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OnLive: The Online Gaming Revolution May Be Tempered By Bandwidth Caps

Phillip Dampier June 4, 2009 Issues 18 Comments
OnLive's Microconsole

OnLive’s Microconsole – About the size of a deck of playing cards

Back in March, an upstart company born from a high tech business incubator in Palo Alto announced it was nearly ready to challenge the conventional business model of the video game industry.  For years, game players invested in game consoles, complex pieces of hardware that rival many desktop computers, to play games distributed and sold as physical media. With the rise of digital platforms, enthusiasts can explore new gaming arenas, including the top 10 casino singapore options for an exhilarating online experience. Every few years, the multi-hundred dollar console would become essentially obsolete, and consumers would then have to spend hundreds more for the latest and greatest.  Switching allegiance to another brand meant repurchasing game titles to work on the new console. Those who are playing online games to win money may try mega888. And if you’re looking for online casino games where you can win cash prizes, then you may check out these slot games! For the best online casino experience, check out betvisareview.com/ today! And if you want to win cash prizes, then make sure that you consider checking out dewi222. A trusted platform like super slot 77 provides a fantastic opportunity for players to enjoy a wide variety of games, enhancing the overall appeal of online gambling.

OnLive turns the traditional console model on its head.  By leveraging high speed broadband connections, the company claims it can move game play to a “cloud” model, where only an inexpensive micro-console is required to connect your broadband connection, game play controllers and accessories, and television together.  All of the raw processing power required to play online games like idn poker is done by OnLive’s servers.  As long as you have a robust broadband connection (at least 5Mbps preferred), game play is claimed to be fast and in “high definition quality.”  The company also claims to have licensed access to virtually all of the latest SA Game, available the same day they become available in stores.

Customers are promised an end to console upgrades and costly investments in purchasing individual game titles. OnLive’s business model provides the service for a monthly subscription fee, yet to be determined. Play what you want, when you want with sbobet. Bitcoin casinos are also becoming popular as players find them to be more transparent and trustworthy than their traditional online counterparts. Players can find the best crypto casinos at bitcoin lister. Hands poker is another excellent resource for discovering top crypto poker platforms tailored to enthusiasts. To ensure you’re getting the best experience, find out more on bitrates.com.

But there is a fly in the ointment.  Moving to a cloud computing model, dependent on high speed broadband, changes the dynamics of how online gaming works.  Console models use comparatively small amounts of bandwidth.  Physical media provides the foundation for the game, and compressed “control data” moves back and forth to indicate player positioning and action.  OnLive does virtually everything from its servers, and sends it all down your online connection.  That means more bandwidth, more data moving back and forth, and under a broadband Cap ‘n Tier scheme, the possibility of more of your money moving out of your wallet.

OnLive claims it has sat down with most of the nation’s broadband providers to establish “good relations” with them.  OnLive’s usage model is designed to be “cable modem friendly,” relying much more on downloads and not a whole lot on uploads, putting reduced pressure on the cable modem pipeline.  The company was asked what kinds of deals they may have cut with cable providers, and company officials were vague.  Theoretically, OnLive could partner with bandwidth providers and given favorable priority for game play traffic between customers and OnLive’s servers.  But nothing like that appeared to be on the horizon at the GDC 2009 press conference (full video press conference), which highlighted the company’s product.

A follow-up question drilled down into the broadband capping issue OnLive may need to contemplate further:

[flv width=”608″ height=”336″]http://www.phillipdampier.com/video/OnLive Bandwidth Caps.flv[/flv]

While Comcast’s 250GB monthly usage cap may not pose a tremendous problem for OnLive for now, Time Warner Cable’s former experiment in Beaumont maxed out at 40GB per month, with $1/GB overlimit fees thereafter.  OnLive officials believe bandwidth caps impacting their business model “haven’t come up so far,” and they believe that if they have “good relations” with cable providers, some way will be found to deal with the matter.

