BuddeBlog

China Telecom IPTV workshop
Just over a week ago I attended the above workshop, in the ancient imperial city of Nanjing in China, and also in the vibrant city of Shanghai.

The event was organised by the national telco, China Telecom, and its supplier ZTE. Situated in the Yangtze Delta, Nanjing is the capital of Jiangsu Province, the third most prosperous province in China. It is a pretty city; it has seven million inhabitants but doesn’t have the chaotic atmosphere of Shanghai or Beijing. Also, the old culture is still evident through the cracks in the overwhelming modernisation processes.

Shanghai capitalism
Shanghai continues to grow, officially placing its population at close to 18 million people. Including ‘íllegals’ and commuters, it is estimated that on week days the city has some 23 million within its boundaries.

I think I can also safely say that it is the most capitalistic town on earth. GDP of the city is US$114 billion and the city rivals the USA in the amount of advertising money that goes around in its market.

The use of digital media is all-pervasive. On the Hangpu River there are now gigantic floating HDTV plasma screens, and flat screens, with or without multimedia, are in lifts, cabs, on all major roads intersections and so on.

Adult entertainment is emerging also. Who would ever have thought that this could happen in China?

The economy continues booming and, while some people question how long this will last, to me it looks pretty unstoppable; and it is essential if China is to improve the lives of the one billion or so rural population. In any case, there are plenty of people that can be ‘fed’ into the economy and many companies have their own college or university to guarantee supply.

Social disconnection
Under this blatant capitalism much is being sacrificed to maintain this growth. The social structure, in metropolitan China at least, is fairly uncaring on a personal level; one could argue that the government’s unfeeling attitude is a bad example. I also believe this is partly the legacy of the Mao period (which is still largely not a welcome topic for discussion in China).

I have reported from previous trips that the level of social welfare in healthcare and education remains poor (too expensive for the average person) and pollution is rampant – not just from cars and factories, but also because of the throw-away society.

Rural disenfranchisement
However, the main problem for rural China is that, for the sake of progress, local and state governments can basically do what they want. This means that millions of people are thrown off their land, all justified in the name of economic development, while land and property developers are becoming overnight millionaires.

Because of poor landownership laws rural people have practically no rights. In what I see as yet another half-hearted attempt the central government has again warned that this is illegal, but I have heard them say that before.

Structural changes are needed in the government, which is currently very heavily influenced by corruption. I see these elements as the major problem for the government.

The joys of a morning jog
Nevertheless, when I go out on my usual morning jog, China is a special place. I enjoy taking my morning exercise in different countries, but China really is special. In any park, early in the morning, you can mingle with the people doing tai chi, sometimes with swords and shawls. There are drummers and people that style dance. A few jog as well, but that is quite unusual. Mingling with all these people provides a natural connection that, using smiles and nods, crosses languages and cultures.

Pollution fueled by Australian coal
Pollution in Shanghai was still bad – I don’t think it has got any better over the last few years, which is a bad omen as , in the not-too-distant future, China will probably be the world’s largest polluter, happily fueled by Australian coal.

Expo 2010
While Beijing has Olympic fever, in Shanghai they are talking about the World Expo in 2010, and I saw a fabulous virtual multimedia presentation in a round cinema in the Museum of Urban Development. For those who read my ‘Second Life’ blog last week, this virtual presentation was just another development of the same trend, and I wouldn’t be surprised if that virtual presentation is turned into a Web 2.0 application on the Internet.

China’s digital media leadership
The city has well over two million broadband users and close to four million cable TV users. From a business point of view this trip was all about IPTV and video broadband. I have written two reports on those topics.

New Report: China – IPTV and video broadband market in 2007
China’s first IPTV services were launched by Shanghai Telecom in 2005. Some of you might recall that I reported on this subject during my visit to China around that time.

Jiangsu Telecom is set to become the next major player and both companies are subsidiaries of China Telecom. Shanghai’s IPTV system now has around 150,000 users, of which at least 80% are commercial users. However, the platform used here is a standalone IPTV service, concentrating on TV services.

The licence-holder for IPTV in this service is the Shanghai Broadcasting Corporation, and, as well as the Shanghai service, it operates nine other IPTV systems, including the service in Shanghai. The media company has 300,000 IPTV users.

I also visited their impressive control centre from which all ten systems are operated.

