This article by Tim Wu, originally published in Forbes, argues that cellular and wireless networks need the equivalent of the 1968 Carterphone decision that decoupled telephone devices from the network. It has been argued that this decision opened up innovation and competition and Wu argues the same thing could occur in the wireless domain and suggests that this be a requirement for spectrum winners of the upcoming 700 MHz auction.
The question, for another article, is has anyone at the FCC looked at the value of an auction versus the value in keeping this spectrum for the public’s use via an unlicensed mechanism as is done in the 2.4 and 5.8 GHz ranges.
technorati tags:wireless, auctions, spectrum, carterphone, cellular
By Alan J. Weissberger, alan at viodi.com
When the US government ordered the transition to digital TV by Feb. 19, 2009, it did so to reclaim radio spectrum and reallocate the frequencies to public safety organizations and commercial broadband networks. In particular, frequencies until now used by UHF television are being opened up by the move to digital TV.
Frontline Wireless, a company formed earlier this year by former FCC chairman Reed E. Hundt, is one of several potential bidders for spectrum in the 700 MHz band. Cellular carriers and their rivals covet the spectrum because it has significant capacity and greater range and can easily penetrate buildings and other structures.
Mr. Hundt said that Frontline had begun building an investor group, which would ultimately include large banking partners, to participate in the auction. The investment group (made up of VC luminaries) is promoting a plan that would use technologies flexible enough to support both next-generation wireless Internet access and public safety emergency communications.
Frontline’s new partners include legendary high-tech entrepreneur James L. Barksdale, software radio technology innovator Vanu Bose, and L. John Doerr for the venture capital firm of Kleiner Perkins Caufield and Byers (“Kleiner Perkins”). They are joining Ram Shriram, Managing Partner of venture investment company Sherpalo Ventures, as Frontline investor group partners.
Frontline’s backers argue that their plan is unique because it would be more accessible than today’s commercial wireless networks, which are tightly controlled by their licensed operators. Frontline proposes to create a large spectrum block that could be sold wholesale to companies that are building services for new portable Internet devices for receiving and transmitting voice, video and data. In the event of public safety emergencies, however, the police, firefighters or medical emergency workers could reclaim the spectrum for use.
The auction, which will be governed by rules that the F.C.C. is expected to issue this month, could generate up to $30 billion in revenue for the federal government, by some estimates. All sides are watching the rule-making process closely because those regulations will determine whether several ideas for exploiting the spectrum with advanced technologies will be accepted.
For further information:
[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 (alan@viodi.com) if you are interested in funding the study and obtaining the results.]
David Lepak, Vice President of Telechannel, provided a soup to nuts overview of the programming business and the challenges independent telcos face when adding cable television to their service offering. He talked of the trade-offs between being using an aggregator, a consultant or one’s own staff to acquire content. He suggested that the rights to IPTV are available these days and reported that Telechannel has 12 independent telcos turned up with four more in the pipeline.
Lepak is not a big advocate of ala carte. He suggests that ala carte will just mean that the cost per channel will significantly increase. He said that there is more value with a “bundle” of channels; a similar argument to the one that is made by people extolling the benefits of the “triple play”.
Educating the customers is critical in order for them to get the full value to of the package. He suggested that by building value packages, it is possible to compete on more than just price. Some of these value-added services include local content, as well as complementary web video content. Lepak pointed out that web video services, like ESPN 360, are available only to distributors of the cable programming. Similarly, Starz helps its cable programming distributors market its online movie download service, Vongo.
[Note: One audience member suggested that NCTC had lifted the new member moratorium. Vice President of Public Relations, Dan Mulvenon, however, confirmed that the moratorium is still in place.]
At the Iowa Telephone Association’s Video Workshop in Des Moines, Roger Musick of Innovative Systems proclaimed that IPTV has been, “over promised and under delivered”. He suggested that there have been too many vendors in the IPTV chain, which has complicated the rollout and maintenance of IPTV networks. Echoing what many independent have said, Musick said the vendor community has not spent enough time figuring out how to keep IPTV systems up and running.