Whether that proves to be true will be worth watching.  In the meantime, OnLive might do better standing with customers instead of providers and objecting to the usage cap limbo dance craze.  Because if a 40GB usage allowance is “a lot” for one company, so was the 5GB allowance some other companies claimed to be perfectly reasonable.  For OnLive, they certainly are not and there is nowhere to go in this dance except down.  Companies that rely on broadband to make their business models work will find customers second-guessing whether its worth it to buy a service, and get billed effectively twice for using it.

[Thanks to Stop the Cap! reader “Smith” for calling our attention to the story.]

Special Report: The Lessons of FairPoint – A Tragedy in New England – Part Eight

Phillip Dampier June 4, 2009 FairPoint Comments Off on Special Report: The Lessons of FairPoint – A Tragedy in New England – Part Eight

Another day, and the problems just kept on coming.  Yesterday readers saw what happens when a small independent phone company is wholly unprepared for the task before it – to absorb three states’ worth of telephone and Internet customers into a company that used to serve just a few hundred thousand people.  Lost e-mail, Internet service down, multi-hour wait times on “live chat” support, and up to six weeks waiting for a service call.  With thousands of e-mail accounts apparently non-functional, the governor of New Hampshire had to personally intervene to get them to fix the problems.  Some desperate customers turned to the news media for help.  WMUR in Manchester found itself acting as an intermediary between FairPoint Communications and the customers who found it impossible to reach them directly for days on end:

[flv width=”480″ height=”360″]http://www.phillipdampier.com/video/WMUR Manchester Thousands Of Accounts Lost In Transition 2-4-09.flv[/flv]

One woman spent two and half hours waiting in the queue for an online support chat… and then it kicked her off.  She’s livid, and so are many other New England customers flooding WMUR’s newsroom with e-mails and videos, which a station reporter took directly to the FairPoint CEO.

… Continue Reading

Minnesota Court Rules Broadband is a “Utility,” Not Just Something ‘Nice to Have’

Phillip Dampier June 4, 2009 Community Networks, Public Policy & Gov't 20 Comments
Monticello, Minnesota

Monticello, Minnesota

A Minnesota Appeals Court panel ruled this week that Internet access is a “utility,” comparable to gas, electric, and telephone service, and not merely a convenience.  In a 2-1 decision, the Court ruled in favor of the city of Monticello, which proposed constructing an all-fiber broadband platform reaching every resident, financed by city-issued bonds.

The legislature has granted municipalities the express authority to own and operate telephone exchanges within their borders, as well as to operate public-cable communications systems. Minn. Stat. §§ 237.19, 238.08, subd. 3 (2008). Municipalities are not granted a similar authorization with regard to Internet service; however, the legislature has stated that it is a goal to “encourage economically efficient deployment of infrastructure for higher speed telecommunication services and greater capacity for voice, video, and data transmission.” Minn. Stat. § 237.011 (2008).

Bridgewater concedes that telephone services are utilities and that television services are a gray area, but steadfastly denies that Internet services qualify as a utility. Therefore, according to Bridgewater, the project in its entirety lacks statutory authority to be funded by revenue bonds because Monticello intends to provide Internet service. Based on the aforementioned statute, there appears to be minimal dispute that telephone and cable television are utilities. The crux of the issue is whether broadband Internet service is like a utility.

The definition of municipal public utilities appears broad enough to contemplate Internet service. Internet service could arguably be considered a utility under telecommunications related services. Bridgewater argues that related services means services related to providing cable television, such as on-demand movies.  However, cable-television companies often provide Internet services. Therefore, on-demand movies, digital video recorders, and Internet service could also be considered related services under the statute. Furthermore, Merriam Webster dictionary defines telecommunication as “communication at a distance (as by telephone).” Internet service seems to meet this definition. E-mail, instant messaging, and talking via web-cam are all ways to communicate at a distance utilizing Internet service. Based on the foregoing definition, the Fiber Project is arguably a utility.

