Friday, October 15, 2010

Half Of Broadband Users ‘Don’t Care’ About Speed

Almost half of U.K. broadband users don’t care how fast their Internet connection is, as long as it works, a new survey has found.

In a study of 5,200 U.K. consumers carried out by YouGov and commissioned by BSkyB, only 30 percent said they were frustrated with the consistency of their Internet speed, with 44 percent claiming they “don’t know” or “don’t care” how fast their connection is.

Meanwhile, just six percent said that speed alone was important, with 39 percent preferring value for money and 36 percent claiming that customer satisfaction was their top priority.

“What this research has done is to cut through the noise around broadband speeds and listen to what the majority of broadband users say about what matters to them,” said Delia Bushell, Sky’s Director of Broadband and Telephony. “In short, people want broadband that works, transparency over what they are getting, and a price that suits their pocket.

Those results are consistent with some studies of U.S. consumers as well. "Speed" often seems more important to service providers as a marketing platform than it is to buyers of broadband access services, who seem to be signaling by their buying, not just their attitudes when surveyed, that beyond a certain point, additional speed doesn't provide enough value to justify spending the extra money.

More Granular Mobile Data Plans from Verizon Wireless

Verizon's new mobile broadband plans for the Apple iPad seem crafted for usage somewhere between smartphones and PCs.

Smartphone owners typically are expected to consume hundreds of kilobytes a month.

Users of mobile broadband for their notebooks or netbooks might consume a couple gigabytes a month.

Tablets that might be used heavily for content consumption could in some cases represent heavier demand that that, but not as much as many PCs on fixed connections. More granular pricing will be helpful, even though users might be expected to worry that they do not know enough right now to pick the best plan.

Carriers can help by providing better usage tools, communicating with customers and by being more flexible about allowing end users to shift plans when their usage behaviors change.

Users have gotten pretty comfortable with "buckets of usage," and mobile broadband buckets ultimately should be as acceptable as voice buckets have been.

Prioritized Gaming an Example of Why Net Neutraltiy Might Not be a Good Thing

Demon, a U.K. ISP, has created a new broadband package that prioritizes gaming traffic, a prime example of why network neutrality can reduce end user value.

The ISP's new "Game Pro" broadband will prioritize gamer traffic, providing a better experience for users who want that capability.

Demon will essentially give an assured rate to anyone willing to shell out the extra £3 a month for the gaming broadband. The Game Pro package starts at £23 a month.

"What we're doing is putting gamers into a business grade network," Carl Warner, Demon manager says.

Off peak, there will be no usage restrictions, but those who sign up to the package will be limited to 100GB a month between 8am and 11pm - which Demon said was double the top usage needed according to gaming companies it asked.

Thursday, October 14, 2010

Android and Mobile OS Trends

Google: When You See a Product Hockey Stick Growth Curve, Pour it On

Google's philosophy when it comes to allocating money and resources: If the graph of a product's growth looks like a hockey stick, pour fuel on the fire.

And it looks like Google Instant will be available on mobiles this year.

Multiple Android App Stores a "Net Win" for Android

Google apparently believes Android app stores operated by other companies, such as Verizon, possibly Amazon or Best Buy, are a "net win," since the goal of the app stores is to create revenue for developers, not Google.

To the extent that multiple Android stores support that goal, it is a win for everybody in the ecosystem.

Where Consumers Spend Their Communications-Related Money

Whatever else we might say about where U.S consumers spend their money on communications and entertainment, it seems clear enough they prefer to spend on broadband and Internet than voice, on video entertainment more than wireless.

see more here

Will Communications or Entertainment Spending Take a Dip?

There generally is a very-stable relationship between household income and household spending on communications and entertainment.

Over quite long periods of time, the percentage of household income spent on communications or entertainment is unusually stable as a percentage of total household disposable income.

What could be important, for that reason, is any change in the amount of household income. One wouldn't be surprised to see an unexpected bit of a dip in the percentages as the "recovery" continues to struggle along.

If household income falls, people will wind up paying a higher percentage of total disposable income, or will have to adjust communications or entertainment spending downward.

