Netflix has announced that they are deploying their own Content Delivery Network (CDN) for delivery of their video streams to Internet Exchange Points (IXPs) around the world. More importantly they are making the hardware and software design of their CDN servers freely available. That means any network can deploy Netflix CDN boxes deep into their network to significantly reduce traffic volumes and improve performance for users. more
Time Warner Cable and Comcast's intent in creating TV Everywhere conjured up a cable TV presence on the Internet where customers could browse and view huge varieties of content by just being a customer. That seemed a fairly simple and innovative concept... It was unique 3 years ago and promised to be exclusive to their clientele. But in reality the concept is much different than the original vision cable operators promoted. more
"Is Google Turning Into a Mobile Phone Company?" asks the headline in Andrew Ross Sorkin's New York Times story. Wrong question, IMHO. But is Google doing the deal at least partly to give it leverage over wireless providers? I think so. The biggest threat to the growth of Smart Phones and tablets and other Google businesses like YouTube is the imposition of data caps and metered pricing by wireless providers like at&t and Verizon Wireless. more
Netflix has become the largest source of Internet traffic in North America, according Sandvine's Spring 2011 Global Internet Phenomena Report. Company further reports that currently, Real-Time Entertainment applications consume 49.2% of peak aggregate traffic, up from 29.5% in 2009 -- a 60% increase [see figture]. Sandvine forecasts that the Real-Time Entertainment category will represent 55-60% of peak aggregate traffic by the end of 2011. more
With the DVD rental market continuing to dwindle, we are again seeing interest emerge for online video-on-demand, with both the large Hollywood Studies and online content distributors making recent strategic moves in this direction. ... A sign of the times came with the 2010 bankruptcy of Blockbuster, once one of the largest move rental companies. more
The recent declaration from the UK’s minister for communications that the Internet should be tiered, thereby allowing ISPs to charge for prioritised traffic (either rated by speed delivered or by content provider) is a knee-jerk response to network strain masking as a necessary network management tool, and is a potential threat to the concept of net neutrality. ...developments in the mobile data sector make it clear that capacity constraints are appearing on mobile networks as well, long before the anticipated launch of LTE-based services in the UK in 2013. more
The future of broadcasting has been under discussion for close to two decades and, while changes are certainly happening, they are rather slow and therefore new opportunities or threats (depending on where you sit) continue to arise. On the one hand we are now starting to see the more widespread availability of digital TV and this has revealed a clear point of difference between the strategic directions being taken by the telecoms and the broadcasting industries. more
At the beginning of 2008, the South Korean government passed a law that allowed telecoms operators to broadcast programmes in real-time over their broadband networks. The KCC awarded IPTV licences to KT Corp, Hanaro Telecom and LG Dacom. KT was banking on real-time Internet TV services because growth in the traditional broadband and telephone markets had slowed. The company planned to invest more than KRW1.7 trillion (US$1.5 billion) in IPTV services by 2012 as part of efforts to cultivate new sources of revenue. more
News that Google and Verizon are negotiating "better than best efforts" Internet routing probably comes across as a betrayal of sorts to network neutrality advocates. Bear in mind that Information Service Providers ("ISPs") do not file public contracts known as tariffs and have the freedom to negotiate deals with individual clients. On the other hand ISPs, regardless of their FCC regulatory classification, cannot engage in unfair trade practices that achieve anticompetitive goals such a tilting the competitive playing field in favor of a corporate affiliate, or special third party. more
Interesting times in the carrier space, for sure. While most readers of this column are focused on the business market, it's hard to ignore what's occurring in the consumer space right now. Being based in Toronto, I happen to be struck by the similar trends shaping on both sides of the border. Over the past few days, we've seen earnings reports from major telcos and cablecos, and these businesses seem to be going in opposite directions. more
Craig Moffett sees this as I do: "If LTE networks are going to be usage-capped, then the last pretense that LTE can be positioned as a substitute for terrestrial broadband would seem to be gone." The heart of the U.S. broadband plan is to release more spectrum - enough for 10-20 networks like Verizon's LTE now building - and pray that will be enough competition in five to seven years to check price increases. more
Kevin Shatzkamer, Chief Architect for Cisco Mobility, 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. ... 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 held in South Africa. more
China's broadband subscriber base continues to rise. Massive FttX deployments are underway, spurred on by competition between the three full-service operators all aiming to increase 'stickiness' for subscribers. While fixed line subscribers are expected to decline into 2011, broadband subscribers are still rising, driven by cheaper rates and the higher bandwidth on offer compared to mobile Internet. more
Since the dust has settled from a stinging defeat in federal court, the FCC has decided to move on its own to settle the broadband regulation dispute. With a 3-2 vote the commission issued a Notice of Inquiry that would set the stage for more regulatory authority of broadband. It seems ironic that the motivating factor was the court case brought by Comcast in Federal District Court to immobilize the FCC's efforts to sanction the service provider from throttling Bit Torrent, file sharing customers. more
According to a report released today, 69% of adult internet users, or roughly half of all U.S. adults (52%), have used the internet to watch or download video, with 18-29 year-olds leading the way. "We are seeing a surge in online video watching that is driven by a combination of broadband access, the increasing use of social networking sites, and the popularity of video-sharing sites," explains Kristen Purcell, Associate Director for Research at the Pew Research Center's Internet & American Life Project and author of the report. "To tap into these trends, untold numbers of websites now showcase online video as part of their content." more
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