October 2014

TeleGeography: Phone Line Decline Driven More by VoIP Than Mobile

Exponential growth in wireless and mobile telecommunications has created the perception that fixed-line telephony, and subscribership, is on the way out. The evidence isn’t as clear-cut as many may believe, however, according to market research from TeleGeography.

Data from TeleGeography’s GlobalComms Database reveals that while public-switched telephone network (PSTN) telephone lines have indeed been declining steadily, much of the fall has been the result of growth in fixed voice-over-IP (VoIP) services as opposed to mobile/wireless adoption. Overall, global fixed-line (PSTN and VoIP) voice subscriber numbers peaked at 1.29 billion in 2008. They have fallen at a compound annual rate of 1.3 percent since, evidence “of gradual long-term decline.”

On Censoring Political Ads

[Commentary] There may be just a few weeks remaining in this election season, but broadcasters should be paying attention – now and in future elections – to an important aspect of the political advertising business: the extent to which they may be able to demand changes in, or refuse to air, political ads because of their content. One key protection that covers the broadcast of some political spots does not cover all such spots, and it definitely does not appear to cover any non-broadcast distribution of even the spots that are protected when broadcast.

Lower Manhattan Subway Stations to Get Wireless Service in 2015

Subway stations in lower Manhattan will get mobile-phone coverage in 2015 as the Metropolitan Transportation Authority extends its plan to blanket its network with wireless service. All 277 underground stops are planned to be connected by 2017.

Pakistan Remains TV Market, With Room For Growth For Mobile

TV dominates the media market in Pakistan, with more than three-fourths of adults (76.2%) watching weekly, according to media research data released by the Broadcasting Board of Governors. However, mobile phones are becoming more common, signaling a possible shift in the way Pakistanis engage with media.

William Bell, director of audience insights at the BBG, said that there is a significant gap in information access between those with access to cable (45%) and satellite (14%), who have a much broader level of access, compared to those with only terrestrial (21%) or no TV. The data found that Pakistani adults relied less on new media, and mobiles are not yet widely used for Internet access. Although the majority of Pakistani adults (56%%) report having a mobile phone, the phones are commonly used primarily for basic SMS or calling functions.

Exploring the Digital Nation: Embracing the Mobile Internet

A report released by the US Commerce Department’s National Telecommunications and Information Administration (NTIA) found that Americans are rapidly embracing mobile Internet devices such as smart phones and tablet computers for a wide range of activities beyond just voice communications, such as checking email and using social networks.

Americans are increasingly using their mobile devices to engage in applications that they might have previously done on a desktop or laptop computer or not at all. Between July 2011 and October 2012, there have been big increases in mobile phone users 25 and older who used their devices to download mobile applications (22 percent to 32 percent), browse the Web (33 percent to 42 percent), check their email (33 percent to 43 percent), and use social networks (22 percent to 30 percent). Mobile phones appear to be helping to narrow the digital divide, the gap between the technology haves and have nots, among traditionally disadvantaged groups. Mobile phone use among those with family incomes below $25,000 and among disabled Americans each increased by 4 percentage points, growing from 73 percent to 77 percent and from 68 percent to 72 percent, respectively. Similarly, mobile phone use among seniors 65 and older grew by 4 percentage points between 2011 and 2012, from 68 percent to 72 percent.

CBS Offers Web Service as TV Unbundles Itself

CBS announced a new subscription Internet streaming service that allows people to watch its live television programming and thousands of its current and past shows on demand without paying for a traditional TV subscription.

The new “CBS All Access” service, costing $5.99 a month, is the first time that a traditional broadcaster will make a near-continuous live feed of its local stations available over the web to non-pay-TV subscribers. At its start, the live stream will be available in 14 markets in the United States. Subscribers to “CBS All Access” will be able to watch local CBS television stations in 14 markets, including New York, Los Angeles, Chicago, Philadelphia, Dallas and San Francisco. More affiliates are expected to join. Available in all other United States markets beyond the initial 14 markets are episodes of current prime time shows like “The Big Bang Theory” and “NCIS” the day after they are shown, and more than 5,000 episodes of such series as “Star Trek,” “Cheers” and “MacGyver.” In a notable carve-out, National Football League games will not be available on the service. CBS executives said they are now in discussions with the N.F.L. and that other live sports are already available for streaming. A similar service from Showtime, the premium cable network owned by CBS, is likely in the “not too distant future,” said Leslie Moonves, chief executive of the CBS.

