Exploring the impact of broadband and technology on our lives, our businesses, and our communities.

Are Google ads worth it?

ebay pulled all its ads from Google because Google is trying to compete with eBay's PayPal with a Google-branded payment system. However, that is not the story. The story is what happened after the ads were pulled: Nothing. Traffic to eBay dropped only a tiny amount, and eBay probably had a net gain because they saved money by not paying for Google ads.

I have been saying for this for several years: Google ads, for many businesses, are not worth the high prices Google charges. And this new information may hasten a time when Google is just one among many online venues for ad dollars.

There is also widespread chatter about a NY Times report that online purchases are slowing, which is to be expected. Rather than it being the end of the world, it will finally force companies that have been soaring financially on the Internet newbie phenomenon to finally adopt real fiscal management and grow up. We are NOT going to be buying everything online, and that should be good news for small and medium sized retailers who have struggled in recent years to compete against online giants like Amazon, whose business model seems to be "We'll sell anything."

I had a discussion recently with a young person recently who was complaining about not being able to find a particular clothing store, and asked her if the company had an online store. She quickly replied that she did not like buying clothes online, as it was too hard to judge fit and quality. Bingo! Online sales for the past several years have been buoyed in part by people trying it out. As they find out what works and does not work with respect to buying online, many kinds of sales (like clothing) are going to start shifting back to bricks and mortar.

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Scramjet test in Oz

A Mach 10 (ten times the speed of sound) test of a scramjet took place in Australia, where a rocket carried the scramjet into near space, then ignited the scramjet to return to earth. Scramjets are special jet engines that work at very high speeds and at high altitudes, and research has continued on them for decades with mixed success. A successful and reliable scramjet design would allow travel between London and Sydney, Australia in as little as two hours.

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U.S. continues to fall behind in broadband

According to the latest international study on broadband use, the United States has fallen from 16th to 24th in number of households with broadband (53%). South Korea is the world leader, with more than 90% of homes connected. Japan, Germany, France, and the U.K are all well ahead of the U.S., so we cannot just dismiss South Korea's lead as simply a factor of household density.

Unfortunately, the U.S. also has the most expensive broadband at the lowest speeds. While it is true that the size of the U.S. makes broadband deployment a bigger challenge than in many other countries, the real problem is outdated business models for telecom services. The incumbent providers have stubbornly resisted reforming or changing their business models for telecom, which has led to very slow deployment, and a rather circular red herring argument about broadband.

The argument goes something like this: "There is no money in broadband. So we cannot afford to invest in high performance fiber and wireless systems." The circular part is "we would invest if there was money in broadband, but there is not any so we can't." The red herring part is blaming "broadband" when in fact that has nothing to do with the problem. A correct statement of the problem would be, "Our current business model stinks, so we have no money to invest in better networks."

That would be honest, and would lead naturally to a sensible discussion about changing business models. But there are some local governments that are not waiting. Expect to see new open services networks emerging from local government and regional projects in the next year or two that will have viable business models. These new business models will help create enormous new community and economic development by offering businesses high performance networks with a wide variety of service offerings from many providers, not just one or two.

These open service network projects have the right business model and will transform the local economies that make telecom essential public infrastructure.

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FiOS TV complaints

FiOS is Verizon's fiber offering, which they are now rolling out in limited areas. According to this article from someone who signed up for FiOS TV and then dropped it, there may be some real limitations (note: scroll down the page a bit to the "FiOS TV" title).

The problem is that FiOS partitions the bandwidth available to a home into three separate portions: TV, telephone, and Internet. But to do on-demand movies and video, Verizon has to use the Internet/broadband partition, not the TV partition. So as the note describes, you may see much of your promised bandwidth eaten up for a movie.

What's the problem you ask? Suppose you are working from home, using your FiOS broadband partition to connect to the company network for VoIP and company systems. It is summertime, and your kids are home. It's 10 AM, the kids are bored, and they order a two hour on-demand movie. For the next two hours, you may see your available bandwidth drop substantially. As the author noted, this may or may not actually be an issue, but Verizon would not provide any details.

In a open services, Active Optical Network (AON), vendors like PacketFront run all services in a single large network connection to your home, and on-demand video does not affect your Internet access because each service is managed end to end with guaranteed Quality of Service (QoS). It's a different and better design that does not have the limitations of the FiOS PON (Passive Optical Network) design. Disclaimer: Design Nine often recommends PacketFront systems for community broadband networks.

