Would You Change Airlines, Give up Legroom or Buy a More-Expensive Ticket to Get In-Flight Wi-Fi?

A survey sponsored by Honeywell claims a significant percentage of fliers would switch airlines, switch flights, pay more or give up amenties such as preferred seating or legroom to get access to Wi-Fi in flight that is consistent and faster.

According to Honeywell, about 22 percent of respondents to a survey say they’ve paid more for a flight with in-flight Wi-Fi, even if a less-costly flight was available.

Some 17 percent of respondents claim they switched from their preferred airline because another carrier had better Wi-Fi offerings.

The 2013 Wireless Connectivity survey found that almost 90 percent of fliers would give up an amenity on their flight--preferred seats, extra legroom and more--to be guaranteed a faster and more consistent wireless connection.

Some might say the findings actually are mostly theoretical. The problem many fliers experience with in-flight Wi-Fi is precisely the inability to predict speed and persistence of connections.

And since so many airlines use the same supplier, switching carriers is not going to help.

In principle, one might agree that some travelers, some of the time, might have switched carriers, flights, paid higher ticket prices or given up a preferred seat to get what they hoped would be a better Wi-Fi experience.

More often, one might argue, Wi-Fi was simply a byproduct of some other important choice, such as flight departure time or day, and fare basis.

That in-flight Wi-Fi is valuable is not the point. The point is the inconsistency, dropped connections and sluggish performance.

OECD Mobile Broadband Adoption 72%, Internet Access Exceeds 100% in Some Countries

Mobile broadband penetration has grown to 72 percent in the Organization for Economic Cooperation and Development area, according to December 2013 data, showing the importance of mobile as a part of the overall Internet access picture.

Seven countries (Finland, Australia, Japan, Sweden, Denmark, Korea and the United States) now lie above the 100 percent penetration threshold, including all forms of Interent access--mobile, fixed and satellite.

Fixed network broadband subscriptions in the OECD area reached 339 million as of December 2013, making an average penetration of 27 percent.

Digital subscriber line still is the prevalent technology, making up 52 percent of fixed broadband subscriptions, but it continues to be gradually replaced by optical fiber connections, now at 17 percent of subscriptions, OECD notes.

Cable TV high speed access, at 31 percent of connections,  accounted for most of the remaining subscriptions.

Two-digit annual growth in fibre ratio in total fixed broadband was sustained thanks to increases in large OECD economies with low penetration levels such as France (66%), Spain (74%), Turkey (73%) and the United Kingdom (108%).  

Japan and Korea remain the OECD leaders in optical fiber deployment, with fiber making up 70 percent of connections in Japan and 65 percent of connections in South Korea.

Mobile broadband subscriptions in the 34-country group were up about 15 percent from a year earlier to a total of 910 million, driven by continuing strong demand for smartphones and tablets, OECD reports.

As has been the case for at least a decade, aggregate global telecom revenues have been driven by mobile connections.  

The global telecommunications business will generate $2.15 trillion in revenue in 2014, and most of the revenue growth will come from mobile services, according to CMR.

At the global level, CMR projects that global telecommunications service  revenues will grow from $2.1 trillion to $2.4 trillion at a CAGR of 2.1 percent.

Revenue growth will happen in all regions except Europe, where telecom revenue is declining.

Virtually everywhere else, revenue is growing.

Gigabit Network for Time Warner Cable in Los Angeles?

With the caveat that responding to a request for information is not the same as submitting a firm propisal, Time Warner Cable announced the company is "participating in the City of Los Angeles' request for information (RFI) process for the development of a communitywide broadband network that delivers gigabit-capable, high-speed, high-quality and affordable broadband connections to residences, businesses and city government."

TWC's response includes detailed information on its current and future network and product enhancements that will enable Time Warner Cable to deliver gigabit-per-second speeds for consumers in Los Angeles across TWC's existing network that already spans the city and neighboring communities.

That is a somewhat different matter, some would argue, than offering to build a citywide network on terms the city seeks.

But if a gigabit network is built, even only where Time Warner Cable operates, that would be significant.

It might also be useful for Comcast, which wants to buy Time Warner Cable. That promise could help regulators justify approval of the acquisition effort.

Inflection Point for Mobile Wallets?

Forty percent of people who make payments with their smartphones are more likely to use their Google Wallet than their actual wallet, according to Nielsen's second quarter 2014 Mobile Wallet Report.

The study — which surveyed 3,784 people who had used their smartphones or tablets for shopping, banking, or making payments in the previous month — found that using mobile payment services such as PayPal, Google Wallet, and MasterCard PayPass isn't specific to any one demographic.

That could be a sign that use of mobile wallets is nearing an inflection point. That would be good news for proponents who have been waiting for the market to develop.

