Communications and Technology Blog with the latest news in the IP communications, telecom, VoIP, call center and CRM space, with plenty of opinion & analysis...
Rumors abound that Russia will soon see the HTC T8290 touch-screen enabled device very soon. The specs are 3.8-inch 800 x 480 resolution display, 802.11g WiFi, Bluetooth 2.0, GSM and WiMAX radios.
This is probably the phone I recently wrote about being launched in Russia last week. Good stuff and with WiFi, WiMAX and GSM radios, be sure to stay near an AC outlet.
I just hope this phone gets on the Xohm network and that Sprint brings Xohm to Norwark, CT very soon.
As the convergence of television and the internet continues, there is still a basic challenge in finding a simple way to connect the massive stores of internet video content seamlessly with the traditional television. There are a number of devices which tackle this problem but none I've seen which seem to have the momentum to become mainstream. The marriage of the internet and TV is a huge opportunity and if done correctly, it will change numerous industries.
Recenty I heard from old friend Brian Mahony (pictured), the VP of marketing at localcasting (in-home broadcasting) company ZeeVee. Mahony has worked at a number of companies on the cutting edge of technology in the decade in a half or so I have known him. When I met him in the nineties, he was working for Tundo - one of the first IP PBX companies which like so many others, ran out of funding during the dotcom/telecom meltdown. He then worked for a number of IPTV companies including Espialand Netcentrex which was eventually acquired by Comverse Technology.
Now at ZeeVee, Mahony is about as full of energy as I have ever heard him and he seems to be revved up by the opportunity in front of his company which is becoming the defacto way to broadcast internet-based HD content to all televisions in a home.
What Zeevee does which is different from other approaches is eliminate the premise that a standalone TV box is the answer. In other words, it does away with the notion that you need an internet-connected box on all the TVs in the house. In addition the company does away with the notion that the standalone box should be a computer. In fact, instead of putting a computer in a box and connecting it to the internet, the company's ZvBox connects to a PC in the house and broadcasts HDTV internet video content throughout the home's cable TV cabling. Thus the term localcasting.
Once connected, the user sits in front of the TV with an RF-based remote control
and watches virtually any Internet-based video content. In addition, the customer can use the box to watch locally stored movies and DVDs. This gets us to the next point which is elimination of what Mahony refers to as the digital octopus (pictured) - referring to the tangle of wires and devices which live near your television. Mahony further explains that the new televisions with their wall mounts have become like artwork and many people are not happy with the tangle of wires near their TVs.
The logic of using the PC as the heart of a converged solution is the PC can decode any content on the web. Mahony reiterates it is the best device (as opposed to a standalone box) for streaming television and videos and he is right. I should mention he says this because the PC can decode anything and specialized equipment would have to be constantly upgraded to achieve the same functionality. Basically the standalone box has to be a PC to function properly.
Mahony further explained that many of the networks do not like to have terms dictated to them by cable companies and moreover do not want to share their revenue with such partners. In addition they are yearning to get more internet viewers as these viewers can identify themselves and as such provide a basis for more targeted ads which can mean more revenue.
One network has even told Mahony (he wouldn't say which) that they are now making more money online than they are on cable. This is partly because viewers seem to be more loyal online - watching more episodes and in addition, old content which is posted on websites is generating massive amounts of traffic and generating new viewers as opposed to cannibalizing existing ones from TV.
Mahony explains the box works with all content and various formats such as Amazon Unbox (now called Video on Demand), TiVo, Netflix, iTunes and others. In addition, the company has something called a Zviewer (soon to be released in Beta) which allows all videos to be watched from any PC. One of the benefits of this viewer and this solution in general is menu system which allows access to a slew of content types which are updated regularly and is hopefully easy to navigate.
The system also supports Dolby high quality audio and Dolby 5.1 is in the works.
In addition, the remote allows web browsing meaning all HDTVs now have access to web surfing. So while watching a ball game you could use Picture in Picture or PiP to surf your fantasy sports stats.
The downsides are minimal - it is possible that configuration could be a problem but Mahony says it is pretty seamless and most users shouldn't have a problem. It is also a PC-only solution for the moment. In addition, a cable company or other broadband provider could make a stink about using bandwidth and limit your download speeds. This wouldn't be surprising to me as this box cannibalizes their primary revenue generator. I hope the FCC and politicians are reading and weighing the pros and cons of ISPs throttling bandwidth and in the process reducing the likelihood game-changing technologies successfully get into the hands of US consumers.
