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TELECOM Digest Wed, 3 Jan 2007 16:35:00 EST Volume 26 : Issue 003
Inside This Issue: Editor: Patrick A. Townson
User Generated Content Good For Old Media (Kate Holton, Reuters)
EarthLink CEO Dead at Age 49 (Associated Press News Wire)
CommunicationsDirect News Daily Update-January 3,2007 (telecomdirect_daily)
Essar Bid For Hutchison May Squeeze Out Vodafone (USTelecom dailyLead)
Re: AT&T 'Family' Reunion: Merger Approved (Paul)
Re: AT&T 'Family' Reunion: Merger Approved (Fred Goldstein)
Re: AT&T Merger Approved (Sam Spade)
Trivia - Telephone Use in "The Parent Trap" Movies (Lisa Hancock)
Re: Telephone Building Web Page (Rob)
====== 25 years of TELECOM Digest -- Founded August 21, 1981 ======
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Date: Wed, 03 Jan 2007 14:06:11 -0600
From: Kate Holton, Reuters <reuters@telecom-digest.org>
Subject: User Generated Content Good For Old Media
By Kate Holton
Traditional media companies are ideally placed to benefit from the
explosion of user-generated content and should see it as an opportunity
and not a threat even though the potential revenue is limited, a report
says.
The phenomenon of consumers contributing their own photographs, video
and blogs took the media industry by storm in 2006 through Web sites
such as YouTube and according to a report by consultancy Deloitte on
media trends for 2007, that is unlikely to change.
The trend prompted headlines that the traditional media was losing
sway with the consumer but Howard Davies, a director of media strategy
at Deloitte, said print and TV had been wise to stand back and see how
the practice developed.
"(They) are very well positioned to adopt some of the technology and
some of the emerging social practice ... but incorporating it
alongside traditional media channels to create an overall richer
product," he told Reuters.
Davies said user-generated content could be split into two categories
with one for people looking for "five minutes of fame" via the likes
of YouTube and MySpace and the other for people looking to contribute
to a discussion or community.
"The one group that has made the most hype is the so-called 'five
minutes of fame' and I'm not necessarily convinced that that will
continue to grow," Davies said.
"In fact you might find people start to get bored with it (but) the
less glamorous use of the Internet as a form of creating user
generated content is part of society now."
News channels including the British Broadcasting Corp. and BSkyB have
shown user-generated content including footage taken on mobile phones
from events such as the 2005 London bombings.
Web search leader Google last year agreed to acquire YouTube for $1.65
billion in stock.
Davies also cited "Runner's World" magazine which has created forums
for group discussions as a success story and said broadcasters could
use the medium to gain feedback on programs or create a buzz before
they were launched.
However the report by Deloitte's Technology, Media and
Telecommunications Industry group said the potential for generating
revenue was likely to be limited.
"There's something about the social user ... community that is
absolutely not professional and so the community doesn't want it to be
commercialized," he said about advertising around Web sites dedicated
to the content.
"It's so easy to set up a rival offering and there's very little
loyalty to these sites and you can move to another one fairly easily
and if you want to avoid adverts then you will."
Looking ahead for 2007, Deloitte said another major topic for media
companies would be the desire to "crack" China.
Deloitte said China was a challenging market for foreign media
companies due to government censorship and restrictions on foreign
ownership and said the other major factor to deal with would be
piracy.
However head of media research Paul Lee said there was huge potential
in China with the Olympic Games to be held in Beijing in 2008, a
fast-growing middle class who would be looking to buy genuine goods
and a strong desire to see Chinese brands become global.
He said companies needed to be patient and form positive relationships
with Chinese business partners and government agencies rather than
trying to rush for market penetration.
"The Olympics will force the hand of the Chinese to be more open," he
said in an interview.
"(But companies) need to understand the history and have the patience
to grow with China. It's such a massive beast which cannot change
overnight but will change over decades. It may be that the investment
you're making now will be reaped by your successors."
The full Deloitte report on media predictions will be released later in
January.
Copyright 2007 Reuters Limited.
NOTE: For more telecom/internet/networking/computer news from the
daily media, check out our feature 'Telecom Digest Extra' each day at
http://telecom-digest.org/td-extra/more-news.html . Hundreds of new
articles daily. And, discuss this and other topics in our forum at
http://telecom-digest.org/forum (or)
http://telecom-digest.org/chat/index.html
For more news and headlines, please go to:
http://telecom-digest.org/td-extra/newstoday.html
------------------------------
Date: Wed, 03 Jan 2007 14:10:41 -0600
From: Associated Press News Wire <ap@telecom-digest.org>
Subject: EarthLink CEO Dead at Age 49
Garry Betty, the president and chief executive of EarthLink Inc., has
died from complications of cancer, the Internet service provider said
Wednesday. He was 49.
