To our non-USA readers: Broadband/IPTV Questions

Out of town Friends,

As a former Online ShoutCast Radio provider (500,000 unique sessions from 1999 to 2004) I have had my eyes and ears on the development of IPTV. I've watched how the cost of online digital distribution of multimedia content have progressed over the past 4 years. Now that IPTV has started to rear its wonderful head here in the US (see VIPTV, IP-Prime, Sky Angels, P2P, BT and all of the major Cable/Satellite-delivered networks, etc.) PLUS many of us metropolitans are getting pretty fat pipes to the 'net, we're are still literally 2-3 (or more) years behind you all!

How do your communities overcome the bandwidth bottle-necking due to such large bandwidth consumption by us consumers?

I know that if all my neighbors would watch as much streaming online HiDef programming as my family does each day we'd all be completely unsatisfied! We are just now starting to see/hear reports about ISP's, Telco's, WiFi providers and Cable companies here in the U.S. are beginning to throttle (i.e slow down) their subscriber's broadband access due to high individual consumption, rather large consumption I must say. Satellite broadband providers have been doing this for years, from its inception in fact, seeing satellite bandwidth delivered via the Clarke Belt is 10X more expensive than terrestrial bandwidth.

HDTV downloads and especially streams all take a large pipe, a rather large pipe to feed the 100's or even 1,000's of people at any given moment, on demand like they do. The move here in the U.S. is for Telco's to get into the act. There are dozens of them who have already secured OC192 (or higher) connections just to serve their customers. That's a lot of bandwidth by today's standards BUT it's going to keep getting worse for them (and better for us). Are the costs associated with starting up such a venture realistic for your local bandwidth provider? Will this open up opportunities for new companies who don't have the burden of an established infrastructure to maintain/upgrade?

Can you tell us how things are progressing in your neck of the woods, countries, cities and towns so we can prepare here is the U.S.? How are Internet providers coping? How are they handling things? What are the new developments to overcoming bottle-necking? Are you satisfied? Are there any new trends we need to look out for? Are there some producers/web sites that stand out for you?

Please link to stories, reports and message board posts to help us make sense of all of this, OK?

Thanks in advance.

Sincerely,

Thomas William
Vice President of Partner Solutions
Broadband in a Box
1302 Clear Springs Trace
Louisville Kentucky 40223
Direct: (502) 426.2067
Toll Free: (800) 761.9149
Cell: (502) 263.9879
Fax: (502) 515.3710
Email: tomw@bbinabox.com
Download: www.bbinabox.com/docs
Blog: broadbandinabox.blogspot.com
Chat: broadbandinabox@gmail.com
Network: linkedin.com/in/broadbandinabox

FairPoint Goes Wireless To Reach 'Last-Mile' Customers

According to the New York Times, Telcos and wireless providers are losing upwards to 30,000+ subscribers and prospects respectively a month to retail last mile providers. Those numbers are only going to go up. The Broadband in a Box white label wholesale solution can stem that tide, where you can compete and win with a lower latency and cost and higher uptime solution today. You might as well have subscribers left to upgrade to your terrestrial solutions right?

Thomas William

VP Partner Solutions

Broadband in a Box

1302 Clear Springs Trace

Louisville Kentucky 40223

Direct: (502) 426.2067

Toll Free: (800) 761.9149

Fax: (502) 515.3710

Email: tomw@bbinabox.com
---------------------------------------

Posted: Jan 22, 2003

CHARLOTTE — Editor's note: Charlotte Beat is a regular feature on Wednesdays.FairPoint Communications is going into the "Wi-Fi" business.

Hoping to capitalize on one of the hottest growth sectors in telecommunications, the Charlotte-based operator of rural local exchange companies said Tuesday that it would install 802.11b Wi-Fi standard wireless equipment for 20 rural communities.

FairPoint, which was founded in 1991, now operates 29 RLECs across 18 states, including Georgia, Florida and Virginia.

"We are continually looking for ways to provide advanced services to our rural customers, services that otherwise are not available from other service providers because of their economic considerations," said Bob Ingram, senior vice president of operations and engineering for FairPoint, in a statement.

Wireless local area network services revenues are expected to total $2.8 billion in 2002, up from $2.1 billion in 2001, according to Dataquest. Some 26.5 million wireless LAN units are expected to be sold this year, up from 15.5 million units in 2002, and growth is projected to be strong through at least 2007, according to Dataquest.

Using the 802.11b wireless service will enable FairPoint to offer high-speed Internet and data services to business users and consumers without having to install fiber or upgrade copper plant for digital subscriber line (DSL) services.

Extending high-speed services the "last mile" has proved to be an expensive challenge, especially for RLECs which service less densely populated areas.

In North Carolina, for example, the Rural Internet Access Authority has used a variety of grants to foster expansion of wireless and other means of high-speed service where telecommunications companies had declined to expand or upgrade.

BellSouth, meanwhile, has launched a high-speed wireless trial in Daytona, FL.

FairPoint chose to license equipment from KeyOn Communications. KeyOn has patent-pending technology for wireless data and operates a citywide network in Las Vegas.

FairPoint did not identify the communities where the service would be offered, nor did it specify costs other than to say the Wi-Fi offering would be a "high quality, cost-effective method to receive broadband."

Jonathan Snyder, chief executive officer of KeyOn, told The Las Vegas Review-Journal that FairPoint would offer the service first in central Ohio, upstate New York, Maine and Florida.

Snyder said the licensing deal is the first for KeyOn, which has some 500 customers in Las Vegas. KeyOn has been offering the service for about three months. The service is priced at $24.95 a month plus $50 for installation.

According to its most recent published figures, FairPoint has 245,306 lines, 123 exchanges, and more than 1,100 employees.

The company has not yet released fourth quarter earnings. Through the third quarter 2002, FairPoint reported a 1.7 percent drop in revenues, to $174.3 million, but did improve earnings before interest, taxes, depreciation and amortization to $33.5 million, up 11.3 percent. For the first nine months of the year, EBITDA hit $100.4 million, up 7.2 percent.

Through Dec. 31, 2001, FairPoint reported revenues of $235 million, EBIDTA of $124 million, and assets of $849 million.

Eugene Johnson, one of the company's co-founders, took over as chief executive officer of FairPoint a year ago and recently was named chairman of the board. He was executive vice president of corporate development before taking over as CEO. Johnson, a graduate of the University of North Carolina Charlotte, is a board member of UNCC's foundation.

[source]