Mahony also points out the solution may not be the best for sports as IPTV and cable solutions provide better quality sports than what is available online at the moment.
In addition, you need an HDTV to work with this system but this is a minor challenge as well. Perhaps the last drawback is the price but even though the company feels the $499 price tag may be high for a consumer electronics device, it really isn't. I say this because to get a wired solution which does everything ZeeVee does for such a low cost is a bargain. Sure, we could argue all day about other ways to accomplish what Zeevee is doing but their different approach is also embraced by the IPTV carriers who also repurpose the in-house coax wiring. I consider this a major validation of a well thought-out product.
It is also worth pointing out there is no per-month fee to use this service and the company is purposely trying not to put up any walled gardens, meaning you can access any content for free once you have the box. Still, Mahony does not discount the idea that a lower-priced box subsidized by a monthly fee and long-term contract won't be available in the future. In addition, ZeeVee is in discussions with partners who may be able to provide more flexible pricing terms and other distribution models. I wouldn't be surprised if the networks themselves started subsidizing these boxes.
From my perspective this is a very intelligent and elegant solution to bringing the best of the web to the TV. There are certainly many ways to accomplish something similar but the combination of web access on the TV and the ability to access many types of media seamlessly from any HDTV in your house make the ZeeVee solution a real winner. I can't wait to try it myself.
Many people wonder how well the communications markets are doing in thse tough economic times and while the future is tough to know for sure, I just came across fantastic news. AudioCodes just confirmed its guidance for the rest of 2008.
AudioCodes is a major partner of a slew of communications equipment makers and also supplies equipment to service providers and even enterprises via gateways and other CPE equipment.
In short, AudioCodes is a pretty good barometer for the IP communications markets including contact centers and other subsets of the market such as wireless, etc.
One of the last companies to jump on the VoIP bandwagon is Verizon. Yet -- our legal system allows larger companies with deep pockets who focus more on patents than providing users with new technology to easily sue new competitors into oblivion.
This is the case with Vonage -- the company paying over a hundred million dollars for patent infringement to Verizon. Cable companies are another matter as they have large legal teams and deep enough pockets to defend themselves from patent suits which may or may not be frivolous.
Recently, a jury decided Cox Communications did not infringe Verizon patents. This is great news for Cox and regardless of who is right or wrong in a complex legal case like this, having a jury trial where six patents are in question and winning all six is surprising. One would have expected Cox to lose at least one.
A patent assault of this magnitude is a smart move on Verizon's part -- but they rolled the dice and lost. We haven't heard the last of patent suits in IP communications -- there are many more I coming. Hopefully this case will make companies who did not really invent any IP communications technology think twice before suing companies using it to the benefit of customers.
Really though the large telcos are the winners here and consumers are the losers. The US patent system continues to be a barrier to true innovation and consumers are being hurt -- severely so in some cases -- by large companies who use the patent system to prevent other companies from succeeding. Instead of competing with better technology alone, these large companies use large amounts of patents at once to scare new entrants into submission. Hopefully, in the IP communications space, Cox Communications will mark a point in time when large companies slow down their IP communications patent infringement onslaught.
I have it on good authority that this new WiMAX phone designed by Art Lebedev will be coming to Russia -- in about 30 days. Apparently, no one wants to go on record but multiple sources tell me this phone is going to be a game changer. As engadget discusses in their prototype article, this phone will have a touchscreen which supports 850x480 (I could not confirm these specs sadly ) which should blow the iPhone away. In addition, those who have used prototypes tell me this phone will blow away the iPhone because it will give you access to broadband speeds without the need for a WiFi hotspot.
Sure, that is what AT&T is supposed to provide with their 3G network but the reality is their 3G network does not seem to be able to handle the massive subscriber data load at the moment. Will WiMAX scale more easily? Perhaps. Let's await and see how this plays out.
Repeat after me... I want my 850x480 resolution WiMAX iPhone...
I have been getting more and more questions on where the communications market stands in light of macroeconomic conditions. It is a constant in my frequent conversations. In most cases, when I get this question, people tell me their business is good but they wonder if the housing market problems will trickle down into the telecom space.
The answer is simply, I do believe there is risk to all sectors of the global economy. For the first time in my memory, US and other political leaders have come on TV and mentioned the term global crisis on a frequent basis. This sort of talk shakes confidence. This is simply the way it works.
