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Femtocells: Let Mobile Carriers Use Your Internet For Free While You Pay For The Privilege

In my RSS feeds this morning-- practically next to each other-- are these two stories.

http://www.appleinsider.com/articles/09/09/21/att_3g_microcell_to_cost_1...

http://www.macrumors.com/2009/09/22/atandt-weighs-in-against-net-neutral...

Combined, these stories are great evidence of a company so large that its right hand does not know what its left is doing.

To connect the dots for those who don't obsessively follow innovations (or rather commercializations) in telecommunications technology, the first story is about the AT&T "microcell" (also sometimes called a femtocell or a picobasestation or any of any other similar terms).

The headline suggests that "no monthly fee" is some kind of great deal. Of course the story also doesn't really tell you what the device does, at least not completely. The point of this thing is ti improve your cellular reception, especially in areas where your 3G data connection is slow because of weak signal. It hooks up to your own Internet connection and allows phones to connect to AT&T through that.

Backwhat?

In the industry, the connection between a cellular base station and the core of a telecom operator's network is called "backhaul". It is something that costs a lot of money. The distances between base stations and other portions of a company's network can range from a few hundred meters to several hundred kilometers. The rollout of 3G with its higher data speeds in the USA was delayed specifically because of insufficient backhaul capacity on mobile operators' base stations; many such stations were provisioned with a single T1/E1 line, which was enough for voice calls and slower data services, but not nearly enough to serve data-hungry devices like the iPhone-- devices that are actually convenient enough to use for Internet applications that people actually use them, which is rare even among large screen devices that call themselves smart phones.

Of course, one might ask, devices like those usually have WiFi, and if you're in a place, like your home or your office, that has fast Internet, you probably have WiFi-- so why not just use that and to heck with buying a $150 gadget that, thankfully, AT&T is not charging you to operate?

The reason is because certain features of phones, like the normal cellular voice calls and SMS text messages, don't natively work on WiFi connections. Of course, you can install chat and text messaging programs that work over WiFi that duplicate the functionality of SMS, if not the actual implementation. Some may even offer gateways to SMS messaging. You can also install VOIP applications that talk to VOIP providers like Vonage over SIP, and use that over WiFi. Of course, AT&T really doesn't want you to do that, since that means you can make voice calls without paying them anything. The only thing they get out of you then is your monthly subscription fee. You can start to see why AT&T sells devices like the iPhone locked to their networks and with long contract terms. They know that the iPhone is such a popular and capable device that there is a real danger in the near future of it reducing usage of their network resources and thus reducing their income.

AT&T knows you can just hook up a WiFi router while at the home or office and use your phone that way. This device is a buttress against that. Install this device instead, and then you can use fast Internet and AT&T's phone service instead of WiFi-- and hey, we won't charge you for that!

What a deal!

Of course, Sprint subscribers are not so lucky. They do pay a monthly fee for a similar device-- $5 a month to use it, plus an activation fee, and $10 a month if you want unlimited calls on it. (Presumably you're already paying for a certain number of calls on your phone, so essentially they are double-dipping here. They are charging you an extra fee to allow you to make unlimited calls that are going out to AT&T over your own Internet line that you are paying for. It almost certainly costs AT&T less to connect these calls than calls made in a traditional coverage area through a traditional, macro base station, but you're still going to be providing them another flat monthly fee to get a service you're already paying for (voice calls) over a transmission line you've already paid for (your Internet line).

Net Neutrality

Now, all of this would just be Business As Usual in the telecoms industry if it weren't for the second article, wherein AT&T comes out against Net Neutrality rules (which the FCC is currently drafting) applying to mobile operators.

Nevermind that even the most persistent of traditional Bellheads can see the entire market switching from fixed to mobile, and from voice-centric to data-centric. Nevermind that AT&T's most popular phone, the iPhone, is built from the ground up as a data-centric device and is the most smartphone that consumes the most Internet traffic worldwide, thus making AT&T more a fixed and wireless ISP than a traditional, voice-centric telecom. Nevermind all that.

