Telemedia-month JUNE

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Issue 20 • June 2011

PPP lobbies government to rethink micropayment rules as part of comms plans Following last month’s lead story here in Telemedia-month on government plans to shake up the whole UK communciations regulatory environment, telemedia industry regulator PhonepayPlus, has sent a joint letter with representatives of the PRS industry calling on the government to carry out a full review of the UK’s micropayments sector as part of this process to make it fit for the digital age. The letter is in response to a call for inputs to the government’s wideranging review of the regulatory regime for the UK communications sector, to ensure the regulatory framework in place is fit for the digital age. PhonepayPlus’ letter is countersigned by telecommunications and PRS industry trade bodies, UKCTA, AIME and MEF. With micropayments for digital content, such as media, games and virtual gifts, set to boom in coming years, PhonepayPlus and leading PRS industry trade bodies urge the Government to consider whether current regulatory approaches can keep pace with the market and achieve positive outcomes for consumers. A research report by Analysys Mason for PhonepayPlus, The marketplace for and regulation of micropayment services in the UK (published today), outlines the opportunities and challenges for both consumers and industry in this emerging area, which mark a convergence between the financial and telecommunications sectors. Among the report’s key recommendations is the establishment of a Code of Practice to regulate the provision of, and payment for, low-value digital goods and services, which applies across multiple platforms. The letter to the Secretary of State also raises the need for clarity on the regulation of micropayments to encourage investment and innovation by industry in the digital content sector – a key aim of the Government’s review. A further study published today by Analysys Mason for PhonepayPlus, Premium Rate Services: International Markets and Regulation, provides a comparative analysis of premium rate service markets and regulation in twenty benchmark countries around the world. Paul Whiteing, PhonepayPlus’ Chief Executive, said: “As a regulator, we seek to work in partnership with the industry we regulate to achieve positive outcomes for consumers of premium rate services. It is a regulatory model that has served consumers and the market well, with complaints about PRS falling 77% over two years. “With our research showing that the market and consumers are increasingly making use of micropayments to access content, we believe this Government review is timely. The current legislation is almost ten years old – a lifetime in terms of developments in the communications market – and PRS now has to compete with a myriad of other micropayment mechanisms, with different rules and regulations governing each. “Both industry and regulator therefore urge the Government to take this opportunity to review the legislative and regulatory framework for micropayments, to both encourage innovation and investment and maintain and build consumer confidence in the market.”

THIS MONTH... News

The latest news from the industry, along with analysis of what that news means, including: • Mgambling Summit in London round up + video 2 • UK’s main MNOs JV to launch mobile commerce and billing 3 • Oxygen8 build bespoke network for Selfridges charity service 4 • ATS launches branded QR codes for better m-commerce 5 • .Netbiscuits adds PayPal Mobile Checkout 6 • Purple Parking takes Heathrow carpark mobile 6 • Ayden launches iOS/Android m-payment tool 7 • OpenMarket gives Digital Chocolate in-app billing 7

Analysis Editorial Rethinking micropayments As PPP wades into the comms regulation rethink we broke last month, Paul Skeldon wonders if calling for microbilling regulation is really a wise move on the regulator’s behalf 8 SEARCH Seek and you will find Martin Blenkinsop from Pod1 talks us through how mobile search is the key to making m-commerce reach its true potential 10 NETWORKS Powerline v. Wifi Metin Taskin from AirTies explains how, as networks get more congested, many business and residential users are turning to using the power network in thieir building to access networks 12

Directory The leading industry directory of services 20

Latest news at www.telemedia-news.com Catch our blog at www.telemedia360.blogspot.com


NEWS MGambling Summit London shows hunger for mobile in this exciting new sector The very first mGaming Summit took place in London on June 15th, a joint venture between Telemedia360 and iGaming Business. Rebecca Liggero, from CalvinAyre.com reports

Mobile gambling has been a huge topic of interest amongst the online gambling industry for years, but the expertise and technology were not available until just recently. At present, Paddy Power reports that 30% of their punters have made a mobile bet, Ladbrokes reports 20% and eBay is currently selling more tablets than PCs. Ross Sleight of Somo believes that mobile devices will become the first point of entry for online gambling in the UK and that this is already the case in developing countries such as Africa and South America.

