Survey Shows Heavy Industry Leading IoT Deployments

In 2016, 43 percent of organizations will either already be using the Internet of Things or be implementing it within their environments, according to Gartner’s survey of 465 IT and business professionals. Some 29 percent of respondents already have deployed IoT technologies. Some 14 percent expect to do so in 2016. “Heavy” industries , including utilities, energy suppliers and manufacturers are lead users at present, with 56 percent of businesses in those categories indicating that they will have implemented IoT by year’s end. “Up until now, the leading adopters of IoT have been more the industrial, heavy-industry-type businesses” involved in mining, manufacturing and the like, Gartner research Chet Geschickter, said

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Survey Shows Heavy Industry Leading IoT Deployments

Sigfox Launches 100-City U.S. IoT Network

Sigfox, the Internet of Things communications network, is deploying across 100 U.S. cities in 2016.  Sigfox operates in the non-licensed ISM bands (similar to Wi-Fi), using the 868 MHz band in Europe and the 902 MHz band in the United States. Sigfox is optimized for low-power, low-bandwidth Internet of Things devices that must communicate over metropolitan area distances. By way of comparison, Sigfox signals propagate further than GSM (2G) signals

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Sigfox Launches 100-City U.S. IoT Network

Ecosystem Value of "Access" is Declining

One hard reality of the access provider (we used to call this “telecom” ) business is that ecosystem value in the “access networks” portion of the business is going to be under increasing and persistent pressure over the next couple of decades, at least in developed nations. Google Fiber, other independent Internet service providers, municipal Wi-Fi and mobile Internet access to an extent are going to reduce demand for traditional Internet access provided by fixed line providers. So lower revenues and lower profit margins are almost certainly going to be on-going pressures within the access business. Not only are new providers having lots of success in the market, notably cable TV providers and more recently perhaps Google Fiber, independent ISPs and a growing number of municipal networks, but we are far from exhausting what could happen in the future with new or rival platforms

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Ecosystem Value of "Access" is Declining

More Evidence that a Fixed Wireless Renaissance is Underway

Here’s one more sign that fixed wireless is undergoing a renaissance in the U.S. market: Verizon will first introduce 5G as a fixed wireless service. With Google , Facebook and AT&T exploring, testing or intending to deploy fixed wireless  for Internet access networks, the fixed wireless industry is on the brink of major redefinition. AT&T alone has said it would use fixed wireless to serve 13 million locations.

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More Evidence that a Fixed Wireless Renaissance is Underway

Google Fiber Launching in Nashville

Google Fiber is launching symmetrical 1 Gbps in Nashville. By itself, the launch might not “move the needle” on the number of U.S. consumers buying, or able to buy, gigabit or other high-speed access in the hundreds of megabits per second range. But it is hard to argue that Google Fiber has failed to change the market , even if competitors sometimes say, with an apparently straight face, that Google Fiber has not affected their thinking at all.

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Google Fiber Launching in Nashville

Virgin Media Access Upgrades Illustrates Principle That Apps Matter More than Access Method

In the broader Internet ecosystem or the “telecommunications” business, it ultimately is the apps that matter, and less the details of infrastructure. Consider the way Virgin Media plans to upgrade access to 17 million U.K. households by 2019. At least a quarter of the four million locations to be upgraded as part of Project Lightning will be connected using fiber to the home platforms, rather than the traditional hybrid fiber coax platform

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Virgin Media Access Upgrades Illustrates Principle That Apps Matter More than Access Method

It is Getting Harder to Compare T-Mobile US and AT&T; Business Models are Highly Different

Different business models now showing up in AT&T and T-Mobile US operational results. T-Mobile US touts its success gaining phone accounts. AT&T is growing in other lines of business, including video and Internet of Things. One can compare the mobile net adds, certainly.