Table of contents:
China in global IPTV top five
Jiangsu IPTV project
Exhibit 1 – Jiangsu IPTV application
Shanghai Telecom and BesTV
Case studies
Working with the Chinese bureaucracy
Forever changing technologies
Finding the right business models
IPTV In the global context
The ‘April crisis’
4Mb/s for regional users
The mobile problem in China
Tight content control opportunities for Web TV

See new report: China – IPTV and video broadband market in 2007

New Report: Global Digital Media – IPTV and video broadband analysis 2007
Various trips during 2006 and 2007 have provided us with a unique insight into the developments in this market.

In only a few instances do we see an opportunity for IPTV – the reality is that the telcos will find it pretty tough competing with cable and pay TV operators. However, as PCCW has shown, it can be done.

Most of the others will have to look for broadband video opportunities. Fastweb is leading the market and we expect interesting developments in China as well. Business models will also depend on NGN/IMS infrastructure and these networks are still a few years off.

We estimate that the current market of five million will grow to 25 million users by 2010. Separately, we expect a much more rapid growth for web TV.

In the consumer electronic market a quarter of all new TV sales (40 million sets a year) are now flat screens, and HDTV is 2.5% of all sales. There are 52 million broadband (70% DSL) users. The figure for DVD usage is one of the highest in the world and 150,000 households are already connected to fibre-to-the home networks. So the country is not only ready to play a key role in the global digital media market – it is, at the same time, positioning itself as a global leader.

Table of Contents
The future of IPTV
Table 1 – Global overview of key IPTV players
Table 2 – Top 5 IPTV providers by subscribers – 2007
Case studies
Introduction
PCCW Hong Kong
Table 3 – Rapid growth of NOW subscribers 2003 -2007
France
Netherlands
Fastweb Italy
Business Models
No one size fits all solutions
The pay TV business model
Event staging opportunities
Telcos vs. media companies
Value added multimedia
Web TV
Choices to be made

See new report: Global Digital Media – IPTV and video broadband analysis 2007

Can we keep pace?
I visit China on a regular basis, and it never fails to amaze me how quickly things change there. In many instances I feel that we in the western world just keep mulling things over that we have been discussing for decades. We talk a lot, but in China they are doing a lot.

China was celebrating the Spring Festival (another massive commercial activity) and one of the snack manufacturers (with a name you would only see in China – The Want Want Group) was issuing a coupon that allowed customers to download a game onto their mobile phone. This has been an overwhelming success and is being featured in many newspapers. Just think of the advertising value of this PR alone!

Paul Budde

China Reports
For Web Reports on China see: China;
For Annual Reports on China see:- Telecoms, Mobile and Broadband in China

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Telemetric Media Information (TMI) has created an interoperable wireless system with the ability to span multi-city or multi-state jurisdictions. The network will enable local residents, local businesses and local city and government officials from city, state and federal agencies and services, to communicate with each other and their counterparts inter-city and interstate, in real time.

The integrated City Wireless nexus (cityNEX) is designed to provide the city, police, fire-fighters, transportation officials, airports, ports and other authorised emergency personnel with wireless access to multiple government and non-government data sources during critical incidents. As a large chunk (if not all) of the system is paid for by the part or parts used by local business and residents through advertising, most cities and government departments can install the system at an extremely low or neutral cost to themselves.

Private and official frequencies are encrypted and isolated from each other so that crossover communication cannot occur unless deliberately requested by the user or prompted by the Officer in Charge in the event of crisis. Implementing cityNEX will have no impact on any other telecommunication or wireless communication systems already in place in any city.

The company has completed its pilot phase negotiated with the City of Stirling in the Greater Perth area of Western Australia and as a result will commence its commercial phase during the 2006/07 financial year.

The first stage of the commercial process will commence in Western Australia with the launching of streeTV, (a network of large format electronic posters based on TMI’s Alpha prototype; (NEXiPoster) erected in Cedric Street, (City of Stirling), in 1998 and tested and improved through to 2005.

StreeTV has attracted the attention of a News Ltd subsidiary and will be juxtaposition with local news print publications to form the world’s first electronic street publication.

The use of TMI’s proprietary wireless broadband connectivity (AirFibre) establishes a wireless link between the streeTV screens throughout WA and the publisher allowing seamless distribution of messages and advertisements. In addition to the standard advertising fair, the streeTV network also has the provision for ‘simulcasting’, that is, it would be possible for radio networks to transmit vision, (say music videos) to streeTV while at the same time, broadcast the soundtrack on station.

