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Dutch operators KPN and Reggefiber are planning to roll out FTTH services across the Netherlands, in an investment that could reach EUR6-7 billion over the next five to seven years. Steve Liput, Lead Consultant and Matt Yardley, Partner at Analysys Mason, look at the significance of this latest annoucement.

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"While at T-Mobile Hungary mobile broadband has become the key growth driver fuelling value added service revenue growth, in the fixed line segment growth in internet revenues slowed down significantly and fixed line churn increased further in Q2," CEO Christopher Mattheisen said in a management commentary to the Q2 report. The chief executive's cautious commentary is not surprising in light of the fact that Q2 saw a decline (!) in T-Com Hungary's fixed-line Interenet revenues for the first time in the company's history on strong competition from mobile Internet and cable service providers. The performance of Magyar Telekom's foreign subsidiaries was likewise too weak to generate significant growth in the entire fixed-line division. Consolidated Internet service revenues grew only 6.7% in the first six months of 2008, which compares with 8.3% and 16.4% at Magyar Telekom's Czech and Polish industry peers, respectively. (The picture is actually even gloomier, considering the fact that Q2 alone saw only 4.4% growth.)

O3b Networks' operational and technical development is well underway. Production of the initial constellation of 16 satellites has begun. The system's 2,133 transponder equivalents will deliver low-latency Internet backhaul at speeds reaching 10 gigabits per second. Service activation is scheduled for late 2010. The scalable nature of the system allows for additional satellites to increase capacity and meet growing demand.

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So there you have it. My "optimistic" view. The crisis is shattering the all-private dogma, and that's at least one good aspect of it. Sure, it raises a number of new questions and issues for incumbents, regulators and service providers. But then these issues would have needed tackling anyway, they're just likely to be more visible in the next few years...

In "An Economic Recovery Program for the Post-Bubble Economy" -- the first proposal in New America's new Big Ideas series -- Bernard L. Schwartz and Sherle R. Schwenninger warn of the dangers of misreading the current slowdown, and map out a plan for harnessing the U.S. economy to the two most important new growth drivers: public infrastructure investment and rising global demand for efficiency-enhancing technology.

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