Bridgewater argues that Internet service cannot be considered a utility because it does not have the near universal usage common to a utility. This argument is flawed. As noted by Monticello, ―[i]t would be absurd to conclude that the Minnesota Legislature [would allow revenue bonds] to be used only to fund the creation of systems that provide services that already are in universal or near-universal use. Rather, it seems that the reasoning behind allowing municipalities to issue these bonds is to provide utility-like services to people who otherwise would not be able to enjoy the benefits of the services offered. It is illogical to conclude that something is or is not a utility based on the number of people who have access to it.

Providing an entire community of people with access to telephone services, cable television, and high-speed Internet seems to qualify as a benefit to the public under the changing conditions of modern life. Thus, the Fiber Project is a public convenience that also serves a public purpose.

The Fiber Project qualifies as a public convenience, and therefore revenue bonds can be issued to finance its creation. Although Monticello cannot use the bond money to pay current expenses, the district court did not err in dismissing Bridgewater‘s complaint.

The Municipal-Owned Network

The Municipal-Owned Network

Monticello elected to construct the network after being repeatedly bypassed by private providers for state-of-the-art broadband access.  Stuck in a broadband backwater, the community of 11,000 decided to construct an advanced fiber network to reach every resident, and allow any company access to the network.  Bridgewater Telephone, the local telephone company owned by TDS, had steadfastly refused requests from city officials to move towards fiber on their own, and after 74% of local voters thought a municipal fiber network was their only hope of getting fiber into their community, the phone company sued to stop it.

TDS claimed the Internet was not a utility and, although the project does not rely on taxpayer funds, still involved a local municipality competing against a private business.

Since the lawsuit, and the threat of competition from Fibernet Monticello, the phone company announced it, too, would construct a fiber network.  Meanwhile, while it uses legal maneuvers to keep the municipal network at bay, the costs for the municipality mount.  The legal finding noted:

Monticello is losing a substantial amount of money each day that litigation delays installation of the Fiber Network. One estimate is $2,730,268 lost for an 11-month elay. Moreover, placing the bond proceeds in escrow required that the city pay the bond purchasers interest on the bonds until the escrow is released. As a result, Monticello will be required to pay the bondholders approximately $85,000 for every month the lawsuit continues.

Bridgewater’s current broadband DSL service is slow and expensive, after the promotions expire:

Up to 768kbps  $29.95
Up to 1.5Mbps $39.95
Up to 4Mbps $49.95
Up to 10Mbps $59.95

Now that the phone company is installing fiber, they are marketing a 25Mbps service for $69.95 a month, with a one year commitment.

Fibernet Monticello’s network has been stalled by the lawsuit, but the municipality suggests it will market residential broadband service at 10 to 100Mbps symmetrical speeds, as well as video and telephone service bundles, with no contract commitment at highly competitive prices.  No caps either.

TDS lamented the decision.  Drew Petersen, director of legislative affairs and corporate communications released a statement:

“TDS is a job-producing, tax-paying company with millions of dollars invested in the state of Minnesota and the community of Monticello. The Appeals Court decision sends a chilling message to the private business community operating in the state of Minnesota.  The decision will likely discourage other private enterprises from doing or expanding their business in Minnesota. Further, the decision endangers the appropriate relationship between municipalities and private enterprise; it also allows municipalities tax-free financing to enter into competition with tax-paying businesses.

“Throughout the legal debate, TDS has been honest in discussions with city leaders and the public. TDS has also invested millions of dollars and, in less than a year, placed 74 miles of fiber in protective conduit to build a complete fiber network covering the entire city. Every resident in the city can receive TDS’ Internet service, via fiber, at speeds of 25 Mbps at value-based prices. The neighboring townships also enjoy speeds above 10 Mbps.

