The bandwidth wars are not only back, they’re escalating: BT (NYSE: BT) has told video streaming sites that they will have to contribute to the cost of upgrading its broadband networks if they want consumers to enjoy a good level of video quality in future. BT Retail MD John Petter says (via FT.com): “We can’t give the content providers a completely free ride and continue to give customers the [service] they want at the price they expect.” Petter wouldn’t say “how many millions” BT was losing to traffic overloads but did say “if it wasn’t a significant sum, we wouldn’t be focused on it”. The BBC complained last week that BT’s practice of capping broadband speeds on its basic Option 1 broadband package at nights from “up to 8Mbps” to just 896 Kbps to cope with bandwidth pressure was stifling use of its watch-again iPlayer service. But BT is not in a mood to make special cases or to put these problems down to net neutrality—ahead of the release of Lord Carter’s Digital Britain report expected next week, it wants assurances from content owners and government that it won’t have to shoulder the full financial burden of creating universal web access. It’s frustrating for the Beeb, which has invested much in the iPlayer and in April added a 3.2 Mbps HD-quality video standard—all BT customers should technically be able to receive iplayer HD, but not with the the on-going bandwidth throttling. But as Petter says, it’s a “much bigger issue than the BBC iPlayer, it’s true of all forms of video content coming across the web. It’s becoming a more and more pressing issue”. BT, along with Carphone Warehouse and Tiscali, warned back in 2007 that iPlayer could have a massive detrimental affect on broadband networks due to its sheer size. And in reality the iPlayer is now probably bigger than they thought: it gobbles through 12.5GB per second, or seven petabytes (7,000 terabytes) a month. (Original photo: Vix B, Flickr, some rights reserved)

Ofcom would have to consider whether BT (NYSE: BT) should open its forthcoming higher-speed broadband lines to competitors, under proposed European Commission rules. The commission is recommending that rules governing the emerging next-generation broadband services - specifically, those around competitor access to infrastructure and wholesaling of broadband access - should be developed through a “common approach” across the continent. If national telco regulators like Ofcom find that a dominant telco like BT has significant market power over the faster lines, they should assess whether competitors should get access to both the ducts that carry lines and access to the lines under wholesale agreements. That includes parts of fibre-to-the-home roll-outs like those BT has been doing in trial areas. On the higher-speed network it is currently building, BT would need to offer an equivalent of the IPStream and Datastream services through which it currently gives rivals wholesale access to its existing copper-wire network. Next-gen broadband speeds were barely mentioned in the draft Digital Britain report, but Ofcom had already been making progress on urging BT to open its network, despite its own heavy investment. The European Commission has put out its recommendation to consultation by email, as it tries to ensure similar opening up across the continent. Release. (Photo: gruntzooki, some rights reserved)

Pay TV in the UK is notable for its disappointing lack of digital strategy. BSkyB (NYSE: BSY) may be pushing its content through the XBox and a standalone online portal—but essentially, despite all the lip service and stated commitment to new, online business models, just like newspapers the industry still relies on old behaviours for revenue: people phoning call centres and taking out cable or satellite TV subscriptions. In any case, the chances that Irish broadcaster Setanta will be around in that battleground for much longer look slim, as crisis meetings with backers continue and it refuses new UK customers (via Guardian.co.uk). But why is it struggling? Here are some thoughts… —Rights gamble: Setanta is failing in the UK simply because it staked its model on football rights and from next season it will hardly have any. It scaled up too quickly, as Sky CEO Jeremy Darroch pointed out (via Guardian.co.uk), and took a huge gamble on getting two of the six English Premier League packages and it ended up with just one. We’ve no idea how many people use it, but Setanta does have an online-only, live streaming player, but like BSkyB’s Sky Player it seems to only be used as an incentive to get people to sign up for a TV package and not a real standalone product. And it’s pay monthly, not PPV—once you’re paying £7.99 per month for the content through your PC you may as well pay to get it through your TV. —Only one winner: The real issue is about Sky’s dominance. It was a good thing that Setanta chipped away some of its business and a doubly good thing the European Comission ensured Sky couldn’t have 100 percent rights of any one competition. But digital will always fall behind when the league and clubs fall over backwards to accomodate the market leader—the BBC was smug about adding MOTD2 to the iPlayer, but it won’t go online until Tuesday, a full 48 hours after Sunday’s games, all because of the terms of Sky’s deals which also includes highlights. In fairness to Sky the EPL runs the rights auction and decides what form the rights come in—anyone can bid for them—and at the moment linear TV is simply the most profitable format for Sky, the league and the clubs. —IPTV threat: And what of BT (NYSE: BT) Vision? Out-going BT Vision CEO Dan Marks says the IPTV service will struggle reach its subscriptions target of two to three million by 2011 given Sky’s dominance in the movies and live sports arena, and who are we to disagree? Will any IPTV service stand a chance against Sky’s linear TV dominance?

