Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
Another study of study of tumors caused by cellphones has produced a conclusion that suggests an increased incidence of a rare kind of tumor called a glioma on the side of the head where the cellphone is used most. The study was done in Finland with people that had the rare kind of tumor, and their cellphone usage was compared to those who did not have tumors. Long term users of cellphones (more than ten years) had a higher risk of developing the tumor.
It is electric power that will be driving the Energy Economy. The President's goal of reducing gasoline use by twenty percent will be achieved by electric cars powered by electricity, rather than by biofuels. Ethanol and other fuel alternatives like fuel cells will contribute, but the first company that delivers a rechargable electric vehicle at a reasonable price (under $15,000) is going to sell a bunch of them. This will have dramatic effects on many other sectors of the economy, and in unpredictable ways. New battery designs will accelerate the development and sale of rechargeable electric cars.
For example, the recent spike in fuel prices actually caused a reduction on fossil fuel use in the U.S., the first such reduction in many years. So we know now that when gas goes over $3 a gallon, people and businesses change their driving habits--so much so that the price of oil dropped in part because of reduced demand. As electric cars become popular, we will see more kinds of market dislocations.
One interesting challenge will be the ability of electric utilities to meet the demand to charge electric cars. In the short term, this is not likely to be an issue, as much of that charging will take place at night, when demand is low anyway. But it is not hard to think of some changes that may take place. For example, some utilities already at capacity may have to raise rates to meet demand. Other utilities with active power management via fiber to the home may be better positioned to manage the new demand to charge cars and may actually be able to lower electric rates or keep them level. And communities with reliable and resilient electric power may become magents for Knowledge Economy businesses that need that kind of power to run their servers--and to charge the cars of employees living there.
Note to economic developers: one of the oldest utilities is about to become very important again. How does your community and region measure up?
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Andrew
Verizon wants to be deregulated in Virginia for phone service. The company asserts that there is ample competition and that the company should no longer be forced to charge set prices for certain services.
What struck me was the note in the article that the company submitted 2,400 pages of "documentation" to prove its case. If the situation is as obvious as the company asserts, why so much paper? The article leaves some questions unresolved. For example, some phone users get service from a third party like AT&T but that service comes in over Verizon lines. My guess is that in its request, Verizon is counting AT&T as a competitor, but if deregulation occurs, Verizon could raise the rates on its wholesale access to the point that it is no longer profitable for companies like AT&T to do business. This is exactly what happened when price controls were lifted for DSL; across the country, virtually all the third party DSL providers, who had really created the market when the phone companies avoided it, went out of business, leaving the field to the incumbents.
Should Verizon be unleashed? It is likely to be a painful pill in the short term, but partial regulation (of some companies and not others) creates market irregularities that keep communities chained to old technology. In the long term, the best answer is open service provider networks that let any company use the community's digital roads to sell goods and services (and no, the government won't be competing with the private sector). Verizon, among others, could use those community digital roads to keep existing customers and to attract new ones. And prices would go down across the board.
There is a lot of confusion about the "right" approach to community broadband, and part of the problem is a lack of clarity about the meaning of "open access" systems. At a high level, open access refers to a network that allows multiple services providers to compete for customers--the right way to do things, as opposed to closed networks typically offered by incumbent telephone and cable companies, who do not want competition (rightly so, from their perspective) on their own infrastructure.
The problem is that there are two common ways of implementing open access systems. The open access "wholesale" model is implemented using Layer 2 network protocols. Using the road analogy, it is as if the community built nice paved high speed roads but did not paint any lines on the roads and did not provide any traffic signals. Each company using the digital road system has to have their software and systems to get packets from their servers to their customers, typically using something called VPNs (Virtual Private Networks). The problem is that lashing up multiple VPNs to a customer (a VPN for phone, a VPN for video/TV, a VPN for Internet access, a VPN for some telehealth service, and so on) creates a lot of overhead and complicates troubleshooting if something is not working. It also raises the cost of service, since each service provider has to provision their own network management system.
An Open Service Provider Network (OSPN) is a different kind of open access system that uses Layer 3 protocols that are managed by the network owner/operator. So every service provider gets to use a single, common network management system. This lowers costs for the service provider (a very good thing), makes it easier for small service providers with new, innovative services to get started (they don't have to have their own network management system), and greatly simplifies troubleshooting.