The question we need to ask is how do we benefit in such a scenario or at best, how do we tread water so our sales, revenue, income does not decrease?
Most importantly, you need to focus on areas which save your customers money and make them more productive. UC, telepresence, workforce automation, FMC and other technologies pay for themselves quickly. In addition, SIP trunking is a natural in this market... You save your customers money and get a recurring revenue source if you are a service provider or reseller.
Subsets of the communications market are on fire. Mobile banking and WiMAX are a few. Emerging markets and rural America are ripe for wireless broadband.
In fact, these markets are ripe for all forms of communications and penetration in many cases is extremely low. Of course this equals tremendous opportunity.
In a slow market there is pressure to purchase less but we have crossed the chasm of mobile web browsing these past years and we will see more devices with mobile broadband and this leads to the increased use of the internet on the go. As this trend continues - the opportunity for wireless services increases as well. This leads me to the mobile application market. You need to have an application which works on the iPhone, RIM devices and eventually the Gphone. Don't forget about Windows Mobile or Nokia by the way.
I have seen many recessions in my day and the telecom space is one of the few which saw something called a nuclear winter between 2001-2003. What I learned from these experiences is that every slowdown ends at some point and customers do not ever stop buying - they may slow, they may delay, but they don't stop.
In other words, even if things slow down in our space, they will speed up again. The strategy for making sure you come out the other end of a slowing economy in a better position than you are in today is as follows:
Conserve Cash: This is obvious but how you do it is crucial. If you cut your PR, marketing and R&D, where do you think you will be in a slowing market? None of these areas can be cut by more than a few percent. If you have to cut a bit more, R&D is the area to cut incrementally from. The reason is that the feature wars most companies fight are less important than explaining to customers why they need to buy your products.
Keep in mind, every company you sell to now has to go through more internal scrutiny before they buy. You need to reinforce sales with more marketing and sales efforts. In order to last in a slowing market you need to ensure you are still selling. If you are too heavily R&D focused and don't do marketing and PR effectively, hire an agency to help you immediately.
Become More Productive: Every company needs to operate at 100% efficiency. Cut off your dead wood. Do it today. It is time to let the complainers and high maintenance people go. If they aren't happy, you are doing them a favor. Believe me; it will work out better for you and for them.
Rally the Troops: Explain to them why they need to work smarter, harder and faster. Customer service is key. Don't lose customers because of bad service.
Hire PR/Marketing People: If you aren't strong in these areas, you have to hire an agency or top people who can help you market more effectively in slow times. I have witnessed many millions of wasted marketing dollars in my life. Spending a marketing budget and spending it wisely are totally different things. A million dollar marketing budget can be blown stupidly with 10 newspaper ads or used much more effectively in focused media vehicles where your potential customers are actually looking for your products.
Market Analysis: There are hundreds of small companies which are engineering driven in the communications space which do not know how to market. Companies founded by engineers are typically the worst run from a marketing perspective. (Remember - I am an engineer myself so no insult intended - we aren't sugar coating here). These companies - where the engineer runs marketing are likely going to have trouble selling products in a slowdown (or any other time for that matter). Keep your eyes open for acquisitions or weakness in the markets you serve. Keep your ear to the ground. One of these small companies about to go under may have good ideas for products but just no clue how to sell them. You may determine developing a competitive product/service to one of these small companies makes sense.
Speed: It is better to be fast than right. After all, you can't be right every time but if you are fast, you can adjust and become right faster than the other guy.
Optimism: Be optimistic. If you are smart and run things well and your entire team works together to support you, your company can come out of any downturn stronger than it went in. Sure, be cautious --but in the end, business is cyclical. It just is. That is the nature of the beast. Work harder, faster and smarter and you will be rewarded.
Remember, things are still generally good in the communications and technology markets and if you follow these rules you should make it out the other side of any slowdown in better condition than you are in today.
If you are looking for business opportunities, you may want to think about mobile banking as the market is set to take off. When you consider analysts estimate over 100 million mobile banking users will be created in the next few years, you realize -- wow -- there is serious money here.
The question is -- who will be the leaders in the space? PayPal and credit card companies are naturals. But there will likely be niches held by players in security, authentication, etc.
If you have a novel mobile banking application -- be sure to drop me a line so I/TMC can consider coverage. Thanks.
