Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
Digital Rights Management (DRM) may be on its way out. Amazon has announced it intends to get into the music business and will offer only digital tunes that do not have DRM, which limits what buyers can do with the music.
Amazon has enough clout that it may succeed where other companies have failed, but even Amazon may not make much headway against Apple's iTunes Store, which is also beginning to introduce DRM-free music. Amazon will offer the music in MP3 format, which is not quite as good in sound quality as the AAC lossless format used by Apple.
It is also not clear how many music companies will offer music without DRM. Right now, Amazon has only one record company willing to do so.
One myth that has been repeated in some other stories on this topic is that iTunes music only plays on iPods. This is dead wrong, and has never been true. You can easily move iTunes music around and it is possible to play the tunes on MP3 players made by competitors.
Apple has consistently said it will remove DRM if the music companies will let it, and it appears that cracks are beginning to appear in the stubborn resistance (so far) of the music companies to sell music without DRM.
The Web has been a good place to do product research for the past four or five years, but a couple of recent experiences trying to check on a couple of consumer products has me wondering. What I noticed is that the first couple of pages of Google search results were almost all link farms and link aggregators, meaning there was not really any content on any of the pages, but just links to other pages, and most of them also turned out to be just lists of links.
In other words, Google was coughing up useless results. Are there still good sites with valuable information? There sure are, but it is increasingly harder to find them if you don't already have a bookmark for them.
Google's advertising program has made it profitable to set up these link farms; if even a few people click on some of the ads or paid links, the sites make money. The sites work because they have carefully studied the way Google ranks sites, and these sites make sure they have all the right keywords and links to rank high in the search ratings.
Google does not really care, because they get their cut of ad revenues no matter where the ad links are placed, but over the long term, it could be the death of Google, and indeed, any search site that values ad revenue more than useful results.
More broadly, this is the tragedy of the commons. A few unscrupulous people are ruining the "old" Internet, where there was a volunteer spirit and a commitment of mutual collaboration to make things work. Over the next five to ten years, more and more content will move behind carefully managed private networks where users will pay for content and services. In return, they will be spared the dreck and spam that is weighing down the public Internet. We'll still be able to roam the World Wide Web, but we won't be spending nearly as much time there.
This is not necessarily a bad thing; it means the Internet is growing up. The important issue is to make sure these private networks are managed by the community or a region, for the common good, so that innovation and commerce can flourish.
I wrote recently about Hughes Satellite's new pricing options that make it very attractive in rural areas where landline broadband may not be available. Hughes is also working on new technology that will provide much better quality of service for satellite broadband and will improve some of the latency (delay) issues that have been an issue in the past.
Hughes is putting a new satellite up soon that will have routing capabilities on the satellite itself. This is a dramatic and important change from the past, where the satellite has been a passive conduit and simply passed data packets from one earth station to another.
The new approach will have each packet examined on the satellite, and it is destined for another Hughes customer, it will be directed straight to that customer, rather than being sent up and down. For some traffic, this could cut transit time by 50% or more--a huge boost when talking about network latency. This will be especially popular for businesses managing several locations that use Hughes services, as Hughes can create a private network with much higher performance.
Innovations like these are making satellite increasingly attractive for rural areas. And with improved performance, satellite may have an important long term role to play in providing network redundancy.
The state of California has put together an extensive plan to review every voting system in use in the state. The work will use several groups of indepedent scientists with excellent credentials who will review both electronic voting systems and other, older voting systems, including paper-based balloting.
The state is serious about this; the plan includes the use of independent "red teams" that will work independently to try to break into the electronic systems. This is not likely to be very difficult, since you can go right to YouTube and watch a short video on how to break into some systems.
The tragedy here is that this kind of analysis and review should have been done before California spent a half billion tax dollars buying untested voting equipment. State and local officials in California and in every other state ignored the pleas of computer scientists and technology experts across the country and blindly wasted billions buying flawed equipment. Most of it will end up being replaced.
The good news: at least the problem is getting fixed before a massive vote fraud creats a constitutional crisis in a major election. Let's hope every state addresses this issue promptly.
The cable industry is showing off their next generation broadband cable modems, which promise much faster speeds. The cable companies are under some pressure from the fiber rollouts of the phone companies.
There are some problems, however. The new technology continues to rely on copper to the home, and in fact, the "new" technology simply involves using four TV channels instead of two to carry broadband data. It is still a hybrid system that uses a fifty year old cable TV design to carry data. It's main advantage is that it is cheap to upgrade.
The second problem is that the cable companies, like the phone companies, want to be the gatekeeper for advanced services. If you want VoIP service, they don't want to offer a choice of providers; they want to sell you their service, at their price, and this will become a bigger problem as time goes on and truly open systems start offering a much wider range of prices and services than closed systems.
Finally, cable companies are anti-economic development, in the sense that they see themselves as selling "entertainment," not business class services. I had a problem recently with my cable modem service and was told the normal repair time was two weeks because the Internet service I was buying was "entertainment" and did not require any faster response. This kind of attitude makes it either impossible to work from home or much more expensive. Some cable companies will sell a "business class" service for your home, charging much more for exactly the same service.
