iPhone 5 Launches in NYC

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iPhone 5 Launches in NYC

It's a beautiful day to buy a new iPhone 5 in New York this Friday.The sun shone on crowds at the 14th Street Apple Inc. (Nasdaq: AAPL) store in Chelsea's trendy meat-packing district this bright morning. Lesser -- but still significant -- queues of people were lined up outside AT&T Inc. (NYSE: T) and Verizon Wireless stores on 34th Street to get the first 4G Long Term Evolution (LTE) smartphone from Apple.Two of the six people we asked at the Apple store were familiar with what LTE is; all knew the new phone is 4G. Most said they were buying simply to replace an older iPhone."Mine was old and kind of broken," said Jeremy Schoenerr, a developer, of his reason for upgrading to the iPhone 5 from a 4. He needed access to able access iOS 6, he added.

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Verizon Stresses OpenFlow Workouts

Equipment makers should delve into OpenFlow and software-defined networking (SDN) aggressively, so that the eventual standards can be as robust as possible, Verizon Communications Inc. (NYSE: VZ) executive Stuart Elby said earlier this week.That message, as well as an insistence that Verizon doesn't want pure OpenFlow switches any time soon, was part of Elby's keynote talk at the Advaced/MicroTCA Summit.Elby, in casual dress appropriate for an engineering-heavy conference, spoke on Tuesday and spent generous time hanging out with vendors at the show. He's also been speaking at events such as the symposium put on by the ONF, the group shepherding the OpenFlow specification.It's all part of Verizon's eager dive into SDN, where the carrier senses the potential to use the network more efficiently (i.e., save money).Verizon is already using SDN-based traffic engineering in its mobile network. If congestion is preventing a stream from being received at its maximum rate, Verizon dials down that rate to avoid wasting bandwidth.The process is run by lots of servers overlaying parts of the mobile network, and it's inefficient, with traffic doing "a lot of hairpinning in and out of routers," Elby said. Verizon is working on using OpenFlow or some similar protocol to carve more direct paths through the network.Verizon also thinks OpenFlow could help with troubleshooting the network. The network is watched by probes everywhere, but it's not feasible to sort through all the data they could gather. ("I'd look like a government agency," Elby said.)Verizon would rather trigger data collection from certain probes any time something starts going wrong. It would be an ad-hoc data-collection network. That's another project that's in Verizon's labs.This kind of work-in-progress is essential to making SDN useful, Elby said. OpenFlow "is going to change, but we've got to get experience as to where the pitfalls are."

And it's true that as OpenFlow has dominated conversations for the past year or more, more of its pitfalls have come under study and are now being worked on. Scalability is one; it's still difficult to see OpenFlow being expanded to Internet routing.The fact that controllers are logically centralized -- you can have more than one, but they're expected to work in concert -- is another, noted David Meyer, an engineer at Cisco Systems Inc. (Nasdaq: CSCO) and one of the speakers at the conference's OpenFlow seminar.There's also an issue with memory chips. OpenFlow was written to take advantage of chips already in switches and routers -- namely, ternary content-addressable memories (TCAMs). But the TCAM is the "hottest, most expensive, least efficient part of the forwarding plane," as Meyer put it.Vendors are already working around that. IBM Corp. (NYSE: IBM)'s OpenFlow implementation allows some switching rules to get stored in more ordinary memory chips, IBM presenter Rakesh Saha said.Due to these practical realities, most vendors contend OpenFlow will have to be implemented in hybrid switches -- those that can do OpenFlow but also retain normal Layer 2 forwarding. An implementation like that "allows me to phase in -- carefully, methodically -- OpenFlow/SDN technology without causing the network to crash," Elby said.

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Pre-Paid Broadband Doesn't Have to Eat Margins

Fine young cannibals -- and old ones, and cash-strapped ones -- represent the biggest threats facing cable operators and other U.S. ISPs that consider developing pre-paid services.Cannibalizing the existing product line "would be the A-number-one concern I'd have as a marketer," admitted Novation Broadband co-founder and former Charter Communications Inc. Executive VP of Operations and Marketing Ted Schremp, a panelist on Thursday's Light Reading webinar on the topic.(A replay of the webinar is available here.)Pre-paid broadband is common in many parts of the world and has been a key component of the mobile services for years, but U.S. cable operators are giving the category a closer look as they consider how to develop low-risk ways to offer broadband to lower-income households, including those that don't have bank accounts or don't qualify for post-paid services because they've been disconnected for non-payment. (See Pre-Paid Opens New Frontier for US Broadband.)Heavy Reading senior analyst and session moderator Alan Breznick cited research that $20 to $25 per month is the ideal price for a pre-paid broadband service. Schremp acknowledged that the risk of having post-paid customers move to a much cheaper option is a "significant concern."One remedy would be to make the post-paid options superior to pre-paid ones. That could be done by keeping the speeds of a pre-paid product low and teaming them with relatively strict monthly data usage allowances, Schremp said. The right combination of factors, he stressed, could help cable operators maintain profit margins in a pre-paid world.ISPs can learn a lot from the mobile service providers that have turned pre-paid into a thriving business, said Richard Siber, founder and president of Siber Consulting LLC. After starting pre-paid services with what was considered the least desirable type of customer -- those with no credit or bad credit -- mobile carriers around the world have developed solid pre-paid brands that have evolved beyond flip phones to coveted, higher-end smartphones."Just because you are offering pre-paid services, [the notion] that it's a low margin game is absolutely not the case," Siber said.One company that wants to help U.S. operators develop pre-paid brands for broadband and hit desirable margins is Wipro Ltd. (NYSE: WIT), which is pitching Accelerate, a managed service that handles billing and cash management, customer care, and technical and operational support via call centers and online self-help.Cable operators' OSS and IT systems aren't typically equipped for pre-paid, but Wipro thinks it can fill that gap. Wipro is already having these discussions with domestic cable operators, said Stephen Snyder, the global head of business innovation for Wipro's Global Media and Telecom unit.

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The above information is edited by 10GTEK.

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