Tuesday, January 15, 2008

Voice Peering: New Directions?


We might disagree about why the change is occurring, but it does seem that discussions of "voice peering" are moving in a different direction. Early on, there might have been more emphasis on how electronic numbering or native IP interconnection could save providers money, disintermediate legacy carriers or disrupt the voice business. If recent discussions are any indicator, there now is much more emphasis on solving basic interconnection tasks in a world of IP traffic, as well as creating a platform for introducing new services.

That isn't to say all peering supporters dismiss advantages of the disintermediating sort. There is no question but that cable companies as an industry segment are anxious to avoid interconnection payments to telephone companies whenever possible, as GSM-based mobile carriers likewise are interested in avoiding transit costs where possible.

The point is that there is a new practicality about the issues. Arbinet CTO Steve Heap, for example, points out that "peering is interconnection between two or more service providers to preserve quality, lower costs and create new services." In fact, Heap points to new problems created by number porting as a mundane but important problem peering can address. "In the Belgian market, for example, 18 percent of mobile numbers are ported," Heap notes.

And since every operator has different termination rates, peering can help service providers determine what the settlement rate ought to be when a mobile call is terminated, where to send a call and make those sorts of decisions in real time. Peering can also help with the time-consuming but relatively mundane issues of negotiating termination agreements with hundreds of discrete carriers. "Not every carrier has a relationship with every mobile operator, so maybe you want to route to provider who does have a relationship," says Heap.

One measure of how the discussion is changed is that a major service provider such as Tata views peering as a simple matter of ensuring call quality under conditions of increased routing complexity. "It isn't just about free calling," says Christian Michaud, Tata SVP.

In fact, routing complexity now appears to be a problem in its own right. "There are more choices of endpoints in the IP world," says Georges Smine, Nomin um senior director. There also are codec transcoding issues that will grow as more voice traffic shifts to IP origination.

In a business increasingly using IP transmission, "what we actually deliver changes as well," says Sarina Tu, Telcordia senior director. "These days, you really don't know where to send a call, what the class and quality of service are supposed to be or what the business relationship is between the originating and terminating networks."

Then there is a growing class of "presence" information that has to be exchanged, not simply the bearer traffic and signaling.

Then there's the matter of supporting all sorts of new services and applications over discrete physical networks, says Shrihari Pandit, Stealth Communications CEO. In many cases there will be advantages to terminating traffic without touching the public switched telephone network, especially when some features simply cannot be passed between networks based on PSTN switches.

The general notion of application-aware networks also applies to voice communications. "Types of calls are more diverse" and peering fabrics can provide the intelligence to support that diversity, Smine argues.

"Who can access and control your information and preferences," Tu asks, especially when that information might be scattered among any number of discrete databases?

"Who would be the central repository for the various databases?" asks Heap. "What do you do about conflicting returns if multiple databases provide different results when a query is made?"

"Service providers want all routing information processed internally, not by a third party," says Heap. "The issue is how all that information gets there."

Nor "do we want to create a new monopoly," Michaud adds.

Technological Determinism, VoIP and Video

Time Warner Cable once pondered offering a network-based digital video recorder service called "Mystro." Time Warner decided against introducing the service after legal threats from the broadcast industry. Cablevision Systems Corp. also tried to introduce a similar service before running into a content industry buzz saw.

Comcast now is testing a less-ambitious service like the "Start Over" service Time Warner now offers, allowing users to start a program at the beginning in case they missed the start.

At a recent industry meeting, a question arose: Where is the logical place to put such technology? Should it be in a consumer, edge of the network device or "in the cloud"? From a pure technology perspective, one might reasonably argue such functionality should be "in the network."

Of course, that is a technology answer. The problem is that rights holders fear such a move would damage their control over content and ad revenue attached to that content. In principle, one could strip out the original advertising inserted into a "live" stream and replace it with other advertising sold by the network distributor, not the program originator.

In similar fashion, another question arose at a separate "voice peering" panel about why proponents were spending so much time focusing on voice peering rather than other sorts of application peering or bandwidth.

Legitimate questions both. There is a place where advanced technology intersects with copyright law, national or local taxation regimes, rights of way issues, consumer protection laws and conflicting bodies of law governing voice communications, radio, TV, newspapers and data communications.

Technology enables us to cross many of those old boundaries. What technology does not allow us to do is transcend the legal, regulatory and tax laws that come attached to services, applications and activities. And that is the rub.

There are many things we can do. There are many things we want to do. The problem is that some of these things can only be done in certain ways without running afoul of laws, regulations or business models built on the existence of those rules.