During 2003 TMI installed long range AirFibre transmission technology to wirelessly connect its pilot site (situated in the suburb of Innaloo) to the Mirrabooka police station to test the viability of tracking people and vehicles through the streets. The test involved the wireless (and seamless) distribution of live vision from multiple cameras to the central server based at Mirrabooka. The combination of TMI’s tracking and broadcasting technologies provides an ideal solution for the Amber Alert initiative, which was the primary focus of this particular evaluation.

As a direct result of these tests, a further dynamic has been added to streeTV in that, each screen shall contain a cluster of cameras and the same software package (NEXiTrack) used in the police trials will be used to track and count audience dynamics, in real-time, and provided clients audits to 99.99% accuracy.

TMI’s commercial incubation in WA is expected to last through to 2007 and thereafter rollout to greater Australia and the world is anticipated.

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Comdek is a VSAT provider operating wholly-owned Ku- and C-band Earth stations from its premises in West Perth and elsewhere in Australia. The company offers satellite coverage for all of Australia and for overseas (Asia, Europe and Africa).

Comdek specialises in rapid rollout, trailer mounted, VSAT systems offering up to half E1 telephony and/or high-speed data. The units are self-contained with integrated PABX, handsets, router, switch, patch panel and battery backup – as well as all transmission equipment. Lightening protection and earthing are standard. As there is no need for equipment to be unpacked and stored inside a building or caravan at site, units can be ready for service within an hour of arriving at site. Field units are available for rent or purchase on short to long term service contracts.

In late 2004 Comdek announced plans to dramatically increase its range of satellite services. In addition to its larger, dedicated bandwidth systems, the company will offer 1-way and 2-way Internet over satellite systems with voice options. The low capital and operating cost of these units will strongly appeal to advanced private customers or sites requiring Internet access – especially when there is a requirement for voice and/or fax services.

Comdek’s present and past clients include large companies such as BHP Billiton, Robe River (RioTinto), Sons of Gwalia and Fluor, as well as major contracting firms such as MacMahon and Compass/Eurest. Services include fully reticulated telephony systems, high-speed corporate data links, Internet services, ‘own brand’ phone and Internet kiosk card systems and so on. Drawing upon the company’s 18 year history, Comdek can also supply PCs, servers and peripherals as well as ISP services such as corporate broadband DSL.

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In November 2005 Sensis announced it would double its revenue base to $3 billion within five years, supported by what it claims new consumer offerings.

The company intends to target eBay style-markets by facilitating direct sales between buyers and sellers via its Trading Post operations and enhancing functionality with special features such as the ability to upload an image of a product for sale via camera phone directly to a Trading Post listing.

Sensis also claimed to be targeting overseas markets, but claimed no intention of focussing on M&A activity.

New proposed offerings include:

• A new Yellow Pages mini directory for consumers on the move.

• In 2006 the Yellow Pages OnLine consumer service will allow buyers to not only find products in specific segments, but also compare and contrast them, view special offers, make bookings, get quotes, pay bills and receive other information relevant to their personal profile.

• Sensis 1234 voice service is the first phone service in Australia to provide movies and weather information via the operator and SMS.

• Buyers will be able to use a mobile phone to search the Sensis network for movie times and venues, then purchase a ticket and receive an SMS with the movie’s location and time. They’ll be able to conduct a similar search on Sensis 1234, the Telstra and Sensis online sites, via their in-car Whereis navigation system, or via a wireless device.

• A prototype consumer-to-consumer transaction functionality has been added to tradingpost.com.au. This new capability allows consumers to contact a seller by phone or email, buy online or make an offer. In the future, consumers will be able to do the same transaction on wireless devices.

• In 2006 Sensis will launch a new Trading Post Automotive site leveraging its significant automotive content and usage through existing assets like Trading Post, Yellow Pages, White Pages, Whereis and Telstra’s BigPond.

The value of these individual assets will be further undermined because of Telstra’s flawed growth strategies. It will be far more difficult for Sensis to spearhead itself into the Internet economy in a few years’ time, whereas it has a golden opportunity at the moment.

