THE CABLE PIPELINE

FCC Open Meeting - Broadband Plan

A Pew Home Broadband 2010 Summary reports in a sub-headline, a dramatic absence of continued growth in broadband adoption across the United States; while at the same time reporting increases in demographic adoption in a particular ethnic group. That sub-headline seems contradictory by indicating an overly dramatic slowing of adoption.

“After several years of double digit growth, broadband adoption slowed dramatically in 2010. African-Americans experienced broadband adoption growth in 2010 well above the national average.”

Home Broadband 2010

In fact, indications are that broadband adoption continues to grow as referenced in the % change in those indicators. While it is not an overwhelming mandate that substantial adoption is continuing at a rapid pace; it is a positive referendum.

This change reflects the opinion of those surveyed and depends entirely on their location, circumstance, age or other factors which do not necessarily represent a broader geographical perspective. Results depend on those interviewed, their circumstances and knowledge of broadband in compiling the research. Pew Research methodology encompassed a sample survey of 2,252 adults, age 18 and older representing all adults in the United States who have access to either a landline or cellular telephone.

In further research Pew shares responses of those surveyed about government’s role in making broadband a priority:

“By a 53%-41% margin, Americans say they do not believe that the spread of affordable broadband should be a major government priority. Contrary to what some might suspect, non-internet users are less likely than current users to say the government should place a high priority on the spread of high-speed connections.”

Methodology

To say a representative survey of 2,252 respondents is reflective of all Americans becomes a stretch of anyone’s imagination. It can hardly be characterized as being the end-all of statistics for broadband adoption due to the nature of broadband adoption or availability, which includes age, (since seniors are the fastest growing segment of our population and who are not as likely to be adoptive to broadband as much younger constituents.), where those respondents reside, education levels and exposure to broadband knowledge.

In reflecting the purpose of broadband adoption, results would be more substantial if those surveyed were asked thought provoking questions about the benefits of broadband, rather than what do you think of broadband adoption and availability, especially if unaware of the benefits. Those who follow broadband are well aware of the benefits afforded both younger and older generations who adopt the possibilities of its life changing abilities. Proliferation of broadband takes time and effort on the part of all related constituents from consumers, government, educators and businesses, alike.

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We are all accustomed to purchasing and/or using copyrighted material in one fashion or another. From music, movies-(BluRay), e-books-(Kindle), computers-(software), mobile phones-(iPhone) and games; the umbrella of companies wanting to restrict access to its products continues to grow and become increasingly restrictive.

Digital Rights Management

“Digital rights management (DRM) technologies are aimed at increasing the kinds and/or scope of control that rights-holders can assert over their intellectual property assets. In the wake of the Digital Millennium Copyright Act‘s (DMCA) ban on the circumvention of DRM technologies used to control copyrightable works, DRM restrictions are now backed up with the force of law. In essence, copyright owners now have the ability to write their own intellectual property regime in computer code, secure in the knowledge that the DMCA will back the regime with the force of law.”

Investment Point of View

Digital Rights Management is a restrictive system enabled to protect the copyright and unlawful distribution on digital hardware or software produced by companies via an investment in technology through a business model. The restrictions placed on end users in copying and/or sharing protected material is essential in protecting the ROI (Return on Investment) of those entities producing digital content now and in the future. Without Digital Rights Management the argument constitutes that innovation and invention will suffer through piracy and stifle any future investment in producing the creative technologies we enjoy today.

Digital Millennium Copyright Act

United States copyright legislation, in conjunction with the World Intellectual Property Organization, criminalizes the production and dissemination of copyrighted technology, devices or services, thereby circumventing Digital Rights Management. The bill also heightens the penalties for copyright infringement on the Internet. The Act was passed on October 12, 1998 by a unanimous vote by the US Senate and signed into law by President Bill Clinton on October 28, 1998.

The law specifically addresses the encryption process used by manufacturers of copyrighted products or material to protect their rights. It is now unlawful to decrypt, disrupt, copy and share such products and/or material under criminal statutes provided by Digital Millennium Copyright Act.

