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In this on-line publication, we share our analysis, opinions and direction on the interactive television news and views that we believe will be of interest and use to our friends associated directly or indirectly with independent telephone companies. For more information as to the various ways Viodi works with independent telephone companies, please go to http://www.viodi.com/alliance/

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Viodi View Newsletter - March 28th, 2007

Click here to learn more about Telecom@NAB2007
Click here to learn about Telecom@NAB 2007


By Ken Pyle, ken.pyle at viodi.com, Managing Editor, Viodi View

“The real digital divide doesn’t narrow until the capability is in the home,” so stated Rich Motta CFO of the CETF. His comments at Cal Com’s Annual Meeting in Santa Barbara echoed the theme of the previous two issues of the Viodi View. CETF’s mission is to make broadband broadly available, as well widely used. The non-profit CETF is looking for technology and service organizations and projects that will help them leverage the grant money the grant money received, because of recent telecom mergers. He cited ConnectKentucky as an example of a non-profit that has been able to advance a broadband agenda through partnerships.

Video CALEA – Will Criminals Soon Be Using Sign Language?

CALEA and video content are independent, right. I had not thought of a connection between these two disparate topics until I listened to Steve Gleave, VP of Marketing for SS8, speak at Cal Com’s Annual Meeting. Gleave took a very dry topic, CALEA (Communications Assistant Law Enforcement Act), and made it very entertaining. CALEA, in the context of broadband networks, is at the forefront of independent telco’s plans, as the FCC’s mandate for independent telcos to comply is less than 2 months away.

Will broadband CALEA be obsolete even before the mandate takes affect? The bad guys will probably adjust and use sign language or signage over video phones to communicate their conspiracies. As was seen in the last issue of the Viodi View/ViodiTV, video is a new communications channel made possible by today’s low cost technologies and service plans. It will not be a surprise, at some point in the not-too-distance-future, to see the intertwining of video and CALEA.

The Maturation of IPTV – Part 1

Maybe the IPTV industry is starting to mature, as some of the telcos are starting to cycle through their first generation of equipment for new and improved offerings from suppliers. This echoed comments made by Frank Gini of ETI Software a few weeks back at the IPTV 2007 show. This thought was triggered by a comment made by Scott Barber, President of SureWest Broadband, at CalCom’s Annual Meeting in Santa Barbara. Barber indicated that SureWest has selected WideVine as their new encryption vendor. Click here to read more about what is happening with IPTV in California.

Are Those Rabbit Ears or A New Way to Do IPTV?

One of the most significant telecom announcements in the past month was the CableLabs RFP that explores the idea of a hybrid off-air/cable set-top box. The legal implications of this are fascinating and, according to at least one legal expert who spoke on background to me, the outcome of whether something like this is possible could hinge upon who owns the set-top and its specific design. As would be expected, the broadcasters are already on the offensive and are suggesting that cable operators will still have to pay retransmission fees.

I wonder if this is an opportunity for IPTV providers to work with broadcasters in some sort of cooperative manner to create a hybrid off-air/IP service as is done in Europe. I envision a scenario whereby a telco might be able to avoid franchising, the set-top security card fiasco and, potentially, content licensing fees. I am sure others are thinking along these lines and many of these people will be at NAB.

Telecom and Broadcasters - A Unique Chance to Mix (advertisement)

The merging of Telecom and broadcasting will be the theme of Telecom @ NAB and the associated conferences. This will be a unique opportunities for two groups that normally do not get a chance to mix to share ideas and start the relationships that can build new business models.

I am excited to be producing the Video Production Crash Course, as there will be speakers and product demonstrations that are not possible in our regular Local Content Workshop series. Confirmed speakers are representing Adobe, Avid, DataVideo, Forbidden Technologies, Grass Valley Group and Matrox with additional speakers soon to be announced.

From a content side, I am looking forward to hearing from the ever creative and ever resourceful Angela Abshier, Executive Producer for the 48 Hour Film Project – Las Vegas, as well speakers from Stella Productions discussing lighting and sound. The folks at Datavideo are loaning us some equipment, so we can have a real hands-on event.

