Apple: "We're Not Perfect;" Neither is Anybody Else

"We're not perfect," Steve Jobs said at the news conference called to talk about the iPhone 4 antenna problem. "We know that; you know that."

"And phones are not perfect either." Jobs said. Apple started getting reports about the iPhone 4 antenna
problem almost as soon as the device went on sale. But Apple says less than half of one percent of iPhone 4
buyers called to complain about the antenna. He also said the iPhone 4 is the best product Apple ever has
made. "People seem to like it; users seem to love it," he said. After three weeks, it has the highest evaluations
ever."

"We have been working our butts off for the last 22 days" to fix it, he said. "We haven't had our heads in the
sand."

"We want to find out what the real problem is before we start to come up with a real solution," he said. The
data shows that the antenna signal drop-off is not unique to the iPhone 4, but most people haven't looked at this before."

The BlackBerry Bold 9700 also has the same problem the iPhone 4 has. It is identical to the iPhone 4 in that
regard, he says. The HTC Droid Eris also loses bars when gripped. The signal goes down right away but the
algorithm might delay the signal strength indicator to show the new signal strength. The Samsung Omnia II
likewise has the problem, Jobs said.

These problems affect most smartphones in areas of weak signal strength, Jobs said. "This is life in the smartphone world; phones aren't perfect."

Rates of return for the iPhone 4 in fact are lower than for the iPhone 3GS, Jobs said.

Apple to Give Free Cases

"We're not perfect," Steve Jobs said at the news conference called to talk about the iPhone 4 antenna problem. "We know that; you know that."

"And phones are not perfect either." Jobs said. Apple started getting reports about the iPhone 4 antenna
problem almost as soon as the device went on sale. But Apple says less than half of one percent of iPhone 4
buyers called to complain about the antenna. He also said the iPhone 4 is the best product Apple ever has
made. "People seem to like it; users seem to love it," he said. After three weeks, it has the highest evaluations
ever."

"We have been working our butts off for the last 22 days" to fix it, he said. "We haven't had our heads in the
sand."

"We want to find out what the real problem is before we start to come up with a real solution," he said. The
data shows that the antenna signal drop-off is not unique to the iPhone 4, but most people haven't looked at this before."

The BlackBerry Bold 9700 also has the same problem the iPhone 4 has. It is identical to the iPhone 4 in that
regard, he says. The HTC Droid Eris also loses bars when gripped. The signal goes down right away but the
algorithm might delay the signal strength indicator to show the new signal strength. The Samsung Omnia II
likewise has the problem, Jobs said.

These problems affect most smartphones in areas of weak signal strength, Jobs said. "This is life in the smartphone world; phones aren't perfect."

Rates of return for the iPhone 4 in fact are lower than for the iPhone 3GS, Jobs said.

Motorola Droid: 8-Month Product Lifecycle

It says something about the blistering pace of innovation in the mobile handset business that the Motorola Droid has reached the end of its product lifecycle after eight months.

With the Motorola Droid X and HTC Incredible slated to top Verizon’s upper-tier smartphone lineup, the eight-month-old Droid will no longer be sold by Verizon, once current supplies are exhausted.

That's one heck of a short product lifecycle.

Motorola Droid and Devour Get Verizon End of Life Notice

Google Revenue Grows 24% Year Over Year

Google reported revenues of $6.82 billion for the quarter ended June 30, 2010, an increase of 24 percent compared to the second quarter of 2009. That performance was described as "below analyst expectations."

Only Google can grow revenues 24 percent, year over year, and despite having given no "guidance," be said to have lagged expectations.

Google Announces Second Quarter 2010 Financial Results - Google Investor Relations

AdMob Chief Talks about Mobile Advertising

Google's AdMob division head talks about mobile advertising.

Why Consumer VoIP Quality, Despite Quality Components, Is Not So Good

Suppliers of IP telephony and consumer VoIP services often go to great lengths to ensure that the user experience is equivalent to the old "public switched telephone network," and yet users almost uniformly have encountered some instances where that level of quality is not experienced.

There are good reasons why, despite the best efforts made by developers of software, hardware and providers of network services often are part of a service chain that frankly does not work as well as the old PSTN. At a practical level, the quality of bandwidth over an unmanaged connection can be an issue, says Phone.com.