Free Speech Point of View

This view takes the opposite approach to copyrighted material in that it contending that basic rights of users are violated since copyright holders are able to use Digital Rights Management to enforce restrictions. It therefore infringes on the rights of users to implement fair use exceptions. There continues to be a belief that content owners will take precedent over the rights of users.

Fair Use

“Section 107 contains a list of the various purposes for which the reproduction of a particular work may be considered fair, such as criticism, comment, news reporting, teaching, scholarship, and research. Section 107 also sets out four factors to be considered in determining whether or not a particular use is fair:

• 1. The purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes
  2. The nature of the copyrighted work
  3. The amount and substantiality of the portion used in relation to the copyrighted work as a whole
  4. The effect of the use upon the potential market for, or value of, the copyrighted work “

Perspective

Whether it is the right of consumers to Free Speech or the right of producers to protect their products, the bottom line remains how can Digital Rights Management draw the line between the use and abuse of copyright infringement? It seems only logical that protecting copyrighted products and material is of utmost importance in the continued innovation and dissemination of new products. The music industry learned the hard way that alienating consumers can produce a backlash of which recovery is very difficult.

Microsoft learned early on that copyright protection was critical to the growth and innovation of its products which turned out to be a great thing for Microsoft shareholders. We cannot believe for a minute that copyright infringement does not hurt us all in some way from the economical standpoint of higher prices, loss of innovation and creation of sustainable jobs.

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Android Phone T-MobileG1

With mobile demand emerging from the likes of iPhone and Android’s emergence into the market on a grand scale; mobile operators are living vicariously as a web substitute for a consistently mobile society.This has on one hand, created unbelievable sales and use of mobile devices for e-mail, video content, and applications, all 3G enabled, to creating somewhat of a nightmare in predictions of infrastructure meltdowns. Now 4G is upon us with promises of more flexibility in mobile use.

Maybe a new category is being created, like (Mobile Web). It is true that innovation and demand has outstripped the ability of mobile operators to keep pace with the inevitable technology that Apple has created with the iPhone, IPad with other device copiers, along with the app stores springing up in an open source web presence.

How do mobile operators cope with demand?

Demand can be a “double edged sword”. It creates new and improved products; it can cause prices to rise, and it develops more market entries by competitors, thereby possibly reducing prices. However, mobile prices have continued to decline even with high demand as competition is sufficient to deter those increases. At this point mobile operators continue to sign up new users creating increasing demand on their infrastructures with price points that cannot support robust cash flows.

Their need to create new business models not based on just voice and e-mail continues to become critical for future survival and profitability. At this juncture mobile is just continuing to just ride the wave of adding new connections while coping with the demand. See (Mobile VOIP Demand on the Rise, Report Says)

Infrastructure

It seems redundant to say infrastructure needs to be upgraded especially in the backhaul arena where things can become tricky in managing video content. Legacy backhaul systems will become increasingly strained to keep up with the load of more and more complex applications. To this end, operators must ensure future viability of the network by upgrading and replacing infrastructure in the backhaul, from the server to the cell tower. This must be accomplished sooner rather than later and before it is a major problem. See (Report: mobile infrastructure market will rebound by year-end)

Spectrum

The FCC has moved forward to reallocate needed spectrum from current users to the mobile industry, which no one doubts should be done. But it is tricky on how to accomplish this scenario. Convince Broadcasters and government entities to relinquish spectrum voluntarily and put up for auction to the highest bidder. This could be challenged in court, but could be treated as possibly (eminent domain). What is the fair value of the spectrum, 500 to 700Mhz, 700Mhz, and 2100Mhz, obviously the lower the spectrum the more valuable it will be to operators? At any rate it should be done as quickly and efficiently as possible. See (FCC eyes more spectrum for mobile broadband)

Mobile Off-Load

Mobile operators can continue to manipulate the network by using off-loading to manage traffic. As consumers move from one place to another using their devices, off-loading to WiFi and Femtocells is becoming a common practice. Especially with 3G to 4G technology improving the seamless switching from operator cell towers to WiFi (Hot-Spots) as consumers go inside, to Femtocells in congested and marginal signal spots areas.