The same applies to triple play models. Now is the time for Telstra Retail to move into this market; the reality will be that by mid-2006 it will come up with the wrong business models – ones that will be aimed at protecting its old businesses, not exploring the new opportunities that triple play has to offer.

Wholesale is perhaps suffering the most, as this is one of the fastest growth markets globally, while in Australia it is going backwards.

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A prototype of a new digital wireless node was expected to be ready for pilot trials with Australian and US public transport and public safety agencies by mid-2005. Developed by researchers at the University of South Australia, the Cohda Wireless technology enables users to send and receive high quality data, video images and voice communications at about 20 times the current data transfer rates.

Ambulance or police vehicles in emergency situations will be able to drive at high speeds while receiving audible timely instructions that could save the lives of patients being transported to hospital or to transmit incident video footage or other information from the field to command stations. Current technology used by emergency services is generally limited to communicating while stationary or travelling at low speeds.

The network is created by fixing small boxes with antennas to street light poles, bus stops or other structures that require power but no other direct connection for Internet or other wireless access. A box is also placed in each vehicle so that users can communicate by accessing boxes in the network that link via the Internet or other access to their required destination.

It is planned to make the boxes relatively cheap and have enough boxes or nodes in the network to get continuous coverage across the network. Data collected from the boxes can be sent through the Internet link to anywhere in the world.

Although the technology is designed for LANs rather than state-wide applications, there is a flexibility of deployment. If there was a major disaster in a rural area, boxes could be taken to the affected area and run off battery or generator power to produce an instant communications network.

Like the Internet, it enables any number of users to plug into it and use it. At any time the network can be extended to a wider area by adding more boxes. If one box fails, it will not affect the network as long as enough boxes are working.

The benefit for police and other emergency services is that a third party to provide the infrastructure for communications will not be needed. They could operate over a secure link from their base operations out into their blanket network of boxes on poles and in vehicles. With considerably greater bandwidth available, it is estimated that using the network, officers could write and submit reports while in the field.

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The possibility of industry, community or other government organisations managing some radiofrequency spectrum bands is canvassed in a discussion paper released by the ACMA in 2005.

The discussion paper aimed to gauge the level of interest in private band management and to identify which bands might attract the attention of potential band managers.

Under such management, the ACMA would lease or sell blocks of spectrum to a band manager, which would sub-lease spectrum access rights to users or tenants.

The proposal is that tenants would operate under the band manager’s licence though a contractual agreement negotiated between each tenant and the band manager. This can be compared with a shopping centre owner sub-leasing the various units in the centre to different business and retail tenants.

Band managers would have to comply with rules set down by the ACMA to ensure protection of the rights of other spectrum users.

The principle is that because of their market position, private managers may be better placed to offer more flexible spectrum access conditions in some bands.

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Introduction

Armidale is uniquely positioned to become a well connected regional community. A fibre optic network has been constructed and is bringing access to high-speed Internet, tele-health and tele-education.

The leading partners involved in this project includes Armidale-Dumaresq and Uralla Shire Councils, the University of New England (UNE), New England Smart Communities Action Project (NESCAP), NSW Department of Commerce, Australian Academic and Research Network (AARNet), New England Area Health Service, the New England Institute of TAFE (NEITAFE) and several state government organisations.

Exhibit 1 – Armidale demographics

• Armidale City: 20271 (2001 census);

• + 2,792 (students who were not in town at time of census);

• 8,100 households;

• 16,000 persons greater than 15 years old;

• 1,500 businesses (of all sizes).

The projects

Four major projects currently exist in the New England region, and these all have the unique potential to be extended to people’s homes and businesses:

• UNE/TAFE/Area Health secured federal funding for providing broadband to TAFE and health services in 23 regional towns including Tamworth, Armidale, Tenterfield, Guyra, Glen Innes, Walcha, Uralla, Emmaville, Barraba, Manilla, Moree, Narrabri, Wee Waa, Gunnedah, Boggabri, Inverell, Tingha, Bingara, Warialda, Werris Creek, Bundarra and Quirindi. This project was known as the National Communications Fund (NCF) 12 Project.

• NSW’s Office of Information & Communications Technology secured federal funding for the deployment of broadband to 60 health and educational centres in regional NSW including centres in Tamworth, Armidale and Moree. Six sites were identified in Armidale, including the Base Hospital. This project was known as the National Communications Fund (NCF 27) Project.