Enterprise and business connections are powerfully affected by the quality of the local area network. Consumer experience can be affected by physical placement of routers and analog telephone adapters, just like mobile connections. Simply, the ATA and the home router needs a bit of spatial distance or interference can result.

Also, VoIP still uses the same transmission networks, and those networks are affected by weather. When there are thunderstorms, heavy rain, or wind gusts, static can be generated. This “dirty-weed” static doesn't cause problems for Web surfing, but will affect VoIP.

As with many other problems, a hard reboot (unplug the hardware, wait a minute and plug it in again) will fix the problem.

VoIP, especially consumer versions, often fail to deliver the same quality as the old voice network, though not because of network, hardware or software carelessness. A VoIP connection is unmanaged, where the old voice network is highly managed.

When everything on an unmanaged network is aligned, experience will be great. When there are issues, even good quality component parts, and the best efforts of each supplier within the value chain, will fail to deliver a high-quality experience.

The phrase "a chain is only as strong as its weakest link" conveys the idea. With VoIP, even a chain with individually strong links can occasionally experience issues that degrade quality, though.

Managed connections would alleviate most of the expected issues, but consumers cannot today buy such managed data connections (a broadband connection with service level guarantees). Nor is it clear such a service, end-to-end, is feasible for consumer connections.

Even a managed network connection would not make the end-to-end experience completely managed in every, or even most cases, as no transport or access services provider can always control every single part of the network. And use of third-party applications would obviously be outside the transmission provider's control.

But a small number of things are controllable at the end user level. Sooner or later, just about every consumer VoIP user will find the need to do so.

3 Things You Need to Know Now About Enhancing the Voice Quality of VoIP | Phone.com

Apple Won't Issue a Recall of iPhone 4

Nobody outside the top ranks of Apple knows precisely what the company plans to do July 16 when it addresses the iPhone 4 signal reception issue. The Wall Street Journal reports that a product recall, however, will not be among the options.


Despite the embarassement, the company doesn't need to do that. There is no safety or product defect here, and Apple engineers knew of the potential issues "as early as a year ago," the Wall Street Journal reports.

Perhaps Apple will offer free "bumpers" to buyers, which aside from protecting the phone will fix the signal fade problem. It just isn't the "crisis" that crisis management professionals insist it is.

Apple's brand will survive intact, and people will not stop buying iPhones, period.

Do not Neutralize Search Innovation, Google Argues

Google has responded to growing European Community scrutiny of Google's search algorithms in a Financial Times opinion piece. Google is right, as far as the opinion piece goes.

Algorithms embody rules that decide which information is “best”, and how to measure it, and search competitors ought to be free to sort in different ways.

Clearly defining which of any product or service is best is subjective. "Yet in our view, the notion of 'search neutrality' threatens innovation, competition and, fundamentally, your ability as a user to improve how you find information," Google VP Marissa Meyer says.

Ironically, Google does not take the same view where it comes to other partners in the Internet ecosystem, though. Fighting to retain or gain as much advantage as possible within the ecosystem is normal. The irony is that the "freedom for me, regulation for thee" stance can backfire. EC regulators might decide it is Google that requires regulation, not other participants in the value chain.

In all likelihood, the whole ecosystem would be better off with a "lighter touch" that lets clever developers and entrepreneurs, and the consumer response to new products, sort most of these issues out, most of the time.

FT.com / Comment / Opinion - Do not neutralise the web’s endless search

Stimulus? Really?

Stringing along workers with temporary federal freebies isn’t a sustainable enterprise, and Department of Education adviser Maura Policelli admits as much when she says taking the cash “does involve the possible risk of investing in staff that you may not be able to retain in the 2011-12 school year."

Temporary spending that allows state government to avoid inevitable hard choices a year later is not investment or stimulus, despite the nonsense we keep hearing in certain quarters.

Is it ‘stimulus’ if you hire, then fire a year later? | Face the State

Google Faces More Regulatory Pressure

Google might need regulation, the New York Times seems to suggest.

