Content carve up of net begins

Internet law professor Michael Geist looks at the way that cable firms are starting to shackle the net access they offer.

Ethernet cable, Eyewire
Some cable firms are treating net access like they do TV scheduling
When cable companies began promoting high-speed internet services nearly a decade ago, many branded them “the internet on cable”.

Years later, those services are gradually morphing into “the internet as cable” as broadcasters and service providers steadily move toward the delivery of content online that bears a striking resemblance to the conventional cable model.

Cable television has its virtues - some consumer choice, the ability to time shift programs by recording them with a VCR or PVR, and video on-demand - but it is largely built around limiting consumer control.

Cable distributors determine channel choices, geographic distribution, and commercial substitution (typically with input from a broadcast regulator), offer only limited interactivity, and quietly even possess the ability to stop consumers from recording some programs.

Until recently, the internet was precisely the opposite, offering unlimited user choice, continuous interactivity, and technological capabilities to copy and remix content.

That is gradually changing as broadcasters seek to re-assert greater geographic control over their content and service providers experiment with cable-like models for prioritised content delivery.
Prof Michael Geist (Michael Geist)
…if broadcasters and service providers are left to their own devices, it appears that they are increasingly ready to redefine the internet on cable to the internet as cable.
Michael Geist
The re-emergence of geographic borders on the internet coincides with broadcasters finally jumping on the internet bandwagon, as they race to make their content freely available online.

Some US broadcasters are selling downloads through services such as Apple iTunes or Amazon.com, yet the unmistakable trend is toward free, ad-supported streaming of content mere hours after it first appears on commercial television.

Each major US broadcaster already offers a handful of shows in this manner with ambitious plans to expand their services in the months ahead.

NBC and Fox recently unveiled Hulu.com to some critical acclaim, while Comedy Central created a new site for the popular Daily Show that features a complete archive of eight years of programming.

Non-Americans, alas, are generally locked out of these sites due to licensing restrictions.

Foreign broadcasters have been scrambling to buy the internet rights to US programming, both to protect their local broadcasts and to beef up their online presence.

US broadcasters may eventually decide it is more profitable to stream their content on a worldwide basis and to remove longstanding geographic restrictions, however, for the moment they are parceling up the internet as they would a broadcast destined for multiple cable markets.

Jon Stewart, AP
The Daily Show has proved popular on net video sites
This geographic bordering extends beyond just blocking streamed content. For example, the new Daily Show site is off-limits for Canadians since the US-based Comedy Central recently took the unprecedented step of redirecting Canadian visitors to the Canadian-owned Comedy Network site.

Broadcasters are not alone in working to bring the cable model of control to the internet.

Large net service firms are engaged in similar activities, with a history of blocking access to contentious content, limiting bandwidth for alternative content delivery channels, and raising the prospect of levying fees for priority content delivery.

While these issues had been perceived to be predominantly North American concerns, they are beginning to surface elsewhere.

For example, when earlier this year the BBC launched its internet-based iPlayer, several broadband providers floated the prospect of charging the BBC for delivering its content on their networks.

These issues may ultimately sort themselves out.

Users have many easily-obtainable tools to defeat geographic blocking and net firms may find themselves subject to net neutrality legislation if they continue to abuse the public’s trust by failing to maintain their networks in a transparent, neutral fashion.

Yet if broadcasters and service providers are left to their own devices, it appears that they are increasingly ready to redefine the internet on cable to the internet as cable.

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China set to allow more competition in cellphone market

BEIJING: A pledge by China’s regulators to let fixed-line phone operators enter the faster-growing mobile market could lead to much greater competition in the telecom industry, analysts said Monday.

Vice Minister of Information Industry Xi Guohua used a forum in Beijing over the weekend to announce plans by the government to grant licences to fixed-line telecom operators soon, the Xinhua news agency reported.

“The rapid development of mobile telecom services had lured away subscribers of fixed-line services,” Xinhua said, citing Xi. His ministry confirmed the remarks to AFP Monday.

Fixed-line operators welcomed the news, but said they still needed to know more before popping the champagne.

“We’re still looking for a timetable,” said Qin Shaojuan, a spokesman for China Netcom, one of the two large fixed-line operators in China. “But if they really are going to give a licence, that’s extremely good news for us.”

The vice minister’s remark followed months of speculation that the government was considering ways to restructure an uneven telecom market, where mobile is as hot and vibrant as fixed-line is stagnant.

“Fixed-line operators are facing immense pressure,” said Kang Zhiyi, a Beijing-based analyst with TX Consulting. “Whether you look at revenue or profit growth, the difference with the mobile segment is large.”

China Telecom Corp., the nation’s top fixed-line operator, said late last month its net profit for the first nine months was little changed from a year earlier amid continued competition from cellphone providers.

