This afternoon, I find myself pondering my life as an AT&T/iPhone customer and the future of IP Communications in the United States. Today’s technology news is dominated by Ralph de la Vega comments made at a UBS investor conference in New York. De la Vega, head of AT&T Wireless, acknowledges the challenges faced by AT&T in response to the onslaught of data generated by iPhone and other smartphone users. He reports that just 3% of AT&T customers generate 40% of their wireless network data traffic, and in regions with high iPhone usage, i.e. New York and San Francisco, the network is not meeting current customer demand. As an iPhone user in San Francisco, I can personally attest to AT&T’s findings and I welcome their effort to improve their local 3G network. I will even help by providing real-time feedback through their recently released iPhone App “AT&T Mark the Spot.”

What troubles me is AT&T’s desire to “educate” smartphone users on how much data traffic they generate with the purpose of curtailing usage, and if usage is not curtailed, AT&T will then provide “incentives” to alleviate the “problem”. To me this feels like a typical carrier approach to the issue; create demand, provide poor service, spend millions on advertising boasting the best network, and then strategize to curtail customer usage. Wouldn’t upgrading the network be a better solution? Personally, I could be willing to pay more for a better service with higher bandwidth. Let the market decide!

Beyond their perceived need to educate users and encourage rationed data traffic, what worries me even more is AT&T taking a more direct approach by employing techniques to limit bandwidth or throttle throughput based on usage or class of traffic. I am ready for real-time, two-way video communication on mobile devices. It would be a shame if the infrastructure or regulatory climate limits the advancement of this technology. This is where the Federal Communication Commission can influence and shape the future of communications.

As the year winds down and Washington remains mired in the health care reform, the FCC charges forward towards the goal of delivering the “National Broadband Plan” to Congress on February 17, 2010. The plan as authorized in the American Recovery and Reinvestment Act of 2009 promises “to ensure that all people of the United States have access to broadband capability and shall establish benchmarks for meeting that goal.” Judging from the activities of FCC Chairmen, Julius Genachowski, the FCC is tackling some major issues that will have significant impact on the communications industry. Stacey Higgnbotham of GigaOM reports on efforts by the FCC to create an environment to promote an all-IP communications network. Additionally, the FCC began their technical inquiry into Net Neutrality.  The implications are obviously huge for service providers such as AT&T and their customers.

The FCC is taking a much greater role in influencing the future of communications and it is my hope that they can create an environment that will allow AT&T to continue to generate profit for their shareholders, yet provide an open IP network that fosters growth and innovation.

Last week in the US, the FCC took notice of Apple’s (and maybe AT&T’s) refusal to approve Google Voice for distribution on the iPhone App Store. In individual letters to the three aforementioned technology giants, the FCC launched an investigation into the relationship between Apple and AT&T and how the fate of applications submitted to the App Store are determined. To date, there are several open FCC proceedings regarding wireless access and handset availability, but to me this signals that the government is seriously interested in promoting openness of the wireless internet. The App Store reject pile is littered with VoIP applications deemed not suitable for the Apple/AT&T offering, however, the FCC has now decided to question Apple’s practices. Using Google as a test case is not surprising as the US government has a predilection to target higher profile cases.

Significant action by the FCC to promote openness within the wireless internet is a huge plus for the voice and video over IP community particularly as LTE and WiMax technology are rolled out to the public. Assuming new regulations are crafted to ensure a high level of openness the challenge will become how service providers and their networks manage the demand created by new IP communication applications. Even today the AT&T network is stressed. The GIPS San Francisco office is located in the shadow of the San Francisco/Oakland Bay Bridge and during afternoon rush hour, traffic chokes streets around our office.  When leaving the office for the evening, I frequently will make try to make a call as I walk to the MUNI Metro Station. Quite often my call is met with a “Network Busy” or is dropped in progress. I can only surmise that the network is oversubscribed due to the volume of calls placed from cars idling at the approaches to the bridge. I am also an avid user of mobile web and mobile email. Again, while navigating the streets of San Francisco, I am less than overwhelmed by the capability of the AT&T 3G/Edge data network.

Is there a reasonable solution that will provide excellent coverage and appropriate data throughput at reasonable price? I am not sure; however, I applaud the effort by the FCC to attempt to break down some of the barriers which are limiting innovation.

The discourse regarding a cure for the ailing US healthcare system is heating up. Last week, President Obama hosted a town hall meeting to bring the debate and dialogue to the people. As with the Presidential campaign, the Obama administration used services such as YouTube, Twitter, and Facebook to expand the reach of their message and to promote a wider debate. During the town hall meeting, Obama briefly mentioned how funds from the American Recovery and Reinvestment Act (federal stimulus package) are earmarked for projects to digitize medical records. Unfortunately, Obama did not include how communication technology, particularly video conferencing, can help improve health care while reducing costs.

