November 2006 Archives

Air Blown Fiber Market to Grow

November 15, 2006 9:55 AM | 0 Comments
They say death and taxes are the only two certainties in life but I wonder if in the technology space we could come up with a couple of certainties as well. I would say the need for "bandwidth" and the pace of "change" are the two certainties we must contend with in tech. As bandwidth hungry IP communications becomes more prevalent companies need to focus on network capacity to ensure they can easily carry voice and video with excess capacity left over for other important network functions. Not every company is carrying voice and video on their networks today but it seems the trend is certainly going in that direction.
 
The challenge for IT departments of course is knowing what the applications of importance will be six months from now and perhaps as importantly six years from now. One answer to the dilemma is to buy the most expensive bandwidth solution you can find – or the most expensive fiber in the hope that the technology will have you covered for years to come. Of course with the continuous change in fiber technology taking place, who knows if today's fiber deployment will be obsolete in a few years.
 
I had a chance to speak with Sumitomo Electric about a solution to the problem which is their FutureFLEX Air-blown Fiber Technology. The solution uses tubes and instead of laying dark fiber. This is a great solution as it does not require you to purchase the fiber before you need it. This allows you the ability to avoid purchasing obsolete technology and overspending. In addition you don’t need building permits or construction to lay new fiber. The solution uses empty tubes that are ready at any time to be filled with fiber, instead of laying dark fiber.
 
When you want to add more fiber you can blow out the old fiber and blow in new fiber at 150 feet per minute. This is done via distribution boxes which are located throughout a building. This allows you to preserve your fiber investment.
 
The company’s current customers include many household names such as CNN, ESPN, Mayo Clinic, DFW International Airport, Pentagon, Nissan, Johns Hopkins University, Homeland Security and Intel so it is surprising the air blown fiber market hasn’t received more publicity.
 
Recently I found out that University of Phoenix Stadium (Home of the Arizona Cardinals) became the First NFL facility to deploy Sumitomo’s FutureFLEX solution. The 1.7 million square foot facility includes wireless network access from every seat for fans, seamless voice, data and video for facilitating Cardinal team-member communications, and quick-response FutureFLEX-enabled network reconfigurations for the stadium’s concession vendors, event customers, and numerous broadcasters that demand quick network changes to meet their continuously changing requirements.
 
Mark Feller, technology director for the Cardinals said in an announcement, “The FutureFLEX infrastructure makes it possible for us to bring on new capacity in hours or days, rather than weeks or months. It resolves many IT issues by providing immediate scalability and quick and easy fiber installations (without construction crews disrupting operations or the facility) for a bandwidth-ready network backbone.” He continued, “The FutureFLEX system also eases the planning and budget process for not only expected network growth, but enables us also to meet quickly any unexpected network expansions, moves, adds, and changes required to accommodate future technology and new projects or events, such as the hosting of the Fiesta Bowl and 2008 Super Bowl XLII. Based upon these benefits, FutureFLEX is changing the way IT views the physical layer.”
 
Ballparks are looking to become more technologically advanced these days and Cisco is an integral part of the solution in Arizona. In addition, Cisco recently made it known they are working to build the most advanced stadium in the world for the Oakland A's in Fremont, California. Cisco insiders tell me the company had excess real estate acquired during the bubble times and they felt their future expansion could be handled with real estate they have on hand. Subsequently Cisco seems to be potentially donating some or all of the land in exchange for marketing and other stadium rights.
 
But getting back to certainties in tech, "bandwidth " and "change" are what many IT managers have to contend with on a daily basis. With that in mind, Sumitomo Electric wants to be the equivalent of your doctor and accountant, enabling the rapid evolution of the physical layer of your network regardless of what your bandwidth needs will be or how technology changes.

Caritas/Comcast VoIP Patent Victory

November 14, 2006 10:26 AM | 0 Comments
The VoIP market won a victory in Texas yesterday with Comcast defending itself successfully against a $2.2 billion lawsuit brought on by Caritas Technologies. The company was formed by four men, including David Farber, who many consider the grandfather Internet, was awarded a series of VoIP-related patents. One, in particular, Caritas claimed could be read to include calls that were made partly using VoIP connections and partly across the PSTN. Essentially, Caritas was claiming to have invented to capability to connect calls running partially on the PSTN and partially on IP networks, explained Daralyn Durie, attorney at Keker & Van Nest, LLP, representing Comcast in the case.
 