• The stakeholders of New England Smart Communities Action Project (NESCAP) then received a NSW Government grant for $100,000 to trial wireless broadband technologies at Uralla. Uralla Shire Council is the present champion of NESCAP. Today, Uralla Shire Council has seven sites connected to a Wide Area Network (WAN) as well as fast Internet using Airspan AS4030 carrier grade wireless equipment. The Uralla CTC is also connected to the Internet using this equipment. NESACP then conducted another wireless trial using the Airspan Wireless IP Based Local Loop (WipLL) equipment. The trial has been successful and NESCAP is now looking to encourage the commercialisation of this equipment in Uralla and Armidale by an ISP.

• TransGrid signed a Memorandum of Understanding with The University of New England (UNE), AARNet and Country Energy for the provision of telecom services between UNE and The University of Technology, Sydney (UTS), including a three-year regional pilot (see chapter 4.4.).

Community takes charge

The Armidale-Dumaresq Council (20,000 inhabitants), and perhaps more surprisingly, Uralla (2,000 inhabitants) are true leaders in this field. Uralla Shire Council employs the full-time chairperson of NESCAP, which has been involved in looking at broadbanding opportunities in this region for several years. As early as 2001 an excellent broadband report was provided by Housley Consulting and this eventually led to the formation and funding of NESCAP.

The infrastructure

In 2002, the University of New England, TransGrid, Country Energy and AARNet signed an agreement for a new, high-speed telecommunications link between Armidale and Sydney.

Building on Commonwealth funding from the Department of Education, Science and Technology, the University of New England (UNE) will increase its capacity to the AARNet hub in Sydney almost twenty-fold – from 8Mb/s to 155Mb/s – using optical fibre provided by TransGrid. This link allows the UNE to establish a telecommunications hub at Armidale with the potential to accommodate activities undertaken by the New England Institute of TAFE and the New England Area Health Service, as well as by a future technology park.

Country Energy would provide an optical fibre link between TransGrid’s substation in Armidale and UNE, and explore ways in which UNE’s telecommunications hub could be used in the provision of high-speed telecommunications services in Armidale and the surrounding district. A further extension of Country Energy’s fibre ring will connect schools and health facilities nominated by OICT and Soul Pattinson Telecommunications (SPT).

During the pilot the parties would:

• work with community groups such as NESCAP to develop a better understanding of regional and country telecommunication needs;

• test and evaluate telecommunication technologies such as wireless Local Area Network (LAN) and point-to-multi-point radio systems, suitable for use in regional and country centres;

• evaluate the potential to provide telecommunication services to NSW State Government agencies;

• cooperate in the provision of high-speed Internet connections to schools and other educational institutions in Armidale;

• test various commercial models for the provision of telecommunication services to government, business and residential users in regional and country centres.

The first-mile challenge

The biggest challenge the communities are now facing is to find the first-mile broadbander. By 2004 the 23km fibre loop was in place and it is from that point that businesses and residents can be connected. Country Energy is installing the fibre and SPT is connecting six key sites to the network (hospitals and schools).

The ring is a multiple dark fibre cable, so an opportunity exists to create competition. There are, of course, limitations’ regarding the size of the market and this requires sound planning – otherwise it could easily end up in disaster.

There are also opportunities for alternative first-mile technologies, like PLC and 802.11.

The Uralla project is also challenging. The community is too small to justify a copy of the Armidale optical fibre loop however a wireless solution has been implemented. There have been a number of challenges with the wireless project. In addition to finding end-user equipment that is sufficiently affordable to induce a reasonable uptake of the broadband service there is the additional challenge of finding an organisation that is interested in taking on the commercial risk of offering wireless broadband services in a small rural town. Another challenge has been the competitive response from Telstra. When NESCAP announced the establishment of the wireless trial in Uralla, Telstra also announced that the Uralla exchange would be upgraded to offer ADSL services. NESCAP welcomed this competitive response as this ultimately opened the market to competition.

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Sanswire Australia plans to establish a new communication networks without many of the costs and difficulties that now exist.

Called Stratellite, it is an all-purpose digital platform, developed by Sanswire Technologies Inc, a subsidiary of US-based GlobeTel. It is deployed to a fixed stationary position in the Earth’s upper stratosphere, only 20km away from Earth.

