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Monday, January 19, 2015

And then there were four: Telenor Appear.in joins the telco-owned WebRTC-as-a-service marketplace

A very quick place-marker blog post - hope to get more details and have more thought later in the week.

Telenor's appear.in WebRTC video-calling service has just launched its API play - and one that's very easily embeddable by order websites and developers, for free. Details are on this blog post

At the moment it's intended as a very quick/easy basic capability with minimal friction. In terms of monetisation / business model it's a little unclear, but both the YouTube analogy and Tim Panton's discovery of an advertising bias among the appear.in team members might point the way. I'm also curious about the potential for a "free on the web, but pay for a mobile API" approach, which could also be a route forward.

Either way, we now have 4 telcos with "live" WebRTC platform plays, of very different styles:

  • Telefonica Tokbox, the oldest and most-mature, which is heavily focused on both mobile enablement and (increasingly) vertical-specific variants
  • NTT Skyway, which is probably the closest conceptually to appear.in's at the moment
  • AT&T's newly-announced WebRTC API, which is the most telco-like, integrating with its core network call-control & numbering, with a more traditional "telephony" metaphor
  • Now, Telenor Digital's appear.in API
Plus various other telcos have been doing the rounds at  numerous WebRTC conferences but have yet to launch anything (product or platform). Orange, Telecom Italia and Deutsche Telekom are all clearly interested in WebRTC, as are others that are less-visible - I was sitting next to some China Mobile folk at the AT&T Developer Summit, for example.

More generally, it seems like the intent here is less about telco-to-telco competition but more about Telenor Digital putting a stake in the ground in the much wider WebRTC API & Platform space, with the 20 or so other players jockeying for position. In my WebRTC report I examine that space in a lot of depth - I think there are 5 or more orthogonal dimensions by which to dissect it. This is clearly video- rather than voice-centric, and (for now) appears completely decoupled from Telenor's own network - it is what I used to call "telco-OTT", or a pure web API. It will be interesting to see how it evolved.

Anyway, in the spirit of investigation, I've added an appear.in window below, with my reserved room-name of /disruptiveanalysis. I'm probably not going to be online on this page that much (and there's no other notification mechanism), but it's certainly easy. I do also have an appear.in app on my phone though, but don't use it that much as I'm not a huge personal fan of video-calling. As a non-developer all I needed to do was click the HTML tag on blogger & paste in a line of code - and then add the /iframe as it didn't have a "close" tag. I've also changed the window-size to match my blog template.
Impressively simple.



Thursday, January 15, 2015

Quick thoughts on CES

I went to CES in Las Vegas last week, for the first time - basically a bonus day after speaking in the WebRTC session at AT&T's developer conference the day before. I deliberately avoided setting up briefings or meetings, and instead actually had a day to wander around the assorted floors and exhibition centres to "absorb".

Frankly even a day isn't enough to see everything at the show - I skipped whole areas because I was either uninterested or didn't have time/energy.

The key things that impressed me were:
  • Health/fitness wearables: this surprised me, as I'd previously considered watches as gimmicky and health-trackers as niche and just for obsessives. There's actually a surprising amount of substance here - numerous use-cases, some really exciting ways to help manage peoples' health, including both physiological and psychological aspects. That said, there's some rather creepy privacy issues here too - personally I'd never have a device that only connected via a smartphone or Apple/Google/FB etc APIs, as a lot of the apps request an intrusive level of permissions & inhibit anonymity and personal data ownership. I'm also not bothered with the watch-as-mini-smartphone angle that Apple & Samsung are playing - seems contrived. The Google-Glass clones still seem as pointless as the original.
  • Drones: both personal and industrial use-cases seem to be multiplying. Obviously this includes photography, but also surveying, load-delivery for businesses and more. I still get the sense that the personal drones are more "cool gadgets" - more interactive, less geeky and more usable than remote-controlled planes have always appeared. The stabilised photo-journeys over cityscapes and areas of beauty have shifted the idea from "flying something" (niche) to "view from above", which seems to have democratised it. I found myself checking the UK CAA rules on drones on the way back, as I want one myself! My sense is that this area is going to grow massively but unpredictably. There are clearly lots of issues around regulation, safety - and probably radio congestion at some point too. I'm going to keep close watch on this one, as it might just be the "next big thing", as it has consumer, B2C & B2B angles. I may have read too many Iain M. Banks' Culture novels to be thinking completely objectively about drones, though.
  • 3D Printing: Obviously this isn't new, but it is coming on apace, with CES showing various companies with both consumer and professional devices. I suspect this is more of a slow-burn sector than many assume, given the difficulty of printing with materials that people actually want rather than being constrained to. A point which was amply proven when I uploaded a picture of the one which prints chocolate to Facebook, to universal acclaim from my friends.
 
  • Selfie-sticks: I'm pretty sure that most IoT advocates didn't have telescopic poles in mind when they dreamed up the term, but for me it encapsulates the fact that consumer imagination is indeed captured more by physical objects - Things - than services or even software/apps. Together with the whole selfie phenomenon, it also shows that unexpected "emergent behaviour" by end-users often tends to trump committees of people deliberating standards or interoperability.  A recent trip to Hawaii highlighted an entire forest of what some people are calling "narcissism rods" on the beach at sunset. Naturally, CES had a variety of them, including waterproof ones. And yes, there were also some cheap drones optimised for the same task.
  • Personal mobility: absolutely nothing to do with this blog's normal contents, but there were various cool/weird/geeky gyroscopic roller-thingies that occupy the space between Segways and rollerskates. 
There were also a wide range of other areas well-represented at the show. There was an absolute ton of things in the connected home field, but I have to say that I find the whole area intensely boring, so I pretty much walked straight past it (cookers? toasters? thermostats? Yawn). A couple of things that weren't boring were straight-up pointless - and fit nicely in with Tony Poulos' "Internet of Silly Things" category. I saw a plant pot and a multi-coloured lighbulb with a loudspeaker, controlled by an app. Apparently there was a pair of sensor-laden e-socks somewhere too. The automated home-brewing beer appliance was the only thing that raised a smile.