People from independent telcos, if you are going to this event, please let us know as we have a couple of special events planned just for our independent telco friends.

The Maturation of IPTV – Part 2 - Telephony at VON

That Textronix was a key sponsor of Telephony’s IPTV pre-VON seminar in San Jose speaks volumes that maybe IPTV is starting to mature. Textronix was one of many vendors at VON that are focusing on the operations of an IPTV system. A packed room of telcos, vendors, analysts and VCs heard not only test and measurement strategies, but also how both independent telcos and large carriers, such as Verizon and AT&T, are deploying video service.

Open IPTV Forum – Is This What the Industry’s Been Asking For?

An oft-repeated question at this conference (repeated by me) was whether there was any hope for an interoperability process for IPTV. Everyone who responded seemed pessimistic about this possibility. Then, like a bolt of thunder from the sky, came the announcement last week from a group of large telecom and consumer electronics organizations announcing the Open IPTV Forum, which has the goal of addressing the gaps in IPTV standardization and interoperability.

It has nine founding members (4 consumer electronic, 3 operators and 2 infrastructure providers). That AT&T is a member and the only U.S.-based company is significant. More significant, is that two of AT&T's biggest IPTV vendors, Alcatel and Microsoft, are not yet members (the IPTV Open Forum will open up membership to other companies at an unspecified date).

AT&T Comes Out Swinging at Telephony's Pre-VON IPTV Conference

AT&T’s Michael Grasso came out swinging and aggressively and rather effectively defended their IPTV approach vis-à-vis, Verizon’s take on video delivery at Telephony’s pre-VON conference. At times, it felt like he was presenting to shareholders and not industry colleagues. Unfortunately, there was no question and answer time, as it would have been interesting to hear how AT&T justifies short-term fixes to fully depreciated copper plant that was on track for major upgrades a decade ago, prior to its purchase by AT&T ( SBC). The New York Times has a good article on this topic.

Video On the Net Alliance – A Group Representing the Over the Top Content Creator

Jeff Pulver of VON is concerned that regulators will try to regulate video on the net. The Video on the Net Alliance is a new lobbying organization that Pulver announced on March 20th. He is fearful that, “the sleeping giants will try to take legacy laws to squash video over the net.” This organization is no cost to join. They are trying to make sure there is a level playing field for the over-the-top creators. Pulver just filed a petition asking for a declaratory ruling that says that, “video over the net is not regulated under Titles 3 or 6”. He called this, “Pulver petition 2.0,” and described it as a pre-emptive strike.” He asked the industry for their support in this endeavor.

Doesn’t the “P” stand for Public in PSTN?

Pulver has reason to be concerned about the "sleeping giants", if the recent action by AT&T/Cingular, Sprint and Qwest to block certain phone numbers of certain conference call providers is indicative of what they might do to Internet applications. These incumbents justify their actions by suggesting the conference call providers are essentially committing fraud and that they are within their bounds to block these numbers. One telecom expert who spoke to me on background, however, suggests that these carriers are on weak ground in taking the law into their own hands. Politically, this action could backfire as it could bolster the case for proponents of Net Neutrality.

Click here to comment on this article.

Remote Control Cell Phone, Social Video & More Club Viodi Content

The nuggets referenced above are just a few of many from the VON conference and just a sampling of what has been going on at Club Viodi. Club Viodi members; click the following links to read more (must be an independent telco to join Club Viodi).

Voice Over WiMAX – By Alan J. Weissberger

A growing number of wireless industry professionals believe that WiMAX will evolve from a platform which is currently used for fixed access and backhaul applications, to one that will be attractive for both fixed and mobile Broadband Internet access.  Large telcos (like BT and AT&T), mobile carriers (SPRINT-Nextel), media giants (Time Warner and Disney) and broadband ISPs (Earthlink and Yahoo) will all be looking for the most operationally efficient and functional converged network to deliver the Quad Play of video, high speed data and voice over fixed or mobile connections.