He spoke of Direct Broadcast Satellite and of their big advantages of having access to better content at lower pricing, as compared to what independent telcos can get. He pointed out that the current limitations of DBS will go away with the deployment of hybrid RF/IP set-tops. He mentioned how the telcos’ fat-pipes will enable over-the-top, niche competitors, as well as the so-called long-tail content.
He suggested one advantage independent telcos have is their inherent local nature. Local content and VOD is something they have that DBS cannot offer. Other ways independent telcos can exploit their network and location advantage include:
One of the fun things about the VON conferences is that they are fun. The ideas are fresh and the content of the conference is excellence. At the end of the day, there are always lots of great parties and opportunities to talk to some really interesting people in a very relaxed atmosphere.
The following video interview used an external camcorder to capture the video from Packet8’s Tango phone. The camcorder video was encoded to a WMV file, which was then converted to a Flash 9 format, as seen below. Because of these multiple conversions, the video on this page has artifacts that were not present in the actual video conversation. The best way to judge the performance of the Tango is to look at one first hand. This may be difficult, as apparently there is a back-log already for these devices.
Click below to read more about the Tango.
Picture Phone or Picture Frame – A Mini Review
A digital picture frame: that was my first impression upon glancing at the Packet8’s latest generation video communications device, Tango. The sleek styling (less than 1 inch deep and approximately 6”x9”) and self-supporting base make it an attractive addition to any desktop. The second impression was how easy it was to set-up. In less than one television commercial break, I had removed it from the package and had made my first call (and I did not consult the manual).
This is the fourth generation phone for Packet8 (8×8, Inc.). This is not really phone, as it is a Voice and Video Terminal Adaptor with a screen and camera. To make a phone call, an ordinary telephone is required. This is actually a great feature, as it allows one to use a cordless phone to make a video call. It also transforms the dumbest telephone into one that supports all of the screen-based CLASS services (e.g. caller I.D. on the screen, missed calls, etc. – the things the cell phone has made standard).
Set-up is a breeze, as it only requires a broadband connection (e.g. DSL or Cable Modem) and a power outlet. The Tango includes support for all of Packet8’s residential services. As such, Tango supports E911. It is important to note that to provide true lifeline service, a universal power supply would be required for the Tango and any other routers and broadband modems that are part of the residential wiring.
The interface is simple to use and did not require me to reference the manual for anything other than voicemail. One potential feature – which should be easy for Packet8 to add – would be to add voicemail as a pre-configured number. I entered the unit’s number into the device’s phone book and found that I could dial voicemail with one button.
As with a cell phone, entering phone numbers into the address book was a bit cumbersome. The USB port on the side of the unit points to the potential for automatic connection to a person’s email address book and the potential for dialing from a PC or Web browser application. The Ethernet connection also provides some interesting potential for downloading images from loved ones or videos from content providers of all stripes.
Another feature that impressed me is the ease of use of setting up a surveillance application. I was able to turn on the Tango from Packet8’s DV326 video phone and immediately view images of my remote office. To prevent unauthorized remote access to the Tango it is possible to enable password protection. The remote surveillance feature offers some interesting potential for monitoring aging parents or remote cabins.
The best feature of all is the quality of the service. The h.264 encoding is a big improvement and the quality even at 256 kbs (above video used 256 kbs upstream/downstream) is excellent. Unlike earlier generation video phones, there was no noticeable delay between the lips moving and the corresponding audio. The audio quality is excellent and I did not observe any dropped calls.
Optical Entertainment Networks made a big splash a few years ago when they announced an aggressive plan to deploy Fiber to the Home throughout the Houston metro area. OEN President and CEO, Al Estrada, an early veteran of DirecTV, discusses their strategy for rolling out service. He talks of their beta tests and some of the things they learned and have incorporated into their commercial launch, such as data packages that extend up to 25 Mb/s downstream.
Their network is a bit different from many of the PON Fiber to the Home Networks. They are taking an active point-to-point approach, much like the one championed by SureWest. More importantly, their focus is on basic blocking and tackling by making the packages simple and easy to understand. Additionally, their installation people spend time training their customers.
In this interview, Estrada also touches upon some of their near-future activities, such as providing video service to other providers and the creation of local content. They have some interesting ideas on creating local content to both promote as well offer unique programming. After the interview, he indicated that one of the ways they are able to do so much is by leveraging themselves through partners.