There were a lot of 4K screens - especially curved ones - which were impressive. For about 2 minutes, until you just get used to TVs that look a bit more like the real world. It's a bit like HD audio for voice applications - nice to have, but I fail to see it as that exciting. It's basically what we've had for decades, just a bit better. For similar reasons I saw absolutely no smartphones or tablets that made me think "wow". Like before, but a bit better. 

This commoditisation and creeping sense of "meh" is a huge issue for many parts of the electronics industry, as Samsung's recent woes seem to indicate. I'm not an Apple fan-boy by any means, but I am increasingly conscious that few other device/ecosystem players have tapped into the stream of "specialness" that Cupertino manages.

Connected cars and vehicles were also around in full force, but I didn't have as much time to scrutinise them as I would have liked. A topic for another visit - as a bit of a petrolhead I'm fascinated by some concepts, but distinctly ambivalent about things like self-driving vehicles.


There were also a gazillion companies selling phone cases & external batteries. I wish CES could keep them all in a hall of their own, rather than forcing everyone else to wade through them in search of innovations.

What I definitely didn't see much of was WebRTC. Even a quick web-search only threw up a CCTV provider with a web front-end as having announcements. There was also ooVoo, which seems to be morphing from a Skype-clone into a full platform player for mobile video. It now has a developer SDK and is touting a user base (unclear if downloads or active) in the 100m range. Its solution is proprietary, although it also offers a WebRTC extension for those that want it. Worthy of more attention, as it implicitly competes with WebRTC platform providers like Tokbox for embedded video in the consumer web space.

The other thing mostly missing was telcos - or indeed, opportunities for telcos beyond connectivity. Clearly there are some verticals like connected home and car that are getting attention from service providers (as AT&T's developer summit highlighted the day before),  but beyond that there appeared to be slim pickings. Clearly, 4K video has the potential to both increase Internet traffic and sustain certain cable/IPTV businesses with another generation of improved services, but beyond that I didn't see much which obviously allowed telcos to differentiate themselves in future. I didn't see much integration of voice/video communications, sadly, and none of the IoT exhibits I dropped by seemed to have any obvious role for QoS or similar network APIs, especially as most were connected via WiFi. 
This has some important ramifications for 5G as well - it's not clear to me that many consumer devices actually need cellular. Indeed, a lot of the coolest bits of electronics don't really need "realtime communications" at all - 3D printers just need downloads of designs, while health monitors are probably going to be synced periodically. Yes, I could invent hypothetical use-cases - especially things like vehicle-to-vehicle communications, but there's such a lot of scope for developers to work with transient Internet connections, that I suspect it will take a few years to really try to push towards always-on/realtime. You don't need 1-millisecond latency for an Internet plant pot.
One thing I do have in the back of my mind - there might be a telco angle on drones. Not for user-to-device flying radio-control, but for other purposes. That's something I need to ponder on for a while.
Overall - CES is mostly a gadget show. And for all the "connectedness", it's still very much secondary to the hardware, design and local software. 

EDIT: Another thing on my mind: lots of the IoT devices have microphones and/or cameras. It strikes me that the current furore about intercepting encrypted communications misses a trick. We only care about online privacy, because we assume offline privacy as a given. But to be honest, it doesn't really matter if the network is intercepting your messages, encrypted or otherwise, if the smart lightbulb is reading the clear-text version over your shoulder while you type it. How many possible surveillance "things" do you have around you right now? Which silicon chips have microphones integrated onto them? And in 5 years' time? How secure are they?

Wednesday, January 07, 2015

WebRTC, telcos, phone numbers and identity - there won't be one ID to rule them all

Earlier this week, I spoke at AT&T's Developer Summit event in Las Vegas, presenting an overview of WebRTC market trends (which I'll upload to my Slideshare in the next few days), and also appearing on a panel with longstanding WebRTC luminaries like Cullen Jenning (Cisco), Dan Druta (AT&T), Eric Rescorla (Mozilla) & Daniel Enstrom (Ericsson).

This tied in with AT&T's launch of its new WebRTC API and platform offer, which is now in public beta and which was one of a variety of API areas it covered yesterday - others interesting from a service-creation standpoint were around M2M/IoT, connected home and car sectors and various others.

One aspect of the AT&T WebRTC offer to developers that is different to that seen from other platforms is a choice of identity enabled via its gateway - either using:
  • The user's AT&T mobile phone number, if they have one
  • A "guest" virtual number, which can also support SMS and other functions
  • A web domain-linked identity for the WebRTC service, user@domain.com or similar
This prompted a round of discussions about how far E.164 phone numbers are likely to go as Web/WebRTC identities. It is not a new concept for operators - especially in mobile - to look to reuse phone numbers and their subscriber databases as a platform for identity management. It's also worth recognising that a number of apps like Whatsapp already do use phone numbers as a way to plot social graphs and as (essentially) persistent virtual identities even when decoupled from a SIM card. (I wrote about this here).

As always, there is a broad spectrum of opinion, ranging from some within operators who assert that phone numbers could be a "universal identifier" spanning payments, communications, personal data, and even linked to citizen databases and government ID scheme. At the other end, there are people who regularly pronounce "the death of the phone number" and think we'll all just have a personal WebRTC URL or SIP URI or Google ID or similar.