Clearly there is something here for us. To educate the online gambling industry on where the mobile opportunities lie and what the future holds for this revenue channel, the mGaming Summit provided a series of panels and presentations led by experts in the mobile industry. The day was separated into two tracks, one room dedicated to more practical subjects for those already involved with mobile gaming and another room dedicated to iGaming professionals who are looking to get into the market. Keynote speaker Dr. Windsor Holden, author of the Mobile Gaming Report, kicked off the day by pointing out a common misconception that the mobile channel cannibalizes existing revenues. Rather, mobile gaming compliments existing revenue channels, as confirmed in a study conducted by Ladbrokes. Another interesting point delivered in his speech was that Japan

is clearly the trailblazer when it comes to mobile gaming followed by the UK. According to Holden, the major growth in the sector lies in China and also in the United States, especially when it comes to state lotteries and the state of Nevada. Following the keynote, Darren Noyce explained to delegates that lotteries could become the main point of entry to mGambling and that text messaging is a great way to engage customers with mGambling products. Noyce also stressed the strong relationship between social media and mGambling and that operators must take advantage of this linkage to boost their mobile revenue stream. Another popular subject these days is in-game betting and live stream offerings via mobile devices. Andrew Pegler of MFuse explained that mGambling from live events can be difficult because of data network infrastructure limitations. However, in-game betting and live streaming away from the event can be a great acquisition tool and as Steve Cook pointed out, tablets will soon dominate the live streaming space. There is a lot of room for innovation in live streaming. By the end of the day it was clear that all delegates enjoyed the inaugural mGaming Summit and that the online gambling industry still has a lot to learn about the mobile gaming market. Something for operators to keep in mind is that while fancy apps for tablets and iphones seem to be a top priority, going back to the basics such as SMS betting can be a very effective as well. Telemedia360 and iGaming Business did an excellent job pulling together this event and already have plans for improvement the next time around. Informative gaming conferences like this are exactly what the online gambling industry needs and CalvinAyre. com looks forward to the next one! >>READ MORE FROM MGAMING SUMMIT HERE>>


NEWS Everything Everywhere, Telefónica, Vodafone form UK mobile marketing and payments JV Everything everywhere, Telefónica UK and Vodafone UK have announce plans to create a standalone m-commerce joint venture. The new entity, the first of its kind in the UK, will bring together the expertise and technology of the UK’s leading mobile operators, enabling the rapid development and delivery of new mobile marketing and payment services. The JV will provide a single contact for advertisers, marketing partners, retailers and banks making it far easier to create m-commerce products and services. The JV will be open and available to all industry participants, maximising benefits to consumers. The JV is subject to competition clearance and is aiming to launch before the end of the year. The tie up will deliver the technology required for the speedy adoption of mobile wallet and payments. This will enable consumers to transfer their

entire physical wallet into a new secure, SIM-based wallet regardless of which NFC enabled mobile device, or mobile network they are using. Companies and organisations that provide anything from credit, debit and loyalty cards to membership cards and transport tickets will be able to create secure mobile versions of their products. Consumers will be able to use their mobiles to pay for goods, services and travel using contactless technology (NFC) with one touch of their phone, or online via mobile or PC. The new business will also provide a single contact point for advertisers, media agencies and retailers looking to reach consumers on their mobile phones. The JV will enable them to book advertising space and create campaigns as well as provide offers, coupons and loyalty cards which can be stored on the phone and redeemed in shops. For consumers, the JV means

that they will be able to receive discounts and offers from brands that are relevant to them and that they want to receive. Everything Everywhere, Telefónica UK and Vodafone UK will continue to develop their own competing products and services tailored to their own customers, which will be based on the open platform infrastructure provided by the JV. Tom Alexander, CEO of Everything Everywhere, commented: “This groundbreaking new business will unlock the true potential of commerce in the wire-free world. The benefits will be felt across the whole industry, allowing people to manage their money and make payments using their handsets, helping advertisers reach their customers on the move, and helping banks provide their clients with an easy and convenient way of making payments. >>READ FULL STORY HERE>>


NEWS Oxygen8 provides Selfridges with mobile infrastructure for text-to-donate campaign

oxygen8 is providing the text message-based donation service for the Selfridges & Co’s Project Ocean charity campaign. Project Ocean aims to celebrate the beauty of the ocean, highlighting the issue of over-fishing and helping consumers understand the threats to the ocean. The campaign aims to create new marine reserves all over the world, in addition to conserving existing ones, to help future survival of ocean environments.

