5G Spectrum Allocation Policies Differ in Japan, Korea

Communications policymakers in various countries will have to decide how to allocate additional mid-band and millimeter wave spectrum to various contestants. In some cases, policy might allow contestants to bid as vigorously as they like. In other cases, government policy might be more akin to “supporting a level playing field” by allocating spectrum on an equal basis. 

Here’s a look at mid-band spectrum held by the leading mobile operators in Japan, according to Gaku Nakazato of Japan’s Ministry of Internal Affairs and Communications. As you might guess, KDDI and NTT have the largest allocations. NTT and KDDI have the largest subscriber shares, and therefore arguably require the most spectrum. 

source: MIC

Policy in South Korea seems to aim for equal capabilities for the leading service suppliers. Both mid-band and 28-GHz millimeter wave allocations are virtually equal. 

source: Korea Ministry of Science and ICT

Is Network Slicing Underneath Vodafone UK's 5G Service Plans?

It seems highly likely that one of the most-important benefits of Vodafone UK's virtualized network is the ability to use network slicing to create consumer data access tiers that differ by speed.

The 5G launch by Vodafone UK contains at least a couple of novel developments. For starters, Vodafone’s 5G will come in speed tiers. Vodafone Unlimited Max features unlimited mobile data usage at speeds as fast as the device and the network will allow. 

Vodafone Unlimited offers speeds of up to 10 Mbps. Vodafone Unlimited Lite supports speeds up to 2 Mbps.

source: Telecoms.com

For customers accustomed to buying their data usage as a variable cost, the new Vodafone approach shifts offer differentiation to speed, much as fixed network offers do. Pricing is differentiated by maximum downstream speed, not usage buckets. 

The other development is that usage is unlimited for all plans, removing the usage allowance as the key difference between plans. 

Vodafone has not specifically said how it is creating the tiers, but network slicing network slicing is one conceivable approach, where customers are different plans essentially use different network slices, some of us would guess. 

source: Cisco

5G Drives Transport Protocols

Enhanced Common Public Radio Interface (eCPRI) and Optical Transport Network (OTN) topped the list of most important 5G transport technologies in a survey conducted by Heavy Reading.

The eCPRI protocol was developed specifically to meet the bandwidth and performance requirements for 5G fronthaul, so it is difficult to imagine 5G fronthaul without eCPRI, many would argue. 

OTN ranked high across all geographies, which many will take as a proxy for wavelength-division multiplexing. 

source: Light Reading

Marketing Spend: % of Revenue or % of Profit?

Would you be more comfortable spending three percent of revenue on marketing, or 33 percent of profits on marketing?

Daniel Brzezinski, GetResponse COO, has a seemingly breath-taking bit of advice for small and medium-sized business spending levels on marketing spend. 

The levels depend on where an SMB is in its lifecycle. A well-established company focused on retention rather than new customer acquisition “can spend around two thirds or only one third of your income on marketing and advertising,” Brzezinski says. 

We can assume he does not mean that percentage of gross revenue, but most likely percentages of profit. 

Newer companies “could spend up to three fourths of your profit on marketing,” he says. 

That sounds like an impossibly-high allocation, but compares reasonably closely to the perhaps more common metric of spending as a percentage of revenue. 

Firm Revenue	5,000,000	10,000,000	15,000,000
Profit %	0.11	0.11	0.11
Profit	550000	1100000	1650000
3% of Rev.	150000	300000	450000
7% of Rev.	350000	700000	1050000
33% of Profit	181500	363000	544500
66% of Profit	363000	726000	1089000

Source: IP Carrier

Rules of thumb that suggest marketing spend levels for small businesses generating less than $5 million annually be set at seven to eight percent of gross revenue. That includes both marketing and advertising, for firms  with a net profit margin, after all expenses, in the 10 percent to 12 percent range.

That, at least is the recommendation from the U.S. Small Business Administration.

More common rules of thumb call for spending two percent to three percent of revenue on marketing and advertising, but as much as 20 percent if a firm is in a competitive industry. 

