Some of this weeks top stories: Microsoft leaps into the low end cell phone market, as the Mobile World Congress kicks off in Barcelona. Vonage gains some market share while VoIP Inc. sues for patent infringement and the WiMax forum comes clean about its FDD plans. Also, an awful lot about Comcast in the news this week.

Mobile World Congress 2008

The MWG got underway this week in Barcelona with handset makers showing their wares, and WiMax edging in on LTE turf. The Congress attracts a lot of Asian participants, where mobile technology is more advanced than elsewhere, and will highlight new innovations evolving as the industry shifts from 3rd to 4th Generation technologies.

Microsoft Buys Danger

Software king Microsoft announced its intention to buy Danger, maker of the T-Mobile Sidekick cell phone. The Sidekick has its own mobile OS, and its form and function is popular with low end cell phone users (i.e. kids).

Unclear is what they plan to do with the company, and how this will affect their high end Windows Mobile OS (i.e. business users).

Pure Play Vonage improves to Stable

Vonage posted a 19.3% Q4 increase in revenue over last years fourth, and said it added 56,000 new customers, gaining back some market share lost in a not so good year. Losses were only $11.1 million, a vast improvement over last year’s quarter loss of $117 million.

Not out of the woods yet, Vonage has $250 million in short term debt coming due at the end of the year. Analysts are skeptical that they will be able to refinance that debt in a staggering economy.

At least the bleeding has stopped, for now.

Former Pure Play Ready to Sue

VoIP Inc., who abruptly pulled a SunRocket last week, claimed that its click to call patent is worth $1.25 billion, and has hired a law firm to go after 100 companies it claims are infringing on the patent.

Undisclosed was how they came up with that figure. Good luck with that!

Wimax Goes After 700MHz

The WiMax Forum announced at the Mobile World Congress that it is indeed working on an FDD profile, and with the increased interest in the 700MHz band, they want a piece of it, globally.

Additionally, the Forum announced that 28 products for the 2.3 and 2.5GHz range have been accepted for testing in their certification labs, and are expected to be ready to market later this year. Over 260 Wimax deployments have been rolled out worldwide to date.

Lions and Tigers and Comcast, Oh My!

Comcast announced a 54% increase of $600.2 million in net income for Q4, and declared a 6.25 cents per share dividend. 73% of the increase is attributed to its digital phone service, and 14% to high speed Internet.

Along with Time Warner and Bright House Networks, Comcast filed a complaint against Verizon with the FCC, alleging unfair retention practices. Apparently, the cellular giant has been offering deals on pricing and gift cards to convince customers not to churn. The FCC has banned carriers from trying to persuade customers not to switch.

In another filing with the FCC, Comcast fesses up and defends its bandwidth throttling practices, urging the Agency to declare their traffic management techniques reasonable.

And oh yea, another noteworthy news morsel: The House now has a net neutrality bill in front of them, as they ponder the Internet Freedom Preservation Act of 2008. For those of you who read my last post, I guess you know what I think about that!

That’s the way it is.

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The Internet Freedom Preservation Act was re-introduced in the House yesterday by Rep. Edward Markey, D-Mass, according to an article in the Associated Press. The bill, which is cosponsored by Rep. Chip Pickering (Rep), was originally introduced by the two in a Republican house in 2006, but failed to gain passage.

The IFPA seeks to prohibit ISPs from blocking or interfering with consumers’ rights to access content, applications and services of their choosing over the Internet. Markey’s camp would like to point out that this is not to be considered regulation of the Internet, but a general adherence backed by law of the principals of net neutrality that have spurred the growth and development of the web since its inception.

Under the bill, the FCC would be tasked to monitor broadband service providers for compliance, and to determine whether charging extra for certain services (I’m assuming charging by bandwidth consumption) is lawful. They would also be required to hold eight summits around the country to hear input from groups and industry leaders on competition and services.

The FCC is currently investigating Comcast (CMCSA) for blocking p2p sessions (specifically BitTorrent) by sending a packet, seemingly from the computers involved, to disrupt the stream. Chairman Kevin Martin indicates that he understands traffic management is necessary, but Comcast should be forthright about what and how they are doing it.

