Tag Archives: Facebook

New Telecom Policy 2011:Draft Proposals and random oddities

The Government of India cannot be trusted to do anything good for it’s citizenry. Primarily, it is in the process of making itself unaccountable for public loot. So whenever draft proposals come in, the media whips up a frenzy.

At best, the draft proposals sound what has been proposed; but the industry and their associations would definitely seek to water it down.  Any customer “friendly” variant is not welcome for obvious reasons. In any case, the draft policy (specifically on broadband) needs specific inputs rather than broad sweeping generalizations that cannot be fulfilled in the current scenario. The Government of India also needs to do away with self styled experts and focus on basics to understand the need to encourage the adoption of broadband.

Let me be honest. I haven’t read the draft proposal in it’s entirety. So I would prefer to link it to someone who has done it. As luck would have it, I stumbled again on Medianama  with their take on the proposed policy changes. I would only highlight the issues that I feel need to be addressed regarding broadband alone.

1) Definition of Broadband : Always on with a minimum speed of 2 Mbps and not as proposed  to be changed in the year 2015. This is because with the change at the centre, the policy decisions invariably get stuck in the red tape. The whole bunch of users have been clamoring for 2 Mbps as the basic benchmark in order to utilize the actual benefit of the broadband.

Why? Because 256 kbps is pathetic. You cannot video chat effectively. You cannot stream media applications. You cannot do zilch. Still, the definition remains stuck at mere “doubling” of the speed. 100 Mbps is a promised pipe dream.

2) There have been effective proposals for setting up interlink peer exchanges in India to replace NIXI. An excellent blog post (not written by me but Mathew), clearly details the methodology to achieve this.  The highlights (sic):

NIXI is supposed to be a non-profit organization (that part I believe), however it allows ISPs to essentially charge each other tariffs of Rs25 per GB. At 1gbit/s, with an in:out ratio of 3:1 and utilization of 80% or so, this comes out to a total monthly bill of Rs44 lakh, or about Rs17/GB.

That’s a hell of a lot of coin, considering that 2 months of that could pay for a year’s supply of bandwidth to Singapore. Yes, a year (well, a single STM-1 @ 155mbit/s, anyway, but the cost still only works out to about Rs13/GB).

As you can imagine, if I, as an ISP, can save Rs4 PER GIGABYTE, I’m damn well going to,

otherwise I have to pass that on to you – the consumer.

3) The proposed opening up of the last mile access by wireless is a useless idea. Wireless or any of it’s iterations cannot, I repeat cannot be relied on for data intensive applications. There is no draft proposal for public access of Wifi’s bankrolled by the municipal corporations. Wifi’s can be used for another lofty purpose. To route the mobile network calls in hard to reach areas. Another brilliant stroke would be to encourage the uptake of the VoIP.

4) Even if you have 100 Mbps rolling in a shiny FTTH all the way up to your home, the lack of “real application” is a dampener. What would the mass of humanity rolling in this country use 100 Mbps for? Facebook? There is no concept proposal for encouraging the uptake of the broadband applications, for fostering a community of developers, lack of clear focus on the e-commerce, overt valuations of the existing firms and the works.  Granted that this is chicken and egg situation,  100 Mbps broadband networks are mere pipe dreams till the time there is focus on backing up a reliable infrastructure and true “unlimited access”.

5) Unbundling of the last mile access: The PSU’s are like wives. You can’t live with them. You can’t kill them. Simple. However, it does not mean that the last mile should be unbundled without having a proper oversight of the sector. I had believed earlier that proper competition on the same copper would effectively bring down the prices. However, this is fraught with it’s own hassles. The copper is pubic property and I am sure that anyone investing money would extract his own pound of flesh in terms of ownership of the cable. (This one is a retort to Medianama).

This should not be encouraged. Instead, the companies need to be given incentives to invest in the cable, peer through a separate exchange, a unified license to allow them VoIP applications, create infrastructure for niche products. For example, there could be an ISP specifically for gaming. Let it have the best response times in terms of ping. A separate company for IPTV applications. A different company for say, tele-medicine solutions with end to end infrastructure. Back it up with rural broadband initiatives and then you have customized solutions for different segments.

Let these marginal players slug it out with the established partners. Let them expand the pie. Mobile telephony did not happen overnight but by relentless onslaught of the advertisements to create a need for the product. I am not a big fan of the mobile applications, but that does not bias my outlook for the explosive growth, even though the numbers are disputed crap.