Profitable Networks

Another critical issue for operators is one of creating profitable networks by looking for new business models. Research indicates that current profit models will continue to decline under competitive pricing structures. The mobile community has the opportunity to realize better margins in developing new and innovative markets for video, and apps. M2M and business efficiency applications are a wide-open and potentially lucrative area for operators to explore. From business to home use operators can capitalize on new and emerging technologies of energy consumption monitoring, machine to machine applications, business tracking, emergency response, and government uses. This goes hand-in-hand with network infrastructure upgrades and network management practices. See (Profit Dips at AT&T, but Wireless Business Surges)

Net Neutrality

Last but certainly not least, is the question of proposed Net Neutrality regulation which proposed equal access to all internet users. This is a flawed policy with an indictment of the ability for Internet operators to manage their networks fairly and efficiently for all users, and have the flexibility to make a profit as technology continues to emerge. Tiered pricing is one of those issues which must be left to the private sector as a price and demand structure. Competition will always trump the pricing issue and the FCC’s focus should be directed to that aspect of the equation.

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New York Times

House Democrats Oppose Net Neutrality Deal PC World Four Democratic members of the US House of Representatives have voiced opposition to a network neutrality proposal offered by Google and Verizon Communications last week, with the lawmakers saying the two companies shouldn’t set the rules for how US … House Democrats Slam Google-Verizon Net Neutrality PlanPC Magazine Government, Industry Battle Lines Being Drawn On Net Neutrality IssueChannelWeb US Should Set Web Rules, Ignore Google-Verizon, Lawmakers SayBusinessWeek Tom’s Guide -Nextgov -InternetNews.com all 139 news articles »

New York Times House Democrats Oppose Net Neutrality Deal PC World Four Democratic members of the US House of Representatives have voiced opposition to a network neutrality proposal offered by Google and Verizon Communications last week, with the lawmakers saying the two companies shouldn't set the rules for... 

Some of the largest, and oldest telecom companies in the US are feeling the initial impact of an enormous wave of technology-driven customer migration to internet based, or Voice over Internet Protocol (VoIP) telephone service. Verizon, AT&T (incl. BellSouth), and Quest reported a combined loss of 1.7 million landline customers in April/May/June of 2006 alone, mostly due to internet phone competition.

According to Todd Rosenbluth, a telecommunications analyst at Standard & Poor’s, “The threat of competition from cable companies and Internet phone companies was there a year ago, but the reality of it is something we’re seeing in 2006.”

The reasons aren’t complicated; lots more features and functions for about half the price the phone companies charge for unlimited calling plans. Last year, the Harvard Business Review had this to say: “Internet telephone technology, rapidly displacing the traditional kind, isn’t just inexpensive. It’s revolutionizing the way companies coordinate people, connect with customers, and compete with one another.” HBR predicts over 50 million VoIP users by 2008.

The most intriguing VoIP feature is its portability. Your phone # can travel with you; the enabling adapter device, which connects to any regular telephone, needs only a high-speed internet connection and a power source. So, whether in a hotel room, a vacation home, or anywhere you can plug into a broadband network, your phone number can place and receive calls. Whenever I travel now, my VoIP adapter is with me; simply connecting the hotel room’s high-speed internet and telephone to my voip adapter enables me to place calls while avoiding the high per-call tolls charged by hotels.

Yet another threat to the Bell’s core DSL internet service is also emerging. WiMax, a system that promises Internet access at speeds greater than cable broadband connections, operates wirelessly and over long distances. This month, Sprint Nextel, the 3rd largest US cellular operator, said it would spend up to $3 billion to build a new network based on WiMax….to reach over 100 million consumers over the next few years.

Today, consumers mostly rely on wired high-speed internet connections from cable and phone companies. WiMax promises an end to this duopoly with the result for consumers: lower cost and more choices.

For a copy of the Harvard Business Review Article referenced above, please send a request to: 1voipgeorgia@comcast.net or visit www.voipaware.com [http://www.voipaware.com]
About the Author: Martin O’Keeffe is the founder & president of iMEDIA, LLC, a telecommuniations consulting firm based in Atlanta, Ga.

About the Author: Martin O’Keeffe is the founder & president of iMEDIA, LLC, a telecommuniations consulting firm based in Atlanta, Ga.

