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Bullish on BroadVoice

October 31st, 2005 | No Comments | Posted in VOIP Services, Competition
Nothing like a mention in Wired Magazine to make you feel better about your prospects - at least if you're BroadVoice,
which gets a big shot in the arm in the magazine's latest issue. In a
mini-review suitable for framing - or highlight  in a press release, Wired proclaims
“For people who keep homes in Manhattan, Paris, and Madrid - or just
know those who do - BroadVoice is the cheapest full-service way to
banter, parler, or hablar.” BroadVoice, which doesn't talk about its
subscriber numbers, plans to hire more people to keep up
with demand, which could receive a nice jolt once all those Wired subscribers get their hands on the new issue.
 
 

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Reading Between the Lines at the CRTC

October 31st, 2005 | No Comments | Posted in Telecom Regulation
So what's the CRTC really saying in its latest - and final - report on the competitiveness of Canada's $30 billion telecom industry? What does this statement mean to you?:
“The report indicates that local competition has increased since 2000, although competitors have not yet generally gained the same level of  market share in the local markets as they have in the long distance, Internet or data and private line markets. They have however, made inroads in both the business and residential urban markets in several major centres.”
Given the CRTC is supposed to be making a decision in March on whether and/or how to deregulate the local market, does the above statement mean it's leaning towards deregulation or continue regulation? Depending on which side of the debate you support, there is evidence the CRTC is leaning your way? My read is the CRTC is leaning toward a hybrid solution in which it will deregulate certain markets while leaving other untouched. Toronto, for example, could easily be deregulated given consumers can choose between Bell (regular, VOIP), Rogers/Cogeco (cable telephony), Sprint (regular, VOIP), Primus (regular, VOIP) and VOIP service providers such as BabyTel, Vonage, Primus and AOL. Meanwhile, consumers in smaller communities where there is little if no choice will continue be protected.
 
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Microsoft to Unveil New Web Strategy

October 31st, 2005 | No Comments | Posted in Main Page, Software

It could be deja vu all over again tomorrow when Microsoft holds a
press briefing to discuss its strategic plans for the Web. It seems
like only yesterday (actually, 1995) when journalists were called to an
Internet Strategy Day
in Redmond to hear Bill Gates talks about how he was going to change
the direction of the Titanic to after this new fangled thing called the
Internet. If truth be told, Microsoft badly under-estimated the
Internet and scrambled to catch up - something that's possible if you
have billions of dollars to fix your strategic mistakes. As hard as it
is to believe, Microsoft is facing the same challenges it did 11 years
ago - the Web has changed how consumer use software, and Microsoft is
arguably behind the eight-ball. As Salesforce.com and Google have
demonstated, a growing amount of software and services are being
distributed online, rather than in plastic CD cases. Instead of wating
months for fixes and improvements, Web-based software/services are
continually upgraded to address problems and
consumer demands. Microsoft has little choice but to make its consumer
and corporate software (Office, etc.) more user and Web-friendly. It
will be interesting to see what Gates and his new lieutenant, Ray Ozzie,
unveil tomorrow. Goldman Sachs analyst Rick Sherlund is speculating a
new, served-based version of Office will be spotlighted, which is a
no-brainer. Also look for instant-messaging to become part of other
Microsoft applications.
Speaking of Google and the Office market, it is interesting to see that Google plans to hire some programmers to improve Sun's OpenOffice
application. “We use a fair amount of open-source software at Google,”
said Chris DiBonna, manager of Google's open-source programs. “And we
want to make sure open-source ensures competitiveness within the
industry.” That sounds like a shot across the proverbial bow if you ask
me.

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Telus Union Rejects Agreement

October 31st, 2005 | 1 Comment | Posted in ILEC News, Analysis
While the terms of Telus Corp.'s proposed collective agreement have are public due to a news blackout, it's hard to believe the Telecommunication Workers Union members
have rejected it by a narrow margin - 50.3% to 49.7%. (maybe there were
a few hanging chads that affected the outcome!?) It appeared the strike
had been settled several weeks ago when both sides agreed to a new
collective agreement after more than five years without one. One can
only suspect the TWU members balked at outsourcing language contained
the new pact given it was the contentious issue during negotiations and
the three-month strike. I'm not sure what the rejections means. Either
the TWU goes back to its membership and re-explains the terms and/or
gets the 2,000 members who didn't vote to participate in the process,
or talks start again with a few modifications made to get a majority to
support it.
 

