Archive for the ‘Telecosm’ Category

Ivan Seidenberg shines the “light” on Verizon’s FIOS strategy

Monday, October 5th, 2009

verizoncopperplant

Dave Burstein at DSL Prime reports that Ivan Seidenberg effectively says the the wireline voice telecom business is dying:

“we have to pivot and make a shift from the voice business to the data business and eventually to the video business. … we must really position ourselves to be an extremely potent video-centric asset.”  He further states, “The issue there is perhaps it is like the dog chasing the bus a little bit. So what I need to do is get ourselves focused around the following idea, that video is going to be the core product in the fixed line business. … I shed myself of the burden of chasing the inflection point in access lines and say I don’t care about that anymore.”

Despite Seidenberg having been one of the few telecom industry visionaries to truly embrace data/video as the future of the industry as long as 10 years ago, it still sounds strange (heretical, in fact) to hear a telecom CEO say “I don’t care about that [access lines] anymore.”  On the other hand, I believe Seidenberg is correct in focusing Verizon’s strategy on the combined communications capabilities of its wired and wireless footprints. (more…)

Latin America Wireless

Tuesday, March 6th, 2007

Like most of the Middle East and Africa, Latin America is skipping the 100% wired stage of telecoms. Governments in those countries were too financially unstable &/or corrupt to mandate buildouts beyond the wealthy enclaves and business districts of their major cities. The beauty of wireless is that it is so much less capital intensive. Consequently, wireless telephony penetration in LatAm now approximates 60-70%. Moore’s Law continues to reduce the cost/increase the functionality of handsets (and you can have either, but not both, as a consumer). In LatAm, prepaid service is a much bigger mode of payment for service, as it facilitates budget management. Also, calling party pays, not the one called. Finally, network convergence is driving all the margin out of the historically high margin voice telecom service (in late nineties 45% OPERATING profit was the norm), whether wired or wireless.  (more…)

Government as Communications Infrastructure Provider

Wednesday, March 30th, 2005

In spite of being an ardent free market propronent and a believer that less government is better than more, I am beyond beginning to believe, although not yet completely sure, that government would be the best WiFi provider. And I should add that maybe, maybe that could also be true for the physical wired network infrastructure (fiber-to-the-home/business) as well.

Should WiFi Be Public Infrastructure? (continued)
I hate logging in to all of these various hot spots. Each one has a different login, a different account, and the process is one big hassle.
I’ve begged for better wifi roaming and I’ve wondered if Wifi should be public infrastructure.
Yesterday, a reader sent me a link to this story about a silicon valley firm called AnchorFree that is putting up free hotspots that are sponsor supported.
That’s a lot better than the paid hotspots we have now, but what I really want is free Wifi everywhere. Or at least let me pay a monthly bill to someone and then get free wifi everywhere I go without having to deal with different vendors with different payment schemes and different login systems.
This is only going to become more important as we get wifi voip phones, wifi iPods with podcasting built in, wifi cameras, and wifi video.
I honestly believe that the cost of supporting public wifi is not that expensive and the benefits to the citizens of every city that does it is enormous.
UPDATE: A great post on the comparisons between public water projects in the 19th century and wifi today. It’s a very interesting read.

Financial Supply Chain

Friday, February 11th, 2005

While wandering the Web, I stumbled across a company, Prime Revenue, that offers to optimize the "financial supply chain" of its customers. 

PrimeRevenue is the key to a financially optimized supply chain.  For Buyers and Suppliers.

Our program is an innovative and unparalleled solution that brings the benefits of information technology to the financial supply chain.  Our services deliver greater working capital efficiency, cost savings, and revenue growth opportunities for both Buyers and Suppliers.

With our program, Buyers provide Suppliers with transaction visibility and payment certainty around trade payables to their Suppliers, reducing the amount of cash tied up in the order-to-cash cycle.  Our services streamline AR/AP processes, link the flow of funds to the flow of transaction data and, by creating visibility into future cash flows, give corporations access to a variety of transaction level financing options at very attractive rates.

Simply stated, PrimeRevenue helps companies do more business with less working capital.

Although apparently not a new concept (there’s a link on their website
to a fairly sophisticated vision of it in an article written in 2000),
the integrated communications and software infrastructure for implementing it are
only now reaching the maturation to support it.

On another Web sojourn, I encountered Wells Fargo’s Commercial Electronic Office (CEO), a proprietary financial portal that claims to provide "cash management, credit, international, and trust and investment services all in once place with a single sign on".  Maybe so, but my experience with banks suggest that would be something of a stretch.  (Wells had even applied bankers’ bureaucratese to the term e-commerce, turning a concise word into a mouthful of multi-syllabic mush.)  My instincts and experience with online media content tell me that a proprietary business model will not stand.  For the same underlying economic reasons that it would make no sense for Yahoo, MSN or AOL to limit their available market to that of one communications company (as in cable or telco), it would make no sense for a true financial portal to limit its market to the available market of a given depository institution (even if owned by that institution). 