Author: Martin Okeeffe
Article Source: EzineArticles.com
Pressure cooker

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Broadband; we want it, and we all depend on it; but where you live can impact access and adoption of the best that service providers have to offer.  The FCC is looking to change both geographic and demographic limitations now plaguing the U.S. in the global race for broadband economic supremacy. Can combinations of a fixed and wireless-mobile strategy improve broadband economic viability by increasing access, adoption, and affordability across the broadband spectrum?

Geographic Limitations

The reality is significant, that where you live depends on the access and quality of broadband service available for most U.S consumers. Its impact is felt most positively in highly dense population areas like the Northeast and large urban centers where private companies have concentrated their efforts to capture lucrative and highly upward socio-economic demographics. This gives the most ROI (Return on Investment) for the large companies to provide the (best of the best) in broadband.

Demographic Limitations

On the other side of this equation are the less dense and less upwardly economic population centers. These are the rural areas where providing the best that broadband has to offer, is and continues to be, economically unviable to service providers. It is a matter of demand and supply, a consequence of our free economic system which relies on private capital to create goods and services which benefit us all. Without the infusion of capital directed to low income and less dense areas there will continue to be a wide gap of access and adoption of broadband in the U.S.

Access and Adoption

The National Broadband Plan-The FCC has formulated a plan to incorporate an initiative to close the gap of the so called underserved with respect to broadband. It has addressed these issues by targeting areas of needed improvement in the telecommunications arena for the U.S.

• Universal Service Fund-A plan to redirect funds to broadband access, originally adopted to subsidize Telco providers to serve under populated areas with telephone service where the economics in providing this service was unfeasible.
• Spectrum Reallocation-A plan to reallocate spectrum from broadcasters and government entities which were not being utilized to wireless-mobile broadband initiatives.
• Broadband Stimulus Plan-Provide funding, approximately $7Billion, to encourage service providers to build broadband infrastructure into underserved areas. Funding was allocated through an extensive grant process to prove viability of the applicant.
• Net Neutrality- A controversial plan to provide equal and unencumbered access to broadband for all involved constituents

A Fixed and Wireless-Mobile Solution

In reality economic realities of wide-spread adoption of broadband continues to be sporadic due to the large investments service providers must make to realize a reasonable return on investment. Since competition brings prices down for consumers, operators are only willing to compete where the most attractive demographics and dense population centers exist.

With the advent of continued proliferation from wireless coverage throughout the U.S., and the projected exponential growth in mobile access, adoption and affordability through LTE to 4G technology; the realities of serving less populated areas becomes increasingly more likely. The strides being made in technology within the mobile arena can significantly impact the broadband community. Cisco White Paper: (See LTE: Simplifying the Migration to 4G Networks)

• Mobile is highly competitive and requires less infrastructure thereby reducing capital outlays by service providers. This is the most promising solution along with fixed broadband to penetrate underserved areas in the near future.
• Mobile operators will continue upgrading back-haul infrastructure to enhance coverage and reliability within the network
• 4G technology will increase network efficiencies, economics, coverage, and enhancements to give users a top quality experience at a reasonable price
• A wireless revolution for both consumer and business dynamics with applications to improve energy consumption, travel efficiencies, educational opportunities, health diagnosis and monitoring, environmental solutions, and business processes will be a true reality in the near future.

The outlook of a fixed and wireless-mobile strategy to bring about widespread access and adoption of broadband to the masses, while significantly achieving a global and competitive reality for the U.S., cannot be over-stated.

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Bandwidth is the basic foundation for Internet traffic as a connector to everything important in our lives. Whether it is basic bandwidth for connecting to family and friends, or a super fast highway for global reach and competitiveness in the business world, bandwidth constitutes the speed at which we connect as a global presence within the expanding sphere of Internet communication.

Bandwidth: “defined as the speed at which data is transferred over an electronic communication device like a server. The units of measurement are based on the maximum transfer rate and measured in either Kbps or Mbps.”

• Kbps: (kilobits per second) – “A measure of 1000 bits of information transferred per second.”
• Mbps: (Megabits per second) – “A measure of approximately one million bits of information transferred per second.”