The reality is likely to be more nuanced - as well as probably varying by demographic and geographic groups. I suspect that most people will end up with 3-6 "primary" online identities, and then a bunch of others linked to those or standalone for niche purposes.

I think phone numbers intersect with WebRTC for some use-cases, especially for voice- rather than video, and in instances where:

a) Primary use of a given application is through a phone, with secondary access via WebRTC on another device
b) Where there are regulatory stipulations involved, eg mandatory records of identity, need for 911-type functions etc
c) National rather than international usage predominates
d) The application provider has an existing relationship with the user based on phone numbers

So for example, many people have their caller-IDs registered in their favourite food takeaway's CRM system, so that they can recognise your number and ask if you want your usual pizza when you call. There is some sense in having a WebRTC front-end emulate your number and ID, so they can link your new form of ordering with their existing database profile. Other B2C instances - banks, airlines, tax offices etc - may want the same.

On the other hand, if you're a developer creating a global karaoke app with WebRTC, it's probably not really useful to drive it from a phone-number ID. Your users might prefer to login with Facebook, so their friends can laugh at their awful drunken choice of music displayed on their timeline the next morning.

A WebRTC video job-interview on LinkedIn would probably use its own identity space. A realtime voice debate around a contentious blog post might be best-suited to your Twitter handle. Web advertising-triggered customer service interactions might use a Google ID, and so on. An enterprise internal extension number - or email address - might be appropriate for UC or an comms-embedded vertical app. We will also likely see completely separate personal-administered identities, for those who are wary of relying on 3rd-party owned and controlled ID.

I think it's good that AT&T (and also 3GPP in some of its WebRTC standards work) seems to recognise that non-E.164 numbers have relevant roles to play. Also within the phone number space, there is potential for both your "real" phone number, and a secondary/temporary one. It's quite possible that some telcos will be able to monetise their number ranges here, as well as in other online areas such as commerce and privacy. I've seen a couple of presentations by Ericsson about GSMA's Mobile Connect approach recently, and I can see some interesting uses - although there are also some pitfalls such as full support of number portability with E.164-triggered ID, or how you deal with people with multiple (or shared) phone numbers.

We need to be realistic - there is not going to be "one ID to rule them all", at least for most of us. But having the flexibility to pick-and-choose on a use-case basis is beneficial to all. For me, a combination of phone, Facebook and Twitter handle probably cover 60-70% of my needs, but I still also want LinkedIn, Skype, Yahoo, email and various others as well. Everyone is going to be different here.

That said, there are also questions about whether it is right for companies and especially government bodies to insist on phone numbers as ID for communications, as they are not free for the user. I think there needs to be concerted action to make businesses give users a choice of online and "phone" identity options. I already make a point of entering my Skype ID or a WebRTC URL in web-forms if they don't force a numerical response, and I'm tempted to get an obscure international or premium-rate number to use if I'm forced to provide E.164 when I don't want to. But at the same time, there are instances where I'm happy to provide a +44 mobile or fixed number, especially if I trust a company not to send spam SMS. Offering that capability in WebRTC platforms is a positive option.

Friday, December 26, 2014

WebRTC & Academia / Education

Earlier in December I went to the inaugural meeting of the WebRTC "task force" of the TERENA European academic networking consortium. It's looking to exploit the technology for various research and education use-cases, especially videoconferencing between sites or organisations:

"WebRTC may finally offer a path towards a large-scale, low-cost and easy to use real time communication infrastructure for group conversations across institutional boundaries"

(A quick tour of various over-contrived acronymical names: TERENA is currently being renamed GEANT as it combines with another EU programme, DANTE. Historically DANTE deployed the networks & TERENA worked on "developing, evaluating, testing, integrating and promoting new networking, middleware and application technologies". What do any of these stand for? Don't even ask.....).

It turns out that the research/education community is already a major user of videoconferencing, because it has widely-distributed teams that need to collaborate, constrained travel budgets - and, importantly, it has ample bandwidth through the academic network infrastructure and a good supply of smart, technically-savvy people who can work around clunky UIs or tools. In addition, the links with higher education and medicine bring in various other use-cases like distance learning, interactive webinars and tele- diagnostics.

Plus also, in Europe at least, there are often various requirements for cooperation among multiple international organisations, in order to get research funding for big projects. Given that many don't have budget to fly people to meetings all the time, online collaboration is a priority. Similar issues also occur at national levels, especially in larger countries where it's troublesome to bring teams together physically.

There's a lot of use of "legacy" H323, as well as pockets of Adobe Connect, Microsoft Lync and various other platforms. Particle physics research institution CERN switched from a proprietary platform to Vidyo last year, for one of the world's largest video networks.

However, while room-based video is quite widely used today in universities and other reseach sites, it is seen as expensive in terms of both products/licences and ongoing opex from support staff and software maintenance. As such, its use is often rationed. Conversely, desktop conferencing is hampered by islands of poorly-interoperating UC systems selected by each location independently. There has been very little use of app-embedded video or voice communications.

Enter WebRTC, with a goal of extending both reach and depth of video communications for TERENA/GEANT, by lowering costs and extending to browsers across Europe - and beyond, for some larger projects. In addition, some countries' national research/education networks are looking independently at WebRTC for their own local requirements, which (depending on the structure of education administration & technology provision) may also span higher education and schools.