In the suit, whereby Caritas sought to end the Comcast Digital Voice (CDV) VoIP service offering, Caritas alleged that CDV infringed on Caritas’ patent rights, and in a claim construction hearing on July 31, the main issue was the term, “telephone connection in a telephone network.” Comcast held that the patent owned by Caritas was intended as a way to set up conference calls on the PSTN, not a way to have actual voice signals transmitted over an IP network. Caritas, conversely, argued that their patent could be interpreted to cover these hybrid PSTN/VoIP calls.

The court subsequently issued a ruling in accordance with Comcast’s stance, asserting that the term, “telephone connection in a telephone network,” means a circuit-switched connection between telephones.
 
So we are entering a phase of the VoIP market where the technology has become successful enough to warrant more and more companies looking for a piece of the action. There are all sorts of angles to play here from patents to partnering. Remember the recent controversy about RTI suing Google over VoIP patents. The VoIP market although a fraction of the PSTN in terms of revenue is growing rapidly and there seems no doubt that all calls will eventually run over IP.
I was very excited to learn today that I was honored to be part of The 50 Most Influential People in VoIP. The list starts with the Asterisk community followed by the FCC, Congress and Cisco. Further down the list are the bloggers. Starting at #26 with Jeff Pulver, Andy Abramson, Om Malik and yours truly at 29. Good news for Greg Galitzine who ranks at 35. TMC’s newest blogger Russell Shaw (news on what he is covering will break tomorrow) weighs in at 36. Tom Keating, TMC’s oldest blogger also made the list at 37.
 
The most interesting number on the list is 17 which reads: Bryan Martin, Packet8 – Went public before Vonage. May be around after them.
 
TMCnet was also honored under the heading The Anchormen – VoIP News Teams. The site was ranked #2 under this particular list – making it #43 -- behind VoIP News and just ahead of Network World who rounded out the list at #44.
 
I think this is a good list but I am not sure how 3Com made it at all let alone #8. The last five years for this company have been a downward spiral in virtually everything they do. This company still has a great name and this is amazing considering how much their leadership and message has changed over the past half decade. Words like pathetic are what ex-employees use to describe senior company management. Still their early NBX work in the late nineties was almost a decade ahead of most of the competition. But if they are doing lot of VoIP research today they are certainly keeping it a great secret from many.
 
Here is what I wrote about the company in Internet Telephony Magazine in May 2001.
Can Someone Throw This Company A Map?
By the way, what exactly is 3Com doing with their company? Here was a runaway leader in the corporate networking market, one who happened to make the hottest handhelds in the business, to boot! With the inevitable convergence of more and more disparate products and the future of computing pointing to handheld devices, why would you give away your crown jewel and spin off Palm as a separate company? As I mentioned, the Palm platform provides a great deal of leverage. The question becomes even more important in light of the fact that 3Com discontinued their enterprise networking product line last year upsetting a tremendous amount of their installed base. 3Com is the only company I know that is discontinuing their product lines faster than it is launching new products. This company seems to have lost its way.
 
By the way I was berated by the PR department of the company for writing this. Less than a year later the PR people doing the berating left the company. Enough said.
 
One other comment is I think Alec, Jon, Skype Journal, Mark Evans, Garrett Smith, Greg Galitzine, Russell Shaw, Tom Keating and VoIPNow belong ahead of me on the list. I also think Voxilla would have been a good addition.
 
So thank you VoIP-News. You guys are awesome and I appreciate the recognition for not only myself but my fellow blogging community members who toil endlessly – many of us for the lure of getting rich quick via Google’s advertising network. :-)

Google: Free Cell Phones

November 13, 2006 1:03 PM | 2 Comments
Eric Schmidt says cell phones should be free. Google has no plans to give away cell phones but is obvious the company is perfectly positioned to show their ads on the small screens of cell phones. Just as newspapers and magazines have lower subscription costs due to advertising support, Schmidt sees the same thing happening to mobile phones. Google has recently spent considerable time and effort on designing applications for mobile devices and it is logical that "gadgets" will be a strategic area for the company in the coming years.

Showing Kevin Martin the Door

November 13, 2006 11:34 AM | 0 Comments
David Isenberg weighs in on FCC Chairman Kevin martin and why he should be shown the exit. Here is an excerpt:

Martin's appointment to a second term as FCC Commissioner is pending Senate confirmation. I like Kevin; he's personable, he's articulate, he understands the issues in deep detail. But he shouldn't be confirmed.