To understand why bandwidth is important to all Americans, including personal and business uses, we must understand the different types Internet traffic.  We also must understand U.S. bandwidth rankings from a global perspective and how successful infrastructure upgrades can ensure fast, secure and easily accessible information sharing in a globally competitive economy.

Types of Bandwidth

• Dial-up – the lowest speed of bandwidth providing 56 kbps connection normally used for e-mail only as transferring large files are impossible.
• DSL – much faster than dial-up and has plenty of bandwidth to spare. Is good for large file downloads like video, typically provided by a modem and phone line installation.
• Cable – provided by Cable TV companies with a Hybrid-Fiber Coax connection. It provides speeds faster than DSL which typically range from 4Mbps to 8Mbps. Increases speeds of large download and uploads.
• Fiber – The future of the Internet rests with the fiber connection. Fiber must be run to your home or business and provides speeds of 30Mbps download and 5Mbps upload.

US Global Ranking

It can be seen in the accompanying graph, (Courtesy Akamai 2010), that global connection speeds are much higher

Courtesy Akamai

in countries like South Korea, Hong Kong, Japan and many other countries. In fact, the US is ranked 11^th in the Top 10 Countries – Average Connection Speed –Q4 09.

From an economic standpoint, the US must move to change its bandwidth competitiveness on a global scale. Many conclude that a free and competitive business model of the US has kept us behind the curve in Internet speed, access and adoption. Enter the National Broadband Plan, developed by the FCC, to change our status in all aspects of the Internet. A comprehensive road-map that directs the adoption of Internet standards to take us through the next 10 years to improve speeds, accessibility, and universal adoption for both business and personal use.

Uses

The uses of fast bandwidth can be chronicled in forward thinking experts who realize to inevitable potential  to change the business and personal use of bandwidth can change our lives, from energy conservation through monitoring and applications , remote medical monitoring and diagnosis, B2B applications to strengthen collaboration, and remote educational advances through e-learning. These applications all have the potential to advance the U.S. in job creation and a global competitive advantage.

Infrastructure Upgrades

Unfortunately, due to a lack of wide-spread competition within network provider footprints our Bandwidth does not compare to a more government oversight approach adopted in other developed nations. While the FCC is looking to change the dynamics in competition, while mandating future bandwidth speeds in measureable increments of time; it will be incumbent on Internet Service Providers to upgrade their networks sooner rather than later.

• The Cable Industry has approached Internet upgrades with the advent of Docsis3 (Data Over Cable Service Interface Specification), permitting the addition of high-speed data transfer over a Cable TV system.
• Verizon is accomplishing the task by upgrading to FIOS (Fiber-to-the-Home) approach, using the future or (end-game) solution, which most operators will move toward eventually.
• AT&T has adopted the U-Verse solution which uses IP (Internet Protocol) to deliver its high-speed Internet service.

The bottom line remains that without a comprehensive plan by Internet Service Providers to continue an aggressive infrastructure improvement strategy, the US will continue to lag behind globally in bandwidth speeds without proper upgrade incentives, which could put us at a distinct disadvantage in a fast growing global economy.

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Kevin Shatzkamer is the Chief Architect for Cisco Mobility and speaks to the mobile research Cisco has developed in helping Mobile Service Providers reach their ROI goals and objectives in projecting an increasingly demand driven market.

World Cup and Mobility

Q. How will current World Cup viewership demand impact the mobile community from a network capacity standpoint?

VIEWING SOURCE – WORLD CUP GAMES

A. There has been speculation for years that increased demand for mobile video would tax and possibly crash current networks and infrastructures of mobile operators. A predictor may be The World Cup games being held in South Africa.  “We know that AT&T, VERIZON, SPRINT, MobiTV and QUALCOMM FloTV have teamed up to work with ESPN to offer mobile video coverage of the games.” From real-time research conducted by ESPN on current World Cup video demand has produced the following statistics:

MOBILE VIDEO TRENDING

“What is interesting in these statistics is that not only are people watching on mobile video, but they are spending an inordinately long period of time watching video on their mobile device, which is significant. Speaking to network capability in handling this viewership, think of over one-hundred thousand cell towers in the U.S. alone, not to mention globally, to handle this demand and you can see the network is not currently being impacted significantly.”