Broadband is a niche application. The draft proposals are mere eye wash and they need to be understood in their context before we bleat and crow about being a fucked up IT “superpower”.

What I agree with Medianama is the crap “fair usage policies”. But I have already stressed on the “unlimited” access. This is hardly going to be achieved and despite claims by fucktards of downloading 100, 500 or even 1000 GB is hogwash. As far as the net neutrality goes, the “faster access” to certain businesses is a huge controversial issue. The ping times in this country are so awful that is hardly going to matter.

Hence, all the more the sarkari buffons need to be given a pat on their asses for making some effort to think over the issues. With all due respect, I am also uploading the critique to their proposals. I am not sure who is going to read them, but for sure, this is better than just sucking up and doing nothing.

 

State of Mobile Web: Some numbers.

Opera Mini‘s reports on the state of mobile web are likely to be a true reflection of the mobile access and hence a surrogate marker of what’s popular at the given point in time. I am reproducing the snapshot of the Internet traffic here:

http://imgur.com/PZwCF

If you look carefully, bulk of the developing and the underdeveloped countries utilize the mobile web to access social networking sites. US (and some other developed economies) are lower down the scale.

Interestingly, the data transferred per user is a pathetic 7 MB (averaged over the month perhaps?) which means that operators are still being generous with their limits. However,  this is a crude approximation. For once, we have a clear proof that mobile internet is definitely a part of their value added services kitty but is NOT the revenue driver for them. They are offering it because there is no alternative.

This also explains their aggressive stance to get the 3G spectrum; primarily to add more voice customers than to offer data services.

If you look at the snapshot of the popular phones, Nokia is still leading the pack but majority of them are NOT smartphones. These java based handsets are pathetic in terms of functionality and at best useful for “checking the status updates” on Facebook.

A surprise entry is that of “Micromax” handset; they have capitalized on aggressive marketing and low price entry point.

Unfortunately, this does not portend good for the broadband initiatives. A cursory glance at the top sites (Google leads the pack) is only indicative. Google has benefited from being the default search engine on the browser and hence the port of call for any search. I barely use my handset for GPRS (or EDGE) for web surfing because smartphones (and their form factor) is basically useless to transact anything useful. For me, the only reason to invest is for email.

Nevertheless, this report can again be questioned in terms of “growth of users”. It is not clear about how the methodology has been arrived at and what has constituted the “growth in real terms”. However, one thing is clear. Most of the web sites focused on Indian content don’t have mobile strategies to counter the growth in the user base. Pathetic.

Indeed, with majority of the young adults unable to read/write or even engage in meaningful conversations on Indian polity, this “dumbification” was expected.

Facebook, although shows some presence (in terms of mobile access), mobile broadband is still “not hot” in US of A. There could be myriad factors but then Opera’s state of web access is best a “snapshot” of the handsets and it’s deal with the OEM‘s to bundle the product.

Skype: Microsoft acquistion and disruptive VoIP?

New York Times has run a story on Skype‘s acquisition and

Image representing Skype as depicted in CrunchBase

Image via CrunchBase

how would it be disruptive for the traditional cellular carriers.

A lot has been written skype’s acquistion (please see the related links below). Some people feel that it’s going to be good for the enterprise market, some feel that it is a useless deal with Microsoft bleeding millions of dollars everyday and a questionable “internet policy”. Perhaps all these rationales look at the whole question piecemeal. But no one has the complete answer.

I have been interested in the VoIP market for long. I have written about it earlier extensively (here, here, here) in the past. Yet, Skype’s acquisition takes the cake.

MobiGater 2 small

Image via Wikipedia

In an earlier post, I mentioned:

Image representing Google as depicted in Crunc...

Image via CrunchBase

TRAI called for implementation of Internet Telephony and Carrier Access Codes.

This was mandated much earlier way back in 2001; however, this was opposed by Bharti. Reliance had entered with the premise of “death of distance” and had made STD calls ridiculously cheap….. If Internet telephony is implemented in it’s present shape, it would

see present rates crashing down to a large extent.

A photograph of a metro Wi-Fi antenna in Minne...

Image via Wikipedia

It would give a new lease of life to ISP’s like Sify and other fringe lunatics to scale up investments. I can foresee the entry of players like Skype as well as other SIP players which rely on open standards. It’s hard not to imagine the real gains to economy as a whole and it would benefit the adoption of setting up of WiFi hotspots on a larger scale.