At this point, it is worth noting that GEANT serves over 10,000 locations and (in theory) up to 50 million people, plus interconnects with other research networks elsewhere in the world - for example, an Australian academic network representative was present at the event. Put together, the global academic networking community is equivalent to a Tier-1 telco in terms of reach, but with some important differences:

  • It is mostly publicly-funded, with all the value-for-money considerations that implies
  • Each individual body acts as an enterprise, but with certain communications capabilities and services provided by central national / international organisations
  • It is mostly fixed-oriented using PCs, rather than mobile (today, at least). Interestingly, a lot of devices use Linux or FreeBSD compared to the market as a whole, which means some applications may not be supported
  • There tends to be much greater acceptance of open-source and experimental technologies in production environments - not least because the experiments may be part of the organisations' own raison d'etre.
  • Although groups like TERENA refer to "services" they are generally not rated and billed in telco-type fashion, although some network authorities view their members more like "customers".
  • Security and privacy is a major concern, but more in an enterprise-style fashion rather than a telco-type approach with SIMs etc.
  • There are significant groups of people able to work on new projects - eg open-source - that are usable both internally as well as general web-community projects
  • There are no serious competitive concerns - indeed, commercial organisations often work with academia in areas of "technology transfer" or joint projects funded by government research grants
  • There is little willingness to do "forklift upgrades" - there will usually need to be interoperability with existing equipment, using gateways etc.
There are already a number of early examples and pilots around WebRTC. The French network RENATER (which hosted the meeting) is enthusastic, while the Norwegian UNINETT organisation turned out in force - and had some of the most advanced ideas about extending WebRTC to the broader education and app-embedded sphere.

The latter is an important consideration - as well as doing existing comms use-cases more cheaply/conveniently, my view is that WebRTC has much broader scope if used in a platform-type approach, with a view to new and unexplored application scenarios.

That said, some representives from certain national networking organisations seemed more sanguine and less enthusiastic - concerned by the lack of standardisation , browser support and interoperability questions. Some of this negativity surprised me a bit, reminding me of conservative, legacy-telco managers unwilling to embrace disruptive technologies until they have already been themselves disrupted. Given that most initial use-cases of WebRTC will start as secondary (eg guest access) and it will likely evolve quickly, this recalcitrance seems ill-advised.

(This perhaps reflect an element in the telco-academic world I've noticed before: although it leads in many areas of basic science and networking, when it comes to the telecoms industry and applications, much of the understanding is via the blurry rearview-mirrors of IMS, 3GPP and other legacy standards processes, rather than the Web. There's an awful lot of nonsense spouted by academics about Net Neutrality as well, albeit mostly from the economics groups who seem to like concepts like two-sided markets despite their inapplicability to broadband).

A couple of products and platforms already seem to be increasingly popular - Jitsi had both a presentation and was mentioned as already used by various groups. Janus is an open-source WebRTC gateway project discussed, while Ericsson Labs attended to talk about its OpenWebRTC stack and newly-opened Bowser browser.

Overall, I think that academia (rather than basic school-level education) is perhaps going to be in the vanguard of WebRTC vertical markets during 2015, along with healthcare and finance. However, it may prove rather harder for commercial vendors and platform providers to access - although there will definitely be some opportunities within some institutions, and also the potential to be exposed early to in-house developments and projects which could well be "transferred" to the broader market. I'm hoping to keep in contact with the GEANT, Uninett, RENATER and other academic WebRTC initiatives during the next year.


Friday, December 12, 2014

Net Neutrality does not lead to falling telecom capex


One of the main arguments given against Net Neutrality laws is that it might lead to a reduction to investment by telcos in their networks, as ISPs will be unable to generate sufficiently profitable revenues.

And indeed, as part of the recent US furore over neutrality AT&T has "paused" its investment in fibre deployment - although this is in advance of any ruling being made. 

But I suspect this is being done mostly for effect and as regulatory leverage, not because AT&T genuinely sees much difference in its chances of future revenue streams.

Earlier this year, I published a report examining the potential for "non-neutral" business models for mobile broadband. When I looked into the mechanics of 20 different approaches, from QoS-enabled "fast lanes" to sponsored data, to prioritised MVNOs, the outcomes were that (a) most concepts would likely fail for technical and commercial reasons anyway, and (b) the actual potential incremental revenues were minimal - quite possibly less than the extra costs of more-complex network infrastructure and software needed to enable such models.

Now I've done another bit of research, and had a look at what's happened in the two countries that have actually had "full" Net Neutrality laws for some time. In Chile, a law was passed in 2010.  The Netherlands voted for Neutrality in June 2011 and ratified it in May 2012. 

The interesting thing is that telco capex does not appear to have been reduced in these markets. Indeed, it appears to have risen.

The Chilean regulator, Subtel, publishes annual reports and presentations [eg see page 9 here] including aggregate capex for both fixed and mobile operators. Fixed-network capex has continued to grow since the law was introduced, reflecting expanding use of broadband. Mobile capex has been more volatile, reflecting 3G build-outs, and also in 2013 a change in accounting rules which reclassified handset subsidy from capex to marketing expenditure.



The Dutch regulator, ACM, does not appear to publish aggregate data on capex, so I've collated data from the published financials of the top telcos in that market - KPN, Vodafone, T-Mobile, UPC, Ziggo (since acquired by UPC) and Tele2. The results show continued growth in investment, since a [presumably recession-driven] low in 2010.


(Notes: I've excluded the LTE spectrum auction fees paid in 2013. Vodafone has its financial year ending in March, so I count capex against the previous year ie. FY2012/13 = 2012. I also converted £GBP to Euros at the prevailing average annual rate. Also, I didn't include Reggefiber for which I had incomplete data - 2010/11/12 capex was also rising - €186/291/381m respectively)

While it's quite possible that future Dutch network investment might fall as a result of telecoms market contraction and consolidation, I don't think it's possible to ascribe that to the Neutrality laws - rather, it reflects the general issues globally with a lack of new and compelling service offerings from telcos. Also, KPN's integration of Reggefiber is expected to result in a net fall in expenditure from the combined entity in coming years.

