IP Capsule – December 08, 2005

Craig Kuhl, IP Capsule Editor, and CED Magazine Contributing Editor
Houston, we have liftoff
Joining its older brother, xOD Capsule, this packetized, weekly update will cover the IP universe, and beyond.

And what a multi-faceted universe it's turning out to be. IPTV, VoIP, Wi-Fi and WiMax, multimedia, BPL, DSG and just about every IP-associated acronym out there will be part of our coverage.

We'll explore the evolving IP space and break the coverage into capsules: First will be Video Vectors, which will update you on events, strategies, technologies and pertinent information from the IP video world. The Dialed In packet will cover the voice side of IP, but also the many components and applications that now comprise IP voice services. There are lingering security issues, operational and transactional issues and awareness challenges that still must be resolved. We'll update you on each as they unfold.

The third play will be the High Speed Zone and report on the broadband data segment, where speeds are climbing, access is broadening, and challenges are ubiquitous.

Each week we'll also profile a company we feel will have an impact on its particular market, alternating profiles of companies from each of the three categories of coverage on a weekly basis.

A stable of high profile analysts will periodically offer insights into the relevant issues facing each of the three segments, and will complement the timely news coverage in each area.

We'll also inject insights based on many years of experience covering each of the above capsules. My colleagues at CED, Wireless Week and other Reed Business Information publications have stellar credentials in covering each of the above capsules, so the source well is indeed deep. The goal is to make IP Capsule readable, insightful, informative and timely. It's also interactive. So interact by updating us on relevant issues facing your business, topical news stories, or comments about the Capsule.

Now, strap yourself in and consider this the IP Capsule liftoff. We've got an entire IP universe to explore.

—Craig Kuhl

SureWest puts some HD in its IPTV
SureWest Communications and BigBand Networks have hooked up for the first commercial delivery of HDTV over SureWest's IP-based FTTP (fiber-to-the-premise) network.

Bill Demuth

It remains in the "customer-friendly" test stage with just 50 users and , according to Bill DeMuth, SureWest's VP and CTO, some challenges remain, albeit minor. "We're testing video service, processing, customer care, back office functions and with 19 [megabits per second], it's stressing set-tops with the current MPEG-2 technology. But the test is going very well, thus far."

SureWest is planning to offer 15 HD channels, including TNT-HD, ESPN-HD, local channels and more, and bundle them with its triple play offerings using BigBand's BMR (Broadband Multimedia-Service Router).

The Sacramento-based communications company is also using middleware from Minerva Networks for its middleware, set-tops from Amino Communications set tops, and encryption from Irdeto Access for its encryption. The HD service is expected to be deployed by year's end via a soft launch.

With Comcast Cable as its primary competitor, HD can't arrive too soon for SureWest.

What the research is telling us

• Pyramid Research tells us successful IPTV is more about selling broadband than about selling television, and that IPTV carriers must deliver more value-added services, while a VOD-only business model won't attract subscribers.
• Analysys argues the regulatory climate, cable's competitive reaction to IPTV and access to compelling content will hinder IPTV's attempt at eroding cable's video market. In talking to a gaggle of IPTV participants, IP Capsule tells us it's going to come down to gutsy marketing, key strategic alliances and who has the best content.
• Meanwhile, back in China, Kagan Research predicts the massive Chinese market will double to 214 million pay-TV subscribers by 2015. Yikes.

Consumer awareness, confusion trouble VoIP
VoIP is immature. At least the Yankee Group thinks so. Still in its adolescent-angst phase, its awareness is low and confusion high. Nearly 35 percent of VoIP-aware US households don't believe VoIP is a telephone service that can be used with regular phone service. Whatever they think it is, VoIP is deep in the quadruple play mix for providers. Good idea, evidenced by the 38 percent of households that believe VoIP is better than traditional phone service, a 15 percent increase over 2004. The small and medium businesses (SMB) look even better, Yankee says. About 70 percent of them would prefer a hosted VoIP solution to a premises-based.

SercoNet hooks up with Motorola
SercoNet, Inc. and Motorola have completed initial lab and field tests of Serconet's WirePlus Broadband wireless outlets, which plugs into common telephone jacks to extend Wi-Fi signal and IP voice coverage. If all goes well, the technology will allow a seamless hand-off of IP voice communications in the home and nonstop wireless broadband access.

Tool time for Cox VoIP
Cox Communications is making its Phone Tools available to all customers in select markets when they subscribe to Cox Digital Telephone and High Speed Internet.

The tool features include a graphical user interface that allows customers to listen to voice mails as an e-mail attachment, at home or away.

No stranger to the voice business, Cox recently launched VoIP in Las Vegas. In all, Cox offers telephony (VoIP or circuit-switched) in 22 markets, or about 75 percent of its total footprint.

The Cedar Point SAFARI C3

Keeping an eye on mobility, Cox also joined the recently announced joint venture aligning Sprint Nextel with MSO brethren Comcast, Time Warner and Advance/Newhouse.

This just in…
Cedar Point Communications and Wave7 Optics just completed its interoperability tests between Cedar Point's SAFARI C³ Multimedia Switching System and Wave7's Trident7 and Last Mile Link. The purpose? Cost-effective deployment of VoIP and multimedia services to FTTP networks.

Adelphia seeks out Sandvine for protection
Adelphia Communications has partnered with Sandvine Inc. to protect high-speed subs from worms, spam and other malicious attacks. Under the deal, Adelphia has deployed Sandvine's gear at the access layer, and across its entire network. In the construct of a CableLabs-specified PacketCable Multimedia architecture, Sandvine would supply the application manager component of the network.

"Adelphia selected Sandvine for its broad feature set, in particular, the security operations services element of the solution. With granular network visibility, we are able to identify all forms of malicious traffic and ensure that our subscribers' broadband experience is protected," said Adelphia Chief Technology Officer Marwan Fawaz. He noted that the MSO has seen a decrease in spam and other attacks, and a reduction in customer support calls since installing the Sandvine system.

Adelphia, which serves 1.4 million high-speed Internet subscribers, is in the process of being acquired by Comcast Corp. and Time Warner Cable.

Cox hits the gas
Cox Communications is accelerating its High Speed Internet package for customers in a handful of markets. The company said it will increase downstream speeds up to 9 Mbps and 1 Mbps upstream. Those customers taking its Premier package are eligible.

Cisco beefs up IP NGN
Cisco Systems is enhancing its open Service Exchange Framework of its Internet Protocol Next-Generation (IP NGN) architecture with a series of new and enhanced products that will support all IP applications, including those delivered over an IP Multimedia Subsystem (IMS). The upside? It will allow cable, wireline and mobile operators to offer services based on fixed-mobile convergence, with greater efficiencies, the company said.

Look for at least one more MSO to join the recently announced Sprint Nextel, Advance/Newhouse, Comcast, Cox joint venture. Sprint has structured the venture to allow other MSOs to join, and soon. A governing board will decide on new members, and different phases of implementation will be scheduled. Sprint is looking for a "national offer."

The timing is right. Time Warner just passed one million digital phone subscribers, with 75 percent of them taking the company's triple play package. With the Sprint joint venture, is the "quadruple play" up next for cable?