Martin has not championed the Internet or its future; he seems intent on strengthening the old telco business model. Under his leader chairmanship, U.S. Internet connectivity has fallen ever further behind the rest of the world. U.S. citizens pay more for less Internet connectivity than most developed nations.

Dems Bullish on Tech

November 13, 2006 10:11 AM | 2 Comments
Regardless of your political affiliation you must realize the technology boom was stronger under the Clinton administration than Bush. Sure Al Gore didn’t invent the Internet but at least he used it. The fact that Dick Cheney didn’t know what Napster was during his first campaign and the fact the president uses the terms “the Google” and “the Internets” is pathetic. How can the US be leaders in tech if our leaders are so oblivious to the space? Even lovers of the Bush administration realize he has done as much for technology as Kevin Federline has done for Britney Spears.

So from a technology perspective let’s welcome the Democrats with open arms. Sure the party is in bed with Hollywood – typically an anti-technology group but other than that let’s look on the bright side.

Many Dems are pro Silicon Valley and Nancy Pelosi seems to be a staunch tech supporter. Thankfully.

A year ago this month, after extensive meetings with VCs and entrepreneurs, Pelosi unveiled an "innovation agenda" that called, among other things, for broadband access for all Americans, whether it comes via Wi-Fi, WiMAX or a fixed line by 2010.

Also it would seem that Net Neutrality is all but assured under the new leadership and there will be more H-1B visas allowed per year. Business 2.0 has a good story on some other changes to expect.

WiFi Exploit

November 13, 2006 9:49 AM | 0 Comments
There is a new WiFi hole that needs patching and it seems many laptop users could be at risk . Using the exploit a malicious user within a few hundred feet can take control of someone else’s laptop. The problem is a flawed Broadcom device driver which has found its way into many different laptops and devices from companies like Linksys and Zonet.

Paul Vixie, a ZERT (Zeroday Emergency Response Team) volunteer, said Microsoft's Windows Update and Automatic Update patch deployment network could play a huge role in pushing fixes out to affected machines, but he said that process would likely be complicated and take some time.

"Any way they try to address this is going to be a mess, and moving the fix to the user is going to be a lot like moving water with a fork," Vixie said. "This is dangerous because we know that people who like to do bad things are going to take advantage of this, that's no longer an open question."

What is the average user to do while waiting for a patch? Well this article suggests disabling your WiFi.

FMC Research

November 11, 2006 4:10 PM | 0 Comments
While the recent ABI FMC report gushes with optimism regarding the FMC market I get the feeling their numbers are off by a bit if not a great deal. ABI says fixed mobile convergence technology will cost operators more than $450 million during the next five years.

ABI also predicts that in 2011, operators will generate $97 billion (yes, that's billion, not million) in FMC service revenue.

Here is the problem in my opinion. First of all, operators will likely spend more than they first intend on this equipment so I would say the $450 million could exceed a billion dollars pretty easily. Is this based on hard and fast research by yours truly? No. I just see massive opportunity to get into the space and roll out leading edge services.

I am seeing more and more announcements of FMC rollouts which leads me to be pretty optimistic about this market. For example Broadsoft just enabled the Faroese islands to have fixed mobile convergence. Then there is Reef Point Systems who recently rolled out new FMC products. Nortel is pushing to be a leader in this space as is Brix Networks and Radisys.

So while it is tough to predict how much spending there will be, certainly many companies are trying to get into the game and as they do they will evangelize and get more service providers to consider such solutions.

But once consumers get accustomed to phones that work on WiFi I get a bit pessimistic.

I think it will be tough for service providers to generate $97 billion dollars. Here is the challenge. People will be able to speak over WiFi networks for almost nothing. They will have a tough time paying for carrier wireless networks. The perceived value will be lower than anticipated.

But then again the whole issue here comes down to coverage. Will people have to speak wherever they are? Possibly. Will they pay for this privilege? Certainly business customers will. Also will there be WiMAX and other wireless competitors coming onto the scene? I imagine mesh network technology could easily cover major cities allowing new service providers to compete in these areas at a very low cost.

So major service providers have a tough competitive challenge ahead of them. The market could be absolutely massive for FMC solutions but a bevy of disruptive technologies could change the outlook.
You know I have been meaning to blog about Mike Tribolet speaking at Internet Telephony Conference & Expo for a while but got sidetracked with a million things. As luck would have it I am going to be on the road tomorrow – I thought I would be out today. But back to Mike, this is one of the first speaking opportunities Mike will have since Vonage has gone public and since he has been promoted to President.

