Monday, December 20, 2010

The most reliable blogging services on the Web

Google’s Blogger platform is the most-reliable of several tested by Pingdom. The Blogger blogs didn’t have any downtime whatsoever during the two months we monitored them, followed by WordPress.com which had very little downtime.

Typepad performed about as well as WordPress. Posterous had somewhat mixed results, but overall performance was close to tht of WordPress and Typepad. Tumblr was the only service in the test that truly failed.

AT&T Acquires 700-MHz spectrum from Qualcomm

AT&T is buying spectrum licenses in the 700 MHz frequency band from Qualcomm for $1.925 billion. The spectrum will be used as part of AT&T's Long Term Evolution 4G mobile broadband network.

Qualcomm had been using the spectrum to support its FLO TV business, but Qualcomm is shutting the service in March 2011.

The spectrum covers more than 300 million people total nationwide and includes 12 MHz of 700 MHz D and E block spectrum covers more than 70 million people in five of the top 15 U.S. metropolitan areas, including New York, Boston, Philadelphia, Los Angeles and San Francisco.

The network also includes 6 MHz of 700 MHz "D block" spectrum covers more than 230 million people across the rest of the United States.

Frequencies in the 700 MHz and 800 MHz bands are highly favored for mobile services because the signals feature both more range and greater ability to penetrate buildings. As indoor coverage is a continual issue for mobile services, the new frequencies will help AT&T deal with indoor coverage for its LTE network.

read more here

Sunday, December 19, 2010

Zong for Content Purchases

Zong, a provider of content purchases, might ultimately have a wider role in the transaction space.

ITU Says Some 3G Networks are 4G, Pre-4G is 4G, and 4G is 4G

The International Telecommunications Union recently defined  “LTE-Advanced” and “WirelessMAN-Advanced” as the only "official definitiions of "fourth generation" networks, automatically making networks operated by Sprint, Clearwire, Verizon, MetroPCS and all other operators of WiMAX and Long Term Evolution networks something other than standards-based "4G" networks.

Now the ITU has muddied the waters even more, saying that some "3G" networks are "4G," while the formal "pre-4G" networks in existence, or about to be built, also are "4G."

"As the most advanced technologies currently defined for global wireless mobile broadband communications, IMT-Advanced is considered as “4G”, although it is recognized that this term, while undefined, may also be applied to the forerunners of these technologies, LTE and WiMax, and to other evolved 3G technologies providing a substantial level of improvement in performance and capabilities with respect to the initial third generation systems now deployed," the ITU says in a new statement.

Huh? Some of us have had no issue with T-Mobile USA saying its new HSPA+ network offers "speeds equivalent to 4G," because the WiMAX and HSPA+ networks do offer comparable access speeds. But it does create a definitional muddle. It's one thing for marketplace contestants to position their networks in one way or another.

It might be quite another for a "standards" body to argue that 3G is 4G, existing 4G is 4G, and other possible networks might also be 4G.

What's the point of a standard when it isn't a standard any longer? In this case, it might mean that the "non-standard" standards will grow organically to the point that the newly-minted "4G" standard simply ceases to be relevant, much as adherence to the supposedly-"legacy" TCP/IP completely killed the shift to new protocols for layers one through four of the data communications protocols.

One might say the ITU flip flop is merely embarassing, and yet another example of standards bodies attempting to define "next generation" networks. It might result in something far more substantial than that. One might suggest that the whole effort now is questionable, in terms of helping shape the development of 4G.

Once critical mass developments around the real-world 4G and advanced 3G networks, services, revenue elements and devices, evolution will happen based on those factors. That doesn't mean operators will abandon the effort to keep developing more-capable networks. But as we have seen with TCP/IP and other data "standards," the market often decides what a standard is.

So far, the markets, and end users, have decided the path for next-generation networks, in large part. That could well happen here as well. No matter what the ITU thinks, if voluntary groups such as the GSM decide to evolve LTE in some other direction, the existence of a formal standard will not deter them.

That is not to fault the well-intentioned hard work of the technologists working on the standard. The point is simply that the global telecommunications industry has yet to prove it can devise a "next-generation" network standard that real-world operators actually embrace obviously, and with great commercial success. Instead, the pattern so far has been that network operators and end users sort of grope towards better solutions as best they can.