I'd also note that when I was at The Hague conference on Smart Cities recently, KPN highlighted how good its LTE network coverage was, including indoors. This doesn't imply a scaling-back of investment, or a decision that 4G is somehow made unprofitable by mandated neutral business models.

Taking all this together, it appears that there is currently no evidence that enacting Net Neutrality laws results in falling capex and investment. It is also wrong to attribute rising capex to the same laws - correlation is not the same as causation. Indeed, when one digs into the details of each market, other considerations such as network-sharing, changes in competitive structure, new generations of technology and myriad other changes seem to be behind the movements.

None of this should be surprising - there are no proven "non-neutral" business models, and even the ones that have been suggested are unlikely to "move the needle" in terms of revenues. While it is possible that the life of legacy telephony and SMS might be extended if operators are allowed to block VoIP or IM, most advanced markets have ruled out that type of extreme violation of neutrality.

Overall, the "net" outcome is that capex is "neutral" to Net Neutrality, based on the evidence visible so far. Where lobbyists suggest that regulatory changes in the US or Europe might lead to lower investment, this seems likely to be scaremongering and politicking, rather than a rational analysis of existing experience of Net Neutrality, or factors influencing future cashflows.

Tuesday, December 02, 2014

The quiet emergence of WebRTC/Telecom development shops

A subtle but growing theme I've picked up from my recent attendance at TADSummit and WebRTC World is the background growth in development and consulting shops that are addressing communications capabilities.

While a lot of the focus is on "developers", most observers and industry participants automatically think about either (a) in-house corporate software specialists and teams building private enterprise apps, or (b) web and mobile-app developers creating their own products.

However, I'm increasingly noticing the presence of 3rd-party outsourced developers, creating comms-enabled applications or services, on behalf of other companies that lack in-house skills and resources. Among those that have cropped up recently are Blacc Spot Media, &Yet, Daitan and Mera.

I see this tier of companies - some specifically dedicated to WebRTC or telecom APIs, some just new specialisations of larger development firms - as an important part of the "glue" between product vendors/telco-APIs and their customers, whether the latter are enterprises, telcos or standalone web and line-of-business software providers.

This builds on a theme I spotted last year, about ecosystems and partnerships, where companies like Quobis provide a valuable role helping vendors with go-to-market support, if they lack their own customisation or integration teams. Quobis also has its own WebRTC-related products as well as offering services, as does Priologic.(&Yet has its own video-chat platform Talky.io, but that's more of a showcase, rather than a monetised product).

A similar trend is occurring in the Telecom API and platform space, where there is a significant gap between telcos' in-house teams focused on service exposure, and their ultimate target audiences who might actually use those new capabilities. Although some telcos run developer programmes, there is still an issue that the firms who could benefit the most (for example an insurance company or taxi firm) often don't actually employ the appropriately-skilled developers to understand and exploit them.

The idea of outsourced development is, of course, not new in the tech industry - there are countless web-development shops and IT consultancies, while niches such as contact centres have their own specialists as well. However, it is relatively new to see general communications-centric outsourcers, and I view that as a positive sign. 

It is also going to be important to extend the new class of "embedded communications" capabilities - whether voice, video or network-oriented - out to geographic markets where skills are sparse, and beyond the personnel footprint of all but the largest vendors and service providers.

While it is easiest to see the opportunity for WebRTC development firms - especially helping existing companies add interactive voice and video to their websites and apps - it is arguably in the broader Telecom App space that they are needed even more. While certain APIs such as SMS and telephony call-control are fairly self-explanatory, it is likely that telcos will really struggle with go-to-market for more complex capabilities, especially network QoS, sponsored data, identity and so forth. This is going to be a challenge for telco-offered WebRTC APIs and service elements, too.

I remember a telco strategist once telling me (about QoS) "There are 3 problems - firstly, we're not sure it works. And anyway, we don't know how to sell it, and our potential customers don't know how to buy it".

Take-outs from this?

  • Existing IT/web development shops should be beefing up their WebRTC & Telco API skillsets, staffing and marketing presence.
  • Vendors should be identifying, encouraging and cultivating specialist communications developer firms that can assist with go-to-market.
  • Some of the smaller "platform" providers should think honestly about whether they can attain scale, and perhaps focus more on consulting and customisation gigs until they get a commission that can spawn a client-proven product.
  • There is a large gap for WebRTC and Telecom API training and education provision.
  • While WebRTC awareness is growing, Telecom Apps are still the domain of relatively few specialists. Telcos should look to consultancies to extend their reach indirectly, as well as running their own developer engagement directly.
  • It may be a good idea for Hackathons and similar initiatives to distinguish between general development shops and "final" app/web developers.

Monday, November 17, 2014

WebRTC, Microsoft/Skype, Apple & Google... some quick thoughts

I'm going to hold myself hostage to fortune here.

This week is the big WebRTC Expo event in San Jose in California. I'm moderating various panels and probably making a general nuisance of myself asking questions and picking everyone's brains about the trends they're seeing. But I'm going to risk making an analytical point in advance, and hope that the next 72 hours-worth of announcements don't make me look silly.

One obvious talking point - and probably presentation point - is around Microsoft's strategy, given its support for ORTC and the recent announcement of Skype for Web. There's also no doubt going to be a lot of talk about video codecs, and the IETF's cleverly-crafted compromise position.