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It is Getting Harder to Compare T-Mobile US and AT&T; Business Models are Highly Different

Mobile Serves 88% of India Internet Access Accounts

As of 29th February, 2016, the top five fixed network high speed access service providers were BSNL (9.91 million), Bharti Airtel (1.71 million), MTNL (1.11 million), Atria Convergence Technologies (0.91 million) and YOU Broadband (0.52 million), according to the latest data from the Telecom Regulatory Authority of India. But most consumers buy from mobile providers.  As of 29th February, 2016, the top five mobile Internet access providers were Bharti Airtel (35.22 million), Vodafone (26.44 million), Idea Cellular (22.20 million), Reliance Communications Group (15.52 million) and BSNL (10.00 million). In other words, fixed networks supported about 11.5 percent of Internet access accounts.

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Mobile Serves 88% of India Internet Access Accounts

Can Telcos Become Platforms?

Telcos can become “Integrated Digital Service Providers” (IDSPs) that function as platforms, Accenture argues, essentially getting out of the “communications” business. In yet one more iteration of the “moving up the stack” strategy, Accenture suggests telcos can become “platform companies” that use social, mobile, analytics and Internet of Things tools  to build a business architecture and set of services that enables other businesses to rapidly develop and deploy the products and solutions needed to drive their digital strategies. That probably sounds like “middleware” to some; “operating system” to others. Time will tell whether any firms actually will be able to become “digital platforms,” or whether, in the end, the effort will fail. For more than a decade, we all have heard, seen and read commentaries suggesting that “digital disruption” somehow can be turned to a traditional telco’s advantage

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Can Telcos Become Platforms?

20% of U.S. Households Rely Exclusively on Mobile for Internet Access

As “wireless substitution” gutted the fixed network voice business, there now are growing signs that mobile has become an effective substitute for fixed network Internet access. “ Mobile Internet service appears to be competing more directly with wired Internet connections,” says Giulia McHenry, National Telecommunications and Information Administration chief economist. Between 2013 and 2015, “the proportion of online households that relied exclusively on mobile service at home doubled between 2013 and 2015, from 10 percent to 20 percent,” she says. About 75 percent of U.S  households using the Internet at home in 2015 still used wired technologies for high-speed Internet service, including cable TV high speed access, digital subscriber line and optical fiber connections, she notes.

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20% of U.S. Households Rely Exclusively on Mobile for Internet Access

Why Comcast is Installing Direct Fiber for Gigabirt Pro Services

There is a good reason Comcast is making symmetrical 2 Gbps fiber-based Internet access available across much of its footprint, described as reaching 18 million homes, or about 85 percent of its current network footprint. For consumer customers, the Gigabit Pro service allows higher bandwidth than the 1 Gbps standard Comcast now is preparing to offer all consumers. But 2 Gbps symmetrical, provided over a direct fiber to home connection, will be more important for business customers.   Chris McReynolds, Level 3 VP, says Level 3 does not consider Ethernet-over-HFC service to be competitive with the business Ethernet services that Level 3 sells to business customers. Jitter is the problem.

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Why Comcast is Installing Direct Fiber for Gigabirt Pro Services

U.S. Fixed Wireless Market About to be Rearranged

With Google , Facebook and AT&T exploring, testing or intending to deploy fixed wireless  for Internet access networks, the fixed wireless industry is on the brink of major redefinition. AT&T alone has said it would use fixed wireless to serve 13 million locations. Others such as Starry , also are hoping fixed wireless emerges as a major platform for providing Internet access. In 2012, there were perhaps 2,000 to 2,500 fixed wireless Internet service providers supplying Internet access to two million to three million subscribers in the United States, according to the Wireless Internet Service Providers Association.

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U.S. Fixed Wireless Market About to be Rearranged

Google Fiber Unveils New 25 Mbps Symmetrical Service in Kansas City, for $15 a Month

How much should 25 Mbps symmetrical service cost? $15 a month, Google Fiber essentially says, as it introduces a new “budget” plan for residents in Kansas City, Mo. and Kansas City, Kan. Google Fiber neighborhoods with low rates of Internet connectivity . In some U.S.

