30% of U.S. Households Don't Use the Internet

Despite the growing importance of the Internet in American life, over 30 percent of households and 35 percent of persons do not use the Internet at home, and 30 percent of all persons do not use the Internet anywhere, say researchers at the National Telecommunications and Information Administration.

Those with no broadband access at home amount to more than 35 percent of all households and approximately 40 percent of all persons, with a larger proportion in rural areas in both categories.

The two most important reasons given by survey respondents for not having broadband access at home are “don’t need” and “too expensive." But many survey respondents also say their PCs are "inadequate" or that no computer is available.

Canadian Video Providers Test Partial "A La Carte" Buying of Video Channels

In an important test of market demand, Canadian cable and telco multi-channel video providers are beginning to test market demand for more-flexible ways of selling cable channels. It isn't a full-blown switch to à la carte television, but will provide an important test of how well consumers like the ability to buy service in ways that might offer more targeted buying of channels they actually watch.

Bell Canada now is offering a more-granular approach to buying multi-channel TV service. The service is being introduced in Bell Canada's Quebec service territory.

The company says it will allow television customers to subscribe to individual channels, rather than the standard bundles that have been the mainstay of the multi-channel video business.

Customers must first take a basic $25 package that includes standard channels such as Global, CTV, CityTV and CBC, and can then choose 15 channels for $15, 20 for $19 or 30 for $22. Bell is also offering individual channels for $2 each.

"TV just got better for subscribers in Quebec, who now have the ultimate control and flexibility to get the channels they want," says Kevin Crull, Bell's president of residential services.

Vidéotron already offers similar options, with basic service and 15 extra channels starting at $37 a month.

Quebec has been one of the most competitive regions for telecommunications, with some of the lowest prices in the country, says the Canadian Broadcasting Corporation.

Bell Canada apparently is not offering à la carte channels in Ontario, its other main television territory.

Rogers, Bell's chief TV rival in Ontario, does offer individual channels on top of basic service at a typical cost of $2.79 each. Basic television services in Ontario from both Bell and Rogers start at around $35 and $30, respectively.

So far, no U.S. provider has taken this route, but consumer demand will be watched closely for any signs the practice might be useful in the U.S. market as a way of providing service differentiation.

Video Cord Cutting Threat is Overestimated, Parks Associates Says

Despite the growing amount of video available online, less than eight percent of U.S. broadband households, or about 5.5 million households, are considering canceling their multi-channel subscription services in favor of online video, according to Parks Associates. You may interpret that as good or bad news.

The 2008 study found 11 percent of U.S. broadband households were considering canceling pay-TV services, and in an earlier 2009 survey, the number was 10 percent. The upside is that people might be finding it is harder than they thought to replace their current multi-channel video experience with alternative sources.

Where there clearly seems to be more danger is in the area of churn. As many as 2.75 million of those households report they are considering a switch to a new service provider. That's the bigger danger, as consumers do not have to change behavior or lose any of the value when switching providers, but might save some money, or even increase perceived value for equivalent levels of spending.

Online viewing is correlated with switching propensity, though. Parks found that households saying they are likely to switch or cancel their services watch 10 hours of online video each week, much higher than typical video consumers.

They express strong interest in having online access to pay-TV channels as well. Such video-intensive customers also use offline video, such as DVD rentals, at higher rates than typical consumers do.

Their median number of DVD rentals from the last six months is 18, compared to two rentals among other households.

“Just 0.5 percent of broadband households appear to have cancelled their video subscriptions, according to  John Barrett, director, research, Parks Associates.

In fact, the profile of a "switcher" is someone who does not watch much TV. That makes sense. Though conventional wisdom is that "heavy" users are more likely to "cut the cord," in reality it is light users who are most prone to cancel their service, simply because the value-for-price equation is not so high.

GSM Association Embraces "One Voice"

The GSM Association has adopted the "One Voice Initiative" as a way of delivering voice and messaging services for fourth-generation Long-Term Evolution (LTE) services. One Voice is based on IP Multimedia Subsystems and will provide a standard for voice and text messaging interconnection and international roaming on 4G networks, just as carriers now support 2G and 3G interworking.

The GSMA’s Voice over LTE (VoLTE) initiative has the backing of more than 40 organizations from across the mobile ecosystem.