Everybody wins with an OSPN system because it lowers costs and encourages competition--giving telecom users more choice among providers, more choice of services, and lower prices. When vendors come calling, ask if they support Open Service Provider Networks with full Layer 3 end to end service provisioning. There are two vendors that already do this: Packetfront and WaveTeq. Disclaimer: Design Nine has recommended these vendors to some of our clients.
The Wall Street Journal had a brief note about Google's new search engine, called SearchMash. It does what a lot of other search engines have been doing for a while, which is to provide more targeted results, with links to images, video, blogs, and even Wikipedia articles. A few cursory searches seems produced better results with less junk than I usually see in the first few pages of a Google search. SearchMash is also ad-free for now, which is a nice benefit. It is about time Google started to defend its home turf. For some time, I have been going to Ask.com more often than I go to Google. Dogpile, despite the name, also does a pretty good job of finding stuff, and has the benefit of searching several engines at once.
The Apple iPhone is being widely criticized for having relatively slow data service (about 256 kilobits/second) compared to Verizon's much speedier EVDO data service, which can run two or three times faster. The wireless wars have whipsawed back and forth over the past several years. Four or five years ago, many of us, including me, were enthusiastic about the potential of WiFi winning the wireless connectivity wars. But as the shortcomings of WiFi became clearer, Verizon began deployment of their EVDO wireless technology, which is piggybacked on top of their existing cellular network.
As we know from the famous Betamax vs. VHS war, the best solution does not always win. About a year ago, I began thinking (reluctantly) that perhaps the inferior EVDO system might win the mobile wars. But things are beginning to swing the other way. Verizon, following the Microsoft playbook, has made EVDO data service pricey, and EVDO is not really fast enough to handle all the things we will want to do in just a few years with our wireless devices.
So what does this have to do with the iPhone? At least one expert thinks Apple is smarter than Verizon (I know, that is setting the bar really low). Apple has used the more common and less expensive EDGE data technology in its phone to keep the price down. But it has also built in WiFi support--Verizon, by comparison, usually cripples WiFi in phones it private labels so users are forced to use the more expensive EVDO.
See the pattern? Apple expects that the winner in the wireless wars will be IP based services like WiFi and WiMax. Verizon thinks they can force everyone to purchase their one vendor only EVDO solution. It would be a mistake to bet against Apple: here is an incomplete list of technologies that Apple has pioneered that later became industry standards.
Apple seems to have a lot of cards it has not yet put on the table when it comes to the iPhone. The next couple of years will be interesting.
First, AT&T and the regional Bell Operating Companies (RBOCs) were split up in 1984. Who knew then that there was a twenty-five year plan put into effect to put it all back together again?
Then, just a few years ago, AT&T Wireless was sold off to SBC, which merged it with Cingular, which was a jointly owned company (SBC and BellSouth). Then SBC bought what was left of AT&T and the SBC name was dropped in favor of AT&T. Then the new AT&T bought BellSouth. Now the Cingular name will be dropped and the cellphone service will be re-branded "AT&T."
The iPhone (picture gallery) utterly changes everything notion we have had about what constitutes a phone/PDA. Like many of Apple's previous design efforts, it will force every other portable device maker to rethink their own designs. But I think Apple has made one mistake that will really limit the potential of the device.
Apple is going to market this as a closed platform, meaning users and developers will not be able to install their own programs and software. There are few forces in the universe more powerful than thousands of nerds writing new applications, and Apple, by trying to control what people are able to do with the iPhone, is making a mistake. The iPhone is pricey, and will certainly be a status device, but a lot of people simply won't bother if they can't adapt such a powerful tool for new uses. As nice as the product is, I'll stick with my Treo, where I can pick and choose what I want to put on it.
As expected, Apple is showing off (as I write this, the keynote is still in progress) the Apple iPhone. It is a combination phone, iPod, and desktop computer, running Apple's flagship operating system, OS X.
At the risk of being boring and/or repetitive, this changes everything, and just made every other cellphone obsolete. Palm is in deep deep trouble.