Apple to Bid for 700-MHz Spectrum?

Technology pundit Mark Stephens insists Appls is going to bid for 700-MHz spectrum, most likely in concert with Google and possibly two additional partners brought in to lessen the amount of capital each partner has to kick in. So far, all we know is that Google will submit an opening bid at the reserve price. But Google has the ability to bring in other partners.

Perhaps Apple has decided it likes the recurring services revenue approach to life. Perhaps getting a portion of recurring revenues has whetted appetite for getting 100-percent of the recurring revenues (shared with the other partners, of course)?

Up to this point, "services" such as iTunes were simply a way to sell iPods. iPhone is the first product in Apple's history where recurring services revenue was a huge part of the business model, even though selling the devices obviously is primary. Like all other consumer products manufacturers and software providers, Apple knows that services are becoming a bigger part of the overall value proposition for any "product."

Can it be that access and services built on access are seen as a bigger part of Apple's future? One wonders. At least, Stephens does. Perhaps the other Stephens (Randall) also is wondering what is afoot. Wouldn't it be a shock if Google was not simply using the 700-MHz bid as leverage to get what it wants (openness) from the wireless service providers?

Broadband Access Revenue: Bad News

Broadband access penetration might be climbing just about everywhere. Unfortunately, it looks like revenue is going to fall significantly, if Yankee Group analyst Vince Vittore is right. He projects Digital Subscriber Line revenue, which represents the overwhelming share of global revenue, is set to fall precipitously.

You might think fiber-to-home (OLT)revenue or cable modem revenue (CMTS) is poised to take up the slack. Vittore doesn't think so.

It looks like broadband access is turning out to be a product just like the Internet: useful, ubiquitous, necessary and something service providers can't make much money on.

European VoIP Market Soars

Though VoIP might largely be driven by cable companies in the U.S. market, the 22 million-plus VoIP subs in the European market bear witness to dramatically different market dynamics. In part because of robust local loop unbundling rules, independent broadband competitors have had quite a field day, both as providers of broadband access and VoIP services.

In the French market, for example, France Telecom (Orange) is "the number two provider of VoIP in the world," says Carlos DeSilva, France Telecom director. "In France, 30 percent of all calls are VoIP and it is used by about eight million customers."

Teens IM; Adults Send Email

About 25 percent of surveyed respondents send IMs from their cell phones, including one in three (32 percent) teens, according to the second annual AP-AOL Instant Messaging Trends Survey.

Keyboards make a difference, it seems. So do social networking services and the IM providers themselves, all of which now support IM-over-mobile capabilities. All of the major instant messaging services also let users have their instant messages forwarded directly to their cell phones when they're on-the-go. In addition, IM users are instant messaging from within their social networking profiles.

Workplace use also is becoming commonplace. More than one in four (27 percent) users say they use instant messaging at work. Further, half of at-work IM users say that instant messaging makes them more productive at work, a 25 percent increase over last year.

More than half (55 percent) of teen IM users have used instant messaging to get help with their homework. This is a 17 percent increase over last year. Meanwhile, 22 percent of teens say they have sent an IM to ask for or accept a date.

Forty-three percent of teen IM users say they have used instant messaging to say something they would not say to someone in person. Teenage girls are more likely than boys to do so. Nearly half of teenage girls surveyed have used instant messaging to say something they would not say in person, compared with just over a third of teenage boys.

Teens today are more likely to upload photos (42 percent in 2007 vs. 34 percent in 2006) while instant messaging. They are less likely to conduct online research for school (57 percent vs. 63 percent) or update their blog or social profile (33 percent vs. 42 percent) while sending IMs.

Nearly three in four teens (70 percent) and one in four adults (24 percent) send more instant messages than emails.

IM users tend to engage in multiple online activities while sending instant messages. Checking email is the most popular activity among eight in ten adult and teen IM users. After email, adult IM users most often conduct online searches (49 percent), while teens say they like to research homework assignments online (57 percent).

Nearly four in five (79 percent) at-work IM users say they have used instant messaging in the office to take care of personal matters. One in five (19 percent) IM users say they send more instant messages than emails to their co-workers and colleagues.

CLECs Touch Few Buildings in 6 Verizon Markets

By now, you'd think there would be significant optical fiber pulled to commercial buildings in major and secondary markets, even though you'd suspect it is tough getting fiber in outlying suburban strip malls, for example. But it appears optical fiber connections to commercial sites remains a significant work in progress. In six Verizon markets, for example, all competitors to Verizon put together can reach but a small fraction of sites.

Limited Fiber in 6 Verizon Markets

In disclosing for the first time its own facilities-based access to buildings in the New York market, XO Communications provides evidence of just how tough the high-bandwidth metro access business remains.

Specifically, XO has its own facilities in place at just 0.01 percent of all commercial buildings in six markets Verizon serves, and in which Verizon seeks further deregulation of its wholesale obligations.

XO Communications's data on alternate access facilities is consistent with GeoResults data showing the total on-net building presence, XO says. In aggregate, competitors serve only 1.49 percent of commercial buildings in the six markets.

XO Communications also says that even in the areas where Verizon central offices have the highest density of alternate high-capacity facilities, competitors have slight access to most buildings, reaching a bit more than four percent of commercial buildings only in Virginia Beach, Va.

In Boston, less than 1.5 percent of commercial buildings have alternate facilities-based access, even in the areas with the highest density of alternate providers. In Philadelphia and Providence, R.I., less than one percent of commercial buildings have competitive access facilities.

At least one-third of all wire centers in five of the six MSAs have no competitive provider lit fiber at all. In Pittsburgh, nearly 80 percent of all wire centers have no competitor lit fiber connecting any commercial buildings.

Google will Bid for 700-MHz Spectrum

Google plans to submit at least an initial bid for 700-MHz wireless spectrum, the Wall Street Journal reports. There is some thinking that with Verizon's declaration of willingness to open its network to any technically-compliant device, as well as similar open access provisions for any winner of 700-MHz C block spectrum, Google has less need to acquire its own spectrum to ensure an open environment for wireless Internet services.

Google also is working with Sprint and T-Mobile on open devices and applications on those wireless networks, plus Clearwire for WiMAX service. Given all of that recent development, there simply is less need for Google to own spectrum simply as a way of ensuring an open environment.