The bottom line for communities is simple: Do you want a large incumbent with its headquarters many states away deciding your economic development future, or do you want to more control locally? If your answer is the latter, local broadband investments can help energize economic development and actually provide funds for other community and economic development projects.
Here is an interesting idea that could put an end to phishing. Everyone has received those emails claiming to be from some well known bank, urging you to log in immediately to update your bank information. The URLs look like legitimate Web sites, but belong to crooks who want to capture your account information so they can empty your bank account.
This new proposal from an Internet security expert is simple and likely to work. It would create a new top level domain, .bank, that would be issued only to legitimate financial institutions and it would cost a lot of money (e.g. $50,000) to register the domain, rather than the trivial $10 that it costs a criminal now to register a phony bank site.
Banks would be likely to move quickly to the new domains, because phishing fraud is a major headache that costs them millions. And it would eliminate some of the spam in our mailboxes. Let's hope this idea gets traction quickly.
This New York Times article (registration required, link may disappear) says that schools that give laptops to students have been wasting their money. This was entirely predictable, because just putting technology "stuff" in the classroom was never going to change anything.
Unfortunately, I got an early lesson in that in Blacksburg in the mid-nineties when we had the first schools in the country with broadband in every classroom. I learned some hard facts from teachers, and figured out that if you want technology to have an impact on learning in the classroom, you have to do five things.
We can barely teach kids the three Rs these days. It is naive to think spending money on feel-good initiatives like laptops will have any effect without extensive structural changes in the entire learning process. But at least we are finally learning these lessons.
HughesNet has rolled out new lower pricing for their satellite broadband service. The dilemma in rural areas is how to help residents and businesses get something better than dial up access when DSL or cable service is not an option, and the one to four year timeframe needed to bring fiber to rural homes may be too long.
Satellite broadband has steadily improved over the past several years, with prices that are now very competitive with cable and DSL, and improved systems make the long latency less of an issue. Because every packet has to make a 45,000 mile round trip, the delay (latency) is much longer than when packets traverse a terrestial route. But for routine email and Web surfing, most people would never notice. The latency tends to affect voice and video more.
The equipment and installation for the Hughes service is now down to about $300, easily affordable for most homes and businesses, and the monthly cost for 700 kilobits down and 128 kilobits up is $60, or not much more than what many people pay for cable modem service, with speeds close to what low end DSL services deliver. Business class services with a 1.5 megabit (T1) download speed and 300 kilobit upload speed starts at just $100--an excellent price. Business class equipment costs a bit more--about $600 for equipment and installation.
In rural areas, satellite from Hughes or Blue Sky, another satellite provider, is an excellent option to get a region less reliant on hundred year old copper copper technology and provide a bridge to a fully integrated fiber and wireless deployment.
If you like to believe everything vendors tell you, WiMax will solve all our broadband problems, give us younger looking skin, and get rid of grey hair.
WiMax has been lurking for ages, a technology that has been "just a few months away" for at least three years. But it takes a long time to bring an entirely new wireless technology to market, with extensive testing required to make sure the systems don't interfere with other wireless systems, among other issues.
The approval by the FCC of the first WiMax laptop card is a good sign that we may finally be able to starting thinking about WiMax as a "real" system. WiMax base stations (the gear that powers big towers) is still very expensive, but there have been few ways to for users to actually receive WiMax signals affordably. Over the next several years, we will finally see a bunch of WiMax products enter the marketplace, and dropping prices.
Is WiMax the holy grail of broadband? Not by a long shot, but it is a much better technology than WiFi, which was designed for indoor use and short distances. WiMax was designed from the ground up to provide much more robust and interference-resistant signals over longer distances, with more bandwidth. It will gradually replace WiFi, and it will be interesting to see how it competes with EVDO, the cellular-based wireless technology favored, naturally, by the cellphone companies.
But fiber is still a necessity. Wireless services are not the first choice for businesses because of bandwidth, security, and reliability issues. And home use is being driven by high bandwidth video applications and services, which WiMax cannot support. We need well-designed fiber and wireless systems in our communities, and communities that design for both will have a significant economic development advantage.
This article notes that the number of cellphone calls has declined in the UK for the first time ever, suggesting that the "newbie" period for cellphones is over. Since 1993, I have been able to observe the "newbie" phenomenon firsthand as new systems and technology are embraced by the public, and in fact, it is a well known process that is often ignored, strangely enough, by many in the IT business, who want to believe in endless growth and by extension, endless profits.
It never works that way, and the dot-com bubble was fueled by large numbers of new Internet users and a naive belief that there was a never ending supply of new users. Of course, there was not, and we all know how things turned out. Companies that had built vacuous business plans based on fantasy-based market growth collapsed.
It is good news that cellphone use is starting to level off. Most people that need or want cellphones have them, they work in most places, and the number of cell towers will start to level off. The article notes that text messaging is still picking up as many find that a useful alternative to the phone--less obtrusive and more immediate than leaving a voicemail.
It also means that the etiquette of using cellphones appropriately will start to solidify. With a decreasing number of new users who don't know the rules, we have a better chance of actually using cellphones more sensibly over time.