But it is equally true that, up to this point, real-world commercial success has not been driven so much by the standards as by solutions that users believe are workable and useful.

For a discussion f the ITU standards, read this: http://www.itu.int/itunews/manager/display.asp?lang=en&year=2008&issue=10&ipage=39&ext=html and this http://www.networkworld.com/news/2010/121710-itu-softens-on-the-definition.html.

For a discussion of the change, arguing that the ITU now has erred twice on the same subject, see http://www.abiresearch.com/research_blog/1520.

Social Adoption by Enterprises

What social technologies and tools do enterprises view as most important, and what kind of investments do organizations plan to make in Web 2.0 in the future? This McKinsey presentation tries to answer the questions.  The survey examines business use of 12 technologies and tools: blogs, mash-ups (a Web application that combines multiple sources of data into a single tool), microblogging, peer to peer, podcasts, prediction markets, rating, RSS (Really Simple Syndication), social networking, tagging, video sharing, and wikis.


http://www.mckinseyquarterly.com/Business_and_Web_20_An_interactive_feature_2431?pagenum=1#interactive

Is 2011 the Year for Social Commerce?

Facebook has 600 million users worldwide, and about 140 million of those users in the United States. Facebook reports that about 50 percent of those users check the site every day.

Time on Facebook represents about 25 percent of time spent on line (11 hours a week for the average user), now cannibalizing time spent on line doing things like reading news and other online media, instant messaging and emailing, thanks in part, to entrepreneurs who have developed applications that keep users on the site more of the time.

Brands already use Facebook for branding and customer interactions. Can mobile and online commerce be too far away?

Is 2011 the Year for Social Commerce?


One Wonders Whether Many Charging Methods Will be "Legal," after Dec. 21

Packet priorities obviously raises hackles in some quarters, but there also is no question service providers are anxious to add value to their broadband access services, or services provided by their partners. One wonders how many of the possible techniques will be permissible after Dec. 21, 2010, at least temporarily, while the legal challenges are sorted out.

This webinar highlights the benefits of deep packet inspection, policy management and new differentiated charging solutions, especially in the wireless domain. In principle, some of the techniques are borrowed from the ways service providers have created incentives for users to shift some voice usage to non-peak hours.

Orange leads NFC charge in Europe - Rethink Wireless

Orange, the key France Telecom brand, has announced that it will roll out near field communications-enabled handsets across its whole European Union footprint starting in the second half of 2011.

These phones can be used to pay for goods by wanding the devices near special retail terminals. Orange will kick off its initiative in its home base of France, and among its postpaid user base. It expects to have 500,000 French customers equipped with NFC by the end of 2011.

Orange told handset vendors at a meeting that it aimed to see NFC included in over half the new smartphone models it buys next year. Orange is the first European operator to make such a clear commitment to the development of mobile contactless services.

One Reason Online Privacy Rules Are Coming


An examination of 101 popular smartphone apps by the Wall Street Journal show that that 56 transmitted the phone's unique device ID to other companies without users' awareness or consent. Not everybody would think that especially intrusive.

Some 47 apps transmitted the phone's location in some way. Five sent age, gender and other personal details to outsiders.

Apple says that iPhone apps can’t transmit user data without approval, but the WSJ’s findings reveal many apps that don’t follow that rule. Google leaves it up to app makers to make users aware of the data their apps reveal. Android also gives users specific notes about the phone resources (including hardware and data) apps will use before they’re downloaded.

Unfortunately, there’s little users can do to protect themselves from data-sharing apps, aside from avoiding many popular apps entirely, the report suggests. Many mobile ad companies let users opt-out of their website tracking, but those opt-out lists don’t apply to apps, according to the WSJ. The ad company Jumptap says iPhone users can opt out of app data sharing by emailing their phone’s user ID to them. Apple says its iAd opt-out also applies to apps (but doesn’t prevent iTunes data from being collected).

The findings reveal the intrusive effort by online-tracking companies to gather personal data about people in order to flesh out detailed dossiers on them, and suggest why there will be growing political pressure to toughen online privacy, and mobile privacy by extension, if not formal and specific rules relating to mobile data.

read more here if you aren't a Wall Street Journal subscriber.