Mobile Traffic in the Future

Q. Where does mobile traffic go from here and what are the demands going to be for video in both near and long term?

A. Cisco predicts that sixty-six percent of mobile traffic in the future will be video and whether the FCC’s reclamation of needed spectrum is enough is not yet known. Kevin goes on to explain that whenever you have a delivery method that leverages a finite resource, such as spectrum; there will always be increased contention depending on what people are doing over that network at any particular time.

It’s important to remember that video over wireless can be taxing on the entire network, not just the radio interface.  One example is the backhaul network, which is always provisioned with some level of oversubscription.  There are technologies that can be used today like video optimization and multicasting technologies which can help a service provider better distribute and deliver mobile video. Other solutions include moving from streaming video to more adaptive protocols like fragmented MP4.

Video and the Network

Q. Why should we look at mobile video as just another application within the network and not a bandwidth hog that could potentially crash the network during peak usage?

A. As an analogy to building strong video infrastructure, Kevin points out that Cable Operators have invested tremendous amounts of capital in their video delivery platforms. It is important to understand that cable has the revenue models which support this kind of investment. Wireless on the other hand has not developed the kind of revenue streams for video since the demand has not been sufficient to support that investment, albeit on a smaller scale.

However, research indicates that as mobile video continues to grow, these kinds of investments will be needed to upgrade current networks to both capitalize on revenue streams and handle the burgeoning demand for video over increasingly diverse devices. Long-term, video might not be looked  at strictly as an over-the-top service for mobile, but instead an opportunity for mobile service providers to insert themselves into the value chain; if this successfully occurs, the infrastructure investments which need to take place will happen.

Cisco’s experience with operators continues to indicate a focus on optimizing the entire network, including the backhaul, which needs to be a primary consideration in subscription models. Cisco is helping operators control the impact of video by implementing intelligent network capabilities in the core, mobile services and gateways, and backhaul networks.  These solutions add immediate value by conserving the RF itself, but also provide the foundation for new monetization capabilities.  He adds that adding more spectrum is helpful to the problem, but should not be the only focus of mobile operators.

Kevin points to a consistent theme across all models whether it’s Docsis3 or LTE in that the Internet Protocol (IP) is becoming less about a transport mechanism and more about a service delivery platform. He compares Docsis3.0 carrying cable signals to a modem which becomes your access point, where mobile will use the cell tower as the same type user access point. In essence, from the access point back through the network, IP will be the primary technology for service delivery.

Net Neutrality and Regulation

Q. What is the potential impact of Net Neutrality possible legislation which could affect service provider ability to manage their networks?

A. The crux of Cisco’s policy release takes a practical view regarding any initiatives that would control service provider network management strength. In essence, “Cisco supports competition within the marketplace and believes that any regulation based on any perceived or potential future abuses are not in the best interest of logical network management practices.”

At best the outlook for where technology will be in the future is uncertain, but as progression in technology evolves as a result of private market forces, any attempt to regulate those forces would dampen private investment as a natural evolution. It is inherent that networks be managed in a way to promote bandwidth optimization which fills the needs of both casual and heavy users. Fair usage will be critical to enabling any network of the future and requires an intelligent IP infrastructure.  This also sets the stage to use tiered pricing to offer expanded services critical to a B2B and B2C economical model.

Tiered Pricing Models

Q. Why is tiered pricing important for Service Providers in the Future?

A. Quoting Bernstein Research to predict the evolution of mobile data and how fast it is growing in a shift from a voice dominated model to a data dominate model, Kevin conveys that 50% -70% of future revenue will begin to come from a data model with a de-coupling of mobile revenue and traffic with revenues now accounting for $.43 per Megabyte. Bernstein predicts that by 2014 those current revenues will drop to $.02 per Megabyte and points to current revenue models as becoming deflationary.

While networks are moving from circuit to packet models as they continue to upgrade their infrastructure, the amount of capital invested as compared to resulting ROI is expected to decrease 30% by 2014. Increasingly mobile service providers will be looking for ways to monetize their networks. While the tiering trend has been with the cable industry for quite some time, it has not yet evolved within mobile markets.