But here, I just want to touch on something else. What exactly do the big ecosystem players want from voice/video/messaging, and how does that impact WebRTC? I've been stimulated by Tsahi's good analysis of the Skype/WebRTC plans, as it's made me realise something quite important:

Microsoft and Apple both seem to want to "own" certain aspects of communications services themselves, before throwing them open to all-comers via developer APIs.

Most obviously, Apple now has:
  • FaceTime Audio & Video for "calls"
  • Siri for voice-concierge capabilities
  • Video/voice messaging inside the current iMessage
  • iMessage itself for text messages
  • The upcoming walkie-talkie function in its Watch ("for a fun alternative to phone calls!")
  • Apple's push-notification service, which I think has the potential to seriously erode the A2P SMS market over time, especially if interactivity is enhanced
And Microsoft has:
  • Skype for audio/video calls
  • Skype for Business (ie Lync) for enterprise conferencing, IM & UC functions
  • Cortana (voice concierge)
  • Qik video-chat
  • Messaging (former MSN, now integrated with Skype)
  • Xbox Live Chat, Messaging & Parties
  • Video Kinect
  • Kinect Voice Command
In other words, both companies seem to view communications at least as much in terms of potential for complete products, as they do in terms of platforms.

Conversely, Google just has a few full-fledged communications applications:
  • Hangouts (including Google Talk)
  • Google Voice (US only)
  • Google Now & Voice Control
(And Firefox has just done a deal with Tokbox to integrate WebRTC conferencing into Firefox as "Hello") 

In other words, Apple and Microsoft are perhaps delaying WebRTC (or seem a bit ambivalent), in part because they want to cherry-pick certain voice/video use-cases for their own branded applications, adding value to hardware devices like phones, wearables and game consoles as well as directly monetising via their enterprise activities. Google seems less-concerned (or perhaps less-capable) of deriving revenue from communications products directly.

It will be interesting to see if this week's WebRTC conference gives further weight and shape to this view.

Sunday, November 16, 2014

Retiring the term “Telco-OTT”. "Digital services" is useless too. Long live “Telco-Apps”



I’ve long railed against the telecoms industry term “OTT”, standing for “over-the-top”. It is pointlessly divisive and arbitrary, and often said in a pejorative fashion, by people who don’t understand what it means and implies. On Twitter, I’ve often called for people using the term OTT in a serious way to be summarily fired for gross incompetence by their employers. (Given that many of the worst offenders are themselves CEOs, this is impractical, unfortunately). I generally prefix it with “so-called”, or use quote-marks, to give it the disrespect it deserves.

“OTT” is used to describe a subset of Internet-based services or applications, which are thought to compete with traditional telecoms services like telephony and SMS, or hoped-for future services, such as IM or video-calling. Skype, Whatsapp, LINE and SnapChat are examples of applications which have earned the despised “OTT” tag, usually uttered by people whose PR and legal departments told them not use stronger epithets. 

None of those companies call themselves "OTT players" any more than a washing-machine manufacturer considers themselves as running over-the-top of the electricity supply. They are simply web or Internet companies, offering communication apps or services. Call them CSPs or some other acronym, if you must. In future, as "OTT" communications capabilities get absorbed into most applications and websites as features, with WebRTC or other APIs, it will be a fairly pointless distinction anyway.

There is also a considerably different interpretation in the content space, where “OTT video” is used to describe channels or streaming platforms such as Hulu and NetFlix or BBC iPlayer, which go direct-to-customer and don’t need to work with normal digital TV aggregators such as cable MSOs or IPTV platforms. There seems to be less animosity in that area among telcos, perhaps because most don't have legacy businesses there.

Some other Internet companies often get lumped into the “OTT” category too, even though their main offerings don’t overlap with typical telecoms service domains. Facebook and Google, for example, often get called OTTs simply because they are seen as a strategic threat to the telecoms industry, so it makes sense to demonise and caricature them as “the other”. Web search, social networking and online advertising are not traditional telecom businesses - they are new and purely Internet-based.

Most other Internet services and applications don’t attract the same opprobrium. Nobody calls Salesforce or Wikipedia or Tinder or a Cisco IP-PBXs & WebEx an “OTT service”, even though they also “use our pipes for free”.

I’ve made the point in the past that if Internet services are “over the top”, then surely telecoms networks are better-called “under the floor”, as that’s where the pipes and plumbing goes. Yet oddly enough, I don’t encounter many telcos proudly declaiming their “UTF” status.

In a nutshell, "OTT" is simply a duplicitous, mealy-mouthed term for "bits of the Internet we don't like". "Dumb pipe" is a dumb term too - networks are neither pipes nor stupid. What "dumb pipe" means, translated from telco-ese, is "please tax the clever people for us, or let us do it instead".

I coined the term “Telco-OTT” in 2011, to describe the growing phenomenon of telecom operators launching their own services that use the public Internet as a platform, rather than their own managed network infrastructure. As well as grabbing attention, it was intended to highlight the hypocrisy - and sometimes outright lies - of many industry executive and observers (and sometimes regulators) when it comes to the Internet

Now, following a tweet from Chad Hart, I've decided to take his advice and kill the term.

Almost all Telcos have so-called OTT offerings, whether in the field of voice/messaging, cloud offers, content/video or even home-automation. These span both fixed and mobile networks, and “pure OTT” standalone applications and “extension” models linked to existing on-net services. Some are in-house developed, others created through partnerships. I identified well over 100 such services in 2011, and there are probably 200+ today.

And of course, every single telecoms company on the planet has its own Internet-based website, gladly using other telcos’ networks as sales, marketing and support channels for both their existing customers, and their rivals' subscribers they hope will switch. Vodafone.com, att.com and kddi.com are all “OTTs” in the broad sense of the word. Of course, all the industry associations and regulators happily make use of the public Internet as well, at the same time as some are trying to limit its reach and scope.