Google making $1 billion a year from mobile

The thing about big companies is that any new proposed revenue stream has to be pretty big to get any interest.

So it is probably worth noting that Google’s non-text display advertising has an “annualized run rate” of $2.5 billion, while mobile business is on track to make $1 billion in revenue this year.

Google Instant is about User Experience, Not Revenue, At This Point

Jonathan Rosenberg , SVP Product Management at Google, says that “from a revenue standpoint impact, Google Instant has been minimal.”

From a resource standpoint, it's more expensive. So why do it? People like it. That doesn't mean there is no revenue-related reason to do it. To the extent that it glues users to Google for search, it is worth it. If other revenue opportunities arise later, that's good. But right now, it might be more a cool feature than an immediate driver of revenue.

Verizon to Sell iPads, Packaged with a Mi-Fi

Verizon Wireless is going to start selling the Apple iPad. You might wonder what the angle is, and it is that the iPad will be bundled with a MiFi, giving Verizon Wireless a recurring revenue stream.

Google Sales Blow Past Expectations

Google posted double-digit jumps in sales and net income, as the company continued to benefit from a strong market for search ads.

Sales increased 20 percent to $5.48 billion, from $4.38 billion a year ago, while earnings per share increased to $7.64 from $5.89 during the same quarter in 2009.

On average, analysts had expected net revenue of $5.25 billion and earnings per share of $6.67, so Google easily beat expectations.

Indeed, Google’s earnings per share and sales figures were greater than even the most bullish analysts had expected.

Sprint Nextel Offers New Boost Mobile Loyalty Program

Sprint Nextel Corp. says it will reward customers loyal to its Boost Mobile prepaid brand by lowering their bills every six months.

The carrier will knock $5 off the $50 monthly price of its unlimited talk, text and Web plan after every six months of on- time payments, to drop the bill to as low as $35, says Bob Stohrer, Sprint’s prepaid marketing chief.

10% Reduction in U.S. Communications Investment Would Cost 300,000 Jobs, $100 Billion in Wages, Over 5 Years

The economic impact of Federal Communications Commission policies that depress capital investment in the U.S. telecom indusry by 10 percent would lead to job losses exceeding 300,000 over a five year period, a new economic analysis by the Phoenix Center for Advanced Legal and Economic Policy Studies estimates.

A 10-percent reduction in investment costs 130,000 information-sector jobs per year in the following five years, plus indirect jobs of about 198,000 over the same five-year period.

For each million dollars of investment, the Phoenix Center finds that 10 jobs are affected in the information sector and perhaps 24 jobs across the entire economy, about a 40-percent larger effect than found in most earlier studies.

Lost earnings over a five-year period for a 10-percent decline in investment could be $36 billion in the information sector and $100 billion for all affected jobs.

The study was conducted by T. Randolph Beard, Ph.D. Phoenix Center Senior Fellow and Auburn University Economics Professor, Phoenix Center Chief Economist Dr. George S. Ford and Phoenix Center Adjunct Fellow Professor Hyeongwoo Kim, of Auburn University.

read the study here

Some at FCC Apparently Have a Thin Skin

I don't recall the last time an FCC staffer attacked a policy paper from the FCC's own official blog site.

Perhaps oddly, the post castigates the Phoenix Center for living in a "theoretical" world rather than the "real" world of communications policy.

If you are familiar with the work done at the Phoenix Center, you might be puzzled by that remark. The Phoenix Center's work always is grounded firmly in economic analysis.

"Our friends at the Phoenix Center might be well advised to descend from theory-world to look at the actual, concrete actions taken by this Commission over the last few months," says FCC staffer Paul deSa.

I suspect that is precisely the problem the Phoenix Center analysis of Title II regulation was meant to address.

You can read the full Phoenix Center analysis here http://www.phoenix-center.org/PolicyBulletin/PCPB25Final.pdf

You can see the FCC rant here

Price's Law: 10% of People Produce 50% of Outcomes

Price's Law states that half of the literature on a subject will be contributed by the square root of the total number of authors publi...