Betty joined EarthLink in 1996 and oversaw the company's growth from a
regional ISP with 500,000 subscribers to a national service provider
with more than 5 million. He took a medical leave of absence in
November. Atlanta-based EarthLink released no other information on his
death.
"Garry was instrumental in building EarthLink into the company it is
today," company Chairman Robert M. Kavner said in a statement.
EarthLink said Mike Lunsford will remain interim CEO.
Prior to joining EarthLink, Betty served as CEO of Digital
Communications Associates Inc. -- and was at the time the youngest CEO
of a company listed on the New York Stock Exchange.
Betty, a graduate of the Georgia Institute of Technology, began his
career at IBM Corp., and won the IBM President's Excellence Award in
1982 for his work on the original IBM PC.
Copyright 2007 The Associated Press.
NOTE: For more telecom/internet/networking/computer news from the
daily media, check out our feature 'Telecom Digest Extra' each day at
http://telecom-digest.org/td-extra/more-news.html . Hundreds of new
articles daily. And, discuss this and other topics in our forum at
http://telecom-digest.org/forum (or)
http://telecom-digest.org/chat/index.html
For more news and headlines, please go to:
http://telecom-digest.org/td-extra/AP.html
------------------------------
Subject: CommunicationsDirect News Daily Update - January 03, 2007
From: telecomdirect_daily <telecomdirect_daily@communicationsdirectnews.com>
Reply-To: communicationsdirect_daily-owner@communicationsdirectnews.com
Date: Wed, 3 Jan 2007 12:52:05 EST
********************************
PricewaterhouseCoopers Presents
The CommunicationsDirect News Daily Update
For January 03, 2007
********************************
AT&T Outlines Consolidated Strategy
http://www.communicationsdirectnews.com/do.php/120/21862?11228
Following the completion of the AT&T-BellSouth merger at the
close of 2006 after a number of concessions proposed by AT&T,
AT&T CEO Edward Whitacre has been reported by the Wall Street
Journal as outlining the company's strategy for the consolidated
entity. Key to the strategy is ...
Mobile Managed Network Services Set For 5-Year Spike
http://www.communicationsdirectnews.com/do.php/140/21852?11228
Managed network services provide continued opportunities for
mobile communications service providers to offload
network-operation tasks to third parties. Additionally, these
services allow infrastructure vendors to secure new revenue
streams, according to ABI Research, which forecasts double-digit
compound annual growth rates ...
Alcatel-Lucent Closes Nortel UMTS Deal
http://www.communicationsdirectnews.com/do.php/140/21849?11228
Nortel's UMTS business is now officially part of Alcatel-Lucent,
which paid $320 million for the business and related assets. The
deal was put to bed on Dec. 31. A tentative deal was originally
announced in September, but Alcatel-Lucent forged a definitive
agreement last month after closing its own merger involving the
then ...
Essar Offers $11B for Hutch Buyout
http://www.communicationsdirectnews.com/do.php/120/21846?11228
The race for Hutchison Essar has intensified as Vodafone Group
plc and Reliance Communications Ltd. have officially entered the
fray, while minority shareholder Essar Teleholdings has
reportedly offered to buy out its joint venture partner. Essar
has offered $11 billion for Hutchison Telecommunications
International Ltd.'s ...
AT&T Hits Lowered U-verse Goal
http://www.communicationsdirectnews.com/do.php/140/21844?11228
AT%T Inc. says there are no technical problems to blame for its
only launching U-verse IPTV service in 11 markets during 2006.
The carrier had been saying it would launch U-verse in 15 to 20
markets during 2006. But it revised its goal downward in a
December 21 press release: AT&T now expects to launch AT&T ...
Satellite TV Uplink Industry a Key Driver For Digital Video Program Services
http://www.communicationsdirectnews.com/do.php/140/21841?11228
SCOTTSDALE, Ariz. -- The worldwide Satellite TV uplink industry
is emerging as an important growth driver for a wide and
expanding range of digital video production equipment and video
management products, reports In-Stat. This market will experience
solid, sustained incremental revenue growth, and have a value of
US$306 million ...
Your feedback on our e-letter is always welcome. Send email to:
CommunicationsDirect Editor <telecom_direct_editor@us.pwc.com>
Copyright (C) 2007 PricewaterhouseCoopers.