Curiously, none of these telco-run Internet and app properties have ever openly suggested paying for QoS on their rivals’ infrastructure, or sponsoring their users’ data consumption. Surely, given Telefonica’s distaste of OTTs (”It's not a level playing field"), it would have proactively sought to recompense its rivals forced to carry traffic from Terra, Tuenti or TuGo, as a good example? One would have also thought that GSMA’s or ETNO’s webmasters would have long ago volunteered to pay for visitors’ traffic, to demonstrate “innovative” broadband business models? Or perhaps Verizon would have sought to accelerate user transactions on Verizon.com, when viewed from an AT&T broadband connection, and pleaded with the FCC to allow it to buy a “fast lane”? 

Oddly, all the CEOs conveniently overlook their own Internet businesses, when it comes to grandstanding in front the FCC or EU or investors, about Net Neutrality and similar issues. 

The bottom-line: ALL telcos are “OTTs”. All of them exploit the Internet, and would complain bitterly if they were prevented from doing so. They’re not as successful in some areas as their rivals, but that’s a separate discussion.

When telecom industry representatives clamour about the lack of “a level playing field”, most are either ignorant, disingenuous, or unwilling to confront the organisational and cultural blockages in their own businesses. Plenty of telcos do launch run “pure OTT” apps and services, in exactly the same fashion as any other firm. That said, other telcos have limitations in areas such as user-data collection and exploitation, and I'd support broader equivalency of laws and rules there, versus Internet players.  It's up for discussion whether data privacy laws should be relaxed on telcos, or tightened on web firms.

Some also have actual – or merely perceived – regulatory hurdles on things like lawful intercept. But they have had 10 years to convince regulators and ministries to be more relaxed on communications areas outside of traditional telephony. Seriously, if an operator launches a karaoke app, are they expected to record hours of terrible singing, and metadata of the music tracks sung for the authorities? Instead, too many operators argue for new rules to be imposed on Internet companies, rather than arguing for relaxing rules on themselves.

The time has now come for me to retire the term "Telco-OTT". It is now in mainstream use, and various vendors and media outlets have come to embrace it more fully. The market has understood that telcos need to have web and mobile apps and services, decoupled from their own networks. WiFi-calling exploits third-party wireless connections. TV-anywhere apps use whatever networks are available. WebRTC services are quite clearly expected to be accessed from any Internet entry point. Many telco SaaS/cloud offers are accessible from anywhere. Numerous operators have VoIP apps intended for expats, travellers and the "diaspora" outside their home market, and away from their controlled and managed home networks.

Continuing with term Telco-OTT now just lends legitimacy to the unvarnished OTT label, and the phony war that is continually perpetuated by vendors and regulators in that regard. I want those that use the term OTT to be accused of blinkered "entitlement", as evidenced by ignorant comments about "OTT stealing revenues". Communications and content provision are open battlegrounds. Nobody is "entitled" to market share, revenues or profits for telecom and Internet services. They are up for competition. And if you offer Internet access to your customers, you should understand and accept the risk that Internet applications will be better/cheaper/cooler than on-net alternatives.

So what to call these services now that "Telco-OTT" is to be consigned to history?

Easy. Let's just call them "Telco Apps" (or Telco-Apps with a hyphen - I'm open to persuasion on the punctuation). Certain things may have to be called Telco Platforms or Telco Enablers, if they are thin delaminated Internet service "slices" rather than full applications.

I'm also calling time on "Digital Services". It's a stupid term as well. Apart from AM/FM radio, I can't think of any analogue communications services. They're all digital, as is the entirety of Internet & telecoms networking. As Alan Quayle often points out, "Digital" hasn't been a useful adjective since it was used to describe Casio watches in the 1970s, or perhaps the replacement of old phone exchanges in the 1980s. Today, "digital" is most often associated with techno-illiterate fools in the marketing and advertising industries, who talk about "digital marketing", or use cringeworthy phrases when you meet them like "Hi, I'm in digital".

So. "Telco-OTT" is dead, "OTT" is for telecom people who don't like the Internet but are too scared & hypocritical to say so as they use it too, and "Digital" is for people who haven't understood the last 50 years of technology. 

Internet companies make apps, websites & Internet services. Telcos exploiting the Internet do the same. Telcos are Internet companies. Call their Internet  activities Telco-Apps, if you need to distinguish them from network-integrated services - although even those will be extended over the Internet anyway. The Internet - and the Web & Apps - has won.

Oh, and make sure you understand the difference between the Internet and the Web, too. Or else, once again, you should be fired for incompetence.

Tuesday, November 11, 2014

5G standardisation requirement: The need to support multiple concurrent network service-providers


There are numerous 5G-requirements/use-cases documents being circulated by mobile vendors, industry bodies and governmental organisations. For example, 4G Americas recently put out a top-level white paper listing a variety of possible user- and network-functional options for consideration, based on the expected devices and user scenarios.

There are some very sensible conclusions – such as limiting the provision of complex mobility functions to those devices or contexts that actually need them. There is no point having complex, expensive and battery-consuming cellular mobility signalling protocols for IoT installations that are at fixed locations, for example. This type of context-smart design, built into the architecture upfront, could massively improve 5G efficiency and flexibility. This is a big shift from the one-size-fits-all approach seen in 3G and 4G design.

But, ultimately, many of the industry-issued papers are trying to reset the future balance of application/context-aware networks, vs. the growing trend towards network-aware applications. Coupled with hoped-for regulatory frameworks that allow more app-specific network operation, the intent is that mobile operators will retain a strategically important role with additional monetisation opportunities.