GlobeTel acquired the Sanswire technology in May 2004 and had previously indicated that the stratospheric platform is just one part of its vision to offer a Magic Money Card targeted at the global phone card, international remittances and credit card markets. GlobeTel was founded in 1979 as American Diversified Group and is now a small international termination carrier worth US$89 million on the US OTC Bulletin Board, with an annual turnover of US$11 million and a staff of 15, prior to its Sanswire acquisition. GlobeTel already carried VoIP traffic to and from Australia, China, Malaysia and other countries using what it describes as a ‘virtual network’.

The so-called ‘stratellites’ are actually airships, planned to maintain their positions using Global Positioning Systems (GPS) and electric powered engines powered from solar cell gel packs. They will carry multiple technologies and can be fitted with whatever wireless technology is required. The wireless technologies will operate within the airship’s 200km radius footprint in the frequency of choice. With that proximity to markets, it can deliver two-way synchronous voice, data and video at consistently fast speeds. The concept has been around for several years, but so far none of these platforms have been commercially deployed.

In 2003 the World Radicommunications Conference hosted a debate on sky stations, finally establishing a complicated series of frequency recommendations for the 47GHz band in the face of interference concerns.

It does away with the costly necessity for buying or building exchange-based solutions giving the provider copper-free access to potential clients; access to clients that may currently be connected through someone else’s terrestrial technology for which you pay.

Initial target deployments are typically:

• Internet access;

• VoIP;

• DDS circuits;

• Videoconferencing;

• Emergency services networks;

• 3G mobile communication;

• Distance education;

• Telemetering;

• Digital radio applications;

• Other digital services.

The Stratellite overcomes many of the environmental concerns currently being experienced with terrestrial services giving the provider far greater flexibility to offer bundled services, including the allocation of telephone numbers for VoIP clients.

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I have been following this market since the late 1980s, when I wrote several articles about virtual reality. You may remember me talking about special helmets and gloves.

Things have certainly progressed a long way since then.

During the 1990s the gaming industry made great advances, but I wasn’t seriously interested at that time. While I was aware that billions of dollars are involved in this industry I didn’t follow the market in any detail.

However, the Second Life service has encouraged me to have another look.

I watched the ABC Four Corners program on this topic, after which our new media expert, Luke Connell, took me on a tour. I signed on as Paulus Helgerud, got my avatar and was teleported to the town square.

Luke was waiting there for me and he took me to the Stock Exchange where he has an office and an interesting VIP museum. You walk through this place by using the cursor. It takes a while to get the hang of it, but soon it’s as though you really are walking through the place. You behave as you do in your first life when you enter a new place – stop and look around and take in your surroundings. You can click on the pics in Luke’s gallery and get background information on these people, courtesy of Wikipedia. The SIM models that have been built are extremely clever and I was soon immersed in my Second Life.

Communication is by instant messaging. This is fine, but a day or so later I spoke to Scott Bagby from Skype and we discussed how the experience should be complemented by voice. Scott believes that this is still a year or so away.

Skype wants to give the Internet a voice. I do find it a bit distracting to have to type while having a ‘conversation’ with others. At a certain stage I was still typing away and Luke had already moved on. I had to search around to find him again. I actually felt quite lost at the time, and that, in itself, is indicative of the feeling of reality one experiences at Second Life.

Luke also gave me L$200 (L stands for Linden), I think the current exchange rate for this is Real$2. I haven’t spent any yet, but I did notice when I visited a night club that you can rent a special platform on the dance floor for a few Linden cents. And, on inspection, the people you meet in Second Life seem to wear much better designed clothes than my standard avatar uniform, so I guess that’s where a lot of those Linden dollars are going.

You can also buy land in Second Life – the Amsterdam (SIM) precinct was recently sold for US$50,000.

Luke is going to rent an office for me at Second Life, so I will soon be able to give you my Second Life address. Please feel free to drop in. I will make sure that it will be easy to find your own way around my office, as I’m very busy in my First Life and won’t be able to be there to welcome you personally.

