A month or so ago, I threw out an idea for a business model to download TV shows - prompted by my use of Bit Torrent and affinity for HBO's "Deadwood". Well, the BBC is getting into the game with a 5,000-customer beta that gives subscribers access to pay-as-you-go downloadable programming. The library will feature 190 hours of TV, 310 radio programs and some feature films. Given how badly the music industry got burned by P2P downloading, I'm surprised it is taking so long for the movie and TV businesses to jump on the i-bandwagon. Unlike music, which many people have no qualms downloading for free because the product is seen as disposable, movies and TV are different creatures - culturally and economically. As the DVD phenomena has demonstrated, consumers are willing to spend lots of money to create movie and TV libraries so they watch them again and again. I think this "habit" can easily be extended to the Internet if the TV and movie industries act quickly with reasonable, consumer-friendly business models. That said, there are already signs (Bit Torrent), consumers are starting to move ahead of the market.

If there's ever too much of a good thing, the VOIP market is a perfect illustration. With low barriers to entry into a market just starting to emerge, there is plenty of confusion among consumers about which service provider to use. Do you sign up with Vonage because they aggressively advertise and just raised US$200-million in private equity? Or do you go with your cableco because they offer VOIP within an attractive bundle? Stepping into this selection "void" is Whichvoip.com, which offers consumers an easy way to select the best VOIP service provider based on their specific requirements. A particularly nice feature is the Web site's advanced search capability that kicks back service providers that meet a consumer's personalized needs. Whichvoip.com also offers reviews and tools to select a VOIP SP for business users. I'm not sure if there are similar sites to Whichvoip.com but the Seattle-based company deserves kudos for recognizing an opportunity and rolling out a easy to use service.
Addendum: Voxilla also has a tool to compare VOIP SPs.

I've got an analysis piece in today's National Post about the next move for Canadian ILECs following the CRTC's decision to regulate Internet telephony. ILECs have a number of options: they can do nothing on the VOIP front and wait for an appeal of the decision to the federal cabinet to be ruled upon over the next year (a highly unlikely scenario); they can offer Internet telephony service out of territory so they don't have to file pricing information with the CRTC (unlikely); or they can file for pricing approval and just go for it (likely).
For ILECs such as Bell and Telus, the big challenge is being competitive without over-cannibalizing their existing traditional phone businesses, which are still highly profitable despite declining revenue. It means having a VOIP service that is priced right with the right features to compete with cablecos and third-party players such as Vonage and Primus. Without a doubt, it's a delicate balancing act. Just for fun, I called Bell customer service yesterday to see if I could order its Bell Digital Voice service. Their friendly automated service "person" told me it was only available in three Quebec cities but I could leave my information so they could contact me when it moved into Toronto. I wonder how long it's going to take Bell to move beyond Quebec City, Sherbrooke and Trois Rivieres? You have to believe it's going to happen before July 1 - the date targeted by Rogers to launch its cable telephony service.
Another VOIP thought is whether the market is ripe for U.S. competition. If Canadian cablecos and ILECs decide to be "disciplined" about pricing and ARPU, it could open the door for an unregulated, creative player from just across the border to snare customers who are interested in VOIP but looking for a less expensive option.

Nortel Networks CEO Bill Owens is checking things out in India this week - a crucial market given the company's willingness to wash itself in red ink to snare a big wireless contract. In an interview with Reuters, he said Nortel aims to cut operating expenses to below 30% in 2006. We're all still waiting, however, for how this is going to happen given Nortel has already slashed its workforce down the to bone and sold many non-core assets. There is speculation R&D will be the next target as Nortel attempts to be more focused. This could see the number of R&D facilities shrink to four from seven, and more R&D farmed out to China and India. Nortel could also sell one of its business units. Owens also said revenue will profits and revenue will climb this year. Perhaps he'll shed some more light on his "vision" when Nortel posts first-quarter results later this month. Or maybe it will be articulated at the 2003 and 2004 AGMs in June.