By contrast, China Mobile Ltd., Asia’s biggest mobile phone company, said its net profit for the same period grew nearly 30 percent, buoyed by strong subscriber growth and a wider rural reach.

The difference in corporate fortunes reflects broader forces at work in the Chinese market.

The number of mobile phone users in China was 523.3 million at the end of September, up 13.5 percent from the end of 2006, according to official data. The government expects the number to rise to 540 million by the end of 2007.

The number of fixed-line users in China was 371.7 million, a rise of 1.1 percent from late last year.

In reaction to the Vice Minister’s Xi’s remarks, shares in China Telecom rose 4.0 percent in early trade Monday in Hong Kong, while China Netcom, the other major fixed-line operator, gained 4.7 percent.

A restructuring of the industry would come at a crucial time as the market is preparing for the arrival of third-generation mobile telephony, or 3G, as opposed to the currently dominant 2G.

3G allows various more advanced functions, including the use of broadband wireless data via mobile devices.

No detailed information was available from the government on how it planned to allow China Telecom and China Netcom to become involved in mobile operations.

Unconfirmed media reports have suggested that China Mobile’s smaller rival, state-owned mobile carrier China Unicom, could be split up between China Telecom and China Netcom.

“Dividing China Unicom could be a way to do it,” said Jiang Lifeng, an analyst with CCID Consulting based in Beijing.

“China Unicom has two networks, but in itself, it’s not a very strong player, so splitting its assets could help reinvigorate the competition in the market,” he said.

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Nokia eyes CDMA replacement market

KOLKATA: Unable to provide low-priced CDMA handsets to operators, leading mobile phone manufacturer Nokia will instead focus on the replacement market.

D Shivakumar, vice-president & managing director (mobile phones) of Nokia India Private Limited, told reporters here that the CDMA industry was price-led. “Nokia will not be able to provide CDMA handsets priced around USD 20 each”, he said.

Instead of supplying handsets to CDMA operators, the company would play in the replacement market. Presently, Nokia’a share in the replacement market is around 10 per cent.

Asked to comment on Nokia’s plans for India, Shivakumar said that the company plans to launch 26 to 30 models every six months across various price points. He said that innovation was the key to meeting customer satisfaction.

Nokia, which started operations in India 12 years back, has the largest market share among GSM handset manufactuers who offer their products to Indian consumers.

Asked if the company would ramp up manufacturing capacity at its Chennai plant to meet the growing demand, Shivakumar said that this was a continuous process.

He said that the plant was manufacturing 60 million units from Chennai, out of which 75 per cent was supplied to the domestic market.

Nokia India was also exporting handsets to 59 countries from the Chennai plant. The company had invested USD 160 million for the Chennai plant which employs 5000 people.

Asked if the battery related problem was over, he said that ‘thankfully it had been a thing of the past now.’

About Nokia India’s contribution to overall revenue of the Finnish giant, Shivakumar said that it was second to China.

Shivakumar said that the company would also expand the retail presence from the present level of 700 odd exclusive outlets spread across the country. The company does not have any plan to go public, he said.

“Our aim is to grow the market,” Shivakumar said.

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Entry for all to halve call rates: Ministry

The communications ministry is of the view that telecom tariffs in India can fall further to almost half their current levels — with local intra-circle calls for 25 paise and nationwide long distance calls for 50 paise — provided new operators are allowed to start services.

The ministry has apprised the Prime Ministers’ Office of this.

According to a top ministry official, there is enough spectrum for accommodating existing second generation operators as well as well as the new ones.

“Between 30-35 Mhz of 2G spectrum will be available in a few months. Only 37 Mhz has been allotted to existing six or seven operators, who service around 217 million users. With a similar quantum of spectrum set to be available soon, another 250 million users can be added to existing and new 2G networks in the next three to four years”, he added.
The official added that with the advent of third-generation (3G) mobile services, for which the government had already announced an auction process, another 100 million users would go mobile, taking the mobile subscriber base to around 600 million in a few years.

“Even school-going children will go mobile at such tariffs. Handsets, which are available for Rs 600-700, will sell for as less as Rs 50-100. The Indian market is huge and that is why so many new entrants want to come in”, he added.

Taking a dig at existing operators, the official said the current subscriber growth (every month around 7.5 million people go mobile in India), was something they wanted to keep only for themselves.

“They are making huge profits but are not investing enough to meet the demands of fresh subscriber growth. At the same time, they are not willing to accept new applicants and want full monopoly. Trai has recommended there should be no cap on the number of service providers, but they want otherwise”, the official said.

Insisting that the DoT was not wrong in allowing use of cross-technology (GSM) to CDMA operators, the official claimed that Reliance had applied for this in 2006 and not as was being said.