The campaign also helps consumers to make the right choices with what fish to buy and eat. Working with Digital Creative agency, Clusta Ltd., Oxygen8 has delivered the mobile infrastructure to enable consumers to easily donate via text message. Selfridges is partnering with more than 20 environmental and conservation groups to celebrate the beauty of the ocean, highlight the issue of over-fishing, help us all understand the threats to the ocean and make positive choices about the right fish to buy and eat. The Oxygen8 mobile platform provides a simple, efficient means of collecting donations via text message. Consumers can easily donate a variety of amounts by texting OCEAN, their selected amount (£3, £5 or £10) and their name to 70060. For every donation a fish is added to the virtual Ocean developed by Clusta Ltd. Oxygen8 has worked closely with

Digital Creative agency, Clusta Ltd. to implement the campaign. As Steve Taylor Technical Director at Clusta Ltd. explains, “When designing the campaign for Project Ocean we searched the market for a mobile partner that could provide us with a robust, proven mobile platform that has a history of working with charities. Oxygen8 met these requirements and they are the perfect fit for our work with Selfridges.” Shane Leahy, Group CEO of Oxygen8 Communications comments, “Working with Clusta to provide the mobile infrastructure for Selfridges and their Project Ocean campaign once again shows Oxygen8’s strong position within the mobile industry as well as the charity sector. We are delighted to be able to help Selfridges with this worthy cause and aim to help them achieve their donation target.” >> READ MORE ABOUT THE CAMPAIGN HERE >>

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NEWS ATS launches branded QR codes to give businesses that extra something with ats qr Codes, products and organizations can brand custom QR codes with easily recognizable logos and graphics. This gives added emphasis to the QR code and enables it to better represent the brand or product and stand out in the advertisement to secure larger amounts of scans from consumers. “One of the raps against QR codes has been that it is nothing more than a square box of squiggly black and white lines that don’t represent one brand over another,” explains Bob Bentz, president of Advanced Telecom Services. “Custom QR codes are able to enhance the look and feel of the customer interaction.” According to Bentz, custom QR codes have been one of the most talkedabout mobile marketing products in the last few months. Companies are using them mostly because of the unique design. And, they are enhancing the promotions with a mobile web site that

shows up better on the smaller screen of the mobile phone. “It is important to look like your brand from the outside and the inside,” added Frank Mazza, lead designer for Advanced Telecom Services’ QR code division. “A custom QR code does just that.” QR codes were invented by DensoWare, a subsidiary of Toyota, in 1994, to track parts for vehicle manufacturing in Japan. The bar codes have been popular in Japan and Korea for many years, but are more recently becoming part of marketing efforts in the United States and Canada. In Canada, QR codes are used on the front page of the Canadian passport application to speed up the processing of new passports. United Airlines, among other innovative airlines, uses QR codes as boarding passes. And, when you sign up for Google Places, you’ll receive a decal QR code for your front door that links visitors to your web site.

Advanced Telecom Services has developed QR code promotions for companies and organizations such as Radio One, Subway, and St. Joseph’s University. The Wayne, Pennsylvania company has been in business since 1989 and operates international offices in Toronto, London, Dublin, Prague, and Bratislava.


NEWS Netbiscuits offers retailers PayPal Mobile Express Checkout to retailers netbiscuits, a leading cloud software service for cross-platform mobile sites and apps, is to offer retailers PayPal Mobile Express Checkout, the online payment service’s two-click mobile payment system for the mobile Web, as standard, giving retailers a built in payment channel for transactional m-websites. PayPal’s Mobile Express Checkout service will now be available to Netbiscuits-powered retailers worldwide. Furthermore, the two companies agreed to build a relationship providing enterprise-class mobile shopping and payment solutions to customers in e-commerce and retail in North America and Europe. Netbiscuits provides a highly flexible and cost-effective solution that allows retailers to develop and manage mobile commerce websites in-house and build sustainable mobile strategies based on their own hands-on experience. In addition to offering retailers PayPal Mobile Express Checkout, Netbiscuits’ retail and e-commerce customers will also benefit from the standardized interfaces which

Netbiscuits provides for leading e-commerce software solution providers such as Oracle ATG, GSI Commerce, Demandware, Intershop and others. “Over the last 11 years, Netbiscuits has built a solid track record with its customers and it continues to offer some of the best mobile Web development tools around”, says Eddie Davis, senior director of Strategic Alliances at PayPal. “By integrating Mobile Express Checkout, Netbiscuits’ customers are now able to offer consumers a faster, more secure checkout experience.” “PayPal is a must-have service for retailers, with nearly 98 million active users globally,” says Michael Neidhoefer, CEO of Netbiscuits. “Given the increase m-commerce has shown throughout the last six months, more companies are getting serious about a long term mobile channel strategy. The time of playing around with mobile is over. Now retail industry players are looking for the most robust, high-performing, and enterprise-class solutions to enable mobile shopping sites.