Google argues that its behavior is kept in check by competitors like Yahoo or Bing. But "a case is building for some sort of oversight of the gatekeeper of the Internet," the Times writes.

In the past few months, Google has come under investigation by antitrust regulators in Europe, for example.

In the United States, Google said it expects antitrust regulators to scrutinize its $700 million purchase of the flight information software firm ITA, with which it plans to enter the online travel search market occupied by Expedia, Orbitz, Bing and others.

Not all software companies are used to such scrutiny by regulators. But Microsoft is. Apple also has come into the spotlight as well, of late. "Freedom for me, regulation for thee" doesn't always work.

Editorial - The Google Algorithm - NYTimes.com

HTC Seems to Be Taking Motorola Android Share

The latest survey of smartphone demand by Changewave Research suggests HTC is taking Android device share from Motorola.

The change seems to have occurred about March 2010.

BlackBerry Satisfaction Plummets, Changewave Finds

Though end user satisfaction with the iPhone has remained fairly constant over the last year, Research in Motion BlackBerry devices seem to have suffered a dramatic decline in satisfaction, dropping from a high of about 55 percent in January 2008 to June 2010, Changewave Research reports.

A reasonable observer would suggest this portends some trouble for RIM, the reception issues with the new iPhone 4 notwithstanding.

Apple iPhone Demand Seen Exploding

ChangeWave's latest smart phone survey of 4,028 consumers shows an "explosive transformation" occurring in consumer demand, suggesting some major new mobile handset winners and losers for second half 2010.

Changewave says its latest survey shows the strongest interest in smartphones ever recorded in a Changewave survey. But there's a significant change within that demand pattern: Apple and HTC devices are getting strong demand at the expense of Motorola and Research in Motion.

The future buying plans suggest coming huge moves upward for Apple and HTC, with a whopping 52 percent of respondents who plan to buy a smart phone in the next 90 days saying they'll get an Apple iPhone.

It also appears that Android demand has shifted to HTC and away from Motorola.

Explosive Changes in Consumer Demand Shake Up Smart Phone Industry

Net Neutrality Issues for Google in Search?

Network neutrality proponents implicitly assume that the key bottleneck, in terms of innovation or competition, is to be found in the broadband access connection, and the way such connections are managed.

It now appears that antitrust regulators in Europe have begun to look at other potential bottlenecks, and search practices already are getting a look, the Financial Times reports. Google's purchase (or planned purchase, as there might be antitrust review) of ITA Software, a travel technology company, is not going to help.

Joaquin Almunia, Europe’s top competition official, already has hinted that European Community regulators are taking Google’s search power seriously. An informal review of search practices already is underway, and seems to be getting more pointed attention now, given the growing issues regulators now seem to be detecting in the mobile content space.

Google has powerful competitors who will not be shy about adding their concerns, and U.S. regulators have been paying more attention to both Google and Apple of late.

The point is that gatekeepers might exist at potentially multiple levels in the Internet business ecosystem, and raising the issue in one area seems to be raising issues in other areas as well.

FT.com / Media - Net neutrality comes back to haunt Google

Mobile App Stores Shorten Time to Market and Time to Payment

Mobile app stores have shortened "time to market" for mobile apps, especially compared to older distribution methods such as placement directly on mobile phones.

Mobile app stores also mean developers get paid faster, according to Telefonica.

iPhone 4 recall would cost $1.5 billion

A full product recall of the iPhone 4, though highly unlikely, would cost Apple $1.5 billion, or 3.5 percent of its total cash on hand, says Bernstein Research analyst Toni Sacconaghi.

Apple could issue a free rubber bumper case with each phone. Although Apple charges $29 at retail for the rubber cases, Bernstein estimates that giving them away to iPhone 4 customers would cost the company $1 per unit.

Analyst: iPhone 4 recall would cost $1.5 billion | Circuit Breaker - CNET News

Mobile Users 45% More Interested In Local Search

Perhaps it is intuitive, but users on mobile devices are 45 percent more likely to enter a local search query than users on non-mobile devices, according to data from online advertising network Chitika.

Chitika’s research division came to this conclusion after breaking down a sample of more than 24 million impressions.

Local search and mobile search do seem highly correlated.