I am sure there will be many questions answered by Mike Tribolet at the show and I can’t wait for this keynote which will take place 10:30 to 11:00 on Thursday, January 25th 2007 in Ft. Lauderdale, FL.

Mike is a veteran of the VoIP industry and perhaps is best known for working at DialPad Communications. As you may recall DialPad is a part of Yahoo! now and they were way ahead of the VoIP curve. At the company’s peak they had somewhere near 20 million subscribers using their service for PC to phone calls.

The company’s flaw (like just about everyone else) was they thought they would be able to sell ads to monetize their growth. This didn’t happen and we know about the post-bubble issues. I am digressing but Mike has certainly seen the riches to rags to riches story live in his career. I am looking forward to hearing what he has to say.

There is just so much speculation about this company. The best way to hear what the future of Vonage is will be coming to the show.

Cash that Check -- Go to Jail

November 9, 2006 11:17 AM | 0 Comments
Apparently it is becoming increasingly possible to go to jail when you receive a fraudulent check. This can happen when selling products on craigslist and eBay.
 
An article in the San Francisco Chronicle explains San Francisco resident Matthew Shinnick tried to sell a pair of mountain bikes on Craigslist late last year. He attracted a buyer, received a check in the mail -- and ended up handcuffed by police in a downtown Bank of America branch and jailed for almost 12 hours.

Shinnick, it appears, was a victim of the classic "Nigerian 419" scam, adapted in this case to sucker in unwary Craigslist users.

Typically, the scam involves a bogus check being sent by a fraudster as a part of a transaction. The transaction is subsequently canceled and, before the bank has spotted the check as a phony, the fraudster requests some or all of his money back -- money that the victim unknowingly pays out of his own pocket.

Shinnick said he wasn't aware of the scam while he was negotiating to sell his bikes -- his first foray onto Craigslist. But he was made suspicious by the unexpectedly large payment.

Shinnick said, he'd spent about $14,000 clearing his name. He wanted that money back and he felt Bank of America the bank who reported the fraudulent check and had him arrested should pay it.

BofA felt otherwise. Earlier this month, a bank vice president, William Minnes, wrote to Shinnick's lawyer to say that "Bank of America can certainly understand that your client is angry at the bank."

However, he said, BofA has no legal liability in the case because of the 2004 Supreme Court ruling. Minnes warned that "litigation would not prove financially beneficial" to Shinnick.

Minnes was referring to a 2004 state Supreme Court decision that shields institutions and people from liability when reporting suspected crimes to the police.

Certainly this is an extreme case but is one that could become increasing annoying to customers selling products online. It would seem that the government and police should become more familiar with this sort of problem and not arrest first and ask questions later.

As far as Bank of America goes, despite articles to the contrary, what choice does the company have? They are legally obligated to report illegal activity. Still perhaps it up to the banks to become aware of this problem and proactively solve them before all of their customers migrate over to PayPal.

Camrivox

November 9, 2006 10:36 AM | 0 Comments
Yesterday I ranted a bit about VoIP devices and the fact they aren’t interoperable. I just learned about a product from Camrivox that supports SIP and Google Talk. Now if we can get Skype and Yahoo! support we will be all set.

Heading to Jersey

November 9, 2006 7:56 AM | 0 Comments
I am getting ready to travel to new Jersey today. If you are in the northeast you know about the monsoon we had yesterday. Weird things are happening with the weather these days. I just stepped outside without a jacket and it felt like early September. Still I prefer the warmth to cold so I am happy. It should be good driving weather today. I will keep you posted.
Tom has done it again with his review of the Linksys CIT30 Phone for Yahoo! Messenger. My take on this nifty new gadget is it is great but. But what you ask? How can such a cool new sleek device with built in presence and the ability to connect with all your Yahoo! contacts need improvement?. Well simply these devices are not interoperable and as such they stink. Sure they work fine with other users of the same service but we need all these devices federated and ideally everyone will support SIP. I don’t want a Yahoo! phone, a Google phone a Skype phone and why not a bat phone while I am at it. I want a single phone allowing me to use VoIP to speak with other people who also use VoIP. Why must this be so difficult?

It is time for a hardware manufacturer to come up with a phone that works with all the various frequencies and protocols. Just make it simple and make it work and I will buy it.