Heathrow’s Purple Parking goes mobile to meet 400% growth in smartphone traffic heathrow airport parking provider, Purple Parking, has seen a 400% increase in traffic from mobile devices in the last year and has launched its mobile commerce site this week, to service the demand. The newly-launched mobile site enables customers to retrieve quotes and book airport parking through their mobiles, at 26 different airports in the UK. The site is optimised for eight different mobile devices including: the iPhone, Android, Blackberry, SymbianOS, Sony, Windows, Samsung and Nokia models. The investment in mobile does not end there - Purple Parking is also looking at developing an app especially for its business clients, which would enable users to inform chauffeurs when they have arrived on their departure and when they have landed on their return. The app would replace phone calls with the push of a button.

The site is launched just as TripAdvisor’s survey revealed last week, that almost a quarter of Britons have used a mobile device as part of their travel planning process, 75% use a mobile device when travelling and 39% have a travel app installed on their mobile device. Oliver Inwards, Head of Online at Purple Parking, commented: “Our mobile traffic already accounts for 6% of our total website traffic and it is growing at a fast pace. “Since last year the traffic has increased by 400% making it essential for us to have a site which is easy to use on any mobile device. We like stay at the forefront of our industry and are dedicated to making the booking process as easy and fast as possible for our customers; so we listened and responded to the demand by investing in mobile.”


NEWS Adyen’s fully integrated payment solution for iOS and Android adyen, a provider of Internet and mobile payment solutions, has launched a single-click mobile payment solution for iPhone and Android. The outsourced solution gives application developers the ability to implement an alternative payment solution to iTunes that also accepts credit cards, PayPal and a range of other payment methods within mobile applications and mobile websites. The mobile optimized Adyen payment platform means that merchants and developers can benefit from a fully integrated service that removes the burden of security and PCI compliance. Innovative skin technology enables app developers to adjust everything related to the look and feel of the mobile payment and checkout process – an important driver for increased conversion rates. A number of international merchants have gone live on the new mobile platform, including Pathe, the largest chain of cinema theatres in the Europe, which has been using Adyen to sell tickets to customers on its iPhone mobile applica-

tion. Another merchant recently live on Adyen is Greetz, one of Europe’s largest online greetings card retailers. “More and more of our customers have been demanding flexibility and convenience over mobile. Adyen’s payment platforms have been developed with this in mind, which made it a no-brainer for us,” explained Johan van Vulpen, CEO of Greetz. Functionality extends to processing mobile payments with a single click, maximizing convenience for the customer as they no longer have to enter their full credit card details every time they make a purchase. “A growing number of our customers have been asking for an alternative payment solution to iTunes on the iPhone, in addition to supporting Android devices,” said Roelant Prins, Chief Commercial Officer, Adyen. “We have had success with retailers launching mobile apps and m-websites to sell non-digital products like clothing, tickets and daily-deal offerings.

OpenMarket enables in-app billing for Digital Chocolate’s social games on 3UK OPENMARKET, the UK’s leading mobile transaction hub, has partnered with micro-billing provider GlobalCharge, to develop a new breed of in-app billing services for Digital Chocolate, the specialist mobile and social games developer, led by Trip Hawkins, founder of EA Games. The strategic partnership has developed an in-app billing solution with solid customer focused functionality, enabling customers on 3UK’s network to bill the cost of social game-play to their mobile phone pre or post-pay account. The first game in Digital Chocolate’s social games inventory to benefit from this billing feature is Millionaire City, which is embedded on new 3UK handsets. Andrew Darling, Associate Director of Marketing, OpenMarket,

commented: “This is a significant development for both 3UK and for application providers. It enables a simple, quick and consumer-friendly way to monetise a new genre of social games. OpenMarket and GlobalCharge have developed a best of breed payment solution that is tailored to the new social game and app formats which are becoming more prevalent.” Rob Stevenson, Sales Director UK and ROI, Digital Chocolate, said: “This is a milestone moment for Digital Chocolate in embedding this game onto handsets. We’re one of the leaders in innovation and socially connected games. Being able to work with this technical and commercial solution with one of our key operator partners, such as 3UK, is exciting. ”