Talk about an embarrassing situation. London's Secret Intelligence Services or MI6 lost a camera full of Al Qaeda names, fingerprints, academic records and a bunch of pictures of rocket launchers and missiles.
MI6 is the sister agency to MI5 made famous by James Bond movies. Nikon Coolpix S51 8.1MP Digital Camera with 3x Optical Vibration Reduction and Zoom
The camera showed up on eBay and was purchased for about $31. A casual Amazon search shows the camera if purchased new, wouldn't be worth more than about $400.
The question worth asking is which is more embarrassing? Having your agencie's camera full of top secret info lost or disappointing millions of people who would have hoped British Intelligence agencies would use a camera which is embedded in the agents fingernail with a viewfinder disguised as a contact lens?
Please note this post was written approximately one week ago -- before the news of the bailout bill failing began to spread fear in the financial markets. Stay tuned to learn how the financial markets will affect communications and technology.
Many people asked me recently at ITEXPO West 2008 Los Angeles, what I see happening in the communications market from an economic perspective. Let's just say that on the way to the show, I was watching TV as the stock market plunged and there was talk of another Great Depression. When I got to the show I must say I was unclear how the financial markets would affect the communications space.
After speaking with many people in our markets, the end result is most people believe the space is very strong and in fact some companies are seeing increased sales of their solutions as a result of travel cutbacks and high fuel costs. It seems if you sell products which increase productivity when corporations are belt-tightening, you are in good shape.
In fact the attendance at the show was very strong. I feel we would have had even more traffic if there wasn't as much fear in the financial markets. What really made it an interesting week was when I turned on CNN; I thought I was on CNBC. The coverage was 100% financial, all the time. In such an environment, people probably have trouble leaving the TV. Even the news anchors on CNBC who typically leave in the late morning were at their desks until after midnight. Certainly TV stations feed on this viewership and seem to ensure they position the news in such a way to ensure it is self-perpetuating - but this is a topic for another day.
The tremendous focus on negative financial news from the general media led to the stories I heard of hedge fund redemptions leading to lower industry stock prices. In addition, a general theme in our markets and beyond is companies pausing more before signing contracts. There is more indecision than at any time I remember. Companies want to reinvest in their businesses but they seem to just be waiting more than they used to.
In my opinion, in order to counter this delay in contract signing, we have to work harder and/or smarter, making more sales calls and doing more marketing. Sales after all is a numbers game when all else is equal. Now is when companies who are good marketers will take share from those who are good engineers. It happens every time the economy slows and this time will be no exception.
In fact, companies who used to rely heavily on existing companies to fuel their growth by supplying solutions to a growing workforce are going to have to shift to customer acquisition. Companies are not adding as many employees as they used to which means growth has to come through competing for new customers.
If you work internally, you need to spend time selling the productivity benefits of the solutions you propose purchasing. In some cases, vendors will work with you on financing (assuming there are banks left when you read this) who can ensure a positive ROI from day one of the investment.
So my final response to financial question in our markets is that if I had a choice of industries, I would want to work in one where our products help companies save money. Moreover, I would want to work in an industry which has little excess and has already seen its bubble burst years back. I do believe communications is a great place to be and new technologies like UC, mobility and telepresence make companies stronger and more productive and in a slower market, these are the things companies desperately need.
I am traveling today so blogging activity may be lighter than usual. In the mean time, here are some stories which my be worth reading. I don't know about you, but it seems the news flow in the communications and tech spaces has been greater than ever these past weeks. For someone like me this presents many opportunities to compare and contrast how companies see the future. Expect more analysis from me when I get a chance to sit at a desk.
Rumors abound that Russia will soon see the HTC T8290 touch-screen enabled device very soon. The specs are 3.8-inch 800 x 480 resolution display, 802.11g WiFi, Bluetooth 2.0, GSM and WiMAX radios.
![brian[1].jpg](http://blog.tmcnet.com/blog/rich-tehrani/uploads/brian[1]-thumb-384x537.jpg)
![scartel-art-1[1].jpg](http://blog.tmcnet.com/blog/rich-tehrani/uploads/scartel-art-1%5B1%5D.jpg)
) which should blow the iPhone away. In addition, those who have used prototypes tell me this phone will blow away the iPhone because it will give you access to broadband speeds without the need for a WiFi hotspot.
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