In an ideal world, both philosophies would co-exist. However, as the current concerns over net neutrality illustrate, there is considerable fear that network operators could abuse their position, especially in markets with limited access competition. There is a risk of oligopolistic operators demanding rents from application or content companies, which are both financially burdensome and act as a brake on innovation, by introducing extra business-process friction.

The huge success of the Internet model has largely been driven by the decoupling of application from network – and virtually no developers appear to wish to go back to the “bad old days” where they had to interact with the underlying infrastructure providers. Most would rather use a generic “vanilla” data connection. Perhaps others will emerge – especially in the IoT arena – that are prepared to pay for “priority” or “QoS”, but as yet there have been no enthusiastic potential customers. There is a notable absence of any lobbying group clamouring “please let us buy some extra QoS”, which suggests the entire concept is network-push rather than application-pull.

There are other stakeholders here too – notably end-users, and their employers, IoT infrastructure owners, families and other affiliated groups. They will wish 5G to be as responsive to their needs as possible – especially in offering flexibility of pricing/quality trade-offs. Furthermore, if networks are allowed to differentially treat (or even block) specific applications or content, then users will still want to be able to access those services through different channels instead.

Disruptive Analysis believes that a possible solution is to design 5G devices and networks with the explicit expectation that users should always have access to at least two completely independent network providers. This would allow users (or devices / OS’s acting as their agents) to arbitrage between different sources and styles of connectivity, as well as providing redundancy should one network experience a problem.

To an extent, this already happens. Most cellular 3G/4G devices also have user-controlled WiFi, which in many locations enables connectivity completely decoupled from the cellular operator’s control. In addition, short-range connections can be made over Bluetooth for certain use-cases, including device-to-device connections. And of course, there are some devices with dual SIMs or even dual radios. However, these are additions added by manufacturers, and work against the cellular industry’s polarised vision of “one device, one network operator”, rather than being designed-in as desirable models upfront.

It is imperative that the current level of user control over networking switching is maintained in the 5G era, and ideally extended considerably. Firstly, extreme care must be taken in any “multi-network” scenario to protect “seams”. There is a huge danger in trusting the concept of “seamlessness”, as often promoted by believers in carrier WiFi technologies like ANDSF, Hotspot 2.0 and Passpoint. While there are instances where automatic handover is useful, there must always remain a user-override and full visibility over which networks are used. This is especially true where one network is in unlicensed bands, as there will be a good chance that a cheaper/better/different network operator is available locally. This is often the case today with WiFi, where many locations are free at the point of use, and private access of utility WiFi (not “offload”) allows users to avoid using data plans, and perhaps avoid any onerous policy-management conditions their cellular provider imposes.

But ideally, this approach would go much further. Explicitly mandating devices to support at least two cellular network providers – where one might be virtual (e.g. with a Soft-SIM or second SIM or other network-authentication mechanism) would introduce extra competition, innovation capabilities and user/app choice at an architectural level. It would encourage networks to compete sincerely on quality and performance, as they would face easier switching. Applications and OS’s would be able to avoid “bad actor” rent-seeking operators by choosing an alternative path – and this in turn would make concepts such as prioritisation more palatable, as it would act to “keep the networks honest”. It would also make the distorting effects of handset subsidies much less tenable – which fits in with a broader move towards cellphone financing plans, rather than direct subsidy and locking.

A related approach is to make sure that device-to-device connections are decoupled from the cellular operator(s) entirely, and not locked-in to the user’s normal data plan. That way, users and their software agents will be able to “route around” over-restrictive or expensive operator controls, by using others’ connections instead. We already see this with portable-hotspot WiFi tethering, but more generalised and user-friendly forms of “social tethering” can be devised. It is quite plausible to imagine “sharing my connection with my Facebook friends”, or perhaps having separate, independent, D2D service providers.

Apple’s SIM card, with its selectable mobile networks, is a good step in the right direction here, but care must be taken to avoid anointing Apple or Google as another single point of network control as well.

A further possibility here is to apply strict Net Neutrality to just one of the connections. That way, the user always has open access to all legal apps and services via the public Internet, but the other connection(s) could support alternative business models, if they prove technically and commercially viable. Indeed, the user might choose to purchase both Internet and non-Internet service connections, and thus allow non-neutral connections to prove their “more innovation and investment” credentials over time.

Overall, 5G requirements and standards should support switchable, multi-network capabilities, using independent service providers, with at least one neutral Internet connection. By mandating this:

  • Users and applications can always exercise choice over network connections and pick “the best tool for the job at hand”
  • Network connections can offer optimisations for specific applications or contexts, potentially getting revenue premiums from end-users, or (conceivably) application providers.
  • Full and open Internet access is always available, but so are other potential “managed” services which can compete directly and fairly. 
  • Innovative solutions involving network bonding, roaming, D2D sharing and other models will be encouraged. We may see the emergence of new classes of secondary network service-providers.
  • WiFi or other unlicensed technologies remain valuable as an “arbitrage layer”. We may see the emergence of unlicensed-band LTE/5G networks run by third parties.
  • Regulators can manage to “square the circle” of guaranteeing both consumer choice, open Internet access and the potential for new mobile broadband business models. 
  • There can be good fits with new MVNO or liberalised-MNC models for network service provision.

All that said, it seems unlikely that the traditional mobile industry will suggest this approach itself, as the usual model tends to view lock-in as preferable to loyalty and choice. It will be important for regulators and other stakeholders (eg Apple which is now a member of NGMN) to push for multi-network capabilities to be recognised as a 5G requirement. This is a critical area, which seems to be overlooked at the moment. 5G needs not just “seams”, but “zips” that allow it to be more open, more versatile, and of greater benefit and value to the user.