At Least 96% of U.S. Households Can Buy Cable Modem Service

In Canada, virtually all households in urban centers and 78 percent of households in rural areas were within the broadband footprint at the end of 2006, says the Organization for Economic Cooperation and 

Broadband coverage is also extensive in the OECD’s second largest country, the United States. High-speed cable modem service is available to 96 percent of end-user premises in the United States. DSL coverage is in the high-70s percent penetration. 

Metered or Bucketed Usage Plans? Only One is a Problem

Looking at moves to bandwidth caps by Comcast and other service providers, some observers are concerned about the possible impact of what is termed "metered" usage on user behavior. It's a reasonable concern. Back in the old days of dial-up access, metered usage clearly depressed usage, which exploded in the U.S. market when AOL moved to "unlimited" packaging. 

So observers are right to worry about potential depressing effects on new user behaviors and applications. The concern probably is misplaced, however. There is a difference between "buckets," which feature a usage cap, and "metered" usage. The customer reaction also is quite different. 

Metered usage isn't welcomed by users, primarily because it introduces uncertainty. Users do not like to wonder what their bills will look like, so there is a clear preference for predictability.

But if the buckets are sized appropriately, and when users have some experience to gauge the appropriate buckets, usage does not seem to suffer. Strict metering undoubtedly would depress usage. Buckets will not, if constructed with reasonable parameters and when users have some way to predict and adjust their plans if needed.

The other issue is that lots of other services are offered on a strictly metered basis, and that can be good for light users. Light text message users benefit from a la carte, metered usage charges. Moderate usage quickly allows users to figure out that a bucket is a better deal.

And even metered usage is tolerated, if the prices are reasonable enough. Most users pay for water, natural gas or electricity on a simple metered basis. As long as users know roughly what to expect, and the rates are not outrageous, it does not seem to be a problem. 

Buckets of wireless minutes, buckets of usage that blur the distinction between "long distance" and "local" consumption clearly have encouraged usage. 

Telecom Professionals Say Wireless is Where the Action Is

A recent survey of telecom professionals confirms what industry professionals probably also agree on: wireless is where the action now is. Some 72 percent of respondents believe the biggest opportunities lie within three categories: wireless (40 percent), infrastructure engineering and manufacturing (16 percent), and mobile application development (16 percent). So make the votes ofr wireless 56 percent of the opportunity.

When asked about the immediate future of telecommunications, 70 percent of respondents said they believe the industry would grow or remain consistent, according to TelecomCareers, an online job board for telecommunications, media and technology professionals.

Does Chrome Matter?

Does Google’s new Chrome browser matter? Lehman Brothers analyst Douglas Anmuth thinks so, says Erick Schonfeld, Seeking Alpha commentator. Anmuth points out that Firefox having gained approximately 20 percent market share over the past four years. He thinks Google Chrome could be adopted faster, and gain 15 percent to 20 percent share within two years.

A lot of the attention so far has been on the possibility of Chrome being a Windows killer, by supercharging Web browsing and Web apps so you really won’t need desktop applications. Anmuth believes mobility might be the bigger play, if, as he expects, Chrome will be bundled directly on Android mobile devices. 

The other angle: Google Gears, used to synchronize online documents and data for offline use, might be quite valuable for mobile applications that must operate in a fluid access environment. 

And Google Gears can be very useful for Web apps on mobile devices, where network connections can be spotty.

Global IP Traffic Up 53%

International Internet traffic grew 53 percent between mid-2007 and mid-2008, down from 61 percent the preceding year, say researchers at TeleGeography.

Two Percent Chrome Usage Today?

Web analytics startup GetClicky says that almost two percent of all Internet traffic to the 45,000 websites they monitor is coming from Google Chrome today, according to TechCrunch. 

TechCrunch visitors seem to like Firefox quite alot. In fact, TechCrunch users probably are not like most Internet users. But 56 percent of TechCrunch readers from the last 30 days use Firefox, compared to 31 percent for Internet Explorer and 10 percent for Safari. 

Mobile Gamers: 31 to 70 Million

Mobile gamers who have downloaded a paid-for game numbe about 31 million, according to eMarketer. Mobile gamers who have either done that or played a game preloaded on their mobile device might number as many as 70 million, according to Limbo and GFK/NOP Research.

In June 2008, the dotMobi consortium and AKQA published a study on US and UK mobile Internet activities, which reported 22% of respondents engaged in mobile game play.

At the higher level of use, perhaps 22 percent to 27 percent of mobile phone users play games of any sort. In June 2008, the dotMobi consortium and AKQA conducted a study that suggests 22 percent of respondents play mobile games.

The Pew Internet & American Life Project suggests that 27 percent of U.S. mobile device users had played mobile games on their devices.

Google Chrome:Tabs on Steroids

If the download times are any indication, the 7-Mbyte Google Chrome browser is getting lots of downloads today. The download is slow. First reaction: the tabbed browsing feature, which is the reason many of us seem to prefer Mozilla's Firefox, is really noticeable. Google provides much-more extensive browsing history.

I've only used it briefly today, so although I can't assess perceived browser speed on an extended basis, which is supposed to be one of the advantages, it does seem to be executing faster.

I suspect the ability to isolate a single tab malfunction from paralyzing the whole browser might be useful. I haven't had a crash yet while using Web pages.