Kevin predicts this will change as the industry evolves to the tiered approach beginning with flat-rate for basic users and progressing to higher level packages as individual demand increases. Using the 80-20 rule, Kevin compares how only 20% of all users can demand an exorbitant amount of bandwidth and tiering is an inevitable market force in the future. In reality, this will not affect the majority of users where pricing will be very competitive, but will take the heavy users to an appropriate bundling strategy that can handle specific demands at a relative price model.

Creating New Revenue Models becomes Critical

It can be surmised that current pricing models within the mobile industry is driving traffic to higher levels especially with the amount of rich applications being afforded customers due to the iPhone and Android appearance on the scene with open source development driving those applications.

However, mobile operators are only covering their costs with current revenue models and will need the new service offerings and pricing models to create additional revenues and ROI in the near future. Kevin, shares that tiered pricing is only one model of the total business spectrum service providers should be looking at to grow ROI. Cisco is committed to helping providers find other businesses and models to extrapolate the potential of future networks.

That being from a standpoint of B2B services in environmental, energy savings and monitoring services with which both businesses and consumers could reap much higher benefits from these kinds of services. Mobile data penetrations are nearing 50% and voice penetrations are already at 95% which brings further credence to understanding the need for service providers to differentiate mobile service offerings, including mobile data, to retain existing customers, grow their subscriber base, and increase their revenues.

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Cisco’s mantra continues to be about networking and collaboration, and that is what it continues to offer consumers and busy executives with an array of products.

Cisco Cius

Starting with the newly introduced Cisco Cius at the Cisco live conference in Las Vegas, it promises to take business collaboration to the next level with its HD quality video and wireless desk-top integration. From collaborating at the office or from a remote location the Cius makes it possible to keep you in touch with what is important in your business.

Features include Cisco network centric:

• Unified Communications
• Quad Collaboration Platform

Tools include:

• Webex Collaboration Cloud
• Cisco Telepresence
  • Real-time collaboration
• Cisco Quad Collaboration
  • integrating business apps with social networking tools, with VoIP, instant messaging, video, and calendars
• Forward and Rear facing cameras
  • Forward for HD Video 720p
  • Rear for 640×480 video and still image captures
• Cloud Apps
• Docking

It does not matter where you are when collaboration takes place because the Cius brings you front and center with real time business integration.

Cisco Valet

With consumers in mind, the Cisco Valet is a simple but yet ingenious wireless router for the home priced at $99.00, and makes connecting the whole home Wi-Fi experience a fast and easy task, which historically could be somewhat of nightmare. The Valet soothes consumers into “easily connecting your family’s computer, games and devices to the internet”.

Features:

• Get Connected
  • Create a wireless hotspot in your home and quickly connect your laptops, desktops, game consoles, and mobile devices to the Internet. Treat your family to an Internet experience that simplifies your life.
• You’re the Boss
  • Parental controls allow you to limit your kids’ time online, block specific sites and/or certain times of the day. Customize the settings on each computer for a safer Internet experience.
• Set Up in Minutes
  • Simply insert Valet’s included Easy Setup Key to launch Cisco Connect software, breeze through the simple screens, and you’re wireless.
• Instant Guess Access
  • Give friends and visitors password access to the Internet but not your private information.

Cisco Flip

With its announcement on March 19, 2009, Cisco purchases Pure Digital Technologies, Inc, maker of the Flip, while increasing its brand in consumer technologies.  Ned Hooper, senior vice president of Cisco’s Corporate Development and Consumer Groups communicated that, “The acquisition of Pure Digital is key to Cisco’s strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking.” The Flip allowed consumers to instantly capture, edit and share video with family, friends and colleagues then organize, edit and immediately share with YouTube, MySpace and other networking sites.

Fast forward to April 13, 2010, Cisco announces the launch of the All-New Flip SlideHD which can capture events and replay them immediately to friends or family. Consumers will be allowed to shoot four hours of HD video while storing twelve hours on the SlideHD, and it travels with you when needed sharing video with anyone, anywhere.