This limitation of FiOS and PON systems is a real and serious economic development issue. As more and more job and work opportunities allow people to work part time or full time from home, communities need broadband systems that fully support business use of the network. Communities that think FiOS or AT&T's Lightspeed services are enough may be disappointed as economic development in their region begins to stall out when workers and businesspeople discover these networks don't support business class services very well.

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Saving money in our K12 schools

A school system in British Columbia has cut technology costs, created new support positions to work directly with teachers, and has dramatically reduced technical problems with their classroom and teacher computers. How did they do it?

They dropped licensed software, and over several years, moved to Free and Open Source (FOSS) alternatives.

Sounds like a win-win-win, but some of us have been recommending that for years. It is largely an IT staff problem; IT staff trained in the monoculture Windows world have little experience with alternative platforms like Linux, and just won't budge. The cost is high. Taxpayers ultimately end up footing the bill for expensive, complex, and difficult to use systems that don't perform well.

A couple of years ago, I was working in a K12 school, trying to help them use FOSS applications in the classroom. One of the biggest obstacles was the school system's "seat management" system, which actually took the entire school off-line randomly throughout the day because students at another school were using licensed software. The school system could not afford to buy licenses for every computer in the school system, so the seat management software just shut off network access to computers to keep the number of licenses below the licenses maximum.

Who loses? Teachers and students both lose, and technology ends up sitting idle. The big myth, often perpetrated by parents as well as administrators, is that kids "need to use software used in the business world." Uh huh. Writing is writing, and using a word processor is a skill that transfers nicely whether you were trained to write with Word or a free alternative. The same is true with spreadsheets--it is about math and thinking skills, not "familiarity with Excel menus" skills.

Claiming that kids should only learn on Microsoft products is insulting to our kids (they are apparently too dumb to learn to transfer skills across different pieces of software) and nonsensical. It is like claiming that only Toyota cars should be used in driver's ed, because "that is the most popular car in America."

IT departments should not be making policy decisions in a vacuum that affect the whole organization. IT staff should be serving the organization, not the other way around. If the IT department seems to be offering flimsy excuses for high cost, low performance systems, insist on carefully considered research and studies for alternatives that cost less and do more. And if your IT staff refuses, maybe you need to clean house.

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Solid state disks will transform laptops

In the biggest change to personal computers since the arrival of an affordable 5 1/4" hard drive about 25 years ago, solid state "hard drives" will be appearing soon in laptops. The solid state storage devices have no moving parts, use much less energy, weigh less, are faster, and are more durable.

Laptops will shrink dramatically in size and weight. Weight will go down directly from the reduced weight of the replacement solid state drives, but also indirectly; spinning hard drives are the biggest drain on batteries in a laptop. The replacement solid state memory will allow both smaller batteries and much longer useful work time on laptops.

Laptops will be thinner, lighter, smaller, and faster, and won't cost much more because of rapidly dropping prices. In less than four years, you probably won't be able to buy a laptop with a rotating hard drive, and "hard drives" will quickly become quaint relics. In fact, within five to seven years, we probably won't even have hard drives on most (but not all) desktop machines.

From an environmental perspective, computing is rapidly moving from being big wasters of energy (CRTs and disk drives use a lot of energy even when the computer is otherwise idle) to being relatively green; the combination of low power LCD flat panel screens and solid state memory will cause dramatic drops in the energy footprint of computers.

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World standard for blown fiber and microduct

An Emtelle press release notes that the IEC (International Electrotechnical Commission) has released a worldwide standard for microduct and blown fiber, including a standard for testing.

This is important because it will improve the ability to deploy products from different manufacturers in the same network and improve overall reliability of blown fiber and microduct products.

Microduct is especially well-suited for many community broadband fiber projects because it can be installed without the need for fiber-certified installers (the fiber is added later by a trained crew), its affordability, and its ease of repair.

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Why health care costs so much

At least part of the reason that health care costs so much is due to arcane software and poor information systems design. I had to have a routine blood test this morning, and went to the hospital to do it so I could take care of it early in the day.