The thing that is side-splittingly hilarious about these two items in combination is that Net Neutrality is specifically designed to prevent an ISP from doing exactly what many of them would probably consider trying to do the minute they see a device like one of these femtocells pop up on their clients' networks: throttle it.

In a world where cable companies who used to do just television are adding data and then voice, and telephone companies are adding data and then TV, and ISPs are adding both, a device like that, that uses the channels of one ISP to deliver voice and SMS traffic for another operator, is a potential threat. Net Neutrality rules would state that it doesn't matter that you're using your Verizon connection to hook up an AT&T femtocell, thus putting traffic you're purchasing from the one to the benefit to the other. Verizon cannot block or slow or charge extra for carrying that traffic to AT&T. Of course, if Verizon could do such a thing, it'd likely kill the nascent market for devices like this. Expanding your coverage area and getting faster Internet on your phone by using your flat-rate high-speed Internet connection sounds like a great idea, until you find it doesn't work that well because your ISP doesn't like you using it, or until they start to charge you extra for it.

So these Net Neutrality rules would be really good for AT&T in this case. It means that Verizon, or any other competitor who might be offering Internet service to its mobile subscribers, cannot interfere.

Except AT&T doesn't want these rules to apply to them.
The reason? Because wireless is already plenty competitive without these rules.

Hilarious.

P.S. This Gearlog Article does a lot more justice to the subject than the Apple Insider story because it emphasizes the cost-savings these devices provide to operators.

Pricing and Blu-Ray

CNet is at it again. This time, Don Reisinger wants to say that cheap DVDs are keeping high def Blu-Ray discs from selling. Here, look, he says it, right here:

It sure looks like DVD pricing is holding Blu-ray back.

Don, you are insane, or you have selective perception of a particularly nasty kind. Let's try that sentence this way, shall we?

It sure looks like DVD Blu-Ray pricing is holding Blu-ray back.

Don's arguing that because DVDs are cheap (and going to get cheaper, not more expensive, as demand for high def content increases and low def content demand will decrease) Blu-Ray looks expensive. No. Blu-Ray looks expensive because it is. It's as expensive, if not more expensive, than DVD was when it was new.

The problem isn't that DVDs are cheap. When CDs came out, cassettes and LPs were cheap in comparison. When DVDs came out, VHS got really cheap. That didn't stop the DVD from becoming the world's fastest adopted media format ever.

 Click here for the complete text.

Take This Cron Job And Shove It

Take This Cron Job And Shove It - Earlier this week, I began migrating all of the sites hosted by Synfibers that were using the PHP-based CMS called Drupal from version 4.2 (and one site that was hosted on a modified 4.0 installation) to the latest and greatest edition, 4.3.2.

For the most part, the process was pretty painless. Unlike some previous upgrades, there were very few times I had to manually alter a site's database to get the new code tree to work, and most of the time these were mentioned explicitly by the upgrade script. The first day I did one site, and let it sit overnight. When everything seemed to be fine, I did five more sites the next day.

 Click here for the complete text.

Vonage CEO: VOIP will grow, if no regulation

Vonage CEO: VOIP will grow, if no regulation - WASHINGTON - Voice over Internet Protocol (VOIP) services are poised to take off in the U.S., if regulators can keep their hands off this alternative to traditional telephone service, the chief executive of a major VOIP provider said Friday. [InfoWorld

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Site Software Upgraded

Well, in about an hour's worth of work, the site has been updated to the latest release of Drupal 4. This software is being used in our web group for several different client sites, as it is fast, flexible, provides XML RSS output, has localization/translation capabilities and web-based administration.

Conversations With An Anti-Spam Activist

Recently one of the so-called "spam blacklists" included one of my servers on their list, bouncing emails from some friends and clients. The machine has since been reassigned to another network number to avoid the blacklist.

It should be noted that none of Synfibers' machines has ever been used to send spam; the blacklist is intentionally expanding its influence to include non-spamming customers of networks that host other customers who do spam in order to enlist legitimate users in their fight against spam.

I had a series of interesting exchanges with a representative of one of these blacklists, it's been added to the site as Conversations With An Anti-Spam Activist.

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