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Verizon

Mar 28 2008   1:24PM GMT

Comcast zeroes in on Internet “hog” management



Posted by: Tom Nolle
Comcast, Peer2Peer, Verizon

Comcast today announced it would change how it imposes traffic management constraints on Internet usage, discontinuing its focus on P2P applications and focusing instead on traffic management of “hogs” or users who create the largest amount of traffic. As a practical matter, the move will likely have the same impact when the cable spans are congested, since P2P is the most significant source of upload traffic, but the new move might also impact any users who act as servers or who generate significant video traffic. The FCC has asked the company to commit to a date for the change, in what we believe is a simple PR move on the part of the FCC. We do not believe the FCC would have ordered a change, and that the current move by Comcast is a response to a competitive campaign largely by Verizon.

Mar 27 2008   12:26PM GMT

Comcast and BitTorrent in P2P talks



Posted by: Tom Nolle
Comcast, Peer2Peer, Verizon

Comcast and BitTorrent are in talks over how to make P2P exchange less a traffic management problem for cable networks. There has been little detail released on this but the rumor is that Comcast is seeking a “topology-aware” hashing tree so peer uploads from one user on a cable span would eliminate the span as a source for other uploads, seeking instead alternative systems on other spans or operators. The move is prompted not so much by the FCC’s actions, which are not likely to require Comcast to stop its traffic management, but by the fact that the problem has handed the RBOCs, and especially Verizon, a major competitive advantage.


Mar 20 2008   12:07PM GMT

Verizon open handset policy could promote loyalty



Posted by: Tom Nolle
Fixed-mobile convergence, Wireless handsets, Verizon

Verizon Wireless is launching its “open handset” strategy, a move that may have more impact on cellular voice pricing than its cap plan did a short time ago. Under the new program, handset makers can certify against what Verizon says will be minimal requirements and then sell directly to consumers, who will have to sign up for Verizon service but would not be required to sign service contracts. We hear that the non-contract services will be pricier than contracts offered, but that contract prices sans phone will likely be better. This will create additional slide in wireless cost and, we believe, further reduce infrastructure investment by wireless operators until an alternative revenue model is validated. We also believe it will promote FMC as a means of securing loyalty that was previously cemented through handset deals.


Mar 12 2008   5:02PM GMT

New mobile data pricing targets travelers



Posted by: Tom Nolle
mobile data, Wireless broadband, Verizon

The mainstream tech publications are picking up the theme of “mobile voice is a commodity” and citing the new data plans such as Verizon’s plan for 5GB per month for $60 as proof. We think the conclusion on voice is correct (we’ve stated it ourselves, so that’s no surprise) but we believe the new data plans are independently targeting a market sector the mobile carriers believe to be a key one—the “hotspot user”. A business traveler might well stay four or five nights in hotels and also visit airport lounges three to four times in a month, according to research, and if the traveler used hotel and hotspot Internet access would likely pay around $70 per month in service costs. The new plans are attempting to pirate these travelers through slightly lower pricing.


Feb 29 2008   2:19PM GMT

Cablevision reduces capex, ups FiOS competition



Posted by: Tom Nolle
Broadband, Cable, Verizon, Video

Cablevision reported better numbers, best of the major cable TV providers, and a sharp reduction in capex. Capex as a percent of revenues has dropped from over 16% (about what the US RBOCs spend) through 13% to slightly more than 11%. All of this suggests that the firm is taking a price-war model stance in competition with FiOS versus a feature stance, which is what competitor Comcast is taking. Cablevision had little to say about advances like DOCSIS 3.0, which would let cable spans increase their broadband speed to FiOS levels. Note that cable broadband is more “shared” than DSL or FiOS and thus raw speed numbers are not necessarily indicative of relative observed performance. We think the capex ratio shift here is the important element; a “successful” cable competitor is one that lowers capex-to-sales below RBOC levels, which means that the RBOCs can outspend the cable companies in capital improvements. Thus, ironically, innovation in access networking must come from the “conservative” carriers.


Feb 19 2008   3:31PM GMT

Verizon goes on the offensive on upload speeds



Posted by: Tom Nolle
Verizon, Broadband, Peer2Peer

Verizon has finally awakened to one of the major weak points in cable broadband services delivered and taken steps to exploit it. A FiOS ad talks about the fact that FiOS delivers not only fast downloads, it delivers uploads 25 times faster than cable, and upload speed was the big problem with cable from day one. Cable broadband is shared bandwidth in both directions, but the statistical sharing of the downlink still lets customers have decent experiences given that there’s as much as 8 or even 16 Mbps to share. But the uplink is only between 256 kbps and 512 kbps, and any significant uploading (such as P2P hosting) creates a major problem for the MSOs. That’s why Comcast is prepared to duke it out with the FCC on the issue of P2P traffic management, and that battle is likely what’s spurring Verizon to take the offensive in its ads.