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IP Capsule E-newsletter, June 22, 2006

Thu, 06/22/2006 - 6:09am

IP Capsule Newsletter-011206

www.cedmagazine.com  |  CED Broadband Direct  |  Current Issue  |  Subscriptions
June 22, 2006

DSL to overtake cable? Looks like it
Want Broadband? Then the U.S. and Western Europe are for you. JupiterResearch is predicting 79 million US broadband households by 2011, while Western Europe checks in with 110 million.

Impressive numbers, for sure, but even more telling is the rise of DSL service, which Jupiter predicts will overtake cable in the U.S. by 2010. "In the U.S., strong momentum on the part of telephone companies means that DSL will overtake cable modems in market share by 2010," says Joe Laszio, research director at Jupiter.

And in Western Europe, DSL will retain its dominant position over cable modems. The research firm forecasts that by 2011, 88.9 million out of the 110 million total broadband households will be utilizing DSL. That is definitely dominance.

And what should cable be doing about it? "U.S. cable operators will have to combine price cuts and better marketing efforts to forestall this outcome," Laszio suggests.

And the US market will continue to lag behind Western Europe, Jupiter adds. The reason? Far lower broadband prices are driving up penetration rates, with the average European household generating 54 percent less broadband access revenue in 2011 compared with 2005.

That will prompt a sea change in Western Europe, says Jupiter Senior Analyst, Ian Fogg. "Broadband Internet providers must control their costs as they look to new revenue sources enabled by widespread broadband adoption."

Yet margins count, and, according to Parks Associates, DSL's ARPU (Average Revenue Per User) is just $34/month, per subscriber, versus cable's more advantageous $41/month per subscriber.

It won't be long, however, until DSL service becomes an even more integral part of the telcos' bundled strategy. When that happens, be assured the DSL ARPU will head north.



Telkonet starts beta testing IPTV in NY
Telkonet Inc. will begin beta testing customers for its IPTV service in New York City via its NuVisions branded service, the company announced.

The NuVisions service will be offered via the service provider's gigabit network that connects the properties it serves in a redundant gigabit ring within New York City-a virtual "fiber optic network in the air," according to Telkonet.

NuVisions also plans to add more channels and features, including VOD, movies, games and Internet content, the company noted.

Why the test? Worldwide IPTV service revenue is expected to grow to $44 billion by 2009, with the number of IPTV subscribers reaching 54 million (Infonetics Research). New York is expected to be a lucrative part of that market.

FISION gets Fox
Optical Entertainment Network (OEN) has signed an IPTV carriage agreement directly with Fox Cable Networks to provide all of their content to OEN subscribers.

The agreement allows OEN's FISION to offer a full menu of Fox Cable programming, including Fox Movie Channel, National Geographic Channel, SPEED, Fox regional sports networks and more.

FISION is OEN's IPTV service which offers triple play services over Fiber-To-The-Home (FTTH) technology. It is scheduled to launch in Houston, Texas, the company said.

What's the deal? Securing programming content agreements directly with content providers is paramount for IPTV providers if they intend on competing with incumbent video service providers.

New software by mPhase to help scale IPTV nets
mPhase Technologies has introduced new software platform designed to help telcos scale their IPTV networks.

The new version (System Release 5.0) will allow engineers to manage multiple set-top boxes, multiple accounts per subscriber and multiple STB managers that provide scalable failure recovery and load balancing.

Concurrent, Adtec integrating
Concurrent Computer Corp. and Adtec are working on an integrated IPTV solution that teams the Concurrent MiniHawk server with Adtec's IPTV headend systems.

And the research says....
Cable's doing just fine, says Kagan

Total revenue for the cable industry is up nearly 13 percent to $29.9 billion in 2005, with revenues expected to reach $33.8 billion in 2006, says Kagan Research.

What's driving the revenue uptick? License fees for networks owned by media conglomerates are rising 2-5 percent a year, while ad revenue is predicted to remain in double-digit growth mode for the foreseeable future.

Other findings weren't as rosy, however. Media conglomerates will have a difficult time launching new spinoffs, and independently owned networks will find it almost impossible to get carriage without the backing of a major multichannel operator, the survey pointed out.