Mobile operators supporting the initiative include 3 Group, AT&T, Bell Canada, China Mobile, Deutsche Telekom/T-Mobile, KDDI, mobilkom austria, MTS, NTT DoCoMo, Orange, SKT, SoftBank, Telecom Italia, Telecom New Zealand, Telefónica, Telenor, TeliaSonera, Verizon Wireless and Vodafone.

Handset manufacturers and equipment vendors supporting the initiative include Acme Packet, Alcatel-Lucent, Aylus, Camiant, Cisco, Colibra, Communigate, Comneon, Ericsson, Fujitsu, Genband, Huawei, LG, Motorola, Movial, Mu, NEC, Nokia, Nokia Siemens Networks, Qualcomm, RADVISION, Samsung, Sony Ericsson and Tekelec.

24 Carriers, 3 Handset Vendors Launch 3 Billion User App Initiative

A new consortium already including 24 global mobile service providers, Sony, Samsung and LG are creating a new applications community, allowing developers to create apps working across networks serving three billion people.

The new "Wholesale Applications Community" is a recognition of the role application stores now playing in fostering new applications and a great deal of the value of mobile broadband services.

América Móvil, AT&T, Bharti Airtel, China Mobile, China Unicom, Deutsche Telekom, KT, Mobilkom Austria Group, MTN Group, NTT DoCoMo, Orange, Orascom Telecom, Softbank Mobile, Telecom Italia, Telefónica, Telenor Group, Telia Sonera, SingTel, SK Telecom, Sprint, Verizon Wireless, VimpelCom, Vodafone and Wind, as well as Samsung, LG and Sony Ericsson are founding members.

Whether directly or indirectly, by design or by default, the new development community will compete with the Apple App Store as well as other app stores being created by Google and other device and application providers.

The real carrot for developers, if the initiative can iron out any number of important details, is access to a potential audience of three billion mobile users. In practice, discrete markets will be smaller, limited by natural language communities, for example. But it is an ambitious initiative showing access providers are not interested in forfeiting their roles in the application ecosystem to other handset or application providers.

60% of Calls are Video-Enabled on fring in W. Europ

After just two months, video over Internet calls account for more than 40 percent of fring's global call traffic, on devices capable of doing so, and more than 60 percent of its call traffic throughout Western Europe, where fring mobile video call usage doubles the leading PC-based video call services, fring says.

Fring launched the world’s first interoperable service between mobile video users of fring and Skype last November, enabling users to conduct video calls to other fring users as well as with Skype users using aWi-Fi or 3G mobile Iternet connection.

The majority of fring's mobile video calls are international.

Keep in mind that fring only works on devices running the Symbian or Apple mobile operating systems, including all Symbian 9.2 and 9.3 Nokia devices including the E71N95, N95 8G, N83, N97, 5800 and other Nokia touch-screen S60 devices and the iPhone and iPod touch.

Voxbone Adds Text Messages to Global Phone Numbers

Proponents have argued that  new IP-based communications would offer many innovative features not possible on older telephone networks. Voxbone, for example, now provides "global phone numbers" that are not tied to a specific country, and now has added text message support for those numbers, a feature that will be welcomed by users who see the advantages of a single, global telephone number.

Voxbone’s carrier and enterprise customers now can offer their subscribers one global number that can receive SMS messages at competitive rates, on mobile phones that do not have Internet access. In other words, it works the way the current services do, in terms of user interface and experience.

The move marks something of a potential breakthrough in "iNum" usage, as wireless subscribers from a growing number of prominent carriers, including Vodafone, T-Mobile, Orange, Virgin, and Boost Mobile, now are able to send text messages to iNum "phone" numbers.

The service is already available in the United Kingdom, France and the United States, at prices ranging from 10 to 20 pence per message in the United Kingdom., for example.

Voxbone will be adding reachability from more wireless carriers in more countries in the coming weeks.

The new feature highlights another interesting angle: Landline phones have not traditionally been able to receive text messages. It isn't entirely clear how many people would find this interesting or useful. But it could be done.

All iNum numbers have a prefix of +883, the International Telecommunications Union-assigned international code for the Internet, just as +44 is the code for the U.K. and +1 refers to the U.S.
As a wholesaler of direct-inward-dial numbers and IP transport provider, Voxbone receives calls, and now SMS messages, to numbers with this code and delivers them over IP to its carrier customers, for delivery to their end users.