Verizon FiOS Goes Symmetrical: No Extra Cost

Though some will complain, Verizon is making an important change to its FiOS service, namely making all services, at all speeds, symmetrical, at no extra cost.

The expected complaints will take the form of "it's still not good enough."

But that's unfair. It's an important and useful improvement.

Verizon, which is seeing much higher take rates for faster access services, also seems to believe symmetrical bandwidth now is increasingly important to a growing percentage of customers.

Verizon now says 40 percent of FiOS Internet customers buy services at 50 Mbps or faster.

Verizon says it will "transition qualifying current residential customers to higher upload speeds for free throughout the coming months."

Existing and new FiOS small-business customers also will receive this upgrade later in the year.

The level of upload activity on the FiOS network is expected to double by late 2016 and to continue to grow from there, according to Verizon's projections.

Will Voice Drop to Third Among Top Telco Revenue Sources?

Virtually nobody would be surprised if told mobile data revenue will exceed voice revenue by 2018. Many might be surprised if told that will be the case globally.

In 2012, Japan became the first country where data revenues exceeded voice revenues. That happened in 2013 in Argentina.

In the United States, mobile data revenue surpassed voice revenue in the first quarter of 2014.  

That likely will happen in the United Kingdom in 2014 as well.

Nor would many observers be shocked if told that many fixed networks providers likewise earn more money from Internet access than from voice services.

Right now, AT&T earns $33.6 billion annually from its “data” category, which includes all U-verse video revenues.

Voice services generate about $20.3 billion annually.

What might be more surprising, though, is that video might even surpass voice revenue, at least for some firms. AT&T provides a case in point. But European telcos including Vodafone and Telefonica are themselves growing the percentage of video revenue in their portfolios.

Assume video accounts generate $960 annually ($80 a month per video account), and that AT&T has 5.5 million such accounts. That implies annual revenue of about $5.3 billion in video revenue.

But DirecTV alone earned $31.8 billion in 2013.

In other words, should AT&T succeed in its bid for DirecTV, video entertainment would possibly reach $37.1 billion, eclipsing even data services--at about $28.3 billion in annual revenue--as drivers of AT&T fixed network segment revenues.

After a DirecTV acquisition, voice would be only the trailing third most important revenue source for the fixed network segment.

Of $89.7 billion in total revenues, voice would represent 22 percent of fixed segment revenues.

Video would represent 41 percent of total fixed network revenues. Internet access and other data services would represent 32 percent of total fixed network revenues.

The picture at Verizon might be different. Verizon had $30.8 billion in first quarter 2014 revenue. About $18 billion was generated by mobile services, and though

About half of Verizon’s fixed network segment revenue comes from enterprise or wholesale sources.

So $17.3 billion is earned from “mass markets,” including small business. Removing small business accounts, the consumer business generates about $14.7 billion annually.

Verizon has about 5.3 million FiOS video customers. Assuming the same $80 a month contribution from a video account, Verizon might earn $960 per account, or about $5.1 billion from video services.

So video would represent about 35 percent of consumer segment revenue.

Assuming only $480 in annual revenues from Internet access, Verizon might generate about $4.3 billion from consumer Internet access, or 29 percent of consumer fixed network revenues. Voice might contribute about 36 percent of total fixed network revenues earned from consumers.

So, at Verizon, video entertainment and voice might be about equal contributors of revenue, while Internet access provides less revenue, in the consumer segment.

But keep in mind that the whole consumer segment is only half of fixed network revenue. Overall, voice and data revenues are much more significant at Verizon, than at AT&T.

It is a sign of how much has changed in the telecom business that voice might soon be the third largest revenue contributor, not the biggest.

When 80% of Work Can be Done on a Tablet

The new collaboration between IBM and Apple, and Microsoft's new announced strategy to focus on productivity naturally raises the question of how often someone at work could do all, or the vast bulk of all that work using only a tablet or a smartphone. 



IBM, Accenture, Salesforce.com and Worday are among enterprise technology suppliers working to help big firms create mobile apps that complement or replace PC programs. 



The success of such programs in many cases will depend on the type of work tasks conducted by people.



One might argue that a CEO could, as Apple CEO Tim Cook claims, do 80 percent of all his work on an iPad. In part, that is because most of what CEOs at large firms do is communicate with people and review content. They rarely have to create such content, which might require a PC.



Conversely, field service and sales forces also likely can use tablets and smartphones to conduct most of their computing-related or app-related work. Some customer service reps might also be able to do so.



Many sales professionals in the field likewise might be able to do so. 



Though some say tablets will be used, more frequently, to create content, not simply interact with it, at the moment it remains the case that jobs where existing content needs to be retrieved or viewed, with simple transactional operations, are best suited to replacement of PCs with tablets or smartphones. 



That especially is true for "in the field" apps and operations.