Specifications:

• Color: White/Silver and Personalized
• Recording Time: Up to four hours
• Storage Time: Up to 12 Hours
• Memory: 16GB
• Screen: 3-inch wide transflective touch screen
• Video Resolution: High Definition; 1280×720 (30fps)
• Video Format: H.264, MP4
• Battery: Internal Li-ion rechargeable
• Battery Life: Up to two hours
• TV Output: HDMI Widescreen
• Zoom: 2x digital
• Audio: Stereo speakers, headset jack

The Flip SlideHD is priced at $279.99 at major retailers, online retailers and at the Flip Store.

Cisco Flip MinoPRO camcorder

First in a series of the enterprise-class Cisco Prosumer Video solution camcorder products, The Flip MinoPRO enhances business process and improves collaboration by allowing the capture of video content for secure editing and sharing.

Benefits:

• Added dynamic component to messages:

• Record earnings calls, company announcements, and product demos to improve delivery of communications within and outside of organizations.

• Improved information delivery and retention:

• Use video capture to share best practices, sales techniques, and complex processes and designs to increase collaboration.

• Reduced global barriers and travel costs:

• Provide video training instead of spending the time and money to travel.

• Ease of use:

• Spend more time producing relevant content with the easy-to-use Cisco Flip MinoPRO camcorder.

Cisco continues to raise the bar in both consumer and business collaboration with its video integration and communications processes through the web, making and it both easy and affordable for next generation technology to serve customer needs.

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If you believe Cable Operators are not thinking about Mobile Networks and what kind of synergies could bring them increased cash-flow in the future, then you’ve probably missed the obvious signs laid out since 2008.

Strategic Partnerships

Starting with their investment in Clearwire in 2008, companies like Comcast, Time Warner Cable and Bright House have upped their ante in wireless and mobile strategies. Other companies with investments in Clearwire include Sprint, Intel and Google. This is not an idle investment by the cable community; it is a strategy to combat the increasing competition in Northeast markets by telecom providers like Verizon and AT&T with Quad-Play capabilities. This competition will eventually spread to other regions as increased investment opportunities present themselves.

With the Quad-Play on the table as an option for customer superiority within the most profitable and populated markets as the Northeast, not having a 4-play strategy just doesn’t make good business sense. Fast forward to today and one can see these scenarios’ playing out as Verizon’s FIOS and Verizon Wireless bundle along with AT&T’s U-Verse and AT&T Wireless services are nipping at cable’s heels for supremacy.

Mobile Strategy

The mobile strategy for cable operators may simply involve current economics. It is quite obvious that creating strategic partnerships with companies like Clearwire and Sprint is a quick and easy way to deliver the mobile market on a selective basis while not having to invest needed capital in a start-up entry. In point, if a partnership gets the job done and allows you to stave off your competitors, and only where there is Quad-Play competition; it relates to both cheaper and faster to market economics. See (Reality Check: Now is the Time for Cable Quad Play)

Mobile Back-Haul Revenue

An additional revenue generator for cable operators is the mobile back-haul market. As mobile operators continue to upgrade their networks to 4G, the need to replace existing infrastructure in middle mile and the edge to the cell tower becomes critical, especially with video, apps and increased voice minutes becoming a major players on mobile networks. It is estimated that by 2015 this could become a $3billion per year revenue windfall. “Cable operators like Microwave, fiber and copper vendors will benefit from this concern”. See (Cable Operators will find Success in Mobile Wireless Backhaul a New Visant Strategies Study Finds)

The advent of these partnerships between cable operators, Comcast, Time Warner Cable, and Bright House with Clearwire and Sprint involves the limited, deliberate, and measured investment into the mobile community while only launching where they need to compete. They are enjoying great cash-flow from video operations, including Digital Cable, VOD, HDTV and DVR’s while bundling Internet and IP Telephone for the Triple-Play, in markets with limited competition. Currently it seems partnerships are the best way to enter the mobile market in a limited way, and at least in the short-term. However, cable should consider expanding those markets for a Quad-Play, or it could lose being first to market and face a catch-up game with potential competitors and find that winning back customers is much harder than being the incumbent.

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