THE CABLE PIPELINE

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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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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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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Howard Shultz has reached an epiphany that Starbucks (NASDAQ: GS-SBUX), customers want an easily accessible and free Wi-Fi service in its stores.  Currently customers must purchase a Starbucks Card and sign up on AT&T’s Wi-Fi service, a laborious process at best, giving a 2-hour window of free access. To that end, Starbucks will begin offering free Wi-Fi Service through a partnership with Yahoo to its customers in Starbucks owned stores across the U.S. beginning July 1, 2010. See (Starbucks Newsroom)

Being the first Coffee establishment to offer Wi-Fi service to its customers, originally through Sprint and then AT&T, which has the most widespread service; Starbucks created a trend which has now being surpassed by local coffee houses offering free Wi-Fi service and with national chains like McDonald’s rolling out their free service this year.

Writing was on the Wall

Since stepping back in as CEO in 2008 Shultz, now heading the  worlds largest coffee chain , must be listening to customers as well as his “rank and file”.  With pressure from competition Shultz realized that not only does his company need to change with the times, but it must continue to differentiate itself within the marketplace. In addition to free Wi-Fi Starbucks will offer premium services like USA Today, NY Times, The Wall Street Journal and iTunes for free with additional digital product offerings. It will create a new collaborative community with customers who come in, drink coffee and eat Danish, while connecting them to what is relevant in their lives. See (Aiming at Rivals, Starbucks Will Offer Free Wi-Fi)

Creating the Community Experience to compliment the Purchasing Experience

While many establishments want customers to visit, spend money, and move on out the door; Starbucks is creating a community which will not only purchase products, but collaborate with each other and the world. It is a total experience offering the best of all current trends including; coming by sit for a while, drink our coffee, collaborate with each other, visit the latest amenities technology has to offer and create that second office space that many of us want and need. See (Bringing the Starbucks Experience Online)

Changing with Market Trends

The decision to change with increased customer preferences was a solid business decision for Starbucks. Since we all realize the value of collaborative exchange, Starbucks will make it easier to create the connections with other communities that enhance our experiences. In doing so, it will create new partnerships with external partners that will certainly grow its appeal to a core customer base, while setting itself apart from competitors in creating more of an (all-in-one) product for consumers.

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The mobile phone market is growing exponentially and will continue to evolve for years to come. Why has the Cable Industry not moved into the lucrative mobile phone market? It could definitely be a revenue bonanza, as it currently is for telecom companies. See (The cable company will likely use WiMax to bring television shows to cell phones and smart phones.)

Verizon and AT&T’s revenues, as a percentage of stock price by division, attributes mobile phone service up to 40-42% of total revenues. This being a logical assumption as landline phone demand has forced incumbent Telco’s to rethink their business models to include cable, broadband, and cell phone. The mobile market has exploded with smart phone technology and related applications for consumers continually on the go while wanting the latest gadgets to keep up with friends, business, and news. Why has this not attracted at least, some interest from the major cable players like a Comcast, Time Warner Cable, Cox and others? See (TREFIS-Division as a % of Stock Price)

If you look at trending where the future of a Triple Play seems to be relegated to a future 2^nd grade status behind the Quad Play , while seemingly logical that to compete in the telecommunications market for consumer dollars, a one-stop shopping model needs to be in place; one would think some indication of cable companies launching or acquiring mobile service would be on the immediate horizon.

Let’s think this through. The Telecom Industry saw the “writing on the wall” when landline phone service began to decline, and hence forth began to diversify into other markets such as mobile phones, broadband, and cable TV service. It is logical that their upside in both the mobile phone, broadband, and cable TV markets is solid. With cable operators now looking at a possible paradigm shift from traditional cable to other venues, would it not make good economics to put your business on the same playing field with competitors? It would seem logical to me. There is a definite upside in getting into the mobile market for incumbent MSO’s; as in “keeping up with the Joneses’”, or if you prefer, your close competitors. See (From Triple Play to Home Run: Why Your Cable Company Should Offer Cell phone Service)

The Cable Industry has positioned itself to offer a myriad of services within the cell-phone market to other providers, but unfortunately it does not include its own. However having a competitive cell-phone service is more true to a solid success. If businesses fail to see trends that will impact their bottom line, they are doomed to failure. That is why companies must always be looking for a competitive advantage or keep up with existing competitor offerings, while making the best decisions to affect stockholder equity in a positive manner. Yes, revenues and profits may be good in the short term, but a long term strategy is what really matters, and it seems this is too good of an opportunity not to indulge.

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Cisco is doing its research in coming up with a contest designed to engage constituents interested in video platforms, and produce a smart video that portrays how video content could integrate with your TV in the future. Titled, “If your TV could do anything, what would you want it to do?” the contest throws down the gauntlet in asking for the best idea of what the future of TV should look like.

Research

Where did the idea come from? While researching the dynamics in the future demand for mobile content, Cisco pulled together statistics in indicating the potential growth in video over a wide array of platforms in the not too distant future. Referencing Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2009-2014, Cisco confirms the prediction in exponential growth in the way video is accessed in the future and maybe how your TV screen will interact with these platforms, where an increasingly mobile market is set to explode in capturing video. This in turn, sets the stage for how video could end up on your TV from many different venues.

From E-911 responders, police, and various security measures for government entities, both mobile and wireless technologies will allow real-time video of actual events taking place from external locations throughout the world. Cisco addresses current applications in helping communities to discover the benefits of such use with, Cisco Outdoor Wireless Solutions for Mobile and Wireless Video Communications and how it can help protect the safety and welfare of communities and their citizens.