Mobile Users 45% More Interested In Local than Non-Mobile – Chitika Research

Odds the iPhone 4 be Recalled

About 4:6 odds a full mechanical recall will be issued in 2010, oddsmaker says. Odds a full mechanical recall will not be issued by Apple in 2010 are 11:10.

Will the iPhone 4 be recalled? Betting from Paddy Power

Apple's iPad Is Going To Destroy The Netbook Market, Says Goldman Sachs

Whether you believe the tablet PC is a substitute for, or a complement to, a netbook, it does seem clear that a tablet's function is different.

The iPad is focused squarely on information consumption versus information production, analysts at Goldman Sachs note. A device that looks like “just a big screen” suggests what users should do with the device: consume information, with limited ability to manipulate it.

The lack of a physical keyboard suggests that the primary purpose of the device is not for inputting large amounts of information, but instead selecting among options, or performing light editing using a soft keyboard, the analysts suggest.

If that is the case, a key element of the experience will be relatively tight integration with content sources. 

I'm not so sure the netbook is destined by be replaced by tablet devices, though it seems obvious that if the reason lots of people carry netbooks or notebooks is simply to consume information and content, that will be the case.

For users who still have to "work" and create content, a tablet simply isn't going to be a viable choice.

Apple's iPad Is Going To Destroy The Netbook Market, Says Goldman (Sorry, Microsoft):

Apple Makes More Profit Than All the Rest of the Handset Industry

Since getting into the mobile handset business with its iPhone, Apple has blown away the whole rest of the handset industry in earnings (before interest and taxes), according to a new  analysis by Goldman Sachs analysts.

The other angle is that the rest of the suppliers have lost earnings momentum  precisely as Apple has grown.

At the moment, Apple likely accounts for about 58 percent of the mobile handset industry's annual earnings.

That's shocking, and a measure of Apple's new stature.

76% of Users Prefer Ad-Supported Apps to Paid

Users always have had a complicated relationship with advertising. If you ask them, they typically will say they "don't like ads."

But if you ask them whether they would like access to a desired type of content, for free or at vastly-reduced prices because of the presence of ads, they will tend to opt for the advertising.

That appears to be true for 76 percent of smartphone owners with web access, who say they would rather have access to ad-supported applications for no additional cost, rather than pay for them, Jiwire has found.

see the survey results here

Why Google Isn't Good at Social Apps Yet

The kind of application that Google knows how to make well are the kind that serve a utilitarian function. Google's search engine excels at allowing users to search for something, consume, and move onto the next thing.

Google so far does not excel at applications that are by their nature designed for "hanging around."

Can Google Figure Out How to Appeal to Lobsters As Well As Pandas?

PR Experts: iPhone 4 Hardware Recall Is “Inevitable”

Some now believe Apple will be forced to recall the iPhone 4 because of hardware defects related to its antenna design.

“Apple will be forced to do a recall of this product,” said Professor Matthew Seeger, an expert in crisis communication. "This is potentially devastating.”

That seems a bit of hyperbole. Every smartphone I can think of has some issues. Sure, users might have to adjust the way they hold their devices, or add a bumper. Users of other devices need to make adjustments to account for battery life, presence or absence of a keyboard, the size of their fingers and lots of other small adjustments. Some people use the speakerphone function whenever possible, or simply limit the number or length of calls to limit brain exposure to emitted radio frequency energy.

The iPhone 4 reception issue is not hazardous to health. The device does not fall apart. It is not perfect, but what device actually is "perfect" on every measure? As the Eagles song goes: "Get over it."

PR Experts: iPhone 4 Hardware Recall Is “Inevitable” | Cult of Mac

Slow Recovery Ahead for Total Media Ad Spending

Online ad spending will grow while traditional advertising channels will remain stagnant or decline, says eMarketer.

Marketers who turned to digital for its effectiveness and measureability in tough times will continue to appreciate those qualities as budgets go up, and with the world’s population spending more and more time with digital media, dollars will follow eyeballs, eMarketer predicts.

One also wonders whether the greater efficiency of online and mobile formats also is having some effect. Advertisers might reason they can achieve their objectives even while reducing overall spending.