------------------------------
Date: Wed, 3 Jan 2007 13:42:21 CST
From: USTelecom dailyLead <ustelecom@dailylead.com>
Subject: Essar Bid For Hutchison May Squeeze Out Vodafone
USTelecom dailyLead
January 3, 2007
http://r.smartbrief.com/resp/fTeEfDtusXjojBCibuddsTrq
TODAY'S HEADLINES
NEWS OF THE DAY
* Essar bid for Hutchison may squeeze out Vodafone
BUSINESS & INDUSTRY WATCH
* AT&T named "Company of the Year" by Forbes
* Cisco taking a bigger stand in India
* Report: France tops IPTV subscriber totals
* BT approaches 10 million broadband subscribers
* Will consumers go for convergence gadgetry?
* HBO turns to SK Telecom for mobile VOD
TECHNOLOGY TRENDS
* Analysts: Mobile ads won't go mainstream in 2007
* Italy to sell WiMAX licenses
VOIP DOWNLOAD
* Analysis: Consolidation expected as VoIP companies focus on businesses
REGULATORY & LEGISLATIVE
* FCC chairman appoints new wireless bureau chief
Follow the link below to read quick summaries of these stories and others.
http://r.smartbrief.com/resp/fTeEfDtusXjojBCibuddsTrq
------------------------------
From: Paul <PSSawyer.does.not.want.spam@comcast.BAD.EXAMPLE.net>
Subject: Re: AT&T 'Family' Reunion: Merger Approved
Date: Wed, 3 Jan 2007 16:00:37 UTC
Organization: Me
hancock4@bbs.cpcn.com wrote in news:telecom26.2.6@telecom-digest.org:
> I like the commentators (like Newsweek) that suggested customers
> keep a landline as an emergency spare if they get VOIP. That's bad
> for two reasons: 1) it gives the Bell companies the scraps of little
> business while the juicy profits go to the new guys. 2) It means
> the new guys don't have to upgrade their systems to maximum
> reliability -- as the old Bell companies offer* -- because they have
> old Bell being their safety shield. That's not fair to Bell -- to
> maintain capacity for someone ELSE's troubles.
> *When there was a nasty power failure or other disaster, only the
> traditional landlines kept working. The CO's had heavy construction
> and diesel generators and batteries. The wireless and cable companies
> had very little capacity for emergency traffic AND we learned they had
> very little battery backup in their intermediate relay stations and
> towers. (My cable has no such backup in power failures; my VOIP will
> be dead in a power failure).
As I mentioned when this came up before, the "Old Bell" companies no
longer seem to care about this traditional quality of backup service:
http://massis.lcs.mit.edu/telecom-archives/TELECOM_Digest_Online2006-
2/0869.html
Paul
------------------------------
Date: Wed, 03 Jan 2007 12:24:29 -0500
From: Fred Goldstein <fgoldstein.SeeSigSpambait@wn2.wn.net>
Subject: Re: AT&T 'Family' Reunion: Merger Approved
In V26I2, hancock4@bbs.cpcn.com wrote,
> [I had described the natural monopoly of the ILEC plant]
> Well, let me comment on this "natural monopoly". Basically, it's net
> worth has declined quite a bit and this must be recognized by
> regulators. Here's why:
> 1) Wireless and cable competition. Very simply, it is not a "monopoly"
> anymore so it should not be treated as such. (The past status doesn't
> matter, "today" is what counts). Many people use cable and/or wireless
> for their plain telephone service needs as well as advanced
> communications. It appears this is growing.
There is a duopoly (cable/ILEC) in most areas, simply because past
FCCs have been prescient enough to recognize that keeping the two
industries separate was probably a good idea. It is inefficient to
have two outside plants, but until recently, they were technologically
distinct and thus non-overlapping.
However, the current FCC pretends that competition *FOR INTERNET
CONTENT* should require separate ownership OF THE WIRE ITSELF. This
is absurd. The world can support thousands of ISPs with different
views of how to manage information, but they cannot all string wires
on poles.
> 2) The cost of entry to provide landline service was once enormous.
> With fibre and modern techniques, it is relatively easy to do so.
That is a baldfaced lie.
The cost of pulling fiber plant is higher than the cost of pulling
copper plant. Splicing is enormously expensive. The electronics
needed to light fiber is expensive -- typically it costs >$1k/home to
drop off fiber and put in the hardware needed to deliver POTS, once a
home is "passed" by fiber. Check Verizon's FiOS numbers.
HFC copper is still cheaper; a $100 cable modem can now deliver
full-quality PacketCable out of its FXS jack. But overbuilding cable
is rarely economical. If there's cable in place, the cost per home
SERVED is going to be higher than the incumbent's, unless the
incumbent is so bad that they lose most customers (happens in a few
places, to be sure, but far from the norm).
