Yup, it is 'wireless' internet they are rolling out.
1. TEPCO (Tokyo Electric, world's largest single electric utility system) has a gizzilion miles of way underutilized fibre optic cable used for their own data transmision; the fact that the system was ever built speaks volumes about the previously unjustified and unjustifiable investment in data xmission capability and capacity and the concurrent ineptness of NTT (they should have done a deal with TEPCO way back to short-circuit future and innevitable competition;
2. Anyway, fibre is fibre and it makes no sense to keep it dark. On stage comes our hero 9984, offering a deal backed by its name, expertise, alliance partners (i.e. CISCO Japan, Yahoo Japan, etc) and money to obtain marginal revenue by utilizing the underutilized fibe assets of TEPCO;
3. Idea: use the fibre going through some of the densest populated places in the world for high speed internet access, but obtaining government permission by offering free internet access for the schools (and indoctrinate future paid customers, and incubate its portfolio companies as side benefits).
4. But, the fibres only passes the homes, and does not actually connect into each home. The cheapest and most flexible way of hooking up the homes to the fibre is probably via wireless technology of some sort, as opposed to coax cable, microwave or direct fibre connection. The technology at such speed for such application is untested in commercial applications. I was trained as an electrical engineer (computer structures) and I remember that "there is always another bug to work out"; 12 months rollout is fast.
5. So, we wait and 9984/TEPCO must work. I was wondering about MSFT's involvement in this - really makes no particular sense unless as (a) investment diversification, (b) intending to work out the bugs and apply the knowledge in other geographies, but (c) certainly not as a way to "provide content" as stated in the PR.
6. NTT will ofcourse respond, but we do not care, as TEPCO must spend money to upgrade the system for such new use (routers, hubs, wireless boxes), 9984 do not actually spend that much, enjoy the portfolio companies' valuation upgrade and drive traffic to Yahoo Japan.
7. So, I come back to my old question ... how much is Yahoo! USA actually worth? At some point Yahoo! USA's US traffic (basis of valuation) will become irrelevant as international traffic growth and mania value far outstrips what is. I believe Yahoo! USA is another Airtouch Communications (its previous 36 months before Vodafone buyout) and could be good for 300% ROI over the next 36 months. |