Slow Recovery Ahead for Total Media Ad Spending - The eMarketer Blog

Skype Blocks Fring Video Calls

Commercial disputes in the communications business are not uncommon. Now fring says it has been forced to stop its four years of Skype interconnectivity following threat of legal action by Skype.

The apparent reason is fring’s recent launch of mobile video calling on the Apple iPhone 4.

www.fring.com - Following fring’s string of mobile video calling wins - Skype blocks fring

Google SEO Includes "Human" Ranking

Some people might be worried about whether Google can, does, or might be tempted to manipulate search rankings in ways that favor its own business interests. But every search engine has to use some specific algorithms to attempt to assess "quality" and "relevance" of content found on the Web.

All of which has spurred a rather-robust search engine optimization business, with a sort of constant "cat and mouse" game between the keepers of search algorithms and content providers who try to come up with legitimate, perhaps sometimes questionable methods of "gaming" the Google search algorithms.

"There’s good SEO, allowing people to get to more relevant content,” says Google’s Amit Singhal, an engineer who works on the algorithms, according to the Financial Times.

“Sometimes people do shitty things and sometimes our algorithms are fooled,” he said. That appears to be one reason why Google says it does use some human oversight as part of its overall system.

Given the potential for some abuse, that's likely a necessary and legitimate undertaking. Algorithms are precise, people are fuzzy. Sometimes adding a little human fuzziness might be a good thing, producing more-valuable search returns.

The potential for mischief, real or imagined, will always exist. But that's why markets and competition are so important. Too much mischief should lead to less-useful results, which will lead users to switch to rival search applications. It might not be a perfect system, but it is hard to imagine any other better set of safeguards.

FT.com / FT series / In depth - Groups magnify chances of Google hits

HTC: Carry a Spare Battery

Sprint Nextel Chief Executive Officer Dan Hesse has a solution for his carrier’s Evo 4G’s infamous battery drain: Carry a spare, the Wall Street Journal reports.

Before you dismiss the idea, consider that a spare, original manufacture HTC Evo battery runs between $25 and $40 online. Those of you who have purchased spare batteries for other smartphones, that might seem a bit steep, but bigger screens and heavy Web use will drain any battery fairly quickly.

In fairness, users who want longer battery life should buy devices with much-smaller screens, and then not use mobile Web features unnecessarily. Battery advances do not occur at the same rate as changes in processor and memory, so the advent of larger screens and mobile Web usage is simply going to be a bigger issue.

Lots of us use, or have used, devices with much-smaller screens, as well as devices more typically used primarily for voice and texting. Battery life is longer on such devices, period. In phone technology, as with other devices, there are trade offs.

The HTC Evo's battery life is noticeably shorter than many would like. That's the price of the bigger screen, for the most part. Would I be willing to trade down to a smaller screen? No. But I routinely carry two mobiles, one primarily for voice, the HTC for Web apps. So in a sense I alrady carry a spare battery.

Netflix Edges Past Hulu In Total U.S. Traffic

Web traffic to Netflix was 20.2 million in June, 2010, just edging past Hulu’s 19.7 million.

It has to be said that most of the Netflix traffic likely was people updating their queues and so forth, while more of the traffic to Hulu was people viewing actual videos, but the traffic is some indication of the potential for Netflix to move into the video download space, some would argue.

Netflix Edges Past Hulu In Total U.S. Traffic (comScore)

Microsoft Says 74% Of Business Computers Still Running On Windows XP

74 percent of business PC's are still running on XP, according to Tammi Reller, CVP of Microsoft Windows. That is some measure of how Vista failed to get traction, but also suggests a large opportunity for Windows 7 upgrades.

Reller says the average age of a PC is the highest it's been in a decade at 4.4 years old. Typically that would suggest replacement is imminent, as most enterprise PCs have tended to be replaced every three to five years.

The new wrinkle might be increasing use of smartphones, netbooks or tablet PCs powered by other operating systems. Those devices are unlikely to replacement existing desktops, but might siphone off some of the incremental demand.

Microsoft Says 74% Of Business Computers Still Running On Windows XP

IntelePeer and WorkSpace Communications Partner to Launch Hosted Unified Communications Solutions

IntelePeer has announced a partnership with WorkSpace Communications to deliver an easily deployed, hosted unified communications offering based on Microsoft Office Communications Server.