In another blog post, I had written:

Govind says that Wifi can be used to carry calls which works out to be cheaper. Of course, I have explored these options way back earlier on; the current “competitive” scenario has resulted only in oligopolies and each new talk plan is basically a rehash of the others. Without disclosing upfront about the estimated monthly outgo, TRAI okays each plan without taking the consumer’s advantage in question. As a result we are fleeced to no extent. I really doubt whether WiFi can be used to carry out the calls-the investments are way too huge to justify parallel (and cheaper ) networks. Where would Bharti get it’s crores from?

Assuming that wifi becomes available all around, what is the guarantee that telcos won’t use all means to block the calls via Skype or any other internet phone? High usage charges would spike any consumer interest because in all probability it would be a “value added service” which by it’s own argument, can be priced higher. Unless of course, people set up their own small WiFi networks. A long shot indeed.

And in the winning entry for “Big Ideas Contest”, Skype (or Internet Telephony) was mentioned in passing; actually leveraging the low cost of routing international calls and passing on the advantage to the customers.

Teleconferencing would make it easier for people to people contacts; Gujarat has shown the way! Why can’t India have something similar to Skype? (There is a move to have something similar in the GNU world where encryption would be based on open standards).

I don’t have any love lost for Microsoft; but as any corporation, it does what it has to do to survive. It’s a jungle out there and only the best survive by breaking through the clutter. There can be no easy answers to certain “defining moments”; we must wait for the answers to reveal themselves. The point here is that I have remained consistent in my assertions over the years and have called for opening up the standards instead.

Let’s look at what New York Times article has to say.

Wifi point to point

Image via Wikipedia

 

The telecommunications industry is already in a state of flux as more people disconnect their home telephone lines in favor of cellphones. Now the wireless carriers are looking for new ways to make money based on mobile broadband and applications, rather than voice minutes. “Eventually, everything migrates to a data channel,” said Brian Higgins, an executive at Verizon Wireless who is developing products and services for the company’s high-speed 4G network. “We’re moving away from silos of communication to one where everything is combined together.”

This assertion is not valid but rather a corporate spin and gibberish. The reason is that landlines offer higher rate of data transfer and wireless networks can easily get choked. Similarly for 3G networks being pandered about in India; main reason is to offer better voice minutes than spur on the data usage. Had there been any commitment for the same, the market would have reacted in a “bloodbath” to drop the rates and make it better to access the services.

Howsoever clueless these people are, data is definitely not on their minds. Hence, the question of “communication silos” does not arise at all.

But the Skype deal also signifies a larger interest in next-generation communications services. It is not just Skype that the wireless companies need to worry about. A bevy of mobile messaging applications, including WhatsApp, Kik, GroupMe and textPlus, allow people to send messages over data networks, sidestepping the cost of sending and receiving standard text messages.

Carriers already must deal with many new competitors in the communications game. Name companies like Apple, Facebook and Google are making services available that traditionally only carriers could offer. Google, like Skype, offers ways to make free phone and video calls over the Internet. Apple lets iPhone owners make video calls.

The ultimate risk for the carriers, analysts say, is becoming “dumb pipes,” providing only the data connection and not selling any more sophisticated communications services themselves.

Agreed on this count. The newer generation services mentioned here are really disruptive. However, they have not achieved a critical scale; not to the level that carriers start blocking them actively violating “net-neutrality”.

So how would the companies react to such developments? Possibly by lowering expectations of supra-massive profits at our expense and by “signing up deals”. Although Value Added Services (VAS) remains a viable channel, I still have to see any “developments” in that; it remains a subject of a future post.

Carriers have responded to the shift toward digital communication differently. Some seek to leverage the new wave of services to differentiate themselves and gain an edge over competitors. Sprint, for example, recently united with Google to let its customers link their Sprint phone numbers to Google Voice, a service that rings all of a person’s phones and even Gmail when someone calls that person’s number.

However, these efforts are half hearted approaches to the present dispensation. Skype is important, yes, in the VOIP Space. With the development of GNU Public Telephony project on fast track, I am sure something would definitely strike in for alternative access opportunities like SIP phones coming in the mainstream.

I remain positive for a Vonage like service over landlines and I strongly back that company (please, it’s not an endorsement). For a fixed amount, it’s possible to call in major countries and is totally “place agnostic”. I can make unlimited international calls all across for a fixed monthly fees. Thats the real power of broadband for communication. Wireless is not cool because of it’s inherent limitations and POTS (Plain Old Telephone System) is STILL the best bet.

A Bold GNU Head

Image via Wikipedia