Pay TV in the UK is notable for its disappointing lack of digital strategy. BSkyB (NYSE: BSY) may be pushing its content through the XBox and a standalone online portal—but essentially, despite all the lip service and stated commitment to new, online business models, just like newspapers the industry still relies on old behaviours for revenue: people phoning call centres and taking out cable or satellite TV subscriptions. In any case, the chances that Irish broadcaster Setanta will be around in that battleground for much longer look slim, as crisis meetings with backers continue and it refuses new UK customers (via Guardian.co.uk). But why is it struggling? Here are some thoughts… —Rights gamble: Setanta is failing in the UK simply because it staked its model on football rights and from next season it will hardly have any. It scaled up too quickly, as Sky CEO Jeremy Darroch pointed out (via Guardian.co.uk), and took a huge gamble on getting two of the six English Premier League packages and it ended up with just one. We’ve no idea how many people use it, but Setanta does have an online-only, live streaming player, but like BSkyB’s Sky Player it seems to only be used as an incentive to get people to sign up for a TV package and not a real standalone product. And it’s pay monthly, not PPV—once you’re paying £7.99 per month for the content through your PC you may as well pay to get it through your TV. —Only one winner: The real issue is about Sky’s dominance. It was a good thing that Setanta chipped away some of its business and a doubly good thing the European Comission ensured Sky couldn’t have 100 percent rights of any one competition. But digital will always fall behind when the league and clubs fall over backwards to accomodate the market leader—the BBC was smug about adding MOTD2 to the iPlayer, but it won’t go online until Tuesday, a full 48 hours after Sunday’s games, all because of the terms of Sky’s deals which also includes highlights. —IPTV threat: And what of BT (NYSE: BT) Vision? Out-going BT Vision CEO Dan Marks says the IPTV service will struggle reach its subscriptions target of two to three million by 2011 given Sky’s unfettered dominance in the movies and live sports arena, and who are we to disagree? Will any IPTV service stand a chance against Sky’s linear TV dominance?

The bandwidth wars are not only back, they’re escalating: BT (NYSE: BT) has told video streaming sites that they will have to contribute to the cost of upgrading its broadband networks if they want consumers to enjoy a good level of video quality in future. BT Retail MD John Petter says (via FT.com): “We can’t give the content providers a completely free ride and continue to give customers the [service] they want at the price they expect.” Petter wouldn’t say “how many millions” BT was losing to traffic overloads but did say “if it wasn’t a significant sum, we wouldn’t be focused on it”. The BBC complained last week that BT’s practice of capping broadband speeds on its basic Option 1 broadband package at nights from “up to 8Mbps” to just 896 Kbps to cope with bandwidth pressure was stifling use of its watch-again iPlayer service. But BT is not in a mood to make special cases or to put these problems down to net neutrality—ahead of the release of Lord Carter’s Digital Britain report expected next week, it wants assurances from content owners and government that it won’t have to shoulder the full financial burden of creating universal web access. It’s frustrating for the Beeb, which has invested much in the iPlayer and in April added a 3.2 Mbps HD-quality video standard—all BT customers should technically be able to receive iplayer HD, but not with the the on-going bandwidth throttling. But as Petter says, it’s a “much bigger issue than the BBC iPlayer, it’s true of all forms of video content coming across the web. It’s becoming a more and more pressing issue”. BT, along with Carphone Warehouse and Tiscali, warned back in 2007 that iPlayer could have a massive detrimental affect on broadband networks due to its sheer size. And in reality the iPlayer is now probably bigger than they thought: it gobbles through 12.5GB per second, or seven petabytes (7,000 terabytes) a month. (Original photo: Vix B, Flickr, some rights reserved)

Unique hierarchical container structure solves complex IP management problem

New online experience offers full range of account management features

EARNINGS PREVIEW: BT Group 3Q Ebitda Pre-Items Seen +5.9%

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By Kate HoltonLONDON (Reuters UK) - BT BT plans to open up its underground cable ducts to allow rivals to lay their own high-speed broadband networks, in a move that could appease critics but hurt income for the group's wholesale division.BT said on Monday it could provide open access to...

LONDON (Reuters UK) - Telecom carrier BT BT plans to allow its competitors to use its underground tunnel network to run high-speed broadband, the Financial Times reported on Monday.BT chief executive Ian Livingston told the FT the company would provide open access to its ducts in a move to help...

By Cecilia ValenteLONDON (Reuters UK) - Hermes, the fund firm owned by the BT pension fund, said it has set up a new credit boutique with a 400 million pound investment from its parent as it seeks to drive third-party business.The launch is part of a wider effort to grow...

O2 UK, the British subsidiary of Spanish Telecom giant Telefonica (TEF), recently announced that it will offer fixed-line voice services to residential customers in the UK starting March 2010. The mobile carrier, which was once the wireless arm of BT Group (BT), aims at complementing its existing wireless and broadband Internet services with wireline voice. BT [...]

(TEF) Telefonica Subsidiary O2 UK Enters Wireline Voice

The heads of British Sky Broadcasting and Carphone Warehouse, two smaller British ISPs, so far aren't impressed with BT's planned fiber-to-the-cabinet network because it isn't flexible enough, nor is it future-proof. Is this a sign that copper has no place in broadband networks any longer?

BT, a company well known to drag its feet when it comes to deploying super fast broadband network for its consumers, says it will ramp up the deployment of its super fast fiber-based broadband network to have it ready by London Olympics in 2012.

The FCC is prepping for a future without the circuit-switched network that currently handles most of the calls in this country, as we transition to an all-IP communications network. This transition requires regulatory reform, but will also enable new services that meld voice, video and data.

BT Group Plc (BT) reported second-quarter earnings per share of 90 cents, compared to the Zacks Consensus Estimate of 74 cents, on the strength of tax loss carry-forwards and tax efficiency. Revenues were down 3% to £5,122million ($8,406 million) including favorable foreign exchange movements and the impact of acquisitions of £118m. Excluding these, underlying revenue decreased [...]

(BT) BT Group Plc Surpasses Consensus Estimates

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