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Sphere: Intriguing But No Wow Factor

October 30th, 2005 | No Comments | Posted in Main Page
Sphere's raison d'etre is simple: “we thought we could build a much better search engine to serve the rapidly growing blogosphere”. This is a lofty goal given there is already plenty of competition (Ice Rocket, Technorati, Blogdigger, Google, etc.) that do a pretty good job. With the Sphere beta getting wider release, my first impression is it has a long way to go before it can seriously go after the established players. Its approach is straightforward: “high-quality, relevant and timely blog posts” rather than just the most recent. This makes sense if you are going to enter a crowded market but the search results are mixed. It seems somewhat odd to do a search on “Nortel and Mike Zafirovski“, for example, and gets posts that are five and six days as your first two results. Mind you, Sphere's first search result is about Nortel naming Mike Z. its new president while Technorati produces an item about Motorola winning a 3G contract in Brazil - so score one for Sphere. There are a couple features within Sphere that are particularly impressive: when you do a search, it returns relevant news in a box on the right hand side from media such as the New York Times and CNet. You also get a mini-profile of the blogs being presented. This makes it easy to get a sense about the bloggers, which is a huge improvement from Technorati, Ice Rocket, et al. While I think Sphere has potential and, unlike Flock, its beta is fairly well-baked, it seems to have many of the same characteristics as most cool Web 2.0 services: no obvious business model (it appears to be targeting publishers looking to incorporate blog search), plenty of competition and it has been able to raise some venture capital - buoyed by the fact its co-founder Tony Conrad sold Oddpost to Yahoo for a whack of dough. As venture capitalist Peter Rip has coined, we're in the midst of an “entrepeneurial bubble” where plenty of ideas are getting funded, and Sphere is a perfect example. So far, however, it does not appear that the market has become irrational. It will be interesting to see how Sphere develops but I think it needs to put a lot more focus on demonstrating that its search results are better and different from the competition. This could be a presentation issue but if it is going to be its differentiator, it definitely to be enhanced or Sphere will just be another blog search engine trying to unseat Technorati from its top, but precarious, perch.
 
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Forbes Don't Like Them Blogs

October 29th, 2005 | 1 Comment | Posted in Blog Services, Main Page
I'm a bit late to the growing debate on the Forbes cover story about blogs - spend most of yesterday golfing at Devil's Paint Brush,
one of the best courses in Ontario - but I must say I was blown away
from the bias and lack of objectivity in the “story”. As a
working journalist, it was obvious the writer, Daniel Lyons, had a
mandate or was given one by someone upstairs to rip into blogs. The
less-than-subtle headline “Web logs are the prized platform of an
online lynch mob
spouting liberty but spewing lies, libel and invective. Their potent
allies in this pursuit include Google and Yahoo” is so slanted, it's a
joke. Then,
Lyons starts the story with an anecdote about
a dodgy business man who once had his photo taken with Steve
Forbes. Isn't that a sweet coincidence? I find it hard to
believe a first-class publication like Forbes would actually print a
3,298-word one-sided diatribe. While this comment may come across as
sour grapes from an enthusiastic blogger who believes he's providing an
insightdul “service, the Forbes story is  disappointing because it
is, in fact, not a news story but an invective essay by
someone who has a serious problem with blogs. Lyons makes a point
there are nasty, vindictive, irresponsible bloggers that do far more
harm than good but he fails to recognize there are lots of people
providing insight commentary and putting the spotlight on events that
mainstream media sometimes misses.
What makes Forbes' assault on blogs so difficult to understand is the magazine has published lists of the best blogs, which would suggest it sees some merit in them.
Then again, it has become apparent Forbes doesn't believe in blogs.
After all, it doesn't appear to offer its own blogs, which is strange
given many mainstream publications have jumped onboard. There have also
been growing signs of its skepticism/bias with stories such as this one
when Yahoo got into the blog search game. Getting Lyons to
write a story on blogs is like getting a Pit Bull Terrier to babysit a
cat. He's an attack dog who loves to tear into technology. Based on a quick Google search, he's no fan of Linux or Open Source software or Lotus Notes. If Forbes wanted someone to tear down blogs, Lyons definitely your guy. For more views on Lyons' piece, check out Micro Persuasion's Steve Rubel and Boing Boing.