COMMENT INDUSTRY WATCHER

Learning time looms PPP has waded into the new comms regulation debate we broke last month to call on government to remember to regulate microbilling. Gee, thanks. Paul Skeldon wonders if it was really necessary another month of the summer ticks by and, while the weather is reliably unsettled, the usually settled world of payments has become decidedly stormy. Last month we reported on how the UK government has plans to rethink the entire way comms are regulated, to take into account how much it has changed in the past 15 years. This month, telemedia regulator PhonePay Plus has waded into the debate, outlining how it wants government to regulated micropayments in this wholly new world of comms regulation. Fair play to the good people at PPP, they do after all have to wave their flag at this time of scrutiny on the regulatory environment – we wouldn’t want them to worry that they were likely to be replaced or anything. It is also good to see PPP – and the industry bodies AIME, MEF and UKCTA – making sure that this crucial part of the telemedia business is flagged up to ministers and mandarins as they pour over how to rethink how our business is policed. But is the intervention really necessary? Already we are seeing m-payments in particular become a whole new beast. iTunes has reshaped how people register and pay for things online and on mobile. Amazon one click likewise. The banks are now also wading in to offer NFC based payment tools over mobile (not here yet, but they will be). Sure there is a role for telemedia based microbilling tools – especially around adult and gambling – but the payment tools that will sit at the heart of the mcommerce revolution that is coming our way will probably be based around those of the big boys or even things we are yet to even imagine. Getting the government to look closely at micropayments and how it will be regulated in a wider comms regulation rethink is at best premature and at worst puts unnecessary scrutiny on these tools at a delicate time in the transformation of the payments landscape. Analysis Mason, which has done some research into this space, recommends – in an exemplary ‘no shit Sherlock’ moment – that mobile and micropayments are changing dramatically and a Code of Practice is desperately needed for the regulation and overseeing of the payment of small amounts of money for digital goods. I may be wrong, but isn’t this really what PPP does already? Anyhoo, Analysis Mason isn’t wrong, but it seems to me that everyone already knows this – possibly even those in Whitehall who are looking at where it all goes next. What is really needed is someone to explain clearly what all these different payment tools are, how they work and what is best suited to what type of m and e-commerce and how best to implement them. We need to protect consumers and get these things working well, but first we need to tell the companies that will offer them to these consumers what they are and how to use them. The rest should then follow. And this is the mission for Telemedia Month and our associated products from now on... in the words of some politician or other (I know who it is, just hate to name him), it’s “Educaction, education, education”. Editorial Editor Paul Skeldon paulskeldon@me.com | Sales & Marketing info@telemediamagazine.com | Production Director Annika Micheli annika@telemediamagazine.com | Publisher Jarvis Todd jarvis@telemediamagazine.com To subscribe, please go to www.telemedia-news.com What we’ve been listening to Baby Love Child, Pizzicato Five | What we’ve been amused by The Human CentiPad | Who we’ve been following The Decline of Social Media (well, Facebook) | What we’ve been reading about OSX Lion and iOS5 | July 2011 will bring... my first holiday in two years


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ANALYSIS

Search

comment & opinion >>

Seek and you will find Mobile search is becoming a crucial part of the marketing and discovery process – but it needs careful handling if you are to exploit it to the full. Mark Blenkinsop, head of search at Pod1 explains google’s recently published survey into smartphone users, The Mobile Movement: Understanding Smartphone Users, produced some important insights into why brands and retailers need to focus on their mobile search strategies. For instance, 89% of people used their smartphones throughout the day, while 81% of people had browsed the internet in the past week. More than 77% used their smartphones as a search engine in the past week and nine out of 10 users have taken action as the direct result of a smartphone search, with 59% discussing their results, 67% continuing researching, 68% visiting a business and 53% purchasing. 95% looked up local information, with 77% contacting a business and 44% purchasing

While this is based on US users, patterns are likely to be similar in the UK and other markets with reasonably developed mobile commerce environamnts and with around 13.5 million people surfing the internet on phones in the UK this is a powerful market – especially as it is also predicted that mobile internet users will outnumber desktop users in the next five years. It also serves to highlight why brands and retailers need to have a set strategy about how to target their customers via mobile marketing. The search element of this strategy will differ markedly from a normal search strategy as Google, and other search engines, use different search algorithms for mobile results compared to desktop searches.

This means that someone performing a search on a desktop will get completely different results than if they run the same search from a mobile. Traditional optimisation techniques are still important, but understanding additional factors such as page size, text length, document type and image size can make a significant impact on the position a site receives in mobile search results. And because mobile users browse less, securing those top positions is even more important. As Google is still the most popular search engine, retailers and brands need to understand exactly how it works and build their strategy accordingly. Essentially, Google uses two differing types of program to search and index the web: one for

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ANALYSIS

Search

desktop searching (Googlebot) and one for mobile (Googlebot-Mobile). Google currently does not crawl the web with a specific algorithm for smartphones, however, as it assumes that these devices are capable of producing a browser experience similar to desktops. This doesn’t mean that brands should ignore smartphones in their mobile strategy, as any site that is going to be viewed by mobile still needs to be optimised for mobile usage and this includes using location-based keywords, for the growing number of people doing localised searches. This may mean that brands and retailers need to look at different search keywords for mobile to reflect the differing ways consumers search on these platforms, and they may also want to look at a separate mobile strategy for paid search functions such as Adwords. Also with so many different mobile platforms on offer, brands would do well to set their functionality or the lowest common denominator as this ensures all mobiles have the same functionality. Once smartphones become more prevalent then the likelihood is that this will change.

