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It’s been awhile since I’ve provided an update on our upcoming conference, Structure 08, which will be held at San Francisco’s Mission Bay Center on June 25. We’ve been busily adding speakers and further finessing the agenda to address some of today’s biggest technology themes — such as cloud computing — and their impact on the web infrastructure.
Today I am very excited to announce that Jim Crowe, chairman and CEO of Level 3 Communications, will deliver a keynote speech at the conference. He joins our two other stellar keynote speakers: Werner Vogels, CTO of Amazon.com, and Sun Microsystems’ CTO Greg Papadopoulos.
Taken together, the three of them will present a holistic view of the web infrastructure, its challenges and, most importantly, its opportunities. Crowe can offer a view of the web from a bandwidth perspective, Papadopoulos can address the challenges from a hardware perspective, while Vogels can provide the context as to why cloud computing is the obvious way forward for the tech industry. We will be announcing more speakers and a full schedule for Structure 08 over the next week or so. In the meantime, here’s how you can sign up.

My previous post about LTE taking the lead in the 4G wireless sweepstakes prompted some interesting comments, including those of sharp readers who pointed out the pokey nature of the wireless backhaul networks. As luck would have it, I had a breakfast meeting this week with John Roese, chief technology officer of Nortel and one of the most astute people I know in the broadband business.
Whether because of a perceived fear of WiMAX or a sudden spurt in data revenues, the LTE announcements made earlier this year didn’t come as a surprise. In the U.S., two major carriers, Verizon and AT&T, are looking to roll out their LTE networks in the early part of the next decade.
Roese had correctly predicted that LTE would arrive much faster than people thought, and he seems to have a much better handle on the 4G timeline than others in the wireless industry. It seemed appropriate to ask him about the wireless backhaul business and the bandwidth demand that LTE will create.
Instead of giving me a pithy quote, Roese laid out the kind of compelling argument only an engineer can make. He pointed out that the wireless carriers are currently using around 3 T-1 or DSL-type connections to connect their 3G base stations. (In some cases they use microwave or passive optical network connections.) A 3G network base station typically has 10 Mbps of capacity.
In a 4G world, where three antennas will form an arc to provide coverage, each antenna will need a 100 Mbps, or about 300 Mbps total, Roese explained to me. The carriers would prefer more headroom, for if there are four carriers per base station, the bandwidth demand per base station could run closer to about 2 gigabits per second.
Clearly today’s pipes aren’t going to be enough. Optical/metro Ethernet might be one of the better options for the 4G bandwidth needs, according to Roese. There are point-to-point wireless backhaul solutions that could come in handy as well, but he said fiber is the real answer. Even at slower 3G speeds, today’s backhaul infrastructure isn’t ready to do the hard work. Level 3 is one bandwidth provider that could benefit from the LTE-driven demand in the U.S.; we’re told the company has fiber as close as 1,000 feet to most base stations in the country.
From an equipment standpoint, the wireless broadband buildout spells opportunity. Infonetics reports that spending on backhaul equipment will grow to $8.2 billion in 2010 from $4.5 billion in 2007. Juniper Networks wants a piece of that; it recently started offering the BX7000 family of products. (More on this @ Search Telecom)

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Given its proximity to the Broomfield, Colo., headquarters of Level 3, there’s always a good chance that the Silicon Flatirons telecom conference will get a visit from Jim Crowe, Level 3’s CEO. He made the short drive up Hwy. 36 on Monday afternoon for a well-reasoned talk about long-term trends in communications that had several key takeaways, among them:
According to Crowe, between 60 and 70 percent of the IP backbone provider’s traffic is currently video, a trend that he thinks will only increase, perhaps even substantially should applications like Cisco’s Telepresence take off. “It’s kind of a full employment act” for backbone providers, he joked.
While it’s not too hard to say Internet video will be more popular, Crowe did take a somewhat divergent tack by forseeing a future in which communications services, devices and applications will separate into different markets, much like they already have in the PC arena. The popularity of the tightly bundled iPhone aside, Crowe said that standard interfaces and operating systems for wireless devices will eventually produce more innovation by the best of each market breed, putting bundled plans “on the wrong side of economics.”
On Net Neutrality — a topic practically invented at the Silicon Flatirons conference — Crowe said that when it comes to possible monopoly abuses by the big carriers, “you ought to be worried” since the Bell companies “have a long history of abusing” their facility-based advantages. And while cable companies might have “a far less colorful legal history, competition is not in their DNA,” Crowe said.
However, that doesn’t mean Crowe is in favor of pre-emptive legislation, which most Net Neutrality proponents prefer. Instead, Crowe (like many other speakers at the conference) said abuses could be better monitored by the Federal Trade Commission, under existing anti-trust laws.
“I just think after 10 or 15 years of getting everything they want, consumers will not tolerate” anyone blocking or limiting their access to applications and content, he said. If there are violations, then “anti-trust courts are only a few lawyers away, and may be a lot more efficient than regulatory bodies, who have to react to politics.”
Paul Kapustka, former managing editor for GigaOM, now has his own blog at Sidecut Reports.

When we watch movies or play music online, there’s a flurry of unseen activity making sure that data arrives when and where it’s supposed to be. This is the job of the high speed fiber and computer systems of the internet’s content distribution networks (CDNs).
Every website that streams content (live video, music) needs a CDN. The flurry of new media online has made it a prime time for companies like Akamai, Limelight Networks, Level 3, VitalStream, BitGravity, and EdgeCast who provide fast and efficient ways to deliver rich media to millions on the internet. The market is estimated to be around $800 million, of which Akamai controls about half.
One of the newer networks, EdgeCast (2006), has closed a $6 million in Series B financing led by Steamboat Ventures, which is affiliated with The Walt Disney Company, bringing their total financing to $10 million. Steamboat joins Series A investors such as Mark Amin, Chairman of CinemaNow as well as Jon Feltheimer, CEO of Lionsgate films. The new funds will be used to expand internationally, scale the network for additional capacity, enhance features, and market to more businesses.
EdgeCast has distinguished itself from other CDNs by charging for bandwidth instead of lumping the cost in with the cost of other CDN services. This means customers should see declines in their bill as bandwidth costs drop.
But these businesses are as much defined by their customer list as pricing plans. Level3 provides the backbone for YouTube’s content. Limelight handles Microsoft and Amazon Unbox. BitGravity serves Revision3. EdgeCast’s most recognizable customer is IMAX, but their investment from Steamboat Ventures leads me to believe they’ll be the CDN of choice for Disney as well.
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