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What To Do with eBay Billions

October 28th, 2005 | 3 Comments | Posted in Main Page, Venture Capital

If Skype co-founder Niklas Zennstrom is looking for guidance on how to spend his eBay windfall, he might want to have lunch with eBay founder and chairman Pierre Omidyar, who has a growing investment portfolio being done through Omidyar Network. His latest investment is Digg.com, which recently raised $2.8 million, according to Silicon Beat. Omidyar's other investments include Feedster,
Socialtext, Dan Gilmour's Grassroots Media and John Battelle's FM
Publishing. Zennstrom may want to follow the path taken by eBay's first employee,
Jeff Skoll, who has become very involved with philanthropic work. Skoll, a Montreal-native
and a University of Toronto grad ( have to wave the Maple Leaf!) has also invested in a film production company. With eBay CFO
Rajiv Dutta
poised to become Skype's new president after his successor is found,
perhaps Zennstrom better start looking for his next gig. The big
question is what Zennstrom does next? After Kazaa and Skype, he'll have
no problem raising venture capital - if he really needs any financial
help at all - but the expectations will be sky high. There is no doubt
Zennstrom will stay in the Internet space but his next move will be
very intriguing and exciting. If I was a  betting man, I'd say it
would be something related to streaming   video. Why video?
it's a hot market, Zennstrom has already done  music and voice
(which leaves video as the last the big three markets to be tackled),
he knows how to build a global brand, and his track record will allow
him to bring in strategic investors such as television networks and
movie studios. Anyone else prepared to make a bold prediction
on what the future holds for Mr. Z. (Nortel CEO Mike
Zafirovski being the other one.)

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Canadian Blog Awards

October 28th, 2005 | No Comments | Posted in Blog Services, Main Page

Well what do you know, I got nominated for a Canadian Blog Award in the media category (although my blog is more technology/business). I'll have to start practicing my Sally Field acceptance speech  (…..you like me. Right now, you like me”) just in case.

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Google's RSS/Portal Plans

October 27th, 2005 | No Comments | Posted in Main Page
I've received several e-mails from Google with the following message:
“Google would like to include your RSS feed(s) in our personalized homepage. This developing product allows users to add useful and interesting RSS feeds like yours to customized versions of the Google homepage. We wanted to let you know that we expect to add your RSS/XML feed content (title and item links) to current/future versions of this product. As a result, users will be able to view links to your content on Google personalized homepage — driving increased traffic to your site with no extra work on your part.”
Anyone else getting this message and, more important, what does it suggest about Google's RSS and portal strategies given the focus on a “personalized homepage”? So far, Google's homepage has been pretty low-profile. I haven't visited the home page much but it now lets you add all kinds of content. This includes an “Add Content” feature in which you can “Create a Section” by punching in keywords or RSS feeds. It produces several choices that you can easily add to the homepage. Google is no Yahoo or MSN yet but there are signs of progress.
 
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Comcast Invests in Wi-Fi Equipment Maker

October 27th, 2005 | No Comments | Posted in Main Page, Venture Capital, Wireless, Wireless/Wi-Fi

Ottawa-based BelAir Networks has attracted US$20-million
in private equity, including a strategic investment from the venture capital arm of Comcast Corp.,
the largest cableco in the U.S. This is Comcast Interactive's first
Canadian investment. BelAir, which makes wireless gear used to build
hotspots, is no stranger to U.S. telcos being part of
AT&T's bid for the city of Philadelphia's municipal Wi-Fi system.
Earthlink, however, won the contract. Comcast offered little insight
into its Wi-Fi plans other than telling the Ottawa Citizen
that BelAir
is “well positioned to address the needs of multiple
customer segments, including those of the cable market.” Comcast has
made other investments, however, in Wi-Fi  security and management
software. You have to think Comcast is looking to BelAir's technology
to protect its
high-speed Internet business. Comcast and Verizon were less than pleased
with Philadelphia's Wi-Fi plans, and lobbied the state legislature to
block the city's plan. If free or cheap municipal Wi-Fi service
is going to become a competitive reality, maybe Comcast and other
cablecos and telcos need to get into the game by offering a service
offering better QoS. Cablecos and telcos could sell Wi-Fi as an add-on
to existing high-speed customers or as a standalone service. As for the
the growth of the Wi-Fi market, In-Stat estimates
that from 2004 through 2009, the market for wireless mesh network
access
points will grow from $33.5 million to $974.3 million.
Aside from Comcast, other investors in BelAir's financing were McLean Watson, T-Mobile Venture Fund, JPMorgan Partners, VenGrowth
Capital Partners Inc. and BDC Venture Capital also participated in
this round.

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