While Google will automatically optimise some sites for mobile this can cause instability and can remove functionality, so it makes sense for content to be formatted differently for each platform, and the decision to do this should be based on how brands can best serve their users. Importantly, mobile users require a mobile experience, and without it they might get content that is confusing or irrelevant, and brands will therefore not be maximising their conversion rates. It is also important as Google uses toolbar data in its ranking algorithm, so that if a company has a high bounce rate this can potentially adversely affect its search rankings. Ensuring that a website is optimised for mobile will make mean that there is more likelihood of visitors staying on site and not bouncing straight off for exactly the reasons stated above, thereby not inadvertently damaging its page rank score. But, to do all this effectively, brands and retailers need to know exactly what information is important to their customers as well as having a deep knowledge of

how people use their website. The most common mistakes come when brands and retailers don’t understand their customers’ behaviour, needs and goals. Another key area for mobile optimisation is looking at how people get to the mobile content. There are two schools of thought here: one believing that you should simply use one URL to mobile and desktop users alike, and render the content with specific style sheets for mobile users. This is easier than developing two sites, and it doesn’t create two URLs, which can potentially split the site’s link popularity and make it more difficult to rank for competitive search terms. The second school of thought involves having a separate website for mobile content – ie using a URL format such as m.yourname.com to direct people to a specific mobile site. There is no evidence to suggest reduced ranking of mobile sites as a result of split links, and the duplicate content argument is as yet unproven also. The benefit of doing this is that what you see is what you get – in another words your design will show up exactly as intended.

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ANALYSIS

Networks

comment & opinion >>

Powerline versus Wifi The biggest drawback to trying to do anything clever with mobile are the constraints of networks. But there could be an answer – certainly for those at home or in an office. Metin Taskin, CTO of wireless home networking company AirTies explains most of us today have a wireless network in our homes to enable us to enjoy unfettered access to the internet and share data between PCs and networked peripherals like printers. More recently the trend towards connecting into home entertainment devices using ethernet ports to connect to TVs, BluRay players, and gaming devices has become increasingly common place. Kaspersky Labs estimates that the current number of UK homes with a wireless LAN installed is around 57%. Whilst Ofcom estimates that 1.5 million households (out of a total of approximately 22 million households) have deployed PowerLine Technology to connect them up. But how do the two approaches compare and what are the relative pros and cons? This article aims to provide a perspective on both, as well as discuss some current concerns relating to Powerline prompted by a recently released BBC white paper and examine what impact they are likely to have on future growth of powerline and home networking in general. But firstly, just to be clear we’ll start with some definitions of the two technologies, beginning with Powerline. According to Wikipedia, Power line communications are systems for carrying data on a conductor also used for electric power transmission. Consumers can buy powerline adapter sets at most electronics retailers and use those to establish a wired connection using the existing electrical wiring in the home. The powerline adapters plug into a wall outlet and then are connected via CAT5 cabling to the home’s router. Additional adapter(s) can be plugged in at any other outlet to give instant networking and Internet access to an Ethernet-equipped Blu-ray player, a game console (PS3, Xbox 360, etc.) a laptop or an Internet

TV (also called OTT for Over-the-Top video) box that can access and stream video content to the TV. The most established and widely deployed powerline networking standard for these powerline adapter products is from the HomePlug Powerline Alliance. HomePlug AV was adopted by the IEEE P1901 group as a baseline technology for their standard, published 30 December 2010. The company estimates that over 45 million of their devices have been deployed worldwide. Other companies and organisations use different specifications for power line home networking and these include the Universal Powerline Association, the HD-PLC Alliance and the ITU-T’s G.hn specification. Wi-Fi on the other hand connects to an IP Gateway offering 802.11n high-speed wireless solutions that can provide ultra reliability, predictable bandwidth and unprecedented high speed performance for real-time data, video and audio distribution in the home. The main challenge associated with Wi-Fi has been overcoming the issues of interference and being able to adequately permeate through brick walls to deliver a latency and jitterfree, secure signal whilst also making the solutions easy enough to install and administer to be handled by the consumer. AirTies provide a range of wireless home networking products including IP Gateways, media servers and set-top boxes and have patent pending technology that overcomes the traditional issues of interference, latency using a mesh networking approach to ensure secure delivery of video and data traffic (including HD and 3D video) around the entire house at the press of a button. Powerine and wireless are currently being used equally by operators