This is worthy of futher "focused" Web wanderings, thought and conversation.

 

PBS – Unfair and imbalanced "journalism" in action

Monday, November 22nd, 2004

Bruce Bartlett vividly illustrates PBS’s "agenda journalism by providing readers with facts regarding the astounding macroeconomic impact of Walmart on the US economy over the last decade. PBS, having been supplied the same facts during its "investigation" of the issue, chose to omit them entirely from its negative presentation about Walmart.

I also pointed out to Smith that Wal-Mart, all by itself, was responsible for a significant amount of the productivity miracle we have seen in this country over the last decade. In a 2001 report, the McKinsey Global Institute, a respected think tank, concluded that Wal-Mart’s managerial innovations had increased overall productivity by more than all the investments in computers and information technology of recent years. Wal-Mart’s innovations include large-scale (big-box) stores, economies of scale in warehouse logistics and purchasing, electronic data interchange, and wireless barcode scanning. These gave Wal-Mart a 48 percent productivity advantage over its competitors, forcing them to innovate as well, thus pushing up their productivity. The McKinsey study found that productivity improvements in wholesale and retail trade alone accounted over half of the increase in national productivity between 1995 and 1999. A new study from the prestigious National Bureau of Economic Research found that Wal-Mart has a substantial effect on reducing the rate of inflation. For example, it typically sells food for 15 percent to 25 percent less than competing supermarkets. Interestingly, this effect is not captured in official government data. Fully accounting for it would reduce the published inflation rate by as much as 0.42 percentage points or 15 percent per year.

Ignoring these beneficial macroeconomic effects, Frontline focused almost exclusively on the loss of jobs allegedly caused by Wal-Mart. Acting as what economists call a monopsony, it supposedly forced countless American manufacturers to close their domestic operations and move to Asia in order to get their costs low enough for Wal-Mart to sell their products. It is also said to have caused innumerable local retailers to go out of business, further adding to the job loss. In fact, academic research by economist Emek Basker of the University of Missouri contradicts this last point, finding that Wal-Mart permanently raises local employment.

Firefox (aka Netscape Arises from the Dead!)

Tuesday, November 16th, 2004

When I first tried Firefox about six months ago – out of frustration with IE’s lack of security, I was completely underwhelmed and could not understand why the developer/programmer community was so buzzed about it.  I googled for other browers and found Maxthon, which is an overlay on IE that provides lots of nifty features, the most important of which is tabbed browsing.  While that was supposed to be Firefox’s claim to fame, at that time Maxthon beat it hands down.  Recently Maxthon stopped supporting the Google toolbar, which is the most essential feature for a browser for me (hmmm…wonder if that ever occurred to Google???).  That prompted me to revisit Firefox and upon doing so, I found a much improved tabbed browser and a far wealthier palate of extensions for it.  After a couple of weeks use, I’m hooked, however, I would only recommend it for those who don’t mind the hassles (and benefits) of beta-like software.  Firefox will only get better, but it’s still a little unwieldy for those who lack the curiosity and patience to work with something that is both new and rapidly evolving.  More on Firefox and the open-source software phenomenon later.

Get Firefox!

Gilder @ WTF/Isenberg Conference

Thursday, April 8th, 2004

George Gilder compares Korean broadband deployment in a pro-regulatory environment to the broadband deployment/regulatory mess we have in the US.

"…it’s important to really understand what happened over the last five years. A trip to Korea can give you an understanding. We didn’t have a fundamental bubble that consisted of Ponzi schemes and accounting frauds. That wasn’t the basic thing that happened. The basic thing that happened was that we launched a broadband revolution and didn’t consummate it because of regulatory mistakes. So it moved to Asia. Korea has 40 times the amount of bandwidth that we do. And they accomplished that in three years." Gilder continues, "When you have a true deployment of broadband in a country, including wireless broadband, the whole economy changes. In 2003, there was around $450 billion a year of commercial transactions on the Internet in Korea. A third of their economy was transacted on the Internet."

MP3 Filesharing Disrupts Music Industry Business Model

Saturday, April 3rd, 2004

But, not because music consumers are "stealing" music.  Instead, the Internet and peer-to-peer filesharing disruptively enable musicians to become real business entrepreneurs by creating and maintaining their own distribution channel to their loyal, dedicated and" fanatical" customer base.  Tim Oren explains why this is so.