But in either case, the cost of a "third" provider is usually
enormous, if an overbuild of any type is attempted, because THE POLES
ARE FULL. This requires "make ready", where each pole may need to be
modified or even replaced. That can cost more, just by itself, than
the entire cost of building a plant on fresh poles. Just to give some
numbers, HFC plant can be built today (this is lower than it used to
be) for about $15-20k/mile if the poles all have room (happens in some
rural areas, not many cities) but make-ready can be $300-2000/pole
depending on whether it just needs some adjustment or replacement, and
there are typically 40 poles/mile. Do the math. Now figure a typical
suburban American street has maybe 40 homes/mile. What does it cost
per home to overbuild with a 20% penetration? With a 5% penetration?
> Our cable company ran coax than later fibre quickly throughout our
> area. (Indeed, cable TV needs some competition on their rates.) If
> the traditional landline company raises its rates too much a cable
> company will be able to come in and undercut it. They're doing that
> now.
Of course. At least we do have duopoly in some places, rather than
pure monopoly. But while duopoly reduces the temptation to commit the
most egregious abuses of monopoly pricing, it can get a little cozy.
In this case, though, the ILEC was, by law, the sole COMMON CARRIER
who HAD TO lease bandwidth to ISPs. Cable was never a common carrier.
(The press gets this wrong; the Brand X ruling changed nothing. Of
course Martin lied about Brand X too. I documented this pretty well
in this article: http://www.ionary.com/ion-dslisp.html .) So ISPs
went from being able to buy from one source (ILEC) to being able to
buy from zero sources. This reduces the number of ISPs from "many" to
exactly "two".
> 3) Cost of landline maintenance: The regulated side comes with many
> burdens. They must provide service to deadbeats and to all areas,
> even those where there isn't much money to be made. So, the asset of
> an established customer base, like deadbeats or grandparents with
> little phone usage, isn't worth very much in the high tech world of
> big profits.
The prices ILECs charge are normalized to 1992 cost studies, which in
turn are known to be padded with something like 20% nonexistent
capital assets. (Powell shut down the FCC's Audit Division in 2001
after early audits showed huge errors in ILEC books. See Bruce
Kushnick's ebook "The $200 Billion Broadband Scandal" for details,
http://www.teletruth.org .) Since then their costs have plummeted
(Bells got rid of roughly half the work force and the inside plant
electronics have gotten a lot cheaper) but their rates haven't been
adjusted to match -- this is "price cap" "deregulation", raising their
profit margins dramatically.
BTW a "deadbeat" is usually someone who doesn't pay their bills, not a
low user. Bells do NOT service deadbeats; they demand good credit or
deposits. A whole industry of CLECs has sprung up to service them,
mostly using prepayment to prevent loss. This has gotten harder under
recent regulatory changes, though.
> Also, the old conduits and copper lines need
> maintenance, if the copper is old the insulation may be rotting and
> worthless. So this "asset" is of very limited value as well.
Again, false -- copper lines remain useful, though the pre-1950
paper-insulated wire should have been replaced by now. And if it is
replaced, today's very high price of copper metal should encourage
salvaging of the old material. Indeed I was asked yesterday whether I
thought that Verizon would replace POTS with FiOS just to mine the
copper wires for salvage value. I suggested that the economics were
not suitable for that, especially since FiOS can't handle all
applications. But salvage value is way up.
> Let's remember that in the full regulated days the Bell System was
> accepted as a steady safe stock. But that world no longer exists.
> Investors expect big returns and landline companies, saddled with
> low end regulated customers and burdens, have trouble meeting those
> demands.
Regulated utilities were always a safe bet. Today's Bell manglers
want to run risky businesses, but moderate the risk by abusing their
monopolies. That's not an honest way to run a business, either for
the shareholders or the other bag-holders, such as ratepayers.
> 4) In essence, the Bell System world ended in 1983. Now it's
> competitors want it both ways: They want to be free to enter into
> Bell's old markets -- even at a discount -- but Bell still has to
> carry the regulatory burden.
Discount? Wholesale rates are based on cost, not "discounts", except
for Total Service Resale, whose "discount" is the "avoided cost" of
marketing and collection. The old Bell companies have very little
"burden" left.
> To put it another way, I suspect VOIP providers can't wait to offer
> service in wealthy areas, but probably don't even enter poor areas.
Again, flat-out lie. VoIP providers don't give a tinkers' dam about
where their subscribers are -- they don't own the plant,
remember? And for those wondering, telco per-subscriber revenues in
poor areas aren't much lower than in rich areas. Immingrats,
especially, run lots of international calls.