By combining IntelePeer's "Quick Start SIP Trunking" program, "Voice Peering Network" and "SuperRegistry," with WorkSpace Communications' Microsoft OCS environment, the companies provide a complete, turnkey solution.

IntelePeer and WorkSpace Communications Partner to Launch Hosted Unified Communications Solutions

Consumer Reports Does Not Recommend the iPhone 4

Consumer Reports says it cannot recommend the iPhone 4 because of reception issues. The consumer testing group says its findings are not based on the inaccurate signal reception display, but actual reception issues caused when the device is held in certain ways.

"When your finger or hand touches a spot on the phone's lower left side—an easy thing, especially for lefties—the signal can significantly degrade enough to cause you to lose your connection altogether if you're in an area with a weak signal.

Consumer Reports Electronics Blog: Lab tests: Why Consumer Reports can't recommend the iPhone 4

Screen Shortage Might Last Until 2012

HTC Evo devices are in very short supply at the moment, as are HTC Incredibles, and most likely, HTC Droid X devices as well, as all seem to use the same screens, and there currently is a shortage of capacity to manufacture the screens, the Wall Street Journal reports.

Analysts say there's a particular dearth of the Samsung Electronics Co. touch screens the HTC phones use. Samsung is building a $2.2 billion factory to make the screens, but it won't start operations before 2012.

It is unclear how the parts shortages might affect mobile providers selling the popular HTC devices, in particular Sprint, Verizon and T-Mobile, none of which yet has the right to sell the Apple iPhone.

But to the extent all three carriers experience HTC device shortages, it does not seem clear that the relative positions of the three carriers will change, based specifically on ability to sell HTC devices in this class. For Sprint, though, the advantage it had by launching the first nationwide 4G network is dwindling as Verizon Wireless readies its own launch later in 2010.

84% of Internet Users Never Click on Ads

About 84 percent of Internet users never click on any ads, comScore says.

Conversely, eight percent of users are responsible for 85 percent of activity.

Should we be surprised by that? Not really, considering the Pareto principle, commonly known as the "80/20" rule.

Despite that pattern of behavior, it seems unlikely most advertisers will stop relying on click-through rates.

Google Chief Predicts "Interactive Video Ads"

Google CEO Eric Schmidt says  "interactive video ads," are on the way, the Wall Street Journal reports.

The ads, which could appear anywhere on a Web page, would be like mini-Web pages, allowing Web users to watch a video, leave a comment and see real-time updates within the ads that are more customized to their interests.

Schmidt says he has pushed Google's ad teams to think about the potential for such ads, without specifically adding details.

Indian Operator Aims at Wireless Broadband Market

Infotel Broadband Services plans to use its 20-MHz worth of national wireless spectrum in India to make a dent in that country's roughly one-percent broadband services penetration. But the company will not be able to offer switched voice services, according to the terms of its license. The restriction means Infotel will offer a fairly focused data access service, with users able to use PC-to-PC calling services to other Infotel subscribers.

The restriction illustrates the foundational impact regulation has on business models. Some observers say Infotel can only get so big while it has no ability to offer full mobile voice, which would require that it acquire another firm able to do so (a 2G or 3G provider, for example).

Government officials note that 30 percent to 40 percent of  36 million fixed line connections in India are not capable of supporting broadband services.

read more about Infotel

read more about fixed broadband in India

How Apple Hopes to Dominate its Rivals

Apple Study: 8 easy steps to beat Microsoft (and Google)

View more presentations from Ouriel Ohayon.

Social Media Dominates Asia Pacific Internet Usage | Nielsen Wire

Social media usage has seen unprecedented growth in Asia Pacific in the past year and is now one of the most critical trends in the online sector, according to Nielsen.

A new survey found that three of the seven biggest global online brands are social media sites: Facebook, Wikipedia and YouTube.

Close to three quarters of the world’s Internet population (74 percent) have now visited a social networking or blogging site, and Internet users are spending an average of almost six hours per month on social media sites.

Korea is one of the most social media engaged countries in the world, with the country’s leading social media site, Naver, attracting 95 percent of the Korean Internet population every month.