In particular, low cost VoIP (with roaming) is seen as making Mobile WiMAX (IEEE 802.16e) a very attractive technology for the mobile internet.  Is this a realistic vision or just "pie in the sky?"

Many pundits believe that there is a real business case for bundled voice/data/video services over WiMAX.  Voice over WiMAX may be the key to broadband wireless profitability as mobile users are demanding all in one handsets. By 2009, In-Stat forecasts there will be 4.4 million VoWiMAX subscribers, worldwide. 

Two recent vendor announcements highlight the Voice over WiMAX movement :

Alvarion's BreezeMAX Now Enables Primary Voice Services Over WiMAX

VCom, CableMatrix, AudioCodes and Emergent Network Solutions Unveil High Quality VoIP Over WiMAX Offering

However, there is a dissenting point of view that seems to be gaining momentum:

Go slow with voice over WiMax

More recently:

Recognize the Risks: VoWiMAX is Vulnerable to Loss, Cannibalization and Fraud

[Note, Alan J. Weissberger has begun a multi-client research study on the technical challenges, security issues, and economic realities of VoIP over Mobile WiMAX.  Please contact him ([email protected]) if you are interested in funding the study and obtaining the results.]

Joint Venture Silicon Valley Wireless project moves into test phase

Alan Weissberger reports that Joint Venture's Wireless Project, which aims to blanket the region with wireless Internet access, has moved off the drawing boards into the streets – or, to be technically precise, onto the streetlights.

The cities of Palo Alto and San Carlos have agreed to host the first test sites for Silicon Valley Metro Connect, the collaboration of IBM, Cisco Systems, SeaKay and Azulstar that is building and operating the network. Each of the sites will have 30 to 45 access points installed on light poles and other outdoor locations, for up to six months, to study how many access points will be required for the full project.

Wireless Silicon Valley has also formed its first two user groups – one for traffic management and related transportation issues, another for emergency services – to explore new ways of utilizing the proposed network.

Image of outdoor wireless access point

Image Courtesy of Seth Fearey, Joint Venture Silicon Valley

Independent Telcos Still at the Forefront of Deploying Triple Play

Bernie Arnason of Pivot Media reports that 48% of independent telcos are currently providing “triple play services” and are averaging $94 per customer. According to his research, 69% of the independent telcos deploying triple play have been to increase their market presence. His latest report, Examining the IOC Triple Play Landscape, provides a snapshot of where independent telcos are in their efforts to deploy bundled services.

Upcoming Conferences

Here are some of the conferences where in the next month or two where Viodi will have some presence. I recommend them all and hope to see lots of the Viodi View readers and ViodiTV viewers at these events.

Date(s) Event
4/6 Iowa Telecom Association's seminar The Future of Video – From Content to the Customer." This conference features outstanding national speakers combined with perspectives from independent telcos who provide video. Click Here for more information
4/9-13

IP Possibilities – This show is popular with independent telcos and their vendors. This is a good conference, if you want to see the how independent telcos are deploying IP networks and services.

4/16-18

Cable, Satellite and TV broadcasters have been going to NAB (National Association of Broadcasters) for years. Telecom@ NAB 2007 will be a great place to learn for independent telcos to learn about video and get tips and techniques for competing in this converged marketplace. Plus, Viodi is helping to produce the Video Production Crash Course, which will be the Local Content Workshop on steroids.

5/1-3 Click here to learn more about Connections
5/1-3

CalCom’s Tech Supplier conference is always a good place to meet the California and Nevada telcos and their suppliers. The conference features a number of training sessions coordinated by CalCom’s training committee.

5/21-22

IPTV as it relates to the Cable Industry will the topic of a conference in New York in May. Screenplays is producing this conference, as well a related conference, that deals with targeted advertising. Click here for more information.

6/28-29

Webvideo Summit 2007 looks like it will be good, as Dave Burstein is involved in putting together the agenda for this conference here in San Jose . It has an impressive list of speakers and our very own Roger Bindl will be speaking on the topic of creating content for the web.