It gets us only so far to say the rules increasingly are illogical in a genuine sense. Some of the rules might change over time. Others might simply have to be endured. The point is that simple logic and technological capability sometimes do not trump legacy ways of doing things.

China, India Drive Mobile Growth


Merrill Lynch forecasts handset volume growth at a 21 percent cumulative average growth rate CAGR from now to 2010. They expect combined India and China will account for 26 percent of the overall handset market in 2007 and 28 percent in 2010, up from 16 percent in 2005, implying nearly 332 million handset units in 2010.

Mobile penetration in India is set to ramp and will reach 35 percent by 2010, up from just seven percent in 2005. This implies Indian mobile subscribers will reach 411 million by 2010, up from just 76 million as of 2005, a CAGR of 40 percent.

China's penetration rate should reach just over 50 percent in 2010, ors 682 million Chinese mobile subscribers in 2010.

China Mobile Says "No" to iPhone


China Mobile has decided it doesn't want to carry the iPhone, and has stopped negotiations with Apple, opening the door to talks with the second-largest mobile provider in China, China Unicom.

It is sais that China Mobile and Apple could not agree on revenue-sharing terms. An unnamed China Mobile source was said by Dow Jones Newswire to be unwilling to pay between 20 and 30 percent of future user fees from the iPhone to Apple for the right to carry the device.

Music Industry "Goes Open" to Make More Money

One of the odd justapositions out there right now is the recent move by music companies to drop encryption measures (digital rights management) online music sales through Amazon.com as a way of increasing sales. Given the general vested interest in protecting content from copying, this is a bit strange.

Why would music labels voluntarily drop DRM measures that make it harder for users to port their music around? In this case, a move that essentially is more open is a competitive measure. Apple, which uses a DRM format to restrict downloaded music to playback on its own devices, essentially has gotten too much market power in the music business, the studios think.

And in this case, one way to wrest back more control is to stimulate sales of unprotected music through rival retailers such as Amazon.com.

Amazon MP3, the DRM-free music store of Amazon.com, now sells DRM-free MP3s from the four major music labels - EMI, Universal, Warner Music, and Sony BMG - and 33,000 independent labels.

Apple iTunes has more than two-thirds market share of paid online music donwloads.

The top 100 songs at Amazon MP3 come at a price of $0.89 each and most other tracks are offered at a range of $0.89-$0.99, underpricing iTunes titles which are sold for 99 cents a song.

It's a bit unusual to find any industry's leaders pushing a trend towards openness, rather than upstarts. But that's what happens when an upstart becomes too successful in a new line of business. If "open" sells better than "closed," they'll try it, despite an obvious interest in copyright protection that might be furthered by DRM measures.

Of course, the problem with DRM is that it angers legitimate customers as much as it deters piracy. It is a blunt instrument.

Monday, January 14, 2008

MPLS over DSL from New Edge Networks


New Edge Networks will offer its managed network customers in April the ability to tag and prioritize data applications traffic over low-cost, high-speed digital subscriber lines commonly used for wide area networks. The move is a challenge to T1 services that sometimes are alternatives to business-class DSL services, and which can offer tagging and prioritization.

New Edge says it also will support tagging and traffic priorities end-to-end through private networks

Businesses in various industry segments can use up to five classes of service to tag and prioritize their applications so that critical services such as VoIP telephone calls or inventory and price lookups move across DSL-based networks ahead of email or other less important business functions.

Currently, traffic tagging and prioritization with class of service are available only on more costly high-capacity T1 lines with MPLS technology, short for Multi-Protocol Label Switching.

New Edge will honor DSL class-of-service tags end to end throughout its customers’ private wide area networks.

The move means enterprise branch offices and remote locations or smaller businesses that cannot justify a T1 line will be able to buy class of service features at a business DSL price.

A typical DSL connection used as part of a managed, private network costs about $150. Monthly costs for T1 lines range from about $500, depending on distance and geographic area.

Mobile Web: The Browser Matters

On Christmas, traffic to Google from iPhones surged, surpassing incoming traffic from any other type of mobile device, according to internal Google data made available to The New York Times, says staff writer Miguel Helfta. So apparently the design of a mobile phone brower really does stimulate high levels of usage.

The data shows that although iPhone's used to access Google fell back into a more normal range after that, levels of access still were higher than from Symbian mobiles. Keep in mind that Symbian has something like 63 percent of the installed base while iPhone has perhaps two percent.

Yahoo also saysiPhones accounted for a disproportionate amount of its mobile traffic, Helfta notes.

There might more upside for Web application developers. If they can develop for mobile-optimized browsers, rather than for the details of individual devices or operating systems, there arguably is an easier path to ubiquity.

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