Second Life Financial – February 2007

• There are over 2271 unique users with Positive Monthly Linden Dollar Flow (PMLF).
• PMLF looks at the flow of Linden Dollars into a unique user’s account BEFORE Linden Lab Charges are applied to the account. These numbers exclude payments or receipts related to the sale or acquisition of land (since theoretically these represent investments and not business receipts). All numbers are rolled-up among avatar “alts” to the Unique Customer Level. Businesses that operate with Linden Dollar exchanges are excluded.
• Some businesses accept payment outside the Linden Economy (e.g. via CC & Paypal) and those numbers are not included in these reports.
• In February 2007 there was L$1,511,954,743 and USD$5,621,839 exchanged on all linden currency exchanges. There were 229,578 residents who spent Lindens that month.
• $1 USD = L$280

Source: Linden Research Inc.

In the end I spent two nights in Second Life and it really was ‘a blast’. I marvelled at the impact Second Life had on me – I found the experience mind-boggling. I can also see that it could be very, very addictive, so parents beware! I would guess that teenagers, in particular, could end up spending rather too much time living their Second Life. The average age of visitors, however, is slightly older – people in their twenties and early thirties are the most frequent users.

Do I hear you saying: ‘Get real Paul. Why are you wasting your time on this?’

All I can say is: ‘Experience Second Life for yourself and will you see what it could lead to’.

For instance, in the Four Corners program we saw a medical application where schizophrenia was explained by replicating the experiences of patients in an avatar and using the avatar to explain what is going on in a patient’s mind to students and friends and family of the patient. And I can imagine Second Life will be the venue for lectures on interesting topics, providing interaction with the presenter and fellow students. Already concerts and other entertainment events are taking place – true, this can already be done in other multimedia ways, but this virtual reality environment is cheap, easy and very interactive. I am sure it will take off.

Second Life in Stats – 2007

• The average age in the Adult service (Grid) is 33
• Females 41%, males 59%
• A third of active users are based in the USA (1.5% in Australia)
• There are over 5 million avatar accounts of which an estimated 3.5m unique users.
• 1.7m residents logged in within the last 60 days.
• There are around 67,000 are premium accounts paying USD$9.95 per month that gives them the ability to own more than 512sqm of virtual land.

Source: Linden Research Inc.

Of course, as in the real world, there is a great deal of sex and gambling going on in Second Life. This brings to mind the comment made by the previous Minister for Communication, Richard Alston, in 2002, when he said that Australia didn’t need broadband because it was ‘all to do with adult and gambling’.

But the 20/80 rule will undoubtedly apply in this context. Many new media start off with 80% adult and gambling and 20% other services and in five years’ time that ratio is reversed. So by all means let’s keep an eye on unwanted developments, but let’s also keep the bigger picture in mind. People with vision will lead this field.

I guarantee that Second Life is one of those new disruptive social and technological developments that will have a big impact on our society – so let’s work with it rather than against it.

Paul Budde

See Global Digital Media web reports:-
Global – Digital Media – Video Media
Global – Digital Media – The Media Industry
Global – Digital Media – Permission Based Marketing
Global – Digital Media – Overview & Analyses 2007
Global – Digital Media – Marketing Strategies
Global – Digital Media – Internet Media Companies
Global – Digital Media – Internet Economy
Global – Digital Media – Industry Business Models
Global – Digital Media – Home Media Centres
Global – Digital Media – Digital Video Recorders (DVR)
Global – Digital Media – Consumer and Business Markets
Global – Digital Media – Broadband TV (IPTV)
Global – Digital Media – Blogging, Social Networking & User Generated Content (UGC)
Global – Digital Media – Advertising Overview, Statistics & Forecasts

See New Annual reports – Australia Digital Media:-
Broadcasting and Pay TV;
Converging Industries;
Digital Content Markets;
Digital Media, Overview and Statistics.

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Sydney Wireless is a group of like-minded individuals within the community who are working towards providing an interconnecting wireless network across Sydney. The network will be free to use, with no data or bandwidth limits. The users will be provided with services such as low-ping network gaming, FTP, IRC, instant messaging and free phone calls to each other.

Currently Sydney Wireless consists of a small number of isolated pockets of connected nodes, but the plan is to have interlinking connections between access points that cover Sydney.

Hardware costs are typically between $100 and $150 for a wireless Personal Computer Memory Card International Association – PCMCIA/PCI network card, $100+ for a new antenna, and $50 to $100 for the cabling. An AP (wireless hub) costs around $300-$500.

Once the hardware is installed users can start linking up with others within Sydney Wireless, with no data or other ongoing cost!

There are similar community groups operating in most major towns in Australia.

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