Monday, August 10, 2009

Facebook Can Get You Fired

About eight percent of corporate executives surveyed by Proofpoint say they have terminated
employees for disclosing confidential, protected or simply embarassing information put up on socialnetworking sites such as Facebook or LinkedIn, up from four percent who reported doing so in 2008.

About 17 percent of respondents said they had incidents of that nature this year, compared to 12 percent in 2008.

But email still seems to be a more-common reason for terminations of this sort. About 43 percent of respondents reported they had investigated an email-based leak of confidential or proprietary information in the past 12 months.

Nearly a third of them, 31 percent, terminated an employee for violating email policies in the same period, up from 26 percent in 2008.

About 18 percent of respondents say they had investigated a data loss event from a blog or message board in the past 12 months. About 17 percent disciplined an employee for violating blog or message board policies, while nearly nine percent reported terminating an employee for such a violation, up from a disciplinary rate of 11 percent in 2008 and a termination rate of six percent in 2008.

More respondents also reported investigating video-related exposure events. This year, about 18 percent have had to do so, up from 12 percent in 2008.

About 15 percent of respondents have disciplined an employee for violating multimedia sharing or posting policies in the past 12 months, while eight percent reported terminating an employee for such a violation.

Even short message services like texts and Twitter pose a risk. About 13 percent of respondents
investigated an exposure event involving mobile or Web-based short message services in the past 12 months.

About 38 percent of respondents say they now read or analyze outbound email before it is sent.

As more U.S. companies reported their business was affected by the exposure of sensitive or
embarrassing information (34 percent, up from 23 percent in 2008), an increasing number say they employ staff to read or otherwise analyze the contents of outbound email (38 percent, up from 29 percent in 2008).

In addition, companies are regularly ordered to produce employee email as part of legal actions,
exposing its contents to outside scrutiny. Nearly a quarter (24 percent) of large US companies report that employee email was subpoenaed in the past 12 months.

Malaysia Open Access Network Challenges Business Model

Service providers, end users and policy advocates will be keeping close watch on Malaysia's open access fiber network Jalenasn which will begin building as early as October, says Comms Day International.

Based on an open access model, Jalenas will only own and control the fiber infrastructure, leasing access instead to broadband service, applications and content providers who in turn will offer end user services.

The model probably is not directly applicable to U.S. markets, in part because measurable government support is required, in part because of massive service provider opposition.

But the plan will provide new real-world data about the economics of such methods, which require extreme operational efficiency by the infrastructure provider.

A similar wholesale access approach is being undertaken in nearby Singapore, and both Australia and New Zealand are weighing somewhat similar approaches as well.

The Jalenas network is owned by Pahang state-backed High Speed Broadband Technology.   
 
Ericsson will manage the project for at least the first five years, in yet another new twist. The Malaysian access network will be owned by one entity, managed by another, while retail services will be provided by other third parties.

Saturday, August 8, 2009

FairPoint Unhappy About Broadband Stimulus Competition

FairPoint lobbyists and officials say the University of Maine System is unfairly competing with them for federal funds available as part of the American Recovery and Reinvestment Act "broadband stimulus" program.

“The fact is, we are competing with the University of Maine,” says Severin Beliveau, an Augusta, Maine attorney representing FairPoint. “I am concerned at what the university is proposing here, because it is receiving a form of subsidy, no, they are in fact receiving a subsidy from taxpayers, in competing with the private sector.”

Jeff Letourneau, the associate director of information technology at UMS, said the proposal is not the university’s but is from a private-public partnership and that the UMS is just one member.

FairPoint is developing a $20 million proposal that builds on its existing Internet infrastructure, the company indicates. FairPoint says the project will bring broadband access to 90 percent of Maine by 2013.

Though the first of the funds have not yet been awarded, organizations and companies now are starting to complain about the rules. FairPoint Communications, librarians and FiberNet in West Virginia are among those who have voiced complaints about the rules.

Wednesday, August 5, 2009

Video Tipping Point in 2010?


The mass-market tipping point for online video will occur in 2010, when online video will be viewed by 50 percent of U.S. consumers, says eMarketer.