This isn’t the end of the cable bundle -- not by a long shot.

Both HBO and CBS are going to start offering a standalone Internet streaming service. The one-two punch already has some hopeful onlookers anticipating the end of the TV bundle, a business model that forces consumers to pay hefty monthly prices for a bundle of channels including those they couldn't care less about.

Although the announcements could speed up the forces behind TV unbundling, it will still be a while before the programming walls come crashing down. Here's why. Appointment television has largely been superseded by the ability to record premade shows, skip ads and binge-watch on streaming services on your own schedule. But live events are the exception. A lot of folks just won't find CBS All Access that compelling without sports. CBS All Access does include some live games -- but probably not the local ones that fans really want to watch, said Hal Singer, an economist who's helped litigate a number of cases involving programmers and cable distributors. As a result, the move by CBS to offer online streaming isn't quite the broadside against the cable bundle that consumers might hope it to be. The good news for viewers is that convincing other sports programmers to leap on the streaming bandwagon may not be that difficult. That's because many have been relegated by cable companies to special sports tiers beyond the basic bundle -- the worst punishment a cable company can bestow, according to Singer, because a channel placed there gets fewer eyeballs.

HBO’s new streaming service won’t kill cable companies. It might make them stronger

[Commentary] Cable companies are not going to go the way of the dinosaur, getting slowly frozen out of the entertainment industry like big-box bookstores or record labels. What's easy to miss here is that said cable companies have merrily gobbled up the vast majority of means by which Americans might access this new standalone HBO. That's why HBO's announcement comes along with the thought that the company might partner with cable companies to offer some sort of HBO deal related to buying broadband service from them. Or, put another way, this might be the death knell for cable companies. But it also might be the ultimate signifier of just how much power they truly have.

Because the cable companies controlled HBO's most likely source of revenue, the network was boxed in, even if it wanted to launch a streaming site. Angering cable companies would likely have resulted in higher fees for HBO to pay, in effect giving cable providers a larger slice of the HBO subscription pie that underwrites all that great programming. It seems just as likely that HBO's symbiotic relationship with cable companies will continue. In fact, it will almost have to if the company's new venture is to be a success.

White House pool reporters test own news distribution system

White House journalists are creating an alternative system for distributing their media “pool” reports in response to the Obama Administration’s involvement in approving and disapproving certain content in official reports. A small group of reporters initiated an online forum in which they shared “pool” information among themselves, without White House involvement.

The forum was set up by the White House Correspondents’ Association (WHCA), which negotiates with the White House’s press staff over access for journalists. Some journalists are sharing their White House reporting using Google Groups -- the digital service that allows registered users to receive and send information within a closed circle. In an early test of the supplemental system, journalists shared pool information about President Obama’s trip to Chicago. The system has been used for “advisories,” such as where the pool is assembling, when another pool report will be issued or whether a correction is in the works.

Comcast “extortion” shows the need to treat broadband as a utility, Reddit’s Ohanian said

Alexis Ohanian, startup investor and co-founder of Reddit, lashed out at US broadband policy, calling on the Federal Communications Commission to reclassify Internet broadband as “the utility we all know it to be.”

“Somehow America leads the world in tech innovation despite having the worst and slowest internet,” said Ohanian. He aimed special vitriol at Comcast, affecting a mafia-style voice to accuse the cable giant of “legal extortion” for fiddling with Netflix speeds until the video site paid it to restore proper service. “It’s such a racket,” he said, adding that he worried that the next Netflix is being developed in a dorm room somewhere, but that bigger companies could exploit new Internet rules to strangle future competitors in the crib.