Petersen called TDS’ broadband products in Monticello “blazing fast,” although whether those speeds would have been achieved without Monticello moving forward on its own fiber project is doubtful.

In the view of Stop the Cap!, Petersen has it entirely backwards.  Without the competitive threat the municipality represented with its own fiber network, TDS would have been content with the network they felt was good enough for the community for years.  TDS repeatedly denied local officials’ requests for fiber, something that we believe only became an option the moment competition was imminent.  In the end, with the reality of fiber looming, TDS was hardly discouraged from investing — they were encouraged, at the risk of losing customers in droves to a superior product offered at what likely would be substantially lower pricing.

Municipal broadband networks are often the only weapon communities have from being dumped into a broadband backwater, where speeds are kept slow, prices high, Cap ‘n Tier common, and infrastructure upgrades rare.  Be it in Minnesota or North Carolina, communities are told “no” to requests to deploy state-of-the-art networks.  That answer frequently changes to “yes” the moment competition threatens to arrive.  That’s why big telecommunications companies see fit to use the courts and legislative system to ban, stall, or limit the potential for municipalities to decide what’s best for their residents, limiting them to what one or two companies provide and claim is “good enough.”

(Thanks to Stop the Cap! reader Greg, who notified us of the court decision.)

Special Report: The Lessons of FairPoint – A Tragedy in New England – Part Seven

Phillip Dampier June 3, 2009 FairPoint Comments Off on Special Report: The Lessons of FairPoint – A Tragedy in New England – Part Seven

The spark that lit the inferno of customer rage against FairPoint

The spark that lit the inferno of customer rage against FairPoint

The Day the Wheels Officially Came OffSaturday, January 31, 2009 was Transition Day for FairPoint, finally making the long-delayed switch from Verizon to their own systems.  It was the equivalent of leaving a pile of ‘oily rags’ next to those overloaded electrical circuit breaker boxes in The Towering Inferno.  Only it was the customers who were on fire.  Must-see videos to follow!

“Asinine.”  That’s how one FairPoint customer summed up FairPoint’s transition to its own systems and finally cutting the last ties to Verizon.  Because when the last ties were cut, so went her Internet access… for days on end.  Company representatives wished her “good luck” talking to Technical Services, because they couldn’t even find her account.  She wasn’t alone.  Tens of thousands of customers across three states were left hanging out to dry when FairPoint’s transition and support services collapsed, leaving customers with no answers, busy signals, and online chat customer support queues that literally took hours to reach the front of the line, if you made it at all.  WMUR in Manchester, New Hampshire brought cameras into FairPoint and challenged company officials to use their own support systems to get answers.  On camera, the company official discovered she had managed, over the course of more than a dozen minutes, to finally achieve #516 in the online support queue.

[flv width=”480″ height=”360″]http://www.phillipdampier.com/video/WMUR Manchester FairPoint Says It’s Bringing In More Help 2-3-09.flv[/flv]

It wasn’t pretty over in Barre, Vermont either, where WCAX picks up the story of one businessman who not only lost his e-mail access, but all of his e-mail dating back weeks.  FairPoint claimed it was working “around the clock” to fix the problems they spent an extra half-year preparing for.  Patience is a virtue with FairPoint, because this customer was asked to wait for “one minute” for assistance, and was still waiting six hours later:

… Continue Reading

Letting Big Telecom Foxes Map Out the Broadband Hen House on Your Dime

I’m a big cable or telephone company and I just caught the smell of broadband stimulus money… hundreds of millions of dollars worth of taxpayer dollars I want for myself and my investors.  Why spend their money when I can spend yours?  Stop the Cap! warned readers that parties with a vested interest in cashing in on taxpayer funds to construct broadband networks would be sniffing around the Broadband Stimulus package looking for their piece.  Broadband Reports, Public Knowledge, and The Wall Street Journal caught a big whiff of telecom trolling for your taxpayer dollars, this time to ostensibly “map” broadband penetration in the United States.

fox-thomas-hawkUsing a group called Connected Nation, whose board is packed to the rafters with telecom employees and those serving them (including AT&T, Comcast, and Verizon), telecommunications special interests want the contract (worth $300+ million) to complete the national map.  In addition to collecting the nice tidy sum that represents, these companies have a vested interest in keeping broadband looking perky, fast, and available everywhere to forestall regulatory review, municipal broadband initiatives to serve the under served, and hide the fact broadband in the United States is not very competitive, and not very available outside of population centers.