The opportunity to capitalize on telemedicine needs to be a major component of any health care initiative. In a survey release last month, the Pew Research Center’s Internet & American Life Project and the California HealthCare Foundation reported that 61% of adults look online for health information. Like many aspects of society, Americans have become comfortable in using the Internet as a resource for addressing health concerns. As many have experienced-sites like WebMD offer a wealth of information, however, it is this plentitude of information that at times becomes difficult to narrow down a cause of a particular symptom. How often does one try to diagnose chills with a fever only to realize that the probability of having malaria to be slim? Here, the presence of online medical professionals would provide the level of expertise needed for an accurate diagnosis.

Practitioners today are embracing telemedicine and research journals are reporting the benefits. The American Journal of Ophthalmology reports that telemedicine reduces diagnosis time for a disease causing blindness in children. For years, complex networked operating rooms have been used to bring highly-skilled surgeons and specialists to remote locations. I liken these telemedicine systems to Cisco Telepresence conference rooms in which specialized equipment and dedicated networks produce near-lifelike experiences. Today, the opportunity resides with lower-cost more accessible products like desktop video conferencing. Companies such as MDLiveCare are breaking ground in offering online medical services from licensed doctors. Seeking medical attention in a face-to-face video conference can enhance the accuracy of a diagnosis and instill greater confidence in the medical counsel received. It can help reduce unnecessary doctor visits or trips to the emergency room and ease the travel burden for the disabled or elderly.

The technology is available today and I look forward to GIPS working with our customers to enable the next era in US healthcare.

The recently released McKinsey report, “Cleaning the air on cloud computing” has created the expected flurry of articles and blogs including pieces in the Wall Street Journal and Forbes. While cloud computing may be the next new thing, the report suggests that some caution must be taken when evaluating the benefits of cloud computing particularly for large enterprises. One important distinction in the report is the difference between cloud computing and cloud services. At GIPS we are much more excited by cloud services which typically include SaaS (Software as a Service.) To me, cloud services will continue to have a significant impact on the continued growth of the software industry.

Several weeks ago my colleague John Hermansen blogged about the integration of GIPS VoiceEngine into CommuniGate’s SaaS Unified Communications products. The blog highlighted the rise of VoIP in the UC space however it did not capture CommuniGate’s unique approach to the market. Much like salesforce.com did for the CRM market, CommuniGate can also offer for the unified communications market. Their goal is to enable service providers and operators to provide their small and medium business customers a high quality, professional UC solution. The software, servers and communications infrastructure form the cloud; while customers access their communications services from a web browser. As the young generation enters the workplace their familiarity with cloud based services, like Google and YouTube, will further enhance the attractiveness of these solutions to IT departments looking to cut costs and limit capital expenditures.

Moving to the cloud also enables rapid, inexpensive deployment of new services and the ability to react quickly to market demands. For example CommuniGate is improving the quality of the voice communications by adding HD Voice. In the future, CommuniGate can easily offer additional features. End users will simply purchase the new service from their provider eliminating the requirement for installation of enterprise software or servers.

One of the more rewarding aspects of working at Global IP Solutions is being able to “practice what we preach” by using our customers’ products to improve our own ability to communicate. GIPS employees use VoIP clients as well as desktop video conferencing to link our San Francisco, Stockholm and Asian offices. Occasionally we forget how our technology can transform our industry or have profound effects on people’s day-to-day lives. Yesterday, I had life altering experience.

I am originally from New Jersey and although I love living and working in San Francisco, at times I miss family and friends as well as East Coast delicacies (one simply cannot find a good bagel or pastrami sandwich in the Bay Area). One of the biggest challenges created by 2500+ miles of separation is realized when I get that call from my Mom requesting technical support particularly for a Microsoft Office suite product. These calls typically come during the day and my initial inclination is to suggest that the middle of the work day is not a good time to address what can be a frustrating and lengthy support call.

Yesterday, I got that call and sensed a lot of frustration. My Mom is a self-employed health care provider and was trying to write a report for an insurance company. The report needed to comply with a specific format and she was having difficulty with the spacing and font size of a Word document. She was determined to complete the report by close of business east coast time and so I decided it was appropriate to try to help immediately.

My parents are not technophobes and have had a PC for well over 15 years. In this time they have mastered the basic functions; however they have yet to fully grasp more subtle functions.  To date, my Mom has never tried a internet search using  “The Google” however from time to time when attempting an operation that is outside of her comfort zone she can become paralyzed by a decision to click the mouse button. This is when my phone rings.

Earlier this year GIPS announced our agreement with Citrix to incorporate VoiceEngine into GoToMeeting. GIPS now uses GoToMeeting to reduce telecommunication and travel costs while facilitating better teamwork both internally and with our customers. After spending several minutes with my Mom trying to direct her to the appropriate buttons and explain every click, I had a moment of clarity. I realized I was getting nowhere and I could launch an impromptu GoToMeeting and use the feature that allows me to take control of her screen. Since this was her first attempt using the technology, I elected to forego the VoIP or conference features and call her directly over the PSTN. Often, change is easiest when we start with baby steps.

