Stoke Stokes 'Net Neutrality' Flames

If broadband network operators begin charging quality of service (QOS) fees in exchange for tranporting the bandwidth-hungry services of other companies, one of Silicon Valley's new communications startups, Stoke Inc. , believes it has the just the toolset to help them do it. (See Stoke Uncloaks.)

“It seems intuitive to me that the people who own the pipes should be able to extract some value from the people who want to use them in bandwidth-intensive ways,” says Stoke marketing VP Keith Higgins. (See LR Poll: Net 'Squatters' Should Pay.)

The issue has become increasingly top of mind for carriers as more and bigger IP-based services are running over carrier broadband networks. Some of these services, like Google (Nasdaq: GOOG) video and Vonage Holdings Corp. (NYSE: VG) voice, compete directly with services being pushed by the carriers themselves. (See Cerf's Up for Neutrality Debate.)

Rhetoric on the network neutrality issue has kicked up a notch lately. But the debate has taken place mostly within a regulatory framework. Stoke wants to take it to the business level, and it's now talking to carriers about a technical approach to managing -- and monetizing -- the increasingly crowded broadband pipes. (See Net Neutrality Goes to Washington.)

“We’ve been having a lot of discussions about what in the IMS architecture is responsible for potential enforcement of different QOS policies based on third parties’ willingness to pay for bandwidth and QOS,” Higgins says.

Stoke’s product, which it calls an “IP session management platform,” is primarily focused on managing the handoff of services from one type of network to end devices on another. For example, Stoke’s software works at the gateway where video from a wireline network makes the jump to a wireless network for delivery on a cell phone. (See UN Insider: Convergence.)

The Stoke platform performs many, but not all, of the functions performed by the call session control function (CSCF) element in IMS networks. The platform admits users into the network, authorizes and authenticates them, applies the right level of QOS and security, and essentially puts users in touch with the applications they want to use. (See Next-Gen IP: A Services Opportunity.)

But Stoke VP of product strategy Sudhakar Ramakrishna tells Light Reading that a proper IP session management platform must possess a healthy amount of traffic shaping and diagnostic capability, too. Those capabilities might help carriers set up tiers of broadband service for sale to third-party content providers.

“We have the ability to provide the service provider a number of metrics like usage patterns; types of calls they are placing, including voice, video, data-type calls; how many packets were transmitted; what were the usage patterns in terms of day, user behavior -- all at the pipe level,” Ramakrishna says.

“We can classify packets 64 different ways to deliver the finer SLA possibilities. We don’t define the SLA possibilities but we provide them [carriers] the tools." (See Shaw Picks Ellacoya.)

Stoke’s Higgins says his company remains neutral on the network neutrality debate and doesn’t look at it as a market opportunity per se. But Stoke seems eager to talk about the issue, and it is willing to educate carriers on how its platform can be used to their advantage.

“As more media and more bandwidth applications begin to be delivered over broadband, I think there’s going to be more and more of a reaction by the pipe providers to figure out how to get value for that,” Higgins says. (See QOS Fees Could Change Everything .)

Stoke came out of stealth mode in November, and has not released formal details on its progress. The company says it’s now working on partnership arrangements with IMS contractors, and is in trials at several large carriers.

Unstrung reported last September that Stoke’s technology has been deployed in the networks of Japanese giant NTT Group (NYSE: NTT), but Stoke isn't naming names.

“We are in some applications in Asia, which are really targeted at securely delivering IPV4 services across IPV6 networks, at line rate with encryption and at massive scale,” Higgins says.

The Unstrung account points out that NTT has been progressive in building out various wireline and wireless networks, so deploying a convergence facilitator like Stoke might make sense.

At this point, Stoke is known more for the pedigrees of the people involved in the company than for its products. Founder and CEO Randall Kruep is known for his work in the carrier business of Cisco Systems Inc. (Nasdaq: CSCO), leading sales at Redback Networks Inc. , and as CEO of routing upstart Procket Networks Inc. Stoke VP of engineering Peter Wexler was one of the first employees at Juniper, where he led engineering.

