Martin Creaner's Blog

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Martin Creaner
President & Chief Operations Officer
TM Forum

Martin Creaner has been working in the Telecommunications Industry for almost 25 years and is currently President of the Telemanagement Forum (TMForum). The TM Forum is the industry body for the the global Telecommunications industry. It has 750 member companies in over 185 countries, including all the major carriers and all the leading equipment and software Vendors.

Prior to joining the TM Forum Martin held a number of executive positions with Motorola and British Telecom.

Martin is widely published and is featured and quoted regularly in business and trade journals. Martin is also the author of the leading telecoms business book “NGOSS Distilled”.


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Grown-up discussions about Net Neutrality

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The topic of Net Neutrality has waxed and waned over the past three or four years as more fashionable and sexier topics have dominated the media.  But it has not gone away - nor can we expect it to.  In truth Net Neutrality is a central issue for the future of communications.  In its simplest form it is an argument about whether the people who provide and operate the networks should be able to charge differently depending on which type of service is consuming their network capacity.  The Operators argue that unless they can do this they will not be able to justify more and more investment in bandwidth to meet the insatiable requirements of web based video.  Net Neutralists argue that flat fee access for fixed bandwidth is what has enabled the net to grow, and to introduce significantly new business models will stiffle the innovation.

And this is not (as is often thought) a US-only issue.  I noticed with interest this week that BT has waded into the discussion. The Financial Times has reported that BT is planning to stop the 'free ride' that video streaming sites are getting at their expense. This doesn't seem to be about stopping innovation but is rather the first step in a 'grown up' discussion that BT is trying to foster between themselves and the content providers on how to create a win-win.   One such discussion seems to be already underway between BT and the BBC (the main culprit it seems in hogging the bandwidth) on how to cooperate in IPTV delivery via project Canvas.  I suspect that many other such 'grown up' discussions are going to have to start taking place before the net neutrality issue can be resolved.


Posted 06-18-2009 2:51 AM by Martin Creaner

Comments

Stephen Fleece wrote re: Grown-up discussions about Net Neutrality
on 06-18-2009 5:52 AM

Martin, I cannot agree more.  This week release of Cisco's  study on Internet video traffic growth and implications for future communications infrastructure investment to avoid "traffic jams" illustrates again the clear need for more rational discussion between providers, regulators, and content players.  CDN services purchased by the content provider can mitigate the traffic jam issues only so far towards the edge of the network and end-to-end factors for customer experience.  The "last mile" challenges for video traffic hyper-growth remain in all but the most dense urban areas.

In the meantime, Communications providers and ISPs today need to be extremely careful with setting pricing and terms of use for "unlimited data plans."  In theory, network operators who plan to compete with price reductions for unlimited data plans must prepare an operating cost structure to be ultra-lean operator with high performance and efficient data network transport bandwidth in order to remain competitive and profitable as video traffic grows.   In practice (and in my opinion), I have yet to see many incumbent providers do both these things well -- it's a very difficult set of goals to balance, especially with legacy businesses like POTS, DSL, enterprise ATM/FR, and 2G wireless services still part of many provider's network operations.

It will be interesting to see what happens, if anything, to the net neutrality debate as 4G wireless (Wimax, LTE) becomes a legitimate broadband replacement for fixed broadband.  Fixed is where the debate centers today.  So far, a Wimax 4G unlimited data service that has just launched in my home area (Atlanta, USA) is not at a price that is dramatically compelliing for me to switch from Cable or DSL, and it is not fast enough yet support a single OTT live HD video stream at ~6Mbps (Wimax is 4Mbps).  Plus, many 4G wireless providers will still have the backhaul operational cost and service performance challenges to solve for video traffic over broadband.  Unless a provider owns the fiber from the wireless tower to the ISP PoP (point of presence), those costs will be significant for good video content delivery performance.

I expect this discussion is going to take a while.

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