Once we got started, my Mom sat back and watched in amazement as I moved her mouse around the screen from across the country. I easily identified and fixed the problem as well as addressed several other small issues.  Both of our stress levels were significantly reduced in mere moments. The only trouble came from her not being able to talk on the phone and type at the same time. This week, she will purchase a headset to enable HD Voice, which will improve the quality of our conversation and enable her to talk and type simultaneously. I realize that helping one’s parent is not a major target market for Citrix, but my experience demonstrates how a collaborative situation can help shrink the world and enable us to maintain much stronger and healthier relationships, whether they are business related or personal.

I thank the engineering teams at Citrix and GIPS to enable me to still live the dream in California while helping my Mom in New Jersey. Now if only they can figure out how to teach more lyrics from “Born to Run” to Springsteen’s West Coast concert goers. Only knowing the refrain is just plain pathetic.

In his recent GIPS blog posting, John Hermansen astutely commented that companies like Verizon must continue to innovate and provide customers with telecommunication services that offer greater value when compared to what is available today. This is the only way to combat the migration of customers to other providers such as Vonage and Comcast or abandoning of landlines all together. John concludes his blog with “I know I would be much more likely to sign up for FiOS if they offered PC-based video calling, integrated VoIP and TV applications or a combined mobile and home service. Hopefully this is Verizon’s strategy, as it will benefit VoIP developers and consumers alike.”

On Friday, Verizon took a big step towards gaining John as a customer by bringing a new value-added service to the market with the introduction of the Verizon Hub.

Surprisingly, this new option for landline service is coming for a wireless company. The Verizon Hub is being marketed to Verizon Wireless customers and is being targeted at families with active lifestyles. The multifunctional Hub utilizes existing broadband service from any carrier and integrates the services one would expect from a voice-based device with a host of new services, including unlimited SMS, real-time traffic, weather, calendars, directions, movie trailers, etc. If Verizon can successfully bridge the gap between its mobile and fixed offerings, services such as VCast will have higher utility driving greater adoption. If successful, Verizon will increase the ARPU of its traditional wireless customers, add a new revenue stream with landline service and maybe, more importantly, capture market share in regions that it currently does not offer a land line service.

Another intriguing characteristic in the Verizon press release is that they do not once mention Voice over IP. To me, this indicates a welcome departure in how Voice over IP is marketed. To Verizon and their customers Voice is simply Voice. With this announcement, we find a major telecommunications company leveraging the ability to deliver voice over an IP network to expand on their product offering and bringing greater value to their customers.

One of the most heated discussions within the communications industry today is the virtue of openness in the mobile arena. What does it mean to be open? Is the iPhone an open environment? What is Google really up to with Android? Will Symbian gain a foothold in the US market? What does it mean to be an “open” operator? These are just a few of the questions debated at the Open Mobile Summit last month in San Francisco. 

I found the Open Mobile Summit interesting, however, I was intrigued by a single device that was consistently referenced throughout the two day conference; the Amazon Kindle. Kindle, which is built and sold by Amazon, is simply a wireless, e-book reader that allows users to download books purchased online or directly from Kindle with Amazon’s “one touch” purchasing system. The book’s file is systematically downloaded to the device over Sprint Nextell’s EVDO network. There is no wireless service fees, no term contracts or the need to link to a computer. Over 200,000 titles are currently available in the Kindle store and most sell for less than $10. Blogs, magazines, and newspapers are also available via a subscription based service. There are several e-book readers on the market but Amazon, which obviously knows books and its customers, seems to have perfected the product and process.

The first generation Kindle has been available for about a year, however, even in these uncertain economic times the $349 Kindle seems to be flying off Amazon’s virtual shelves. For books available in both physical and Kindle formats from Amazon, Kindle accounts for >10% of the sales. Unfortunately for Amazon, the brick and mortar component of the product, the actual Kindle device, currently has a 12 week lead time.

To me, Kindle is an example of an elegant and thoughtful design that improves on a very traditional, ubiquitous product. As Ian Freed, VP Kindle, Amazon.com explained at the conference, Amazon’s design team set off to replicate all the features of a traditional book and then augment the device with new features not possible from a bound collection of pages.

-          Kindle is small and portable, much like an average paperback, however one can carry many “books” at once.

-          It is easy to hold and perfect for a public transportation commuter or frequent traveler.

-          Kindle’s innovative screen reads like a book and displays a traditionally sized page with the ability to modify font size per  reader preference.

-          Unlike mobile devices or laptops the screen is visible in bright sunlight.

-          Kindle includes an embedded dictionary which offers immediate definitions to unknown words.

-          Much like the iPod and MySpace did with music, Kindle is promoting the long-tail of publishing by creating a self-service publishing platform.

-          Once manufactured and shipped, Kindle’s carbon footprint and impact on the environment is minimal. It eliminates the need for paper, warehouses and shipping. 

Everybody knows that the world is going mobile and Kindle is a perfect example of a new, purpose-built device which leverages an “open” mobile network to provide consumers with an innovative approach to a traditional technology. 

At Global IP Solutions, we are seeing significant interest from customers developing real time voice and video applications for the mobile market. Maybe we will soon see a Kindle with real-time voice and video for those unable to attend their book club in person.