“The application was referred to Trai by the ministry then. It was only this August that the Trai’s recommendation permitting cross-over came to the DoT,” he added.

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Ellison on Oracle’s Future

Announcements of an accelerated Fusion launch and new virtualization software—and no signs of the tech slump—pleased analysts

Near the close of his keynote speech at Oracle’s biggest conference of the year, the ever-colorful CEO Larry Ellison reminisced about the software company’s “stressful” early days. Ellison said he’d work until 1 a.m., “come home, open up a can of pea soup, turn on CNN Headline News to see what was going on in the world, have my soup, and go to bed.”

About a quarter-century later, Ellison is worth $21.5 billion, and Oracle (ORCL) is one of [Read more]

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3G spectrum to be auctioned

The Department of Telecommunications (DoT) has decided to go in for open auction of spectrum for 3G services — mobile services that provide high-speed data internet to users.

Communications Minister A Raja also said three operators are initially expected to be given spectrum of up to 10 MHz each and both 2G operators (operators of current services) and new players (including foreign companies) can bid for 3G spectrum in the 2.1 GHz band.

Should the government want to accommodate more players it could reduce the spectrum available to each player

The 3G auction will take place through an e–auction conducted by a specialised agency. The lowest bid will become the base price for the subsequent round of bidding for the remaining players.

Accepting Telecom Regulatory Authority of India (Trai) recommendations in September last year, DoT has put in some stiff conditions.

Mergers will not be allowed during the initial five years among the operators, nor will reselling or trading spectrum. Operators also have to meet stiff roll-out obligations including rural obligations or face penalties.

Besides the initial one-time spectrum, successful operators will also have to pay an additional spectrum charge of 0.5 per cent of revenue, which will be increased to 1 per cent after three years.

Mobile service providers of CDMA technology can also avail of 1.25 MHz of spectrum still available in the 800 MHz band (in which only CDMA services can operate) to offer 3G services at an amount proportionate to the highest bid for spectrum in the 2.1 GHz band.

DoT also issued guidelines to boost broadband wireless services (or Wimax). Under this, each service provider will be allotted 10 MHz, again through open auction in the 2.5 GHz band.

The base price for the auction would be 25 per cent of the amount for 3G spectrum.

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Wireless Backhaul for WiMAX Networks

Over the past fortnight, WiDAR has recorded two announced backhaul contracts. Harris Stratex Networks has secured a contract with French service provider TDF, whilst Dragonwave has a deal with Orascom’s Pakistani operation, Mobilink. Both contracts are for the provision of equipment for wireless backhaul to WiMAX networks. These announcements add to similar deals logged by WiDAR over the past few months between Cambridge Broadband and MTN Rwandacell and between Ceragon Wireless and Russia’s Summa Telecom - both for the provision of wireless equipment for backhauling a WiMAX network.

Aside from these announced contracts, little wireless backhaul activity has been witnessed in the WiMAX market. This could be because backhaul components are bundled into larger WiMAX infrastructure deals and are not seen as a separate contract win for a vendor. More likely, however, is that many current WiMAX deployments are simply leveraging fixed backhaul instead.

When the market embraced WiMAX, wireless backhaul vendors became excited at the prospect of an entirely new network technology which would require their backhaul infrastructure. Wireless would liberate WiMAX networks from the tether of fixed backhaul, allowing these networks to be rolled out more easily and cost effectively, particularly in developing regions where access to copper or fibre is limited.

As we discussed in last month’s WiDAR newsletter, an examination of WiMAX deployment activity shows that networks are currently being deployed in areas where it is expected that fixed backhaul is readily available. Even in developing countries, where WiMAX is seen as having so much potential, deployment is currently in the main metropolitan centres. It is notable that most of the wireless backhaul contracts mentioned above are for operators in developing regions, although, even in developing countries, where WiMAX is seen as having so much potential, deployment has so far been mainly in metropolitan centres.

Nonetheless, as the ubiquity and range of WiMAX deployment increases, so may the demand for wireless backhaul.

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Waste not, want not…

Vardhman Jain, managing director, Perot Systems, sports a new phone or music player every nine months, but frequently finds it difficult to transfer data from his laptop. Jain thinks long and hard before buying anything, and claims that he has never bought a gadget that could be considered a waste of money.

Name one wacky gadget you’ve had fun using. Apple TV — it’s real fun to see how easily it displays my audio books, music, television shows and pictures right on my plasma screen.

What is the next gadget on your must-buy list? Apple’s iPhone is the next gadget on that list. I think it’s a perfect handheld device that packs the power of email, music players, internet and a touch screen, all in one. What’s more, it has ultra-cool looks.

