Tuesday, October 16, 2007

Impact of Web 2.0 on FTTH

Web 2.0 technologies may be the latest major contributor to the rise in internet traffic. Emerging social-networking sites is the new fad that many internet users want to be a part of. The file sizes being shared amongst internet users has grown significantly, especially when people share videos. In an article titled, "Deep Packet Inspection: Taming the P2P Traffic Beast," from LightReading.com (Targeted Analysis of the Telecom Industry), the author states that peer-to-peer (P2P) traffic is the major leading cause for internet traffic. The title of the article perfectly describes the traffic's characteristics: A Beast. The problem was that ISP's were having major issues supporting such traffic loads, that more capital investment was needed to alleviate some of the bottlenecks. The underlying issue involved is the fact that ISP's are investing more capital, yet they aren't gaining extra revenue, specifically those smaller ISP companies that lack the capital.
Now, this may sound redundant in relation to my previous blogs, but it's the inevitable. You can only lay down a certain amount of cables in one conduit to suffice internet traffic increases. Once that conduit is maximized, your company is at a standstill. It is very difficult to survive in the telecommunication industry if you are unable to support new customers. Instead of creating new coaxial/telephone cables, companies need to think about scalability. Implementing a fiber optic network is a costly solution, but will pay major dividends in the long-run. Web 2.0 and internet traffic have a positive direct relationship. If companies are unable to upgrade to fiber optic cables, then they should sell off their company to Verizon or AT&T before it ends up being worth zilch.

Reference:
http://www.lightreading.com/insider/details.asp?sku_id=1221&skuitem_itemid=957

Monday, October 8, 2007

Impact of BI and DP in FTTH Industry

The impact of BI on the FTTH industry, and for any other industry can be tremendous. The success of Harrah's CEO, Gary Loveman, is a prime example. Having specialized information in your industry or market can allow any company to obtain the competitive advantage. However, having a large amount of raw data is only the beginning. As discussed in class, Loveman is a great analyst of data, which is the other half of BI. One cannot implement BI in their system and expect the data to create solutions on their own. In addition, each firm must design their own unique BI system, there is no one size fits all package. More specifically to the blog title, FTTH companies could use BI to attack segemented markets or target customers. For example, they can extrapolate data from current customers usage of bandwidth, and for those that use an exorbitant amount of bandwidth may be more likely to switch to a fiber optic subscription. I can continue on and on and end up with a similar list that Loveman has covered in his lecture.
FTTH and digital printing seem to be complements of each other, just as I have stated in a previous blog (see "Digital Media Affecting Fiber Optics"). I am not stating that Digital Media and Digital Printing are identical, but more in the direction that both can thrive with the support of a fiber optic network. Due to the sheer file sizes of high resolution pictures, fiber optics would be the ideal transmission medium for these images to propagate. FTTH could allow digital printing to be done in a centralized location where all of the files are being sent. Furthermore, by having a centralized location, a company could reduce costs by having all of their equipment in one location as well. In addition, reducing costs while remaining efficient is every CFO's MO (main objective).