around the globe. Some countries like France have developed a particular predilection for powerline but it only works 75% of the time. The two key issues associated with it are firstly one relating to the cabling configuration and the second to interference. In order for powerline to work, the devices it is connecting to need to be physically located on the same circuit. This however is not always the case, as many houses have separate circuits for the 3 different phases of electric power that comes to the home to reduce the load on each wire. Such a design is particularly common in Germany and in new builds where the need for increased power necessitates the use of multiple circuits. In these circumstances powerline technology will not work throughout the whole home. The second problem is one of interference caused by leakage of RF signals. As the number of powerline devices in the same area increases and powerline technology is being used by multiple households; particularly in a multi-tenanted environment like a flat; the signals are being shared amongst multiple users and the risk of interference and degradation occurs, leading to a reduction in throughput of data as the signals are all sharing the same frequency. Other electrical equipment also injects noise into the electrical wires resulting in degredation in the performance of PLAs nearby. However, on the positive side powerline technology is now in its third or fourth generation and the maximum data rate, which was previously around 200 Mbps has now increased to 500 Mps and powerline is a well established technology with a range of suppliers. Yet, whilst its use may be suitable in most cases for sharing data its use for HD video sharing is still not


ANALYSIS

Networks

proven and prone to interference. The most recent controversy around powerline relates to the interference that it causes for other electrical equipment as powerline signals radiate into the air so have a tendency to interfere with other electrical devices like short wave and medium wave radios that share the same frequency which can interfere with the functioning of these devices. What’s more the faster models have also been shown to interfere with DAB and FM radio and interference levels have also been shown to exceed current EU standards. If a number of households are using powerline devices in the same area the leaked signals can build up. Ofcom has received some complaints – although mainly from radio buffs – about this issue of interference which has largely been ignored due to the small number of complaints. More recently however the BBC published a white paper causing the matter to be discussed in parliament. However one key area where wireless consistently wins out over powerline is in incorporating into the home network mobile devices like the Apple iPad and other tablet devices which have no ethernet connection. As video is also increasingly being used by these devices which have no fixed location, wireless is undoubtedly the best option. So in conclusion, how do the two solutions stack up against each other? My belief is that they are largely complementary solutions. Wireless isn’t constrained by the existence or quality of the existing cabling infrastructure. It offers higher speeds, greater predictability and quality and the option of moving devices at will. However, as demand for more and more bandwidth in the home heats up, adding powerline into a wireless environment can increase bandwidth, adding an extra bandwidth that can be obtained through powerline on top of the bandwidth supplied by wireless

networking devices. So whilst the answer is not clear cut - and at some stage the issue of interference will need to be addressed by the powerline standards body - I believe that there is a rosy future ahead for both technologies to co-exist in parallel in the

home environment. What’s more the home networking revolution has only just begun and the ease and efficiency with which all devices in the home will interact and seamlessly share video and data is set to escalate exponentially in the near future.


Telemedia Industry Directory BT Agilemedia

Telecom 2 Ltd

The UK’s No.1 provider of participation media and payment services

UK geographicals, Mobile, IVR Solutions, PRS, Audiotext & VOIP

Contact: Email info@agile.co.uk Helpdesk 0800 731 3050

Contact: Alex Perez, E-mail: alex.perez@telecom2.net www.telecom2.net

Orca Digital

Open Market

UK’s leading provider of interactive platforms for mobile, web and TV

Mobile Messaging, Direct Billing, IVR, Video Shortcodes, Location-Based & Mobile Crediting Services

Contact: hello@orcadigital.com // 020 8819 5710 www.orcadigital.com

Text sales to 88600 in the UK. Tel +44 (0) 20 8987 8855 www.openmarket.com/europe

Sundial Telecom

Trodat Telecom

Voice, Fax, Web, WAP & IM integration

Your direct source for the industry’s most reliable international premium rate numbers

Contact: sales@sundialtele.com, +44 1223 238300 www.sundialtele.com

Contact: info@trodat.com, www.trodat.com

Core Telecom

Froggie Group

Non Geographic Numbers, SMS Services, Call Management Solutions, BT Wholesale, Carrier Pre-select, Indirect Access

Mobile marketing, Mobile advertising, Online advertising, Video streaming, Mobile Databases

Contact: t: 0844 504 0000, e:info@coretelecom.co.uk www.coretelecom.co.uk

Contact: Alex Hind , Tel +34 954 98 08 48, alexhind@froggie-mm.com, www.froggie-mm.com

Admoda / Adultmoda

24 Seven Communications

Mobile Advertising. Mainstream or Adult. Advertise or Publish. Mobile Web/Apps.