Anonymous Anything Is a Problem

Washington Post readers constantly complain about the excessive use of anonymous sources in the newspaper. But the problem is even worse online, according to the newspaper's ombudsman.

"Staff-written news blogs are replete with violations of The Post's long-established and laudable standards governing confidential sources," Andrew Alexander, Washignton Post ombudsman says. "These unnamed sources often are cited without providing readers with even a hint of their reliability or why they were granted anonymity."

In the first two weeks of December alone, Post news blogs included more than 20 unnamed sources without any explanation of their quality or why they warranted confidentiality, says Alexnder. Many blogs referred only to 'sources' or 'those close to' a subject or situation.

In some ways, use of such sources is an occupational hazard. Some sources will say things only if they are not quoted or identified, and the technique remains an important way some news gets out. But such leaks typically always have an agenda.

Some might say the problem is even worse for anonymous comments and posts online, which tend to encourage rude behavior. Some will argue anonymous comments, posts or statements, though sometimes useful, are overused.

Visa Talks About Mobile Payments

Verizon Trademarks Reveal LTE "Video Messaging" Handsets?

Verizon apparently has applied for trademarks relating to"'video messaging" devices. That tends to suggest some new handsets will be brought to market for the LTE network that have video messaging as a lead application.

Though all smartphones are, by definition, multi-purpose devices, it has been clear for some time that devices can be differentiated by highlighting and optimizing a particular lead app. BlackBerry arguable was an "email" optimized device. Other devices have been optimized for Facebook, social network updates or Skype use.

It now appears video messaging could be another of the lead apps.

It's a Good Thing App Developers Aren't at the Mercy of the ITU

If you want an excellent example of why it is a very good thing that software development now is viewed as occurring in "layers," where underlying communications protocols are abstracted, consider the situation facing mobile software developers.

"If you’re realistic you’ll admit that mobile “strategy” is a 12 month window into the future at best, where very few decisions are robust," argues Nick Jones, Gartner distinguished analyst.

Devices, tools, vendors, network contracts, business requirements, customer attitudes and competitors will change rapidly, probably invalidating some aspect of a strategy every couple of months.

For that reason, it is a very good thing that among the complications an application developer does not have to worry about is uncertainty about communications protocols in layers one through four of the "stack."

If there were tight linkage between layer-seven apps and layers one to four, developers would be in a pickle, now that the International Telecommunications Union has first created WiMAX and Long Term Evolution standards no real-world network uses, and further has complicated matters by saying that existing advanced 3G and pre-standard 4G networks are, in fact, 4G networks.

See this  and this this  for more details.

It's one thing to create standards that allow global networks to communicate. It's a good thing to have an evolution plan for networks that support greater functionality. It isn't so clear how useful it is to create a well-intentioned standard that first defines all existing networks of that type out of existence, before backtracking and declaring all of them to be "standards-compliant," and then to stretch the definition to include some advanced 3G networks as well.

App developers would face much greater uncertainty were they forced to create tools and products that had to track those sorts of changes.

Saturday, December 18, 2010

A Look at Teen Texting Behavior

What is Netflix's Long-Term Position in Online Video Business?

Netflix has confounded naysayers for years. The basic argument has been that the DVD rental business would be replaced by online video, and that Netflix would not make the adjustment.

So far, Netflix has proved doubters spectacularly wrong. By all accounts, it is making a steady transition to online delivery, and its customers seem to be adapting as well. So perhaps a new consensus has developed: that Netflix is among the firms that will survive the transition from physical media delivery to online delivery.

If you have been in most Best Buy outlets recently, you get a sense that Best Buy is serous about ultimately phasing out sales of physical media content, to the extent that floor space is an indication of what a retailer expects to sell.

Perhaps oddly, then, one might ask the question of whether online delivery is an unalloyed good thing for Netflix. Some might argue it will pose new, and different questions, for Netflix.

Up to this point, most seem to agree that switching to online delivery saves Netflix money because the company avoids paying postal fees for delivery. That's true.

But content owners are becoming more aggressive about protecting their online rights, and it is a reasonable prediction that Netflix will have to pay much more, in the future, for access to content it can stream. That obviously could pose issues for the revenue model, given the low costs Netflix now imposes on users of its library.

