Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
Galen Updike, with the State of Arizona, opened the Digital Cities Expo this morning, and told of speaking to a woman who was trying to run a business out of her rural home.
She said, "You know, I can do without public water--I can have my own well. I can do without public sewer--I can put in my own septic system. I can do without a paved road to my house. I can even do without electricity--I can generate my own. But without Internet access, my business will fail."
And that story illustrates the relative importance of broadband with respect to economic development.
I had been hearing favorable reviews of the new "Terminator" TV series, but am usually busy with other things in the evening, so I have not been able to catch it at its broadcast time. So I downloaded the pilot from iTunes--the first episode is free.
It took about thirty minutes to download the forty minute episode. We watched it on a widescreen 15" laptop set about four feet away, which gave us a larger apparent screen size than the 27" television on the other side of the room. Did I mention there were no commercials? Nothing like watching a one hour program in forty minutes. It was a good show, and I'm ready to pay two bucks to watch the next episode. In fact, for what I am now paying for cable TV, I could download and watch 25 hours of paid TV, at two dollars per hour--commercial free.
There were some shouts of horror from certain parts of the household when I mentioned discontinuing cable service, but it is getting harder and harder to find a reason to turn the TV on.
However, watching video over the Internet comes at a steep price for the DSL and cable providers, who lack the capacity to handle this if everyone starts doing it. This article is very technical, but the bottom line is that the current copper infrastructure lacks the capacity handle the switch to getting what we call "TV" over the Internet.
A carefully designed study of cellphone use indicates that using cellphones within an hour of bedtime disrupts sleep patterns, causing fatigue and other symptoms. The double blind study ensured that participants did not know if they were exposed to cellphone radiation or not, so the results appear to be worth careful consideration. The article found that teens with cellphones were often using the devices just before going to sleep, setting up a long term pattern of restless sleep and chronic fatigue.
If there was not already enough to worry about, the CIA has indicated that the agency has credible evidence of terrorist cyber-attacks on electric power grids outside the U.S.
The terrorist hackers are breaking into the computer systems used to manage electric power grids and, according the CIA, successfully causing blackouts. This kind of threat will likely increase the interest in decentralization of IT facilities in the U.S., making rural areas with reliable electric power and well-designed business parks attractive relocation prospects. A "well designed" business park would some Class A office space available for immediate lease and fiber and telecom duct throughout the park.
Bandwidth caps may finally get the light of day from broadband providers. The way we sell broadband is upside down from every other business. If you are an Internet service provider, you make the most money if your customer never uses your service. You make the least money if the customer uses your service a lot. This is why most of us have mediocre access to Internet-based services--selling broadband by the bucket is a lousy way to try to make a living if your customers expect you to refill the bucket a lot (and many customers do).
Most service providers will tell you that a small fraction of their customers use a large percentage of their available broadband capacity--5% of customers using 50% of bandwidth is not unusual.
Some of the cable companies may finally start publishing their bandwidth caps and providing differential service packages--basically, if you want to download a lot of movies, you have to pay more--not an unreasonable approach. It is much better than what appear to be "secret" bandwidth caps, where some customers may have their service cut off for "using too much" even when their service contract does not explicitly define what "too much" is.
In a modern, multi-service network, this whole problem goes away. By selling services rather than buckets of bits, customers know what they are buying and prices are set to match the actual bandwidth demands of a service. On a multi-service open network, you would subscribe to a video on demand service, priced according to the actual service (e.g. $3 to watch a movie) rather than to some indirect cost like bandwidth. It's a bit like taking a cab and being told you will be charged not according the distance you want to travel but some percentage of the wear and tear on the tires.
Hitachi is showing off a table top computer. It is a large, fifty inch display touch sensitive display screen driven by a standard personal computer. Installed in a table, it enables several people to work together comfortably, using the touch screen to interact with the current application--programs like Google Earth are apparently stunning in this format.