Shaw defends 'QoS enhancement' package
Shaw Communications and its Canada-based cable MSO subsidiary have filed a series of court documents that aim to "set to record straight" regarding a "Quality of Service Enhancement" package being offered to Vonage customers and customers of other third-party VoIP services that leverage the public Internet.

The documents, filed in the Alberta Court of Queen's Bench in Calgary, note that Shaw's IP-based phone service is offered over the operator's QoS-enabled, managed network, while Vonage's service travels the public Internet and is open to packet delays and other "inherent limitations."

Shaw reiterated that its high-speed data customers who also use the Vonage service can take the QoS Enhancement service on a completely optional basis. The enhancement runs $10 per month.

Vonage has previously complained of the tactic, referring to it as a "thinly-veiled VoIP tax," and has since requested that the Canadian Radio-Television & Telecommunications Commission step in to investigate the matter.

Shaw officials have told CED previously that the enhancement includes an upgrade to a DOCSIS 2.0 modem and the cleaning up of RF interference in the home. Shaw also "marks" the modem's MAC address.

Vonage is also facing attacks in the U.S. On Monday, Vonage acknowledged it has been served with a patent infringement lawsuit filed by Verizon Services Corp. and Verizon Laboratories Inc. The suit claims Vonage is infringing on some intellectual property tied to Verizon's VoIP technology. Verizon presently offers a VoIP service called VoiceWing.

Vonage said it believes its services have been developed with its own proprietary technology or technologies licensed from third parties, and therefore "intends to vigorously defend the lawsuit.

Boston gets Access
AccessLine Communications will launch the retail version of its SmartVoice hosted VoIP service in the Boston area, the company announced. The retail SmartVoice is designed and built for the SMB (Small and Medium sized Business) market.

In a related move, AccessLine also announced an expanded relationship with OneCall, a SmartVoice dealer that serves the Boston market.

Apptix forms alliance with BroadSoft
Apptix, a provider of on demand messaging and collaboration solutions for the SMB market, has forged an alliance with BroadSoft and New Global Telecom (NGT) to provide new VoIP applications, including hosted IP-PBX, voice conferencing and voice mail to email integration, the companies announced.

BroadSoft will assist in the integration of its VoIP technology to Apptix's TECOS On-Demand Service Management Platform, while Apptix will market and sell voice applications using BroadSoft's VoIP technology.

In addition, the agreement calls for NGT to provide service delivery for Apptix's voice solutions, while all three of the companies will co-market the unified messaging and voice solution.

PeerMe software gets smart
PeerMe Inc. will make its software available for the Motorola Q smart phone, which, according to PeerMe, marks the first VoIP software to be teamed with the new Q phone.

PeerMe uses VoIP technology to enable mobile phone users to communicate with each other from anywhere in the world for free. Users pay their mobile carrier a flat fee for a high-speed mobile data plan and can use PeerMe to make unlimited calls from their cell phones, the company said.

So what's the big deal? PeerMe is a little VoIP provider that could. It's competing against the much bigger Skype for similar service.

Charter recommends Jones
Charter Communications is recommending that its installation and service technicians, along with its installation contractors, add supplemental training to their training schedules, and the company they're recommending is Jones/NCTI for its VoIP training, the companies said.

The Web-based Jones/NCTI IP Voice program is an online course that includes three hours of video featuring a step-by-step experience through all aspects of IP voice service.

Why the recommendation? With the rapid deployment of VoIP services by a host of service providers, the training of skilled VoIP technicians, installers and even sales teams is top of mind.

Cedar Point has shipped more than 1 million VoIP lines served by its SAFARI C3 platform.

Cedar Point says thanks a million
Cedar Point says it has shipped its one-millionth VoIP line, courtesy of a deployment by Charter Communications' central division. All of those lines are supported by Cedar Point's flagship, the SAFARI C3.

Safari C3 is an integrated carrier class VoIP switch that provides a seamless evolution to SIP-based features and an IP MultiMedia Subsystem (IMS) architecture.

And the research says...
VoIP the buzz...again

The next generation of technology to change the telecommunications landscape is, you guessed it, VoIP. At least according to market intelligence and advisory firm IDC.

The analysts at IDC predict the US consumer VoIP market will grow from 10.3 million in 2006, to 44 million in 2010, and that VoIP will be used in 62 percent of broadband households in 2010.