As it turns out, at an 11-percent profit margin, spending three percent of revenue or 33 percent of profit winds up being relatively-similar commitments.

It's Summer, so a Bit of Gold Rush History...

Recorded history is a recent thing for much of the American West, although inhabited for perhaps 12,000 to 14,000 years by indigenous peoples.

As was the case for other areas such as California, the discovery of gold triggered an in-migration of new settlers. The earliest report of gold in what would become the Denver metro area happened in 1850, at Ralston Creek, at its confluence with Clear Creek, which drops out of the Rocky Mountains. 

Lewis Ralston, a Georgia prospector headed for the California gold fields, found about a quarter  ounce (6 grams) of gold at what became Ralson Creek. Ralston's companions named the stream Ralston's Creek in his honor, but they all left the next morning for the California gold fields. 

Here is that spot today. 

source: Wikimedia

The founding of Denver, Boulder and other towns did not happen until after 1857, though. 

“A May 1857 discovery of gold-dust by George Simpson in Cherry Creek near its confluence with the South Platte River and the discovery of gold nuggets near the future site of Denver by Fall Leaf, a Delaware Indian working as a U.S. Army scout, sparked Midwestern and Eastern interest in the western fringe of Kansas Territory,” according to the Colorado Encyclopedia. 

In 1858 the Russell brothers—William, Oliver, and Levi, along with John Beck and a party of Cherokees and whites from Georgia--reached Ralston Creek where they found a little gold. 

They then headed upstream (south) along the South Platte, past Cherry Creek and on to Little Dry Creek in present-day Englewood, where they found paying quantities of placer gold. 

The towns of Auraria, Denver, Boulder and Golden were founded over the next several years. 

Here is a view of downtown Denver, looking east, at the confluence of Cherry Creek and the South Platte river, where gold was discovered in 1857.  Below is it is the same area, as painted about 1858, looking west. Northern Arapahoes in the foreground, I think. 

source: Lonely Planet

Here is the same confluence, during the 1930s, when people continued to pan for gold. It was the discovery of gold in Cherry Creek--at about the confluence--about 1857 in this area that lead to the founding of Denver. 

source: Reddit

Casual, manual gold panning still is possible in the metro Denver area, so long as landowner permission is given, often by the local park and recreation districts or the water companies.

What New Technology Offers Most Promise for Channel Partners?

CompTIA’s Emerging Technology Community believes internet of things is the single most likely new technology to generate immediate opportunities for channel partners. Artificial intelligence is ranked second, 5G third of the top 10 emerging technologies. 

The top-10 emerging technologies are IoT, AI, 5G, serverless computing, blockchain, robotics, biometrics, 3-D printing, virtual reality/augmented reality (VR/AR) and drones.

If some of us had to guess, channel partners might agree that IoT is the biggest opportunity, but that AI is not. 5G would probably then rank as the second-biggest immediate opportunity. 

source: CompTIA

source: CompTIA

Data Caps Not a Problem for Stadia, Google Exec Says

Some critics of telcos and cable companies, Facebook, Google and many other large companies might attribute to those actors an unusual amount of nefarious intent, beyond the “normal” profit-maximizing behavior any economic actor (worker or employer) is expected to exhibit. 

Over the past couple of decades, some, for example, have criticized internet service providers for customer-injurious practices such as data caps. One reason some of us do not tend to worry much about such possible abuses is that, given reasonable competition levels, actors are not able to extract unusual profits from their customers. 

So it is that Phil Harrison, Google VP, does not believe data caps will prove harmful to Stadia, Google’s new video game streaming service. 

"The ISPs have a strong history of staying ahead of consumer trend and if you look at the history of data caps in those small number of markets--and it’s actually a relatively small number of markets that have [data caps]--the trend over time, when music streaming and download became popular, especially in the early days when it was not necessarily legitimate, data caps moved up,” says Harrison. “Then with the evolution of TV and film streaming, data caps moved up, and we expect that will continue to be the case."

Eventually, we also will undoubtedly see that network neutrality rules were, in fact, not necessary or helpful.