The combination of large display screens, which are becoming increasingly affordable, along with more bandwidth and high gas prices, are going to drive demand for business videoconferencing. In the past, videoconferencing was awkward either because the video display area was too small and/or because of limited bandwidth that directly limited the quality of the interaction.
But as HD video equipment prices continue to do down and new display systems like Hitachi's hit the market, it will become easier and more natural to conduct some (not all) business meetings over the 'net. And as usual, if you have the right software and hardware, affordable broadband becomes the limiting factor for businesses that want to save travel money.
Today, every business and industrial park should have duct and fiber to every lot and every building so that these new services can be used affordably.
I had just finished up a meeting at a community interested in investing in telecom infrastructure, and before I left the building, I decided to take advantage of the local WiFi to send an email to someone who had been at the meeting but had already left; I wanted to confirm a follow up meeting.
Not two minutes after I sent the email, he stuck his head back in the meeting room and said, "Hey, I got your email." The message had gone straight to his Blackberry, and unbeknownst to me, he had been outside in the hallway talking to someone. We both had a good laugh about sending email to someone standing a few feet away.
The amazing thing is that in just fifteen years, we have the technology to do that, cheaply and easily. It's a good example of why communities need fiber AND wireless--wireless in the future will provide ubiquitous mobile access--mobile access that we already take for granted, as my experience yesterday illustrated.
HD quality streaming video has arrived on the Web. Pajamas Media, a conservative news blog, has posted HD quality video interviews with three of the Republican candidates. The large screen format requires a minimum bandwidth of 1.5 megabits (the equivalent of a T1 connection), compared to the 200-300 kilobits that a YouTube video might try to use.
This is one more indication that video, and in particular, HD video, will continue to drive bandwidth demands, which has been growing consistently at a rate of 32% per year since 1993, when the Blacksburg Electronic Village offered the first residential Internet access. Is your community ready?
You read the headline correctly: "Music sales plunge amid rising sales." Only the music industry, clinging desperately to Mr. Edison's gramaphone technology, could make a 14% growth spurt sound like doom and gloom.
The lead on a widely circulated story about music sales in 2007 is full of hand-wringing about the precipitous 9% decline for the "fast fading" music business.
The article disingenously mixes up declining sales on albums, illegal music sharing, and sales of single tracks, and news writers and editors should be ashamed for reprinting this stuff without actually reading it, because it is completely nonsensical.
If you read the entire article critically, what is very clear is that consumers are buying many more single songs and somewhat fewer albums. But overall, music sales are still increasing year to year--14% in 2007. Most businesses would kill to have a 14% per year annual growth rate. But the music industry stubbornly continues to blame their customers for simply buying only the good songs and ignoring the bad ones, which the real dynamic.
In the old days, the physical format needed to distribute music (vinyl records, CDs) made it efficient to sell a bunch of songs at one time. But most of us know that you often bought an entire album of nine or ten songs just to get the one or two good ones. Today, we don't have to buy the dreck just to get the good song. That's good for music lovers, and in fact, that option of buying only good music is producing double digit growth in the music business.
But the music industry is "fading fast."
As I have noted in the past, I could easily have an entire category devoted to nothing but iPod accessories. But there are entire blogs and news sites devoted to the topic. I try to pick out the items that have some broader implications.
The latest iPod accesory is a refrigerator. Whirlpool has released a new model that has an iPod dock, stereo speakers, and interfaces for other gadgets like a digital picture frame and a tablet computer. For years, Design Nine has recommended placing an RF45 (Ethernet) jack behind the refrigerator. The kitchen has always been the central gathering place in most households, and the refrigerator in most homes displays a wild assortment of photos, sticky notes, reminders, grocery lists, and a calendar. And nearby, there is usually a radio for music and news. So it just makes sense to design a "modern" refrigerator that provides better access to things like shared family calendars that might be on a family Web site, printable grocery lists, and digital music.