If its content acquisition costs rise, Netflix will face margin pressure, with the obvious choice of raising prices or watching its margins tumble. Higher prices might limit growth, but higher prices seem almost inevitable, at some point.

In the chart, for example, note the blue bar, representing streaming content costs, compared to the white bar, which represents  DVD content acquisition costs.


At the same time, a switch to streaming, rather than DVD rentals, will cost Netflix more, over time. Now, Netflix can buy a DVD, pay once, and rent the disc until it is worn out. When streaming, the typical deal is that the content owner gets 60 percent of the gross rental fee. So there is more financial leverage when sourcing content by buying DVDs.

Other distributors pay similar amounts, of course, but generally price each viewing at higher rates, ranging from $1.99 to $4.99 per movie (or more) on Apple's iTunes, Amazon On Demand, Vudu, and cable, satellite or telco video on demand services, for example. TV show rentals might cost the end user $1 per episode.

Netflix now offers a $7.99 per month unlimited streaming service, and you can guess that the economics can invert, given reasonable volume. You might wonder how Netflix can even offer the unlimited $7.99 streaming plan, and the answer is that it has agreements that were very generous. But it takes no insight to argue that future agreements will not offer such advantages.

The Netflix deal for Starz contnet, signed in October 2008, gave Netflix access to approximately 2,500 Disney and Sony movies for less than $0.15 per subscriber per month for its content, compared to the $2 to $4 per subscriber per month that TV operators typically pay Starz.

Netflix signed a deal to stream content from Epix, which is owned by three studios, Paramount Pictures, Lions Gate and Metro-Goldwyn-Mayer. The exact terms of the deal haven't been disclosed, but numerous reports say it's for up to $1 billion over five years.

Importantly, Netflix won't be able to stream Epix's movies until 90 days after they have reached Epix's distribution window, which is typically 6-12 months after a movie is first available on premium movie channels, so this deal won't address Netflix's problem that it offers no current releases.

On the operating cost side, one might argue that more streaming means less mailing of DVDs, and hence less cost. That's correct. But one might quickly conclude that Netflix will have to pay more for streaming rights than it can possibly save in postage and fulfillment costs.

Perhaps the impact already is being felt. In the third quarter of 2010, Netflix's operating margin was 12.6 percent and net margin was 6.9 percent, down from 14.9 percent and 8.4 percent, respectively, in the second quarter. Some would say that is the result of higher content payments not balanced by an equal reduction in distribution cost.

There are other issues as well. At some point, if consumers start paying for bandwidth consumed that accounts for higher video consumption, the implied cost of streaming delivery will grow, increasing the "price" part of the "value versus price" equation. That could make other alternatives, especially a multichannel video subscription plus digital video recorder, a much more attractive "value."

That will especially be true for wireless providers, as people are getting used to watching video on their mobiles, and viewing on an iPad or wireless-connected PC also can be a satisfactory experience. Sanford C. Bernstein analyst Craig Moffett, for example, expects the revenue per megabit for wireless providers to fall from 43 cents today to just 2 cents in 2014.

Down the road are other potential risks to the business model as well. In September, the U.S. Court of Appeals for the Ninth Circuit issued adecision that calls into question the First Sale Doctrine. Though it was a case related to re-selling software, the court observed that the policy implications might affect movies as well.

To get early access to fresh content, Netflix will have to pay more. If it chooses not to do so, the value of its library might weaken, from a customer's perspective. If it pays more to acquire more, and fresher content, its costs go up. So Netflix might have to raise prices. That could change its place in the market.

Netflix could accept lower margins, up to a point. Amazon certainly seems willing to do so. But assuming Netflix can manage those challenges, it does seem that a strategic choice has to be made. Netflix can offer a wider array of current content at higher prices, or a more-limited range of library or catalog content at lower prices. Some would argue it will do both, offering "enough" content at "good enough" prices to establish its position within the overall online video market.

Even in the more-established "premium" channel space, there is content differentiation between HBO, Starz and Showtime because none of the networks can afford to buy rights to all "new release" movie content, for example.

The trick will be to build on the library while adding just enough fresh and recent content to remain competitive. It's a tall order, but Netflix has confounded its critics in the past.



Logs and Splinters

"Why do you see the speck in your neighbor's eye, but do not notice the log in your own eye ? Or how can you say to your neighbor, ...