Rogers iPhone Usage Data: 91% Use Less than 100 Mbytes

First month data on iPhone user data consumption show that 1.2 percent of iPhone customers used more than 1 GByte of data, 95 percent used less than 500 MBytes, and 91.2% used less than 100 MBytes, says Elizabeth Hamilton, Rogers Wireless director, and reported by by Sean Cooper, of engadget mobile.

Usage patterns might change with time. They typically do. But so far, at least, there doesn't seem to be a mismatch between usage caps and end user behavior. Over time, that likely will get to be a bigger problem, as consumption tends to rise with time and experience.

Roughly the same thing can be said of wired network broadband usage. Over time, usage will drift higher as more users start to routinely consume video.

Google Chrome has Launched

Google's new "Chrome" browser is available for download now.

Business Model Transformation Coming? It Came

ITU Telecom Chairman Dr A Reza Jafari says the global telecom industry is in the midst of a fundamental business model transformation whose most-obvious element is mobility.

According to the Federal Communications Commission data on end-user revenues earned by telephone companies, that certainly is the case.

In 1997 about 16 percent of revenues came from mobility services. In 2007, more than 49 percent of end user revenue came from mobility services.

Likewise, in 1997 more than 47 percent of revenue came from long distance services. In 2007 just 18 percent of end user revenues came from long distance.

In 1997 about 37 percent of total revenues came from local service, while in 2007 about 33 percent was provided by local services.

One way of looking at matters is that the global industry already has lived through two major shifts in revenue: first the collapse of long distance and second the rise of wireless. If you want to know why legacy AT&T and MCI ceased to be dominant independent companies, the collapse of long distance revenues from 47 percent to just 18 percent explains it.

And if you want some idea of where things have gone, wireless has replaced long distance as the provider of nearly half of all revenues. Local services have dipped a bit from 37 percent to 33 percent.

In all likelihood, the next change will involve revenues not even captured by the 1997 and 2007 data, and go beyond wireless. Telco moves into multi-channel video entertainment are but one example.

Are you Discomgoogolated?

About 44 percent of Britons say they are "discomgoogolation sufferers", while 27 percent say they have rising stress levels when they are unable to go online. The results of a survey commissioned by U.K.-based YouGov attempted to measure the importance of immediate access to information made possible by Google and the Web.

The term comes from "discombobulate," which means to confuse or frustrate, and "Google".

The survey attempted to gauge the degree of reliance on instant answers to information provided by Google and other search engines and portals.

The survey also found 76 percent of Britons could not live without the Internet, with over half of the population using the Web between one and four hours a day and 19 percent of people spending more time online than with their family in a week.

The survey results provide testimony about the importance Web and Internet access now have assumed in peoples' lives.

Microsoft to Create App Marketplace?

AppleInsider says Microsoft is looking for a product manager who could help bring to market a widget directory for Windows Mobile similar to the iTunes App Store for the iPhone.

Calling the store "Skymarket", Microsoft suggested the store will open sometime in 2009. The new product manager would have to define "the product offering, pricing, business model and policies that will make the Windows Mobile marketplace 'the place to be' for developers wishing to distribute and monetize their Windows Mobile applications."

It is simply one more example of the importance third party software developers now have become for success in a world of digital content and applications. Whether one is looking at the value provided by a mobile device, portal, enterprise application or many types of hardware appliances, third party innovation now has become as important as proponents of open platforms and IP networks suggested it would be.

AT&T, Verizon Ramp Up DSL Marketing

It is starting to appear that a dramatic second-quarter fall-off in net new broadband access customers at AT&T, Verizon and Qwest was due to marketing inattention by telcos and brisk activity by cable companies. At least, that's what one would surmise based on ramped-up marketing programs AT&T and Verizon now are rolling out.

Verizon Communications Inc., in the second quarter the first telco ever to see a drop in DSL subscribers, now is offering customers six months of DSL service free if they sign up for the company's phone and Internet package. AT&T now is guaranteeing its current rates for two years.

Wall Street Journal staff writer Vishesh Kumar reports that "while the most generous offers are coming from the phone companies, some analysts expect cable companies will also become more aggressive in their own promotions as they compete to retain customers."

Cable and phone companies added 887,000 new broadband customers during the second quarter, half the number they added a year earlier, according to research from Leichtman Research Group.

It wasn't immediately clear, when the second quarter acquisition numbers appeared, what had happened. Basically, Verizon and AT&T experiences an unusual order of magnitude drop in net broadband adds, something completely at odds with several years worth of quarterly additions.

One conceivable explanation was a sudden shift in consumer preferences for cable modem service as compared to DSL. Another partial answer in Verizon's case was that broadband adds increasingly were shifting to FiOS, and away from DSL.

Also, aggressive promotioinal activity by cable companies undoubtedly played a role, combined with some sort of inattention to broadband marketing on the part of the telcos. Whatever the causes, it now appears marketing efforts by telcos will be much more aggressive in the third quarter.

Google to Launch Own Browser

Google Inc. plans to launch its own Web browser, the Wall Street Journal reports.

The browser, called Google Chrome, will be developed on an open-source platform, and is designed to make it easier and faster to browse the Web, by offering enhanced address-bar features and other elements.

That might seem like an odd move. But browsers have become important business model platforms. Though there might ultimately be other strategic advantages, the immediate emphasis seems to be the linkage between browsers and default search engine use. Browser revenue streams these days often rely on search engine revenue. That is the business model for the free Firefox browser, for example.

And for Google, the ad rates it can charge for search and related advertising are dependent on the scope and frequency of search engine queries.