6 min read
This article was first published on EamonnMallie.com
Ofcom have published “The first Communications Infrastructure Report” which details lots of interesting facts that no local news outlet seems to be paying much attention to.
Access to the Internet is pretty much a human right these days and you can access the Internet for free at your local library. What student would prepare for an assignment without conducting some form of Internet research? I’d guess that nearly every single office job requires the Internet whether for email or browsing.
The Internet, therefore, is as much a utility as our water supply and is an essential every day service that we need.
So why then has there not been a media frenzy about these figures? Naturally the report does not cater for the need of our tabloid media but it definitely does need reported on.
Percentage receiving less than 2Mbit/s
Each area has been ranked from 1 to 5 on the percentage of broadband connections that have modem sync speeds of less than 2.2Mbit/s.
1= less than 5%
2= 5% - less than 10%
3= 10% - less than 15%
4= 15% - less than 20%
5= 20% or more
Of course there will be those who argue that you simply don’t need superfast broadband. This is shortsighted and fails to recognise the benefits that come with a fast connection to the Internet. Superfast broadband is now more affordable and the consumer is in a strong position to take advantage of this without having to stretch their budget. Ofcom also reveal that on average we download 17 Gigabytes of data every month. That’s equivalent to about 11 or 12 hours viewing of iPlayer per month. As each year passes we consume more and more content online (up sevenfold in five years) thus making superfast broadband all the more important if you want to watch video online.
Hands up if you have an Internet connected TV? I know it’s not just me. If you have a games console, a Blu-Ray player, an Apple TV or have recently bought your TV then you can probably watch YouTube and other online video content from the comfort of your sofa.
Lots of us have laptops, mobile phones and tablet computers and we use them while we are watching television. I would wager that the majority of the time we are using the Internet on those devices either browsing facebook, playing words with friends, updating all of those apps you downloaded from the App store or even sending an email. OK so nobody sends email anymore, but you get the point, we need the Internet just to go about our normal everyday tasks. If you are a typical household with a mummy and daddy and 2.1 teenagers you’re going to need superfast broadband just to keep everyone happy.
The family I’ve just mentioned will all have mobile phones and statistically speaking more than 2 will have a smartphone and in a couple of years (maybe even just one) everyone will have a smartphone. This will not only apply pressure to the home wifi network but will see massive demand for 3G (and soon 4G) services. In other words, we just can’t get enough Internet!
But, we in Northern Ireland are a bit screwed when it comes to mobile Internet.
If you want 3G on the road you better not actually need it outside Belfast and the main roads.
3G coverage by geographic area
Each area has been ranked from 1 to 5 on the level of mobile coverage.
1= 90% or more
2= 70% - less than 90%
3= 50% - less than 70%
4= 25% - less than 50%
5= less than 25%
3 min read
So after weeks of nothing, Microsoft sent yahoo a letter at the weekend detailing their continued desire to buy yahoo. Naturally, yahoo have now replied declining the Redmonds offer yet again.
So what's going on?
Basically, yahoo are holding out for more money, but that's not the whole story. Yahoo's board have an obligation to deliver long term growth prospects to its shareholders. If Microsoft buy yahoo what does that mean for yahoo? Their stockholders will get a payday, but the future of yahoo will be put in jeopardy. Yahoo as a brand may even die. Yet this will be of no interest to current yahoo stockholders as they will have sold out. So what is the problem you may well ask?
Essentially yahoo believe there is more to the MS deal than meets the eye. No one wants to sell their company to anyone for a below market valuation, and no one wants to sell their company if they think the company buying it will run it into the ground.
Now I'm not speculating that MS will integrate yahoo into MSN but it would be the logical next step. Look at how hard google has been working to integrate their acquisitions into its growing portfolio.
This is the main reason for the MS approach. Microsoft are falling behind in the online stakes, they are loosing ground to google and yahoo in the online ad business and there are many companies trying to steal a march on MS by releasing traditional desktop software as an online resource, thereby directly competing with MS Office.
There is a growing dislike of the way MS dominates operating systems and office applications (much in the same the music business dislikes the strength of itunes) and consumers are moving away from the desktop application. In fact, I predict that in a few years desktops will be a thing of the past, or at least only used in the office place. Ultra portable laptops such as the Asus EEE will change how people connect to the internet at home, mobile phones will become even smarter and people will use them to stay connected with friends via email and social networking sites.
So, with this in mind, how does microsoft maintain its current revenue streams in the next decade? If MS office takes a back seat and alternative operating systems eat into windows market share, MS revenue drops, their share price falls, and well, dare I say that they could become a relic of the 20th century?
This is the real danger for yahoo's board. Do they recommend a sale to MS, only for MS to become debt laden and uncompetitive in a market that they already have proven not to understand?