Benefits:

• Reduced danger to enforcement personnel
• Safer citizens
• Quicker response to incidents
• Advance information in the field
• Full connectivity on any platform
• Easier installation while saving space and power

Appendix B: The Cisco VNI Global Mobile Data Traffic Forecast Methodology

Cisco predicts that it will not be the connection which will be the central traffic driver, but the device itself from the likes of smartphones, non-smartphones, laptops/tablets/netbooks, e-readers, digital still cameras, digital video cameras, digital photo frames, in-car entertainment systems, and handheld gaming consoles. It also forecasts the inclusion of the fundamental drivers in mobile data traffic coming from available variables like connection speed, pricing of connections and devices, computational processing power, screen size and resolution, and even device battery life.

TV does not necessarily mean, (TV in the traditional sense)

What does all this mean for consumers and businesses? The TV can be any kind of mobile device capable of capturing video and processing it across multiple platforms. Where will your TV screen be in the next two to three years? How will you view TV from a more traditional aspect? It certainly does not seem to reference the big screen home TV in a historical context, but forecasts the external access to video that can be captured, viewed and then uploaded to your big screen as a caveat. It will be as much a business concept and a personal one. However, do expect and get ready for unprecedented growth in video content applications for the mobile TV screen in the coming years.

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The FCC seems determined in revisiting and repairing the current CableCard rules fiasco in which it chose to mandate a universal Set-Top-Box for Cable, Telco, and DBS providers. Where does a solution lie, and is the FCC going down another road of improbable acceptance? See (Boucher Backs FCC Set-Top Box Effort)

The problem with a CableCard solution, in an attempt to create more competition, was the opening of current provider STB’s to access other venues, which turned out to be both technically and business concept unfriendly. Video providers are not going to share proprietary technology or a business specific customer experience to comply with such a rule. It did not make for good business economics, and led retail manufacturers down the wrong path of investment in believing providers would accept and adopt such a technology. Fast forward to today, and we are back at the same starting gate with another proposal by the FCC to create more competition within the video and broadband marketplace.

Set-Top-Boxes are uniquely provider centric, and therefore changing that concept is not going to be met with open arms. With that said, the market is moving to more of a gateway consumer experience, although it is not there yet, which should be and seems to be, the focus of the FCC in an attempt to create a better competitive landscape. However, the STB has to remain an exclusively provider experience whether you are a Cable, Telco, DBS, or Over-The-Top provider service. See (Death Row For the Integrated Set-Top)

For a wider acceptance of creating more choices within the home for consumers, the gateway must be specifically designed to accept the (Four Play concept) of phone, Wireless, broadband, and TV. The TV monitor should be accepting an STB signal to differentiate seamless and multiple internet surfing, and TV access. The competition aspect of this design lies within the Set-Top-Box. This device must be company specific and give the consumer a wide variety of choices to various information and entertainment exclusively provided by each competitor.

To clarify, each provider of entertainment would create their own set-top to interface with the gateway. The STB uses the broadband pipeline, from whatever carrier, and integrates the company specific experience to the consumer, whether it is Cable, Telco, DBS, or Over-The-Top providers. However, mandating some type of STB interface to access competitors separately or modifying STB’s to be universal, will just slow competition and go down the path of CableCard inoperability.

To reduce consumer costs, eliminate the need for multiple STB’s within the household. Use the gateway to provide an STB wireless-encrypted signal for each TV interface. Not being an engineer, this concept is predicated on a modified routing system for the STB. Competition remains with multiple providers of content and their unique STB interface. This also means TV manufacturers must be involved in the process while maintaining the integrity of the STB. This concept could reduce both consumer costs and capex requirements for STB providers. See (Analyst: FCC ‘bound and determined’ for STB ban)

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There is increasing demand from the Wireless Sector that opening new spectrum, as championed by the FCC, would speed application roll-outs for broadband in the immediate future. Mobile providers are clamoring to offer increasingly sophisticated applications to connect users with everything on a Mobile Internet.

The recent CTIA Wireless convention in Las Vegas purported a salivating by Mobile operators to upgrade their networks in anticipation of increased demand by consumers and businesses alike to expect newer and better applications from mobile devices. This continues to drive a tremendous need for additional spectrum for the Wireless Industry. See (Cellphone firms see big opportunity in wireless Internet)

Approval of additional spectrum critical

Without the speedy approval of additional spectrum for the wireless industry both new and innovative applications, speeds, and wireless access will suffer. In addition, new job creation for struggling and unemployed workers will not materialize. Sufficed to say, the approval of the proposed plan to reallocate needed spectrum from the broadcast industry to wireless is essential in keeping this sector of the economy growing and creating new jobs.  See (Recommendation 17-National Broadband Plan)

Broadcasters failed to innovate and use needed spectrum

The broadcasting industry failed to use its existing spectrum to innovate its way out of a declining ad supported revenue market. As any entrepreneur will affirm, innovation, change, and speed to market are an integral part of the continual and fast changing dynamics within a competitive marketplace. The FCC has outlined plans to compensate the broadcasters for this spectrum, and it is now time to move forward. We can no longer wait and haggle over how spectrum should be used, or whether current owners have the right to sit on it. If anything, their dormant spectrum use should be considered abandoned.

Reward Opportunists

The key phrase is (seizing the opportunity). Our government must support and reward companies that seize the opportunity in creating new, innovative, and competitive products; companies that create a new niche market, or offer products which no other has contemplated; the Google’s, Cisco’s, Facebook’s, Twitter’s, and Apple’s of the world, just to mention a few. This is what our economy is all about. It is a mantra that creates new jobs and works to lower consumer prices. The FCC is on the right track in seeing a demand and moving to fill its needs.

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