6/28-29 Click here to learn about C-COR's Global IP Summit

People on the Move

Leif Street, a long time Viodi friend and speaker at many Viodi-produced conferences, has joined Hiawatha Communications, Inc. in Munising, MI.  He will be overseeing marketing for a group of four telephone companies that are part of the Hiawatha Communications.

Kris Sowolla, formerly of Occam Networks, has just joined an organization called TechSoup. TechSoup is a 20-year old organization that helps non-profits with their IT challenges. It does this by facilitating donations between corporations and deserving non-profits. Contact Kris Sowolla at ksowolla at techsoup.org to learn how your company or non-profit can participate.

This just in….Russ Breault, formerly of DemandVideo, will contributed his Shroud of Turin expertise to a documentary that will air on TBN at 5:30 PM PST on April 4th.

A few months ago, I reported on Viodi co-founder and friend, Paul McKellips, who is working for the State Department and is risking his life to help a group of Iraqis build a free press. They are making progress, as they just launched their newscasts over the air and via the web. Like any good over the top provider, they have a merchandising strategy and have an ecommerce site where you can buy coffee cups, tee shirts and baseball hats.

Purchase IRTN merchandise here

Click Here to Purchase

A Culture of Creativity

What Paul is doing is helping to seed a “culture of creativity” in a place where free thought and speech was outlawed for generations. I wish I could take credit for this phrase, “culture of creativity,” but I have to give credit to Darren Moser, General Manager of 3 Rivers Telecom. Darren and I were talking the other day about local content and we were both feeding off each other when he coined this term. He suggested telcos need a culture where they can “be creative” (as mentor and friend, Jerry Laufer used to tell me when I would come to him with a challenge). Moser likened this shift in culture as similar to what telcos had to do to adapt to a culture of change.

Roger Bindl epitomizes how creativity can blossom given the right environment. It has been such a pleasure watching him develop and hone a diverse set of skills that that have helped him create original content. He also is a symbol of how passion makes up for money and equipment. You can see his award-winning documentary, Making the Best of Hard Times at the Minneapolis / St Paul International Film Fest. The screening is tentatively set for April 24.

It is exciting to see him work with other artists to come up with content that would not have existed without him. His work with street musician/performer/artist Art Paul Schlosser is starting to be recognized. Art Paul’s work may not be for everyone, but it is unique and something that your kids can watch; plus, it is kind of grows on you after a few views. Schlosser is nominated for two MAMAs (Madison Area Musicians Awards) for Compilation Album of the Year and People’s Choice Award – Entertainer of the Year.

watch video

The Korner – Sports & Broadband.....

Several issues ago, I mentioned how the digital divide hit close to home for me, thanks to a little boy on my son’s tee ball team whose single mom does not have email. Granted, there could be multiple reasons for this communications gap, including the cost of broadband, device affordability, culture issues or the complexity associated with PC ownership. I am saddened to think how much further this boy might go if he had the same access to the educational opportunities offered by the broadband ecosystem that my boys have.

More important than broadband, of course, are the people in a kid’s life. Fortunately, this boy has a neighbor who cares for him and is trying to direct away from a path of gangs and street life, which is a very real threat. Baseball is the tool this coach is using to help this kid. More on baseball and broadband in a future issue.

Baseball and other sports are integral to the development of many children into well-rounded citizens. In this video interview from the NTCA Annual meeting, USA Today reporter Christine Brennan discusses her motivation for her unique book, Best Seat in the House: A Father, a Daughter, a Journey Through Sports. This book chronicles her relationship with her father and how he encouraged her to compete in sports during a time when being a female athlete was not the norm.

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The Video Business Case for Independent Telcos – The Report

Viodi’s report, Video Business Case provides results to a survey of independent telcos and their business case for video. Most of the telcos that responded to the survey have figured out a way to deploy video services. This survey provides insight from the independent telcos as well as several of their Engineering firms.

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