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Google Fiber Unveils New 25 Mbps Symmetrical Service in Kansas City, for $15 a Month

Ingenu Launches IoT Network in Dallas

Ingenu, a supplier of a machine-to-machine network platform, has launched in Dallas. The Machine Network is intended to provide Internet of Things ( IoT ) connectivity to the region and will cover approximately 2,116 square miles, serving a population of more than 4.4 million people. The Machine Network is powered by Ingenu’s RPMA (Random Phase Multiple Access) technology, designed to provide robust, reliable connectivity for M2M apps. Application development for the Machine Network is currently underway with partners such as Dallas-based, Plasma , said to be a leader in enterprise digital transformation and IoT.

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Ingenu Launches IoT Network in Dallas

Facebook’s 10-Year Roadmap Includes "Connectivity" as Among Top 3 Technology Directions

Here’s another illustration of growing changes in the Internet ecosystem that pose a huge challenge to incumbent access providers. Facebook has released some details about its 10-year roadmap. On the agenda: virtual reality, artificial intelligence and “connectivity.” Connectivity includes drones, satellites, terrestrial solutions, telco infrastructure. A couple of key points: Internet access no longer is the exclusive province of telcos, cable TV, fixed wireless or satellite providers of Internet access. Many other entities, including ISP businesses set up by local government, independent ISPs and application provders, are going to bundle Internet access with their other products.

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Facebook’s 10-Year Roadmap Includes "Connectivity" as Among Top 3 Technology Directions

What 4G Tells Us About Future of 5G

If our experience with 5G is anything like 4G, business model assumptions will include: Build it and they will come Cost to deliver a retail gigabyte to customers will drop Revenue for delivering a retail gigabyte will not increase Any new “killer app” will be discovered: we do not know what it is, yet “Dumb pipe” still will drive most of the growth, but managed services will drive most of the gross revenue (globally). The mobile industry has tended to replace its network by a “next generation” network about every decade and nobody seems to think that will end. Though the phrase “build it and they will come” (hope, in other words) is a discredited business model in many quarters in the wake of the Internet bubble around the turn of the century, it rather neatly captures actual reality in the mobile business. Every next generation network has, in fact, created its own demand

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What 4G Tells Us About Future of 5G

WOW! Business challenges AT&T by lighting fiber in 38 Chicago center business district buildings

WOW! Business is extending its fiber to Chicago's Willis Tower, giving occupants access to dedicated Internet access speeds of up to 10 Gbps, threatening local incumbent AT&T with an alternative set of services for local business customers.

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WOW! Business challenges AT&T by lighting fiber in 38 Chicago center business district buildings

Will Marginal Cost Pricing Kill the Telecom Business?

Marginal cost pricing is an important principle in many markets, including some parts of the telecom business, from time to time. Products that are “services,” and perishable, are particularly important settings for such pricing. Airline seats and hotel room stays provide clear examples. Seats or rooms not sold are highly “perishable.” They cannot ever be sold as a flight leaves or a day passes

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Will Marginal Cost Pricing Kill the Telecom Business?

Transparency, Consumer Expectations, Behavior All Play Role in Service Plan Choices

Transparency–and consumer knowledge–always is something of an issue with smartphone and Internet access products. Rare is the consumer who actually understands how much data he or she uses, how a change in behavior might affect usage, or how using a new network and device might lead to changes in consumption. And then there are the other ancillary charges that cause friction (taxes, fees, rental charges). The Federal Communications Commission, for example, announced new voluntary broadband labels to provide consumers of mobile and fixed broadband Internet service with easy-to-understand information about price and performance.

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Transparency, Consumer Expectations, Behavior All Play Role in Service Plan Choices

Google Fiber Adds Voice Services

Google Fiber customers now have the ability to buy phone service for an incremental $10 a month. In the past, Google has maintained that voice service was a rather low priority for its Google Fiber service, with video entertainment a more-logical and important companion service. The latest turn of events might suggest a couple of new lines of thinking. Perhaps Google now has found that gross revenue for its Google Fiber networks, even using the neighborhood approach, is simply not high enough with just two services to sell.   Perhaps the move suggests voice now is believed to be an important service element, either to attract new customers or retain them.

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Google Fiber Adds Voice Services

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