Stoke also has some high-profile VC backers in Kleiner Perkins Caufield & Byers and Sequoia Capital . The startup has collected $30 million in venture funding so far. (See Stoke Uncloaks.)

Stoke is based in Mountain View, Calif., and employs just under 100 people, most of them engineers.

— Mark Sullivan, Reporter, Light Reading

Mark Sullivan 12/5/2012 | 4:03:13 AM
re: Stoke Stokes 'Net Neutrality' Flames Hey that hunting trip idea is good. Let's get heavily armed, go out to a remote area and work out our differences! Dick C, a man of high caliber. . .
Mark Sullivan 12/5/2012 | 4:03:13 AM
re: Stoke Stokes 'Net Neutrality' Flames Well I'm sorry you thought the story was snotty, and I'm sorry you think Stoke paid us to write it -- they didn't. The company has an interesting story and some VC and we'll have to see if carriers buy the product.
NotThatCanadian 12/5/2012 | 4:03:16 AM
re: Stoke Stokes 'Net Neutrality' Flames The reality is that enterprises are going to invest in converged WiFi/Cellular devices to leverage their internal WLANs (and possibly VPN in from HotSpots)to avoid cellular air time charges. Customer driven always wins. The carriers will have to resist for a while to protect their existing revenues, however, ultimately they will have to change their model. The carriers will need to classify traffic and receive reports on this traffic regardless of whether or not they charge for it. This is good for companies like Stoke.
The question is to whether Stoke has the capability to win this area of the market. The mere existence of the number of start-ups addressing this market gives it credibility. With US$30 Million raised to date, the investors have not bet the farm on Stoke. However, the quality of the investors tells me that Stoke had a darn good pitch.... can they deliver?
Honestly 12/5/2012 | 4:06:10 AM
re: Stoke Stokes 'Net Neutrality' Flames Up-side, you are a smart fellow, but FMC_man must be Stoke's VP, Marketing. I suggest he look for work as there will more than likely be a few more marketers to come and Heck, LR is just doing thier job. Perhaps there needs to be a hunting trip set up so we can all relax and get along. Lets invite Vice President Dick C, he can add an angle, or two. Badda bing.
Honestly 12/5/2012 | 4:06:10 AM
re: Stoke Stokes 'Net Neutrality' Flames Up-side, you are a smart fellow, but FMC_man must be Stoke's VP, Marketing. I suggest he look for work as there will more than likely be a few more marketers to come and Heck, LR is just doing thier job. Perhaps there needs to be a hunting trip set up so we can all relax and get along. Lets invite Vice President Dick C, he can add an angle, or two. Badda bing.
Upside_again 12/5/2012 | 4:06:29 AM
re: Stoke Stokes 'Net Neutrality' Flames First Place Randall goes with fists full of dollars is LR. Judging by the biased RAH-RAH and snotty candor of reporter, it's easy to see the bucks slant the view. Have'nt we seen all this already and look where it went? Put some meat on the bone (like a customer, a product and/or a real positon) and then you just may have a debate. Until then, it's just another day in the LR sales department.
fmc_man 12/5/2012 | 4:06:32 AM
re: Stoke Stokes 'Net Neutrality' Flames Ouch...sounds like some pent up hostility. I think you need to re-read the press release, which talks about network convergence, and delivering services in the most optimal way (including security and QoS) over various access networks (including IP) which would make net neutrality a potentially interesting application...I'd also suggest some other fact checking of your own before critiquing LR's efforts...
light-headed 12/5/2012 | 4:06:32 AM
re: Stoke Stokes 'Net Neutrality' Flames In steelheads defense, I have heard of a lot of stoke CVs hitting the recruiting wire and something about a mandatory 10% salary reduction.

The executives at Stoke are very experienced but they have yet to prove that they can lead a company successfully outside of the tech bubble. It is not 94-00 anymore when pretty much anyone could make it. There will be a few winners and lots of losers in the startup world.
Mark Sullivan 12/5/2012 | 4:06:33 AM
re: Stoke Stokes 'Net Neutrality' Flames Oh darn. We've been caught out. It's so much easier cut-and-pasting from marketing brochures and press releases.

