Comments on: Does the US Really Want Broadband? http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/ More Signal. Less Noise. Thu, 02 Apr 2009 12:29:57 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: Online Gaming the Next Broadband Growth Driver? at Nyquist Capital http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-227 Online Gaming the Next Broadband Growth Driver? at Nyquist Capital Tue, 11 Sep 2007 20:27:21 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-227 [...] questioned in the past whether the US really wants broadband, and I think that the lack of a killer app, not availability, is what prevents widespread adoption. [...] [...] questioned in the past whether the US really wants broadband, and I think that the lack of a killer app, not availability, is what prevents widespread adoption. [...]

]]> By: Net Neutrality Debate - Telecosm 2006 at Nyquist Capital http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-233 Net Neutrality Debate - Telecosm 2006 at Nyquist Capital Thu, 05 Oct 2006 21:05:25 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-233 [...] Lessig - Two separate issues. 1. How do we get more broadband deployment. 2. How do we get more application development and competition. Does not support open access. Open access leads to more broadband penetration in most countries. Brief run off into the weeds about USA being 16th in broadband penetration (I think this whole debate is a myth!) [...] [...] Lessig – Two separate issues. 1. How do we get more broadband deployment. 2. How do we get more application development and competition. Does not support open access. Open access leads to more broadband penetration in most countries. Brief run off into the weeds about USA being 16th in broadband penetration (I think this whole debate is a myth!) [...]

]]> By: Broadband Gap = Economic Substitution - Nyquist Capital http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-232 Broadband Gap = Economic Substitution - Nyquist Capital Wed, 12 Apr 2006 20:35:06 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-232 [...] I don’t believe the broadband gap is a problem that needs to be solved. I think many folks are happy with dial-up in the US, and don’t subscribe to broadband because no incentive exists for them to switch. [...] [...] I don’t believe the broadband gap is a problem that needs to be solved. I think many folks are happy with dial-up in the US, and don’t subscribe to broadband because no incentive exists for them to switch. [...]

]]> By: Andrew Schmitt http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-231 Andrew Schmitt Thu, 23 Mar 2006 14:40:14 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-231 MMORPG's are getting very popular. I've never checked one out myself, but the fact that World of Warcraft now has more players than the entire population of Ireland makes it a pretty amazing phenomena. What I have heard about MMORPGs, as well as online gaming in general, is latency is just as important as bandwidth. And a major law of network engineering is you solve latency issues by throwing bandwidth at the problem. So - MMORPGs may drive adoption of high-speed broadband, provided that the ISP's make the back end pipes as fat as the front end pipes. Right now they are not doing that. They also need to find a way to market this as it looks like a major cash cow to me. ISP's could sell low latency connections to 10M households for $5 more a month, that's $600M in free revenue just by prioritizing certain peoples traffic. Oh, but wait, the Net Neutrality guys think someone paying for a better ping is a capital crime. MMORPG’s are getting very popular. I’ve never checked one out myself, but the fact that World of Warcraft now has more players than the entire population of Ireland makes it a pretty amazing phenomena.

What I have heard about MMORPGs, as well as online gaming in general, is latency is just as important as bandwidth. And a major law of network engineering is you solve latency issues by throwing bandwidth at the problem.

So – MMORPGs may drive adoption of high-speed broadband, provided that the ISP’s make the back end pipes as fat as the front end pipes. Right now they are not doing that.

They also need to find a way to market this as it looks like a major cash cow to me. ISP’s could sell low latency connections to 10M households for $5 more a month, that’s $600M in free revenue just by prioritizing certain peoples traffic.

Oh, but wait, the Net Neutrality guys think someone paying for a better ping is a capital crime.

]]> By: Tim Lawson http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-230 Tim Lawson Wed, 22 Mar 2006 04:50:01 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-230 People may not be upgrading from dial-up to broadband simply because they don't have to. That is, for most people, there isn't much they can do with broadband that they can't do with dial-up, albeit more slowly. For most people, dial-up is fine for surfing, downloading music, Skype, etc. This could change if a web-based activity that absolutely requires broadband is introduced and quickly becomes hugely popular. It hasn't happened yet, but one possibility is MMORPGs, i.e., Massively Multiplayer Online Role Playing Games. We've seen it happen in Korea, where MMORPGs are wildly popular and where the penetration rate for broadband is the highest in the world. In fact, it may be about to happen in the United States. Several companies are developing MMORPGs for the United States market. Perhaps the best among them is the Korean company Webzen (NASDAQ: WZEN), which currently has four major games for the US market in its pipeline -- Soul of the Ultimate Nation (SUN), Huxley, All Points Bulletin and an as yet unnamed game being developed in partnership with Red 5 (the ex-Blizzard developers of Worlds of Warcraft). We'll hear more about Webzen at the E3 Expo video game trade show, which will be held at the Los Angeles Convention Center from May 10 to 12, where they will show SUN in an open beta test. The MMORPG experience is awesome and the technology and game design is getting better and better. If it takes off in the United States, broadband will be required in every household with an adolescent, be they teenagers or baby boomers! People may not be upgrading from dial-up to broadband simply because they don’t have to. That is, for most people, there isn’t much they can do with broadband that they can’t do with dial-up, albeit more slowly. For most people, dial-up is fine for surfing, downloading music, Skype, etc.

This could change if a web-based activity that absolutely requires broadband is introduced and quickly becomes hugely popular. It hasn’t happened yet, but one possibility is MMORPGs, i.e., Massively Multiplayer Online Role Playing Games. We’ve seen it happen in Korea, where MMORPGs are wildly popular and where the penetration rate for broadband is the highest in the world.