Bespoke IVR • VoIP • PSMS • Live Stats WE DO THE LOT!

Admoda/Adultmoda, Enterprise House, 1-2 Hatfields, London, SE1 9PG. www.admoda.com / www.adultmoda.com

Contact: info@24seven.co.uk, Tel 08000 247 247 www.24seven.co.uk

paythru

Fusion Telecom

The world’s first mobile, PCI Level 1, card payment provider

IVR like you’ve never experienced before

Contact: 01494 736008, Email: hello@paythru.com www.paythru.com

Contact: Michelle Marriott, Tel 0207 197 3005 michelle@fusiontelecomltd.com, www.fusiontelecomltd.com

Kwak Telecom Ltd

Preferred Telemedia

Leading provider of International payouts numbers & domestic premium rate numbers

Preferred Telemedia is a leading VoIP Solutions, providing Premium numbers, wholesale, callcenters ..

Contact: Tel +357 22 022300, sales@kwak-telecom.com www.premium-rates.com

Get your company listed here Contact Jarvis Todd on Tel +44 (0)8707 327 327 or email jarvis@telemedia360.com

Contact: Tel (+961)-1352691, contact@preferredtelemedia.com www.preferredtelemedia.com

AGMO Micropayments, Premium SMS, Premium Voice, Web Billing, Credit cards, Poland, Czech Republic, Hungary, Slovakia

Contact: Tel: +420 234 718 555, Email: info@agmo.eu www.agmo.eu


Telemedia Industry Directory txtNation

EG Telecom

Mobile, Billing, Payments, Content, WAP, SMS, MMS, IVR, Phone, Credit Card

Spain & France • SMS Premium • 123ticket.com • Micropayments • IVR • Worldwide coverage • Voice premium • subscription • billing platform

Contact: Michael Whelan, E. m.whelan@txtnation.com T.+44 (0) 1752 273491, www.txtnation.com

Contact: Robert Nijeboer on rnijeboer@egtelecom.es and mobile (+34) 661636577

Oxygen8

Advanced Telecom Services

Global Billing, Communication & Mobile Services from Worldwide Offices

900 numbers, premium sms, telemedia, mobile marketing, dating, audiotext, IVR

Contact: 0808 206 2062 E-mail: sales.uk@oxygen8.com www.oxygen8.com

Skype : ballparkbob

tyntec

Viatel

SMS interaction: 2-Way SMS Dialogue, Outbound & Inbound, Mobile Authentication & Number Lookup.

Premium SMS • Premium rate numbers • IVR • Specialists in Scandinavia • Safe payments

Contact: Scott Crowley Tel+49-89-202451204, crowley@tyntec.com www.tyntec.com

Contact: Phone: +46 8 50601015, Email: premium@viatel.se www.viatel.se

Paul Markham

Dimoco

Paul Markham content provider for Mobile Phones and iPods.

DIMOCO is the international mobile payment and messaging transaction partner

Contact: www.paulmarkham.com/all-adult-content.php

Contact: Tel +43 1 33 66 888-0, sales@dimoco.org www.dimoco.org

telequest & Internet Solutions GmbH

Cellcast

!!! Domestic Numbers Worldwide !!!

Cellcast is a leading provider of participatory television programming and interactive technology

Contact: 00800 102 502 22 or info@telequest.com www.telequest.com

Contact: Tel +44 207 190 033, web@cellcast.tv www.cellcast.tv

Global Telecall

Text121Chat

Provider of quality wholesale & retail telephony applications.

Premium Rate Operators Services

Contact: 0800 031 9141 or email sales@globaltelecall.com www.globaltelecall.com

www.text121chat.com Contact: UK 0871 872 6154, helen@text121chat.com, USA 1-888-711-0121, lorna@text121chat.com

Wapple

C3 Ltd

Mobile web, Mobile marketing, Mobile browser, device detection & optimisation Mobile advertising, Mobile web development

A PCI compliant technology and application provider for VAS operators

Contact: Tel 0844 800 8514 (UK) and +44 1527 558247 (International) http://wapple.net

Goodman Associates Goodman Associates maximizes your profits by making advertising work harder!

Contact: mail@goodmanassociates.co.uk, Tel.+44 (0)845 225 55 55 www. goodmanassociates.co.uk

Contact: info@c3.co.uk, Tel +44 (0) 1223 427700 www.c3.co.uk

Get your company listed here Contact Jarvis Todd on Tel +44 (0)8707 327 327 or email jarvis@telemedia360.com


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