The history of this group has demonstrated it has an interest in keeping specifics to a minimum, and inflating broadband penetration levels into the stratosphere.  As Broadband Reports wrote, a perfect example is in the state of Kentucky.  When independent mapping was completed, it exposed Kentucky had a problem — just 60% of the state had broadband available.  Those low numbers might prompt a review of why incumbent telecom companies are not spending some money to wire their less urban customers for service.  But with the magic of Connect Kentucky, a sort of regional chapter of Connected Nation, that number jumped to 95% in just five years in a study called dubious, if not outright “methodological malpractice” by Consumers Union.

Broadband Reports writes the 95% penetration rate is “hysterical” in their communications with Kentucky residents and Internet Service Providers.  But with a 95% penetration figure, why investigate if there “isn’t a problem?”  Of course, you could always pay us (AT&T, Comcast, Verizon, etc.) to improve those networks, also out of taxpayer funds.

Public Knowledge has its own bone to pick with the organization, claiming it demands to keep data general, and often proprietary:

State governments, working months before the stimulus package was conceived, are ramping up their own programs to map deployment of broadband, and are finding they are already increasingly running into conflicts over the type of data they will receive. Some states want comprehensive, granular data. However, they are finding that the telecommunications industry, often represented by Connected Nation (CN), doesn’t want to give it to them. The result is a clash of policy objectives and politics that’s taking place across the country, in states ranging from North Carolina to Alabama, Colorado and Minnesota. Connected Nation’s board of directors is dominated by representatives of large telecom carriers, as CN positions itself as the best choice for states and the Federal government to spend millions of stimulus dollars on broadband mapping.

In North Carolina, the dispute is being played out in a most public way, as Connected Nation, at the behest of a powerful state legislator, has set up a parallel mapping operation to that of the e-NC Authority, a state agency that has been working since 2001 to bring Internet connectivity to rural areas through mapping and through public-private partnerships with telephone companies. While normally Connected Nation can charge hundreds of thousands of dollars for mapping, it is doing the North Carolina map at no cost to the state after a move by the chairman of e-NC’s board to have that organization pay for part of the industry mapping cost failed.

As with all of its mapping, e-NC depends on information from incumbent providers. Through last year and this there was a struggle more prolonged than usual, and the end result was a non-disclosure agreement (NDA) that greatly restricted what the e-NC maps would be able to show.

hen-house-comecloserProprietary, non-specific data allows a group to suggest that any speed above dial-up is broadband, and as long as it passes near your neighborhood, you have broadband access (even if you don’t.)  That’s precisely the kind of access pointed to by elected officials like Sen. Sam Brownback (R-Kansas) who claim broadband is plentiful and will become more so if the government stays out of it.

To resolve broadband penetration problems, improve competition, and to prevent broadband backwaters served by companies doling out slow, heavily capped access at high prices and calling it a day, truly representative map data must be produced to allow everyone to understand what is currently available at what speeds.  Allowing a group like Connected Nation to swipe taxpayer dollars currently used by state officials for honest assessments is a travesty.  No company or organization with a vested interest in the outcome should ever be allowed to control a study of this importance.  If they do, they’ll find broadband under an anti competitive, slow, and expensive Cap ‘n Tier system is just wonderful for all of us, assuming you even have access to it.

Thanks to Thomas Hawk for the photograph of the fox and “comecloser” for the hen house photo.

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