In fact, it may be about to happen in the United States. Several companies are developing MMORPGs for the United States market. Perhaps the best among them is the Korean company Webzen (NASDAQ: WZEN), which currently has four major games for the US market in its pipeline — Soul of the Ultimate Nation (SUN), Huxley, All Points Bulletin and an as yet unnamed game being developed in partnership with Red 5 (the ex-Blizzard developers of Worlds of Warcraft). We’ll hear more about Webzen at the E3 Expo video game trade show, which will be held at the Los Angeles Convention Center from May 10 to 12, where they will show SUN in an open beta test.

The MMORPG experience is awesome and the technology and game design is getting better and better. If it takes off in the United States, broadband will be required in every household with an adolescent, be they teenagers or baby boomers!

]]> By: Barry Ritholtz http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-229 Barry Ritholtz Fri, 17 Mar 2006 11:11:47 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-229 Perhaps a better title to this post might be: <i>"Does the US Really Have a Broadband Gap?" </i> Its not an issue of whether people want braodband; they do. Its an issue of how much regulation reduction and/or taxpayer dollars will be subsidizing cable companies (regulation increasing max allowable rates or limiting competition) and the Bells (shared access lines, increases in infrastructure pass alongs). Everyone wants Broadband; Its an issue of who is going to pay for it. Perhaps a better title to this post might be: “Does the US Really Have a Broadband Gap?”

Its not an issue of whether people want braodband; they do. Its an issue of how much regulation reduction and/or taxpayer dollars will be subsidizing cable companies (regulation increasing max allowable rates or limiting competition) and the Bells (shared access lines, increases in infrastructure pass alongs).

Everyone wants Broadband; Its an issue of who is going to pay for it.

]]> By: Frank Bulk http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-228 Frank Bulk Sat, 11 Mar 2006 17:53:49 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-228 Great point about changing perspective from "can they get it" to "who wants it, but can't get it". People who are negative about the America's place in the broadband rankings should perhaps focus less on broadband availability and more on people's attitude toward broadband. So rather than educate the ISP, educate the consumer? One of the reasons that rural areas have not had as much broadband is because they represent an older and less affluent population. Of course, there are availability issues and limited competition can keep prices high, but it's clear that there are more reasons. Frank Great point about changing perspective from “can they get it” to “who wants it, but can’t get it”.

People who are negative about the America’s place in the broadband rankings should perhaps focus less on broadband availability and more on people’s attitude toward broadband. So rather than educate the ISP, educate the consumer?

One of the reasons that rural areas have not had as much broadband is because they represent an older and less affluent population. Of course, there are availability issues and limited competition can keep prices high, but it’s clear that there are more reasons.

Frank

]]> By: Andrew Schmitt http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-226 Andrew Schmitt Fri, 10 Mar 2006 20:34:01 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-226 You raise a valid point about naked DSL. Note that Comcast's voice plan is exactly the same price as unlimited copper based voice from Verizon (Freedom package). Any way you look at it, Cable prices will need to drop to take market share. You raise a valid point about naked DSL. Note that Comcast’s voice plan is exactly the same price as unlimited copper based voice from Verizon (Freedom package).

Any way you look at it, Cable prices will need to drop to take market share.

]]> By: Ranjit Mathoda http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-225 Ranjit Mathoda Thu, 09 Mar 2006 08:57:09 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-225 Love this blog. However, it's a bit ironic that in chatting about how one must challenge the perceived wisdom about one gap (non USA broadband subscribers vs USA broadband subscribers) you mention as a fait accompli another piece of conventional wisdom (that cable broadband is alot more expensive than dsl broadband). Yet other than Qwest, bell companies don't offer naked DSL. So the price gap is really between cable broadband+voice vs bell broadband+voice, which isn't nearly as large a gap. Although for me personally, Verizon is the best plan (just wish FiOS would deploy to me today!). Love this blog. However, it’s a bit ironic that in chatting about how one must challenge the perceived wisdom about one gap (non USA broadband subscribers vs USA broadband subscribers) you mention as a fait accompli another piece of conventional wisdom (that cable broadband is alot more expensive than dsl broadband). Yet other than Qwest, bell companies don’t offer naked DSL. So the price gap is really between cable broadband+voice vs bell broadband+voice, which isn’t nearly as large a gap. Although for me personally, Verizon is the best plan (just wish FiOS would deploy to me today!).

]]> By: Jason Powell http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-224 Jason Powell Wed, 08 Mar 2006 14:46:48 +0000 http://www.nyquistcapital.com/2006/03/07/does-the-us-really-want-broadband/#comment-224 I dove into the "broadband gap" numbers last night, and found some interesting stuff. For example, I think the actual broadband penetration rate in the US is 40.3% as opposed to 11.4% according the ITU. I basically took the average household size in the US, and multiplied that by the number of subscribers (I read that as discrete broadband accounts, IE, the person in the house who's name is on the bill) and got a much more realistic number of users. I plan to try and calculate those numbers for other countries, to try and figure out the actual broadband penetration rate across the top 10-15 countries on the ITU list. It's really interesting. I dove into the “broadband gap” numbers last night, and found some interesting stuff. For example, I think the actual broadband penetration rate in the US is 40.3% as opposed to 11.4% according the ITU. I basically took the average household size in the US, and multiplied that by the number of subscribers (I read that as discrete broadband accounts, IE, the person in the house who’s name is on the bill) and got a much more realistic number of users. I plan to try and calculate those numbers for other countries, to try and figure out the actual broadband penetration rate across the top 10-15 countries on the ITU list.

It’s really interesting.

]]>