Comcast complied. On February 12th they submitted an eighty page filing with the FCC, disclosing their traffic throttling practices, and asking the Agency to declare them reasonable. On January 25th they revised their Acceptable Use Policy and updated the FAQ page in an effort to become “more transparent” to consumers.

In early January, Time Warner Cable (TWC) announced that they would begin charging new users on a per usage basis, effectively eliminating unlimited access. TW says that only 5% of users would be affected, and most would not even notice the difference.

The Fox Guarding the Hen House?

Since the beginning of the net neutrality debate, ISPs have agued against “regulation” of the Internet. In an effort to stave off legislation, the industry agreed to abide by the Commissions Internet Policy Statement, a rather toothless document as “Comcast respectively reminds the Commission…of its own words”:

“that the Internet Policy Statement expressly sets forth “guidance and insight in its approach to the Internet and broadband,” not legally binding rules”.

With the failure of the first attempt of the Internet Freedom Preservation Act to pass, the ISP industry has effectively been regulating itself to conform to the vaguest principals of net neutrality. And the results are clear.

The practice of bandwidth throttling clearly violates the principal that consumers have the right to access any legal content, device, or application they choose.

Comcast says, “Independent research has shown that as few as 15 simultaneous BitTorrent sessions . . . in a geographic area served by a single node . . . can severely slow down the time it takes for all users in that area to surf the Web and can degrade the quality and reliability of VoIP calls below the threshold of what is considered to be on par with traditional phone service.”

While traffic management does need to be done to prevent network congestion, spoofing computers to break off a file sharing session is not the way to do it. If a node in a neighborhood is regularly getting congested, then add another node. Tampering with traffic from a specific application is effectively determining what the user can or cannot access. Find other ways. Spend some money.

Paying for bandwidth usage is currently practiced in other countries, with consumers complaining about having to budget their monthly allotment. While it may only affect 5% now, new applications and technologies are being implemented now with more on the horizon.

Public acceptance of streaming video and VoIP is growing, with apps like AppleTV and Netflix’s unlimited streaming plan coming to market. IPTV and Unified Communications are going to be pushing the limits of your pipe, deal with it. Penalizing consumers by making them pay for bandwidth will only serve to stifle development of these emerging rich media technologies.

Without a net neutrality law in place, publicly traded service providers will always straddle the fence between their customers and shareholders. More often than not, they will opt for the bottom line, leaving consumers rights by the wayside. 

It is exactly the absence of such legislation that has allowed the cell phone industry to wall in their gardens, offering dumbed down browsers that only access the content that the provider wants you to see (and pay them for). Left to their own devices, ISPs could be headed down the same road. If it starts with BitTorrent, where does it stop?

I have been reading some of the comments around the blogesphere, and have found that many that are against the passage of the IFPA seem to be worried about all the bad things that could happen from a free and open Internet. To them I say, if you’re scared, don’t go there, but don’t deny the millions of consumers their freedom of choice.

When this Democrat Congress took office in 2007, they said a Net Neutrality act was on the agenda, and now it is here. As might be expected, generally Republicans are against it and Democrats for. Read my post Where the Candidates Stand, Technicaly Speaking to find out where our Presidential hopefuls fall on the issue.

For consumers that feel as I do, and believe that legislation preserving the Internet as we know it should be in place, visit SaveTheInternet.com, type in your zip code, and urge your Congressman to vote Yes on the Internet Freedom Preservation Act in 2008.

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Microsoft Corp. (MSFT) has been in the news a lot of late, most notably due to its unsolicited takeover bid for Yahoo. Progress in their unified communications partnership with Nortel was charted this week, and they also announced on Monday that they were acquiring the Sidekick cell phone maker Danger.

Microsoft vs. Yahoo Not Over Yet

Although Yahoo! Inc. (YHOO) flatly rejected Microsoft’s $44.6 billion takeover bid, nobody seems to think M$ is going to walk away sulking. According to a report in Cnet news, analysts say Microsoft has two options: up the ante and hope the offer gets accepted, or take it to the shareholders with a tender offer and a proxy fight for control of the board. Interestingly enough, the window for electing board members opens tomorrow, and closes on March 14th. Anybody see a pattern here?

While nobody thinks some serious competition for Google in the search engine market would be a bad thing (Microsoft + Yahoo = Big Mess?), the Justice Department has already said it will look at the deal for anti trust issues.

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