Japanese Internet users are the most avid bloggers globally, posting more than one million blogs per month, significantly more than any other country in the region.

Social Media Dominates Asia Pacific Internet Usage | Nielsen Wire

Cisco Touts "Connected Conversations"

Services, not raw speed, is where consumers think the value of faster broadband will be.

SIP Trunking: Growing, But T1 Remains the Mainstay

Although many organizations have deployed VoIP on their premises, they still use legacy technologies to connect to the PSTN, with T1 lines the most commonly used trunking service today through 2012, according to Infonetics Research.

Much of the SIP trunk demand is fueled by fast-growing hosted IP telephony services. For the first three months of 2009, service providers experienced an average of 40 percent to 50 percent year-over-year growth for IP Centrex, indicating the demand for outsourcing and managed solutions.

Infonetics Research expects hosted UC services to take off, with worldwide revenue doubling between 2009 and 2013, and we forecast SIP trunking service revenue to hit an 89 percent compound annual growth rate from 2008 to 2013.

It also is worth noting that many carriers interconnect with each other using T1 protocols, even if end user service is supplied exclusively in the IP domain.

SIP trunk use is growing, and by 2012 will be the second most commonly deployed trunking service, says Infonetics.

AT&T and Verizon are used most often as providers of SIP trunking services, survey respondents said.

Infonetics Research - SIP trunking gaining on T1 lines as companies seek efficiency

Mobile Subscriptions Hit 5 Billion

Mobile broadband subscriptions will reach 3.4 billion by 2015, up from from 360 million in 2009, Ericsson forecasts. Ericsson also predicts 80 percent of all people accessing the Internet will be doing so using their mobile device.

In 2000, about 720 million people had mobile subscriptions, less than the amount of users China alone has today.

The way Internet access gets used also will shift. Mobile subscriptions allow people who don't have access to a bank or a bank account to transfer money; fishermen and farmers can get quick updates on sudden changes in the weather forecast, villagers to get local medical care, and children to access online education.

Mobile subscriptions hit 5 billion mark - Ericsson

Most VoIP LInes Sold as Part of a Bundle

Most VoIP service is sold as part of a bundle, data from the Federal Communications Commission shows.

About 79 percent of IP telephony or VoIP lines sold by cable companies or competitive local exchange carriers are sold as part of a bundle, and intended to be used at a fixed location.

About 90 percent of IP telephony or VoIP lines sold by incumbent telcos are sold as part of a bundle, and intended to be used at a fixed location.

Tiered Mobile Pricing Hasn't Had Any Repercussions, Yet

AT&T's move to new tiered mobile data plans does not seem to have provoked much consumer protest, or much apparent change in usage, content provider strategies or even competitive responses from other wireless providers. That doesn't mean there will not be impact, though.

Content providers, application developers and OEM manufacturers have sought to provide the richest multimedia streams, the most interactive apps and the most eye-popping displays and capabilities to consumers, with no concern for impact on bandwidth consumption.

For some consumers, bandwidth consumption will start to become an issue. That might ultimately force some rethinking of device and application design, and some rethinking of business models and partnerships. Firms that

expected to stream video to end users, either for free or as subscription services, might have to think about how bandwidth caps now will potentially affect those business models.

On the other hand, some content providers might have new incentives to figure out ways they can work with mobile service providers in ways that take away bandwidth concerns.

Some might find a partnership, where content provider and access provider share revenue, might go a long ways toward creation of new "video service plans" that allow consumption outside any existing caps.

Yankee Group :: Research Report

Cheaper Cable TV Packages?

Don't hold your breath, but U.S. cable executives might be quietly mulling creation of more-affordable packages that cost something more like $25 a month to 40 a month than $80 a month, Reuters reports.

There would have to be quite a bit of negotiating with the cable programming networks, which typically want the broadest possible carriage they can get. Offering more-affordable tiers of service necessarily would limit carriage of many channels.

Some Wall Street analysts reportedly have warned the cable industry could harm itself by continuing to raise prices well ahead of the rate of inflation. Of course, some will speculate that the floating of "affordable new tiers" might also be a negotiating tactic by cable operators in advance of contract renewal talks.