It is worth noting that Tom touched on these points as well:

Room For Improvement

Currently, the Linksys CIT310 doesn't support incoming instant messages (IMs) - neither does the Linksys CIT200 Skype model. I'd even settle for a simple alert message on the phone that an incoming IM came in, in case you're away from your desk, but obviously the actual message would be even cooler. As with all these proprietary phones I've tested - whether they work exclusively with Skype, or now exclusive to Yahoo, I wish they'd be more open and support industry standards, such as SIP. Yahoo! Voice does use SIP, but as far as I can tell, the Linksys CIT310 is "locked" to using Yahoo. If instead of "replacing" Yahoo Voice as the SIP termination service provider, it would be nice if the phone at least supported adding in your own SIP credentials in addition to supporting Yahoo Voice. But alas, as with any industry, exclusive partnerships are often the key to success, so who am I to knock Linksys and Yahoo for doing this?

Pactolus

November 8, 2006 4:56 PM | 0 Comments
Many in the industry have told me how concerned they are about the open-source telecom movement and how the margins in the telecom business are being stripped out. But in the brave new world of the internet companies like Skype seem to have a model others need to emulate.

As we know Skype gives away software and many features but charges for many calls – incoming and outgoing.

Asterisk and Pingtel took the concept further with an open-source PBX which effectively gave the enterprise a free software based phone system.

Now the concept has evolved again as companies such as Pactolus look for ways to leverage the open-source movement to help them gain traction in the more complicated application server, and software media server markets.

To launch this effort, the company has introduced its online developer community, www.SIPdev.org, which features a SIP-based service creation environment, application server, and software media server-a comprehensive environment including everything developers need to rapidly create innovative, media-rich applications for next generation VoIP and IMS networks.

So what does this mean for the market? It seems taking your proprietary products and “open-sourcing” them is the next big thing. Perhaps we will call this VoIP 3.0. There will likely be a huge land grab here to see who can have the best development environments in telecom. One thing we have learned from Asterisk is being first is important. In addition the open-source community is a different beast than the commercial developers we are used to. For them the whole use of open source is more like religion than a way to make money.

So now a slew of these so called penguin-worshippers will have an opportunity to play with the Pactolus development environment and give great products back to the community.

The question worth asking of course is how to make money in a world where increasingly more and more of the intellectual property is given away for free.

If you can gain critical mass, you can monetize open source with service agreements, consulting and business edition type plays. Digium the creator of Asterisk also sells hardware – which puts them at odds with many of the other companies selling hardware for the Asterisk PBX. How Pactolus makes money from all this will be worth watching.

In the end, open-source success is about scale and your ability to attract top-ranked talent to your platform. There is a limited window of opportunity for companies to go open source as the developer community is likely not endless.

I applaud Pactolus for making this leap and taking the risk to do what they have done. Now I can’t wait to see if some truly cutting edge open-source IMS applications are developed on their platform.

Inter-Tel Buyout Withdrawal

November 8, 2006 3:08 PM | 0 Comments

Vector Capital and former Inter-Tel CEO Steven Mihaylo said they withdraw their bid for Inter-Tel. Recently Inter-Tel shareholders rejected the takeover proposal. 11,272,46 shares were voted against the Mihaylo Resolution, representing slightly over 50% of the 22,524,535 shares of the Company's common stock that were represented in person or by proxy.

Stockholders who voted, other than Mihaylo, rejected the resolution by approximately a two to one margin. This is obviously a very substantial number. Mihaylo owns approximately 19.4% of Inter-Tel's outstanding common shares.

Personally I think current management at the company is doing a good job and it would seem shareholders agree. The company is coming out with many new and innovative products and is aware of the need to get developers on their platform and moreover has a steady and consistent policy on PR and marketing.

The worst companies in this or any business are the ones who go dark – meaning they stop producing news for months or years at a time. They then seem to remember to start promoting themselves again after 18 months have passed. A surprisingly large number of unsuccessful companies seem to thrive on this principle.

I have yet to hear anything negative about Inter-Tel’s management. This isn’t to say they can’t improve but I would put management at the top-end of the IP-PBX scale. I am not sure what purpose a shakeup would serve.

Well, perhaps the only benefit of this plan would have been going private and all of the benefits of reduced compliance and reporting. I wonder in the Democrats will roll back some of the Sox rules and regulations to make it more business friendly without neutering its intent.
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