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Rogers CEO Nadir Mohamed

Canadian telco Rogers goes OTT with video

Posted By TelecomTV One , 02 December 2011 | 3 Comments | (2)
Tags: Video OTT telco cable LTE Wireless 4G spectrum

As telcos wake up to the threat from OTT players, more of them are breaking away from their traditional services with OTT offerings of their own. Guy Daniels reports.

If you can’t join them, beat them. That appears to be the latest strategic thinking of telcos, who are growing increasingly concerned about losing customer revenue to the so-called over-the-top players. Yes, they’ll always say there are areas in which they can cooperate and work together, but the reality is that they want this business for themselves.

 

Canadian telco Rogers Communications is as traditional as they come (it has a wireless network and some regional cable operations), but even they have woken up to the OTT threat and are exploring ways to fight back. The Stop the Cap website picked up on a story that ran last weekend in the Montreal Gazette, which featured comments from Rogers CEO Nadir Mohamed.

 

Faced with the growing opportunities offered by TV services and video content, and anxious to put its new LTE wireless network through its paces, Mohamed announced a trial video OTT service in Quebec. Although Rogers has some cable TV franchises in Canada (in Ontario, New Brunswick, and Newfoundland), it doesn’t have video interests in Quebec.

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From early 2012, residents here will be able to sign up for the new wireless video-on-demand service.

 

Speaking during a press event in Montreal, Nadir Mohamed said:

 

“Video for wireless has huge potential for growth. It’s a sort of the mirror image of how cable evolved, which went from video, to data to voice. Will we replicate our cable platform outside the areas where we currently have franchises? I don't think of it that way. I think people will be much more selective and it will appear much more like an over the top service provider.”

 

There you have it – Rogers as an OTT player. It’s not a full-featured cable replacement service though; small steps for the moment… He certainly doesn’t want to upset Quebec's two dominant cable TV providers: Videotron and Bell Canada. Mohamed said the service would be available on phones, tablets and televisions, much like Netflix, although the current capabilities of the wireless network will limit the service:

 

“I think wireless networks in the foreseeable future will not have the capability to deliver full-motion video to a large number of customers at the same time, even with LTE. So what you will see is an integration of wired and wireless, where the wireless network will off-load the traffic to a wired network.”

 

All this appears to be at odds with one of its main marketing messages at the moment – which supports the idea of a spectrum crunch and calls for equal treatment in the upcoming national spectrum auctions (it doesn’t want the government to set aside spectrum for new wireless competitors). It has launched a dedicated “I Want My LTE” website as part of its lobbying effort – so why announce a new video service that is designed to eat up as much of this supposedly scarce spectrum as possible?

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(1) 02 December 2011 15:50:28 by Francis McInerney

The answer is that Rogers has a Wi-Fi strategy up its sleeve like the other Canadian, Shaw. Rogers knows that the bulk of OTT video today bypasses cellcos so they cannot monetize it. But, if you have a strategy for bringing OTT on-net by creating a second, Wi-Fi only, net as Steve Jobs wanted to do, you can keep growing in wireless even as cellular declines in its share of the data stream.


(2) 02 December 2011 16:08:49 by Doug Hanchard

The whole concept of video over wireless as a revenue stream, is perplexing. High quality video already goes over the air as omni broadcast. LTE / HPSA and other high speed wireless data spectrum is capacity limited. What needs to happen is not use mobile communications spectrum, but evolution of a chip that accepts an additional band. We already have dual and tri and quade mode smart phones (GSM / CDMA / WiFi / Wi-Max).

This kind of technology is not what incumbent carriers want to hear however, particularly those that have had a monopoly or the largest market share on broadcast rights. In addition, the problem is also one of how many different broadcasters want to build over the top "public" access to their signal in populated regions. By and large, this has been reserved only for the largest media corporations. As we have seen in the U.S. the transition away from 900 MHz to 700 MHz band is taking longer than anticipated with many not making the transition and simply shutting down public over the "air" as an option.

Digital signal reception of television is already available in USB form factor. It's a matter of time before a smart phone has the same technology. It's a question of vendors willing to risk the wrath of their customers in doing so. Hypothetically, wireless smart "tablets" with WiFi and over the air public "digital" signal devices will create new media and communications services enabling upload capability via WiFi and inbound media over digital TV spectrum.

Roger's and others (Shaw, Cogeco, Comcast, Time Warner, etc) are attempting to capture stickiness to its users if they are in the media and wireless industry. It will be interesting to see if Sony, CBS, NBC, ABC, Fox and others retrench and create the over air investments that they already have, with device makers like Apple, Rim, Samsung and Nokia.


(3) 02 December 2011 18:59:45 by jonathan gael

Ether2 has won a DEMOgod Award and been selected to the GEW 50 because we are developing a near-perfect broadcast MAC for wireless Internet Protocol broadcasting. In terms of terrestrial improvement, we put 140 channels on a T1 (1.544Mb) at Illinois Institute of Technology back in 1993. Applied to wireless, Ether2 is targeting a <15% PHY overhead independent of traffic or users, and with stable QoS under any condition.

So if you're looking for a fundamental shift to a true broadcast IP architecture that can support a theoretically infinite number of channels and users, and if you appreciate the potential for market shift from a successful implementation which includes IIT (Chicago), UC Irvine and UPC/CTTC (Barcelona), then we need your help.

We are looking for partners to help develop and test the wireless network that will blend the best of the circuit and packet-switched worlds with a migration path for legacy devices.

$150K funds the project, and you will have a prototype to test in 3-4 months. At first it will be a static WiFi implementation, but we will then add mobile adhoc and 802 coexistence rules before commercial readiness.

Ultimately, the goal of our universal MAC is to eliminate the need for asynchronous hardware in form of middle hardware switch/routers on shared networks. To the extent that we're talking about full-duplex Ethernet at the carrier WAN, that can stay because those links only connect exactly two points. But for removing bottlenecks in the uplink or backhaul channels, let's talk.