 


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Narad bows 100 Mbps platform for cable
Narad Networks has introduced a line of Ethernet switches designed to offer dedicated, 100 Mbps connections that, the company claims, can help operators compete in contested markets served by high capacity data services fed by fiber-to-the-premises (FTTP) technology.

Narad said the system can be used to support commercial and residential services and be deployed in existing fiber-to-the-curb architectures. The company added that the electronics of its system is "loosely" equivalent to passive optical network (PON) architectures, but with less fiber construction costs.

Narad estimates that fiber construction costs with its platform will average roughly $50 per home passed, though costs will vary by region and geography.

The platform itself places switches at the coax cable tap. Ethernet from fiber and existing video, voice and data services from the coax are then fed into the Narad modular tap switch. Narad modems within the switch convert Ethernet into a modulated carrier at frequencies above existing cable services. Previously, Narad has said its platform works above 860 MHz, but below 1.1 GHz.

"With this new platform, cable operators can future-proof their network to support more advanced services by delivering higher capacity at lower costs and in less time than anything offered by Verizon or AT&T," said Narad CEO Michael Collette, in a statement.

Cablevision Systems Corp. is already using Narad's out-of-band overlay to delivery data services to business customers starting at 50 Mbps. With that deployment, Cablevision initially Narad-enabled two nodes serving customers in Oyster Bay, N.Y.

On the residential end, cable operators already are planning to use DOCSIS 3.0 and channel bonding techniques to deliver Internet services in the 100 Mbps range that will be shared -- rather than dedicated -- by customers on the node. To meet more near-term competitive pressures, operators are also considering an interim step to DOCSIS 3.0 called DOCSIS 2.0b, which will bond a minimum of two 6 MHz channels and enlist the shared bandwidth model.

Quad play a no play says Pyramid
The quadruple play of video, voice, data and wireless services won't work, at least for everyone, says Pyramid Research.

"Not everyone wants the triple play, let alone quadruple play, which assumes that fixed voice remains a key, attractive option; in the Skype and mobile age, that is hardly the case," says Guy Zibi, lead author of Pyramid's report: "Transforming Triple Play: Key Lessons and Best Practices for Winning RGU Strategies."

He points to most telcos' selling 1 to 1.5 revenue generating units (RGUs) per customer and cable companies selling just slightly better. The double play, the report says, has enjoyed higher adoption than triple play because operators "can offer different combinations of the three services with double play bundles," the report notes.



Company: VoIP Logic LLC
Headquarters: Williamstown, Mass.
URL: www.voiplogic.com
CEO: Micah Singer

Claim to Fame: Provides hosted and managed VoIP applications for telecommunications service providers to build and monitor flexible and scalable VoIP networks.

Recent news of note: Integrated Sylantro Systems' server into its core class 5 VoIP network platform. VoIP Logic's network platform now offers service providers several new features, including a Web-based interface and services portal.


SCTE Cable-Tec Expo
June 20-23, 2006
Denver, Colo.
More information: Click Here

2nd Annual C-COR Global IP Summit
June 28-29, 2006
Athens, Greece
More information: Click Here

CTAM Summit
July 17-19, 2006
Boston, Mass.
More information: Click Here

Cross Platform Summit 2006
Aug. 8-9, 2006
West Hollywood, Calif.
More information: Click Here

IPComm 2006
Sept. 25-27, 2006
Nashville, Tenn.
More information: Click Here

2006 FTTH Conference & Expo
Oct. 2-5, 2006
Las Vegas, Nev.
The Venetial Resort
More information: Click Here

The Cable Center Key Issue Series
"Confronting Cable's Technological Frontier"
Oct. 10, 2006
The Cable Center
Denver, Colo.
More information: Click Here

9th Annual Cable Television Hall of Fame Celebration
Oct. 11, 2006
Denver, Colo.
The Cable Center
More information: Click Here

CTHRA Fall Symposium
Oct. 18, 2006
Philadelphia, Pa.
Park Hyatt Hotel
More information: Click Here

TelcoTV 2006
Nov. 6-8, 2006
Dallas, Texas
More information: Click Here


Archive Available


Copyright © 2006 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

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