Online video also will achieve a 59 percent penetration rate in 2013, up from 47 percent in 2009.

The number of U.S. online video viewers will grow to 188 million in 2013, up from 144 million in 2009, says eMarketer.

Online video viewers will make up 85 percent of Internet users in 2013, up from 72 percent in 2009.

“This will put online video within range of Web activities such as search and e-mail, which are nearly at saturation points among U.S. Internet users,” says Paul Verna, eMarketer senior analyst.

The ability to share video through social networks, blogs, microblogs, e-mail and other social platforms will play a role. So will mobility.

All of that will hasten the day when changes must be made--especially on mobile networks--relating to end user consumption and pricing.

Is the USPS a Natural Monopoly?

Just thinking out loud, but is mail a natural monopoly?

The U.S. Postal Service has seen a precipitous drop in volume lately.

So they raise their prices, making other alternatives more attractive, which further depresses volume. It sort of looks like a death spiral.

Of course, "mail" can mean messages, so email is a functional substitute, as was facsimile.

And mail and packages can be delivered by any number of competitors (FedEx, UPS and others). To the extent that FedEx, UPS, the Internet and other alternatives aer widely available, perhaps "mail delivery" is not a natural monopoly.

Still, without large subsidies, the network is not profitable. It could not provide universal delivery without subsidies and it certainly does not ever make money. So it is one of the other models one has to look at when thinking about the future of the communications network business.

Communications Spend Down 1% in 2009, Up 2.6% Next 5 Years


Total U.S. communications spending will decline one percent in 2009 to $882.6 billion, but will grow 3.6 percent per year over the next five years to more than $1 trillion, according to Veronis Suhler Stevenson, a normally sober outfit.


The caution there is how one defines "communications." Estimates of this magnitude for the U.S. market necessarily include lots of other activities such as local area network and other premises networking services and products, and is not a direct proxy for "telecommunications."


This growth will make communications the third fastest-growing sector (behind mining and construction) of the U.S. economy through 2013, VSS says.

Monday, August 3, 2009

Telecom's Third Rail

There's a thoroughly uncomfortable question nobody in the telecom business wants to touch. Most people have heard the analogy that communications networks are fundamental underpinnings to future economic success, much as roads, railways or airline routes might be.

Most people are at least casually familiar with the plight of the newspaper business, which seemingly has yet to find a way to remain financially viable in a market that offers many substitutes.

Now there are the first projections that the advertising business, which except for normal economic fluctuations has grown for 30 years or more, might now face a future where brand spending actually decreases over time, in a structural, not secular shift.

So the uncomfortable question is whether the telecom business is in fact becoming a sort of infrastructure, like roads. And what I mean by that is that the business model for roads is largely indirect. True, there are some toll roads, but most roads, though an input to other revenue-generating enterprises, do not make money: they lose it.

So the "roads" or infrastructure analogy should be troublesome in the extreme. It at least implies an industry that has the profit sucked out of it, that is foundational and important, but not profitable in the way it has been.

At some point, should that continue, the industry as we now know it could not continue to exist. There would be a need for big pipes to virtually all locations. We need roads. But all the other economic activity would then be created by industries that support people driving cars.

This is something here more than the fear of being reduced to "dumb pipe" providers. Many businesses operate as low-margin "commodity" affairs, especially when they have large scale.

The newspaper analogy is more unnerving. That analogy suggests that communication networks could become something more akin to "roads," where there actually is no viable business model, and the infrastructure is a societal "cost" borne by taxpayers.

Perhaps you think governments globally have enough extra headroom to increase taxes to do such a thing. If there is no viable business model, that will be your only choice.

Being an optimist, I suspect the analogy is imperfect. I think executives will show enough creativity to avoid the worst case, and that regulators will be prudent.

What seems less debatable is the risk that if enough profit is drained out of the telecom business, even a robust "pipes" business might be tough to sustain.

That's an insight regulators in many countries have learned they must grapple with. Let us hope sane heads will prevail

Directv-Dish Merger Fails

Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...