> I like the commentators (like Newsweek) that suggested customers
> keep a landline as an emergency spare if they get VOIP. That's bad
> for two reasons: 1) it gives the Bell companies the scraps of little
> business while the juicy profits go to the new guys.
The Bells can price at/above cost, rather than run a mix of
loss-leaders and gouges. That's how competitive markets are supposed
to work. Stop pining for 1963's rate structure, when a call from
Chester to Philadelphia was priced as a luxury and it was cheaper to
drive.
------------------------------
From: Sam Spade <Sam@coldmail.com>
Subject: Re: AT&T Merger Approved
Date: Tue, 02 Jan 2007 18:15:11 -0800
Organization: Cox
Neal McLain wrote:
> [TELECOM Digest Editor's Note: Humpty Dumpty comes to our rescue with
> a rhyme about Bell's current status: PAT]
> Old Ma Bell sat on a wall
> Old Ma Bell had a great fall.
> Republican lackeys and their K-Street Friends
> Finally put Ma back together again!
> -- Anonymous
Cute. Having said that, what is the real difference between a
Republican and Democrat Lackey these days? Neither gives a squat
about the American Dream.
[TELECOM Digest Editor's Note: That's why their official title is
'Republicrat' and 'Demopublican'. None of them give even an iota of
a damn. And the chances of someone who actualy does give an iota,
such as a Libertarian is almost zilch. Our 'system' does not allow
for any REAL choices. PAT]
------------------------------
From: hancock4@bbs.cpcn.com
Subject: Trivia - Telephone Use in "The Parent Trap" Movies
Date: 3 Jan 2007 08:39:40 -0800
Organization: http://groups.google.com
In 1961 Disney made a movie about two twin girls who, separated at
birth, find each other and switch places. After switching they go to
homes in distant locations across the country. They make a few
communications with each other. Disney remade this movie a few years
ago. I observed the telephone usage. Actually, considering the time,
it didn't change that much.
In the first movie, the girl was using a Princess phone, which was
still rare in 1961. The dial light was very bright and I wonder if
the phone was a model, not a real telephone set. The girl at the
other end used a black 500 set. The family was wealthy and had
colored phones all over the house, again, a rarity in those days.
(Color phones cost extra.)
In placing calls, she dialed operator. In answering the call, the
other girl heard the operator announce the call. No concern was
expressed about the cost of a long distance call.
One girl had to reach the other urgently, so she sent a Western Union
telegram. The other girl's family was quite surprised at the girl
receiving a telegram, and with a cryptic message on it. The girl
explained it was from a friend at camp and in code. She later snuck
to use the phone late at night. Her grandfather happened to catch her
and found out about the switch.
Now as to the second movie, the telephone usage was roughly the same,
except there was no operator. This time one girl lived in Calif, the
other was in London. No mention made about placing the call.
Instead of a telegram with the urgent message, a fax was sent. The
girl had to sneak to the fax machine to get it without anyone seeing
her. Her next call was at a pay phone (calling overseas not
explained), and her grandfather caught her.
Ironically, a pay phone was used in the later movie in an era when pay
phones were declining.
In the remake, I don't recall the girls having cell phones.
Overall, there wasn't much telephone use in the movies. The movie's
plot was originally from a German short story which may have been even
older and from a time when the telephone didn't figure as much.
One other observation: The original movie contained some physical
contact, that is, when the girl got too fresh with her parents they
slapped her (this happened twice). The remake had none of that. The
parents in the remake, particularly the father, seemed to be a much
"softer" character. This is a reflection of the times, in 1961, if a
kid was excessively ornery or disrespectful he/she would get slapped
or a smack on the behind. In 2000 parenting styles are completely
different. Indeed, seeing a child being slapped startled me; I forgot
how social mores have changed. In 1960 human interaction contained
more physical contact or threat of physical contact and it was
socially acceptable. Also, the father in 1961 carried a prominent
rifle on his ranch, no such item in 2000.
------------------------------
From: Rob <wahtever@wahtever.net>
Subject: Re: Telephone Building Web Page
Date: Tue, 02 Jan 2007 17:11:17 -0800
On Tue, 02 Jan 2007 00:23:14 GMT, Steven Lichter
<diespammers@ikillspammers.com> wrote:
> Anyone know what happened to the web site that had pictures of buildings
> mostly in California? I have some photos for him.
> The Only Good Spammer is a Dead one!! Have you hunted one down today?
> (c) 2007 I Kill Spammers, Inc. A Rot In Hell Co.
http://www.thecentraloffice.com/ ?
------------------------------
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End of TELECOM Digest V26 #3
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