Twitter gets Jeff Bezos Investment

Valleywag says Twitter, has received an investment from Amazon founder and CEO Jeff Bezos as well as Bijan Sabet of Spark Capital. Did I run over120 characters?

IT Seen as Boring

More than 60 percent of college graduates with degrees in areas other than information technology think a job in IT would be "boring," despite its good career prospects, according to the Career Development Organisation, and reported by ComputerWeekly.com.

Of course, other organizations have issues of that sort, even within the software and computer science graduate pool. If one is a bright, ambitious programmer, would such a person prefer to work at a company like Google or a device manufacturer or network equipment firm? I think we can figure that one out without taking a survey.

Virgin Mobile to Acquire Helio, Says Financial Times

Virgin Mobile USA will acquire Helio, the mobile phone operation controlled by SK Telecom and originally launched as a joint venture between SK Telecom and Earthlink. What both brands have in common is a positioning in the "hipper" segment of the youth market, as well as struggling businesses.

Virgin Mobile has more than five million prepaid customers. Helio had a bit fewer than 200,000 postpaid customers at the beginning of 2008.

Mobility, just like wired voice and data, is a scale game. What the industry is seeing is consolidation in just about every segment of the market, in large part to achieve scale. In the global international voice business, margins keep dropping, forcing carriers to sell lots more volume to make up for skinnier margins.

Over time, even the largest global carriers will find they either must bulk up or outsource those operations to carriers that can achieve huge scale.

Android Learns What Others Have

According to Wall Street Journal reporters Jessica Vascellaro and Amol Sharma, the Android development effort is proving more protracted than originally expected. Nokia and other executives at mobile device firms using competing operating systems had suggested this would be the case.

Google executives also indicate that custom applications some of the participaing mobile providers want to provide also are taking more time than expected, the Wall Street Journal reporters say.

Sprint, for example, wants its own branded services based on Android. Given the other issues Sprint is tackling, it isn't so surprising that development is taking longer than expected.

Sprint is now considering scrapping plans for an Android phone for its current third-generation broadband network and developing one that will work on the faster "4G" network it is helping to fund along with several partners, including Google, the reporters say.

To be fair, lots of other talented, well-endowed technology firms have stumbled upon such obstacles themselves in creating VoIP services such as IP-based business phone systems, to cite one example. There just are lots of nuances that are not immediately obvious.

Android will get through those issues, just as other developers have. It simply will take a while.

Nokia Buys Symbian

One of the themes at the Voice Peering Forum meeting has been the absolutely central role applications now play in the whole communications business. So now comes word that mobile device giant Nokia will acquire the 52 percent of mobile software specialist Symbian that it does not already own.

As identified with Nokia and Symbian is, there are no strategic shifts here. Nokia simply owns outright its operating system. What is more important is what companion moves suggest.

Nokia and a number of other electronics makers are forming the Symbian Foundation to drive the development of Web applications for use by consumers on cell phones. Again, note the trend: application development fostered by handset manufacturers, matching the application development communications service providers know they also must foster.

The foundation plans to provide a unified platform that has a common user interface framework and that will be available for all foundation members under a royalty-free license, Nokia says.

Access, IP Transit: Where's the Rub?

So we've been kicking around lots of issues around telecom industry transformation at the Voice Peering Forum June 23 and 24, 2008. An attendee from Telecom New Zealand pointed out something interesting.

"In the U.S. market, contestants seem to spend a lot of time fighting over rights to use or lease the access network," he said. "That's not where the rub is, which is in IP transit."

That might strike you as an incongruous statement. After all, isn't long-haul a fairly easy thing to build? Isn't there lots of fiber?

Well, yes, there's a substantial amount of fiber, even though lots of it might not be in the right places, or lots of it concentrated inside the same cable sheaths, on the same routes.

But there's another issue, not related to fiber but to IP transit costs. If a service provider owns its own facilities, there is not much of a problem on that score. No matter how much Internet bandwidth is required, the incremental cost of supplying that demand is controllable.

That is definitively not the case for a service provider that does not own its own wide area network, and has to lease capacity in the form of IP transit. In that case, it is quite expensive if a service provider's users start to download or stream significant amounts of video.

That isn't to say access is not a crucial problem. For many contestants it is a key problem. But let's not forget that IP transit costs are growing as video consumption is growing. Sooner or later, larger service providers who do not own their own WANs will start looking at buying them or building them. That's one good way to save money on spiraling IP transit costs.

Consumer Video Drives 1/2 of Bandwidth by 2012

If Cisco is correct, and bandwidth keeps growing about 50 to 60 percent a year, and consumers keep adding video behaviors, then the easy extrapolation is that half of global bandwidth will be used for consumer video apps of one sort or another by 2012.

The challenge for wide area network and access providers is that video provides very-low revenue per bit, compared to any other service.

Lots more bandwidth, provided very economically, is going to be the business challenge.