If you could, what dream gadget would you build? I would build a gadget that could break the boundaries between phone, music player, BlackBerry and digital camera. It would also have good battery life, a large screen, and be wi-fi enabled so that it can seamlessly sync music from my central home computer every time I update the home PC. It should also possess the ability to run Skype so that I can use it as an internet phone when I travel abroad.

Which is that one gadget or application that you haven’t yet mastered? The right sound settings on the Yamaha amplifier that is connected to my Bose speakers. I have tried all settings but still feel as if they are far from being optimised.

If you were a gadget, what would you choose to be and why? If I were a gadget, I definitely would want to be an iPhone, as everybody would want me and I would be the talk of the town.

What was your most embarrassing moment while exhibiting your technical skills? None, I make sure that if exhibiting my skills, I am at the top of my game. If you could, whose computer would you hack? Definitely Warren Buffet’s to see what he is investing in next.

Can you unwind with the help of your gadgets? In my case the music on my iPod helps, or sometimes the TV shows or old pictures I can check out on my Apple TV.

What is the costliest contraption you’ve bought, to date? My Canon digital camera.

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Mergers will boost airline industry

NEW YORK (AP) — The head of British Airways said he expects to see further consolidation within the airline industry, and suggested the U.K. carrier could play a dominant role in that transformation. Chief Executive Willie Walsh believes mergers will benefit the industry, which has struggled in recent years because of increasing terror threats and rising fuel costs.

A growing number of industry executives and analysts have touted a reduction in the number of carriers as a way to improve the industry’s health. “There will be transformative consolidation opportunities, and British Airways will be in a leading role to take advantage of that consolidation,” Walsh said during a presentation for airline analysts in New York on Monday 5 November.

He did not elaborate on specific acquisition opportunities. BA, one of Europe’s largest carriers, earlier this year joined a consortium led by U.S. private equity firm TPG Capital LLP to make a bid for Spanish carrier Iberia SA. The U.K. airline holds a 10 percent stake in Iberia. Walsh said BA’s review of Iberia’s books is progressing more slowly than planned because of difficulties in the financial and credit markets

But that is still going forward,” he said, adding that BA is “very excited about potential synergies” from the deal. In the meantime, British Airways is planning to launch its first direct service between the U.S. and continental European destinations beginning next summer. He described the expansion plan — codenamed “Project Lauren” — as “a relatively low-risk opportunity.” Walsh said the airline expects to announce destinations for those new routes later this month. “We are looking at airports that are considered primary business destinations,” he said.In September, BA’s commercial director told The Associated Press that potential routes to New York could include Paris, Frankfurt and Amsterdam. The new routes are possible because of the “open skies” initiative between the U.S. and the European Union, which goes into effect March 30. That deal lets European airlines fly from anywhere in the European Union to any city in the U.S., and vice versa. While the agreement will allow BA to boost the number of lucrative trans-Atlantic routes it offers, it will also bring more competition to the carrier’s home turf at London’s Heathrow Airport, one of the world’s busiest airports. Continental Airlines Inc. and Delta Air Lines Inc. are planning to begin service from Heathrow next year. Northwest Airlines Corp. is also seeking a slot at the airport.

“We are interested in serving Heathrow and have talked with our alliance partners,” about

securing a spot, Northwest spokesman Dean Breest said. BA, which generates much of its profit by ferrying business and first-class passengers across the Atlantic, is currently one of just four airlines offering multiple daily nonstop flights between Heathrow and the U.S. It will be the sole occupant of a new terminal being built at Heathrow that is scheduled to open next year. On Friday, the company reported a 52 percent increase in its first-half profit, but trimmed its full-year sales forecast because of continuing weakness in the U.S. dollar.

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Get rid of old devices for cash, without eBay

 Chances are you’ve got old cell phones, digital cameras, video-game consoles and other devices lying around the house. So why not get some money for them instead of letting them gather dust. And you don’t even have to pay for shipping.

With SecondRotation.com you can sell your gadgets without having to list them on eBay.  1. Figure out which gadget you want to sell and locate it and any chargers, accessories, software and manuals that go with it.  2. Go to SecondRotation.com. Use the search box to locate your gadget or choose from one of the categories on the left side of the Web site.  3. Once your specific model is displayed on the screen, click “Sell it now.”

Answer the questions about the condition of your device and rate the overall condition on a scale of one to five stars and click “Calculate” and then “Accept And Continue.”  4. Fill out your shipping information and choose whether you want to be paid by check or through PayPal. Click on “Print Your Shipping Kit” and use your printer to print the shipping kit.  5. Follow the instructions on how to package your gadget and arrange for pickup or drop off with DHL. SecondRotation says that once it receives the gadget and confirms the condition, it’ll send a check out in five to 10 business days.  Selling a gadget to SecondRotation.com. might not bring in as much money as selling it on eBay, but it does save you a lot of hassle.
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