iPhone Boosts Wireless Data Revenue

The iPhone clearly is boosting AT&T Wireless data revenues, which increased 57 percent increase year-over-year in its most-recent quarter.

Wireless revenue for the first quarter of 2008 was $11.8 billion, with wireless data revenue contributing $2.3 billion, or 22 percent, of that total, compared with 16 percent in the same period last year.

Internet access, email, and messaging overall are the drivers. And there's no doubt smart phones are key. Smart phone users generate twice the data revenue of typical phone users.

iPhone average revenue per user is more than $90, AT&T executives say.

BT's 90 Day Cycles Startle People

BT now operates on 90-day development cycles for applications, including the time needed to prepare a business case, says Dave Axam, BT director of transformation. In some cases, as you would suspect, more than a single cycle might be required for a single project.

But that sort of speed seemed to startle many delegates at the MetaSwitch Forum, many of whom are independent telcos, rural cooperatives, competitive local exchange carriers, cable companies and other associated with those ecosystems.

But Axam says BT is serious about that sort of adaptation to a world running "at Google speed." He was given the assignment of launching voice over IP for BT "in three months." Axam says he discovered early on that Session Initiation Protocol is a bit like English--one has to know which variant of the dialect is being used--and that has taught BT much about the pitfalls of relying exclusively on such "standards."

All of that seemed to provoke some anxiety on the part of delegates, who may well have been wondering how well they'll fare in a world that requires innovation at that sort of speed, with the relationships and assets such speed would seem to require. BT, after all, created a developer community, a software development kit, feedback, response and interaction capabilities as part of the overall effort.

"But one of the hardest things is the commercial wrap," says Axam. That means the ability to intgrate new applications, many with some sort of tie to the Web, with the rest of BT's services.

One delegate, who seemed to agree with the characterization of where things were headed, nevertheless expressed the obvious point that "I don't think we are going to be putting together third-party developer groups" to do this sort of thing.

Anxiety? Yes, for many reasons. The integration of Web with telephony, the increasing importance of software-mediated experiences, the growing technological complexity of the business overall and the different assets required, may well be disadvantages for whole classes of competitors, even as the trends favor larger, wealthier companies.

All of that simply creates new opportunities for aggregators of applications, though. Still, as another delegate put it, "I'm not sure how comfortable I am with putting my widget on an iGoogle page."

But that might be a more viable avenue than trying to "force" customers to a service provider portal, as beneficial as that might be for the service provider.

Qwest Readies 20 Mbps Access Service

Qwest appears to be very close to launching a 20 Mbps downstream, 896 kbps upstream access service called Qwest Connect Platinum, available on a "naked" basis without the requirement for buying a voice line at the same time, and costing $109.99 a month.

The consumer portal now seems to be working just fine, so enter your street address or phone number, if you use landline service and are a Qwest customer, to find out what sorts of speeds really are available at your location. In my case, for example, my connection back to the central office appears to be long enough as to preclude getting 20 Mbps. About 5 Mbps is all Qwest actually can deliver to my location in Denver.

And Qwest does not seem to among those service providers who want to "throttle" use of bandwidth, as the Qwest Web site emphasizes using the service for "watching full-length movies online, multi-player Internet games, multitasking with multiple Internet applications and networking computers.

Signing a two-year contract locks in that price "for life."

It's Still All About Wireless and Wireline...

Despite gaining 148,000 net new U-verse TV customers in the most-recent quarter, and total net video connections of 264,000, including DirecTV and Dish Network accounts. Broadband access revenues were up 13.2 percent year over year.

Total high-speed Internet connections, which include DSL and satellite broadband services, increased by 491,000, and AT&T ended the quarter with 14.6 million broadband connections, up 13.9 percent over the year-earlier period.

However, AT&T’s wireline disconnect rate for the quarter of 10 percent, compared to 9.4 percent probably is the highest in that company's history.

Broadband someday will represent a bigger percentage of total revenue. But right now, the only services that can really "move the needle" for a company this large is wireless and wireline voice accounts.

AT&T: Different Quarter, Same Story

Once again, wireless drove performance during AT&T's most recent quarter. Revenue grew a healthy 22 percent in the first quarter, but wireline voice service revenue fell 7.1 percent to $9.7 billion, while wireless revenue increased 17.1 percent to $10.6 billion. Data revenue grew six percent to $6.2 billion. Slower data growth will be a problem if wireless does not continue its upward climb.

IP-Based Surveillance Market: Take a Look

The market for IP-based video surveillance equipment grew about 50 percent in 2007, say researchers at MultiMedia Intelligence. It's a new market, so equipment sales will not knock your socks off: $500 million worldwide. But that's a comparative growth rate 400 percent higher than for traditional cameras and other gear to support video surveillance. And IP gear tends to be smaller and cheaper, so more equipment is bought, even at lower aggregate sales volumes.

The important thing to note is that many of those cameras are connected to live monitoring centers. That's another IP trunking revenue stream.

Also, keep in mind that high-defintion plasma displays are starting to show up in more retail and professional settings than one has seen in the past. Video, in short, is starting to become an immersive medium, not confined to traditional TV screens. That's going to represent lots more opportunities for services, applications and gear.

All those screens have to be installed and configured, for example. That's going to increase the amount of work available to multimedia "home theater" installers, for example. And since some increasing number of those video screens are going to be networked, a new type of application for traditional value added resellers to support as well. That's not to mention video services and bandwidth sales.

Skype Revamps Unlimited Calling Plans

Jim Courtney at Skype Journal says Skype has revamped all of its Skype Pro plans by creating flat rate unlimited (fair use of 10,000 minutes a month) international calling plans covering landline numbers in 35 countries, plus mobile numbers in some countries.

Among the notable changes are the cheaper calling plans for users who call between the United States and Mexico, elimination of connection fees and greater plan simplicity.

The plans do not require a contract. Users can buy plans covering calling to Canada and the United States; Canada, the United States and Mexio; or 32 countries plus Canada, the United States and Mexico.

Users also can upgrade their plans on a temporary basis. All plans include voice mail.

For users in Canada and U.S. the three plans:cost $2.95, $5.95 and $9.95 a month. European user plans cost €2.95 per month for calls within a single country, unlimited calling within 20 European countries for €3.95 per month and unlimited calling to 35 countries for €8.95 a month.

Similar plans are available for users in Asia, Brazil and the rest of the world.