400 pounds simply by avoiding paint on the fuselages.

Heck, why not base airline tickets on body weight as well as distance traveled, then?

$4.5 Billion Annual Data Center Power Bills

Data centers in the United States consume more than 60 billion kWh of energy each year, at an annual cost of $4.5 billion, according to the Environmental Protection Agency. Energy consumption has doubled since 2000. Much of that spending is for cooling systems to deal with all the heat produced by the power-gobbling servers that are the muscle inside any data center.

Additional studies by many of today's largest corporations agree that a 10 percent to 20 percent reduction in power consumption from new IT equipment is required. That, and the inability of data centers to continue to scale operations using current technology virtually assures new generations of power-efficient servers.

Some data centers already are finding that the key constraint to further growth in hosting capacity is inability to get any more power from the grid at their current locations.

Much the same can be said for end user devices, especially mobiles. Broadband mobile applications require more power consumption. That means bigger or better batteries. Since device size is crucial these days, that means better batteries.

Of course, the problem is that processors and memory advance at much-faster rates than battery technology, for example.

Watch Fonolo

Lots of people think telcos are too "dinosaur-like" to keep up with the fast-paced world of IP communications. There's a logic there, to be sure. Large organizations with lots of regulatory and technological requirements act that way. Talk to any software developer working with really large systems and the danger of breaking something while fixing something else is obvious.

While nothing will change the need for some circumspection, it is a fallacy to think telcos are so hidebound they can't see where they must go. In fact, there's now widespread recognition that rapid software innovation is necessary, and cannot be done on an "in house" basis.

That means there is widespread recognition of the need for partnerships of all sorts. So consider Fonolo, an application intended for use by large communications providers. It is the sort of third party innovation carriers are looking for, and need, to create new value.

"Or mission is to help users deal with large companies over the phone, especially when interacting with interactive voice response systems," says Shai Berger, Fonolo cofounder and CEO.

"Our key innovation is a way for you to visually preview the IVR and take short cutswithout listening to all the prompts," he says. Essentially, the application works by sending out spiders, much as Google and other search engines send out spiders to find and index Internet content.

The Fonolo spiders crawl around, investigate IVRs and build maps. Based on that knowledge, Fonolo allows users to "click the spot you want to reach, then we ring your phone and "deep dial" you to where you want to go," says Berger. "It's just like deep linking in the Web world, where you can bookmark your spots so you can go right back," he says.

Another feature is intelligent call histories. "You can use any phone and all the call history is available to you as an end user. Fonolo also supports full call recording.

Say you have an interaction with a customer service agent about a billing, technical support or other issue. Those interactions can be recorded as a way of documenting the "trouble ticket."

Then, when a user interacts with the next agent for follow up, "you can play the recording back to the agent while you are on the phone, if you need to," he says.

And note: Fonolo was intentionally built as an application carriers can use. "The key for us is carrier partnerships," says Berger.

"Even non-tech-savvy users get it," Berger says. "IVR interactions are a major consumer pain point."

No downloads are required, by the way. As every provider likes to say, "it just works."

Fonolo now is in private beta and will move to public beta in a month.Berger expects to launch formally in the fourth quarter of 2008, with pilots beginning in the first quarter of 2009.

Asked where he thinks he'll get traction, Berger says that although Fonolo already has been contacted by carriers "all over the world," he thinks the intial deal or two will come from smaller providers that can move faster. He'll work up the food chain from there.

Fonolo is an excellent example of how application developers and carriers can work together to create and popularize new applications that enhance and change the communications experience. Granted, some developers will just want to build "over the top" apps. But what really will be interesting is the emergence of a class of developers that see what can be done working with carriers.