The whole process kicked off at a desk in the lobby where I had to fill out a slip of paper that was carried by hand to the patient registration folks. After a twenty-five minute wait, I finally got to talk to a registration person. This is where everything went seriously off the rails. I've been to the hospital before for this sort of thing, and they had a record of me in the computer. But the poor woman registering me clicked away with her mouse and typed for six full minutes. I thought I was on line at at airline registration desk--the only other place where I see long periods of typing going on for simple tasks.

The registration process generated at least 18 sheets of paper that I could see, and I suspect several more were generated at printers whirring in the background. Part of the time was spent checking data like date of birth, addresss, and phone number, which they already had but had to ask again, in a tedious process repeated daily in tens of thousands of doctor's office and medical facilities around the country. And of course, there was the requisite photocopying of my insurance card. I suspect that every day, we probably use a forest's worth of trees making copies of insurance cards.

The actual process of taking a blood sample, including being greeted by the nurse, rolling up the sleeve, printing labels for the samples, and putting on a band-aid, was under three minutes.

Total elapsed time: 40 minutes.

What should and could happen? This business of photocopying the insurance card is insane. The hospital has computers. The insurance company has computers. We have this thing called the Internet. Insurance companies and health care providers could establish an open standard to verify insurance coverage electronically, with much higher reliablity than a worn piece of pasteboard carried around in a wallet.

Today, you can buy a thumb drive with 2 gig of memory on it for under fifty bucks. This would hold my entire medical history, from birth, including a good sample of important X-rays. It could also hold some personal information like address, phone number, and next of kin. Instead of endlessly and repeatedly manually filling out forms and entering data, we could carry one of these, with something like thumbprint biometric secure access. Instead of many minutes of typing, I would plug it into a little keypad at the registration desk, enter a PIN number and a thumbprint, and everything needed to would transferred (and only what was needed, under the patient's control). Quick, easy, and more accurate than hand data entry.

This is not a difficult technical problem. I suspect it has more to do with the health care establishment's fear of giving more control to patients. But ultimately, we pay, one way or another. We should be in control, not underpaid and overworked clerks (who are really controlled by IT staff who have failed miserably to be of any real service to their clients and customers).

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AT&T ready to set up toll booths for all of us

In an astonishingly candid remark, the outgoing head of AT&T, Ed Whitacre,
remarked, when asked about network neutrality, "Well, frankly, we say to hell with that. We’re gonna put up some toll booths and start charging admission."

The public Internet, whether we like it or not, is about to undergo great changes over the next three to five years. The original design of the Internet was never intended to support billions of connected computers, and in particular, it was not designed to support bandwidth-intensive applications like voice telephony and video.

So changes are necessary so that innovative new uses of the Internet can evolve, but the real question is not so much about architecture but control. Do communities want toll booths controlled by a third party that has no obligation whatsoever to the future prosperity and economic competitiveness of that community? It is extremely risky for a community or region to allow third parties like AT&T to decide their economic future.

Instead, communities have to begin viewing telecom, at a certain level, as essential community infrastructure, and begin making appropriate investments that will allow the communities a measure of control over their economic future. Services can still be provided by companies like AT&T, but AT&T should be paying tolls to the community for the use of the infrastructure, not the other way around.

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YouTube comes to TV

I have long wished there was some easy way to watch YouTube on TV at home. I just don't have time to waste at work looking at clips people send me, and I rarely feel like spending more time in front of the computer in the evenings. But there is a lot of interesting stuff on YouTube, ranging from current political clips and commentary to how-to videos and of course, some pretty funny stuff. And no annoying commercials (yet).

Yes, you can wire up a laptop or desktop computer to your TV, but it is a lot of bother and then you have to sit there fiddling with a mouse and a keyboard while trying to Web surf from the couch.

Apple has entered into a deal with YouTube that allows AppleTV owners to access YouTube clips easily from the couch, using the AppleTV remote. Now that's what we want....an easy to way to watch YouTube using only the "clicker." Apple is right on track with AppleTV, steadily adding value to the box by making it dead simple to marry video content and the computer. This is the same game plan they used with the iPod. Prior to the iPod, you could get your music onto an MP3 portable music player, but it was clumsy and obtuse. The combination of the iPod and iTunes changed all that. Apple is headed for another home run with AppleTV.

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