Both cable operators and programmers are aware that most people watch a dozen or fewer channels, no matter how many are available. The problem is that it is not the same 12, from one person to the next.

Cable companies, networks mull smaller TV bundles | Reuters

Mobile Voice Will Keep Growing, Despite Pressures

Though growth will slow at some point, it does not immediately appear that mobile voice revenue on a global basis, at least, is in any danger of serious erosion, according to the Yankee Group. Average revenue per user is dropping, but the number of users is growing.

By some estimates, the world has added one billion new wireless customers in just 18 months, for example.

Global average revenue per user will fall from U.S.$14.28 in 2009 to U.S.$11.38 in 2014, Yankee Group predicts.

But paid minutes of use will offset most of those ARPU declines.

Yankee Group :: Research Report

How Long Does it Take to Add 1 Billion Mobile Subs?

It has taken just 18 months for one billion new subscribers to get mobile services. There now are five billion global mobile subscribers, according Wireless Intelligence.

The firm predicts that the six billion mark will be achieved in the first half of 2012. Mobile penetration on a global basis now is 74 percent, compared to 60 percent at when there were only four billion subscribers. The highest penetrated region is Western Europe on 130 percent, while the lowest is Africa on 52 percent. Eastern Europe (123 percent) is the only other global region to have passed 100 percent mobile penetration.

Wireless Intelligence — Analysis — Global mobile connections surpass 5 billion milestone

65% of Mobile Users "Text;" 30% Download Apps

About 65 percent of U.S. mobile subscribers used text messaging on their mobile device in May 2010, up 1.4 percentage points compared to the prior three month period, while browsers were used by 32 percent of U.S. mobile subscribers (up 2.3 percentage points).

About 30 percent of the mobile audience downloaded apps, an increase of 2.1 percentage points from the previous period. Accessing of social networking sites or blogs also saw significant growth, increasing 2.6 percentage points to 21 percent of mobile subscribers.

comScore Reports May 2010 U.S. Mobile Subscriber Market Share - comScore, Inc

49 Million U.S. Smartphones in Service

49.1 million people in the U.S. owned smartphones during the three months ending in May 2010, up 8.1 percent from the corresponding February period.

Research in Motion was the leading mobile smartphone platform in the U.S. with 41.7 percent share of U.S. smartphone subscribers, followed by Apple with 24.4 percent share and Microsoft with 13.2 percent.

Google saw significant growth during the period, up four percentage points to 13 percent of smartphone subscribers, while Palm rounded out the top five with 4.8 percent.

comScore Reports May 2010 U.S. Mobile Subscriber Market Share - comScore, Inc

Cable Chills in Advance of Potential Net Neutrality Ruling

Regulation has a huge impact on communications and multi-channel video entertainment companies (telcos and cable), and the reason is quite simple: regulation creates, conditions or damages the business opportunity. Lots of observers would predict that imposition of strong network neutrality rules, by limiting growth options, would have clear negative impact on equity values, ability to raise capital and ultimately revenue, cash flow and profit.

It appears some of the damage is caused simply by raising the specter of such changes. "'The FCC has voted itself a loaded gun, pointed it at the carriers (cable and telco alike) and then promised not to shoot," said Craig Moffett, Bernstein Research analyst.

'What is clear ... is that we are now facing a protracted period -- likely years long -- of enormous uncertainty,' Moffett said.

"The bull case for cable stocks is a simple one," Moffett wrote. "Cable wins the broadband wars. But the prospect for broadband price regulation cuts to the heart of that thesis."

Comcast, Cablevision stocks fall on cloudy outlook The Ratings Game - MarketWatch

100 Million Mobile YouTube Playbacks Every Day

YouTube Mobile now receives more than 100 million video playbacks a day. This is roughly the number of daily playbacks that YouTube.com was streaming when YouTube was acquired by Google in 2006.

YouTube Blog

YouTube Adds HTML5 Site

YouTube is launching a new mobile site optimized for HTML5, m.youtube.com, as well as a new mobile app pointed at the site.

The web app apparently has superior video quality when compared to native applications on the iPhone and will soon feature more content as well. Both iPhone and Android devices will get the new app.