Honestly 12/5/2012 | 4:06:35 AM
re: Stoke Stokes 'Net Neutrality' Flames Bought for...$89 million by CSCO?, maybe, 1$billion, not.

No, not good marketing, just confusion and trying to take advantage of someone else's debate and greed. This team has been there and had a mixed bag. That is about as much attention as this is worth.
fmc_man 12/5/2012 | 4:06:35 AM
re: Stoke Stokes 'Net Neutrality' Flames Cheer up, would you? There are a lot of cross-currents in the telecom space that will provide opportunities for equipment providers moving forward, and this is one of them.
fmc_man 12/5/2012 | 4:06:37 AM
re: Stoke Stokes 'Net Neutrality' Flames I think the point is that there are new requirements at the edge of the carrier network to enable things like WiFi/cellular mobility (esp for more than just signaling for a couple of voice calls) and network neutrality. For the latter, ultimately there will be contention for the most constrained resource (the last mile). So however the facilities-based operators and the content providers work it out, there will need to be ways to enforce and report on the QoS/bw policies based on service type and other considerations. Seems pretty straightforward.
Mark Sullivan 12/5/2012 | 4:06:38 AM
re: Stoke Stokes 'Net Neutrality' Flames Canadian -- an impressive mix of naivet+¬ and cynicism. Well done. To be frank the reason Stoke is newsworthy is because of its big name VC investors, and because of the track records of the people running the company, not because of its marketing patter. Secondly, carriers will decide whether or not Stoke's box fixes a key pain point in their converged networks. Thirty million dollars has been laid down saying that the answer to that is Yes. Why would anybody acquire Stoke if the answer proves to be No?
materialgirl 12/5/2012 | 4:06:39 AM
re: Stoke Stokes 'Net Neutrality' Flames This will never work. 64 ways to measure packets? Phone compaies may buy this because they love the story line. However, by the time IMS is defined and even works, the portals will have innovated so far beyond what IMS can do it won't be funny. How does IMS catch up? With all this crap going on in their networks, they will become ossified and just increasingly get bypassed. Nice, shiny, new, unused white elephants. Monuments to monopolistic arrogance.
Upside_again 12/5/2012 | 4:06:41 AM
re: Stoke Stokes 'Net Neutrality' Flames I hear ya brother. Shades of Procket....

If you snip the marketing VP quotes you see one saying paying/charging for bandwidth QOS is good. Next one says we are agnostic to the whole net neutrality issue. Next one goes back to the first one. OK - So which are you?

Please take a position - but not all of them!
canadian 12/5/2012 | 4:06:41 AM
re: Stoke Stokes 'Net Neutrality' Flames This is great marketing.

They speak the right things so the Press (including Lightreading) gets excited about them. They use the right buzzwords. They know how to take advantage of the situation.

What do you think is going to happen to them?

Courtesy of people like us who are playing right into their hands, they will get lots of publicity. Without even a decent product (don't know if they have one or not), they'll get bought for a Billion Dollars....

Welcome to Web2.0
kalisekjoseph 12/5/2012 | 4:06:43 AM
re: Stoke Stokes 'Net Neutrality' Flames How do you sign up for this??
Honestly 12/5/2012 | 4:06:44 AM
re: Stoke Stokes 'Net Neutrality' Flames I think that Stoke better figure out how to say what they do so it is understandable. How do you hand off content from a broadband net to a mobile phone net/device that does not have the NET bandwidth, or fair pricing to enable users to enjoy it.?

It is also very unclear how they will enable the carrier to watch and charge for QOS, which by the way may never happen. Monopolies suck and hopefully the FCC will keep the carriers hands out of our pockets. I already pay ATT for my T1 and want to get what I want with the same quality of service over the net I pay for. Hope Stoke has other ways to make money.
Mark Sullivan 12/5/2012 | 4:06:44 AM
re: Stoke Stokes 'Net Neutrality' Flames Higgins told me that some Skype users have begun using the the videophone service to monitor their babies or their household or the babysitter while they are not home. They set up the videophone at home, start a call session and just leave it on - for hours or days on end. Network congestion is a real thing.
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