Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
The Consumer Electronics Show is in full swing in Las Vegas, so there is a flood of new gadgets. One that caught my eye is iRobot, made the company that produces the very popular Roomba vacuum cleaners and sweepers. iRobot is a round, low mobile base with interfaces that make it easy to add all kinds of, well, robot type stuff. You really need to look at the pictures to get an idea of what is possible.
I'm not sure anybody really needs one of these things, but it has a certain appeal. Viewsonic has a new LCD projector with an iPod dock. What this means is that it is very easy to play video (stored on your iPod); you no longer have to do the cables and laptops and power cords dance just to play a video. You should also be able to do nice slideshows of your still photos stored on your iPod, again without all the fuss of hooking up a laptop computer.
Viewsonic is thinking outside the box, and they have a companion LCD monitor that is really pretty neat--it goes a long way toward cutting down on desk clutter. The ViewDock monitor line has a nice LCD monitor, of course, but also comes with an iPod dock (cross off one USB cable), integrated speakers and sub woofer (cross off a bunch of audio cables and a power supply), an eight in one card reader (cross off a USB cable and the card reader hanging off the end of it), a microphone (cross off another audio cable), and what looks like three USB 2.0 ports (get rid of that USB hub, cables, and power supply). Now if it had an integrated Web cam, it would be nearly perfect.
Speculation has been raging for weeks that Apple will announce some kind of phone/iPod device tomorrow at the start of the MacWorld conference. You have to take Apple speculation with a grain of salt, since so many writers tend to have some kind of agenda with Apple. Just weeks before Christmas, journalists were writing excitedly that the famed iPod and the iTunes Store were in steep decline, citing suspect data that supposedly showed iTunes sales had dropped drastically.
Two days after Christmas, the media was full of stories about how the iTunes store buckled under the load as millions of iPod owners and iTunes gift card recipients tried to buy music. In the run up to Christmas, iPod accessories like chargers and cases outsold rival MP3 players on Amazon.
So tomorrow we may (or may not) see another Apple device that could, um, upset the apple cart. An Apple-branded phone with iPod and iTunes integration would be popular, but would be competing on a very crowded field. However, some analysts believe Apple may introduce something entirely different: a handheld pocket computer running the full OS X operating system that also doubles as a phone and an iPod. There is not much hard data to support that, but it is the kind of device that would change everything, just as the iMac and the iPod did. Tomorrow may be an interesting day.
Microsoft has officially blessed IPTV by announcing that the next XBox revision would be able to act as an IPTV set top box. Content will be provided by certain broadband providers like AT&T and BellSouth. If this sounds like a marriage made in heck, it probably is. The most likely reason Microsoft has made this announcement is to try to counter the buzz that will likely emerge on Tuesday (January 9th) when Apple announces its own set top box. Apple provided a peek at this device months ago, and some analysts think it may make its debut tomorrow at the start of the annual MacWorld Conference. Others think it may not show up for a couple of months.
There are two things worth noting in these new product announcements. The first is that the industry is moving quickly toward IPTV using an HD format, meaning that if you want to watch anything, you will need an excellent broadband connection. You can't squeeze even a single channel of HD TV over today's DSL and cable modem systems without seriously degrading the image quality.
The second thing is the evolution of TV and the ongoing fight between the computer as TV and the TV as computer. Microsoft's model does not make much sense (the company sees the computer as the TV) because it means you have to have a very expensive box next to the TV. Does it really make sense to put an XBox costing $400-$500 next to every TV in the house? Apple's model is less expensive and should be much less confusing to use and to manage. You can have one computer, located anywhere in the house, that stores and manages video programming (using iTunes), and you can send the video program anywhere in the home using a cheap Apple set top box.
The cable companies and IP TV providers are also crafting solutions, but the cheap set top box is likely to win this war.
GM may be poised to pull an electric rabbit out of its hat that could save the company. The car manufacturer has provided a preview of the Chevrolet Volt, an electric hybrid that has a good chance of beating the Japanese electric hybrids at their own game. GM has done something that is blindingly obvious, but for some reason has been avoided entirely by the Japanese carmakers: make an all electric drive train.
Hybrids like the popular Prius have both a gas engine and an electric motor, and either device can transmit power to the wheels. This improves performance somewhat. But it makes the car much more complex, with a dual power input drive train, and the complexity makes the cars pricey. But GM picked a much simpler design. The Volt has an electric motor to drive the wheels, and a gas engine that only charges the batteries. So the car has fewer parts, less weight (good for mileage and performance), and should be much less expensive. The car can go about forty miles on batteries alone, and according to GM, half the country has a daily commute of less than twenty miles, so a single charge can get you to work and back. If you do need to drive further, the electric generator kicks in to charge the batteries while you drive, extending car range to about 600 miles, at 50 miles to the gallon, according to GM.
You can also plug the car in the wall at night and charge the batteries that way, which might be less expensive if gas prices climb again.
This car could be a big winner for GM, and the Volt could end up being nearly everyone's second or third car. What would be really smart is if the company offered a stripped down version that lends itself to being modified by hot rodders--bigger electric motors, high powered batteries, "hot rod" computer chips, big sound systems, and all the other mods that would harken back to the nineteen fifties when it was a rite of passage to soup up a basic GM automobile.
Update: Reader Ed D. has provided another link with some pictures of the car.
In the "Not sure whether to laugh or to cry" category, MapRoom has stories of people following their "smart" GPS directions to ridiculous places. One German driver ended in a railroad station--with his car on the tracks.
Getting fiber to the premise (FTTP) is always a challenge. In many communities, there is not space available on aging telephone poles, or the incumbents try to charge exorbitant make-ready fees to hang a thin fiber cable. Trenching is an alternative, but that can be more expensive and disruptive. CableRunner now offers an interesting alternative, which is to use existing sewer and stormwater drain infrastructure to run fiber through neighborhoods and into homes.
CableRunner's highly automated technology to mount fiber cables and junction boxes to the sides of sewer and drain pipes was pioneered in Vienna, Austria, where they have been doing this successfully for fifteen years. Vienna has a major project underway right now to provide fiber to every home and business in the city, and many of the cable routes are through existing infrastructure. Paris is also beginning to do the same thing
And there is one more thing. Vienna's project is an Open Service Provider Network (OSPN) that will offer the city's residents and businesses a wide choice of services with multiple providers in most service categories. It is just one more reminder of the global competition today: a city taking fiber to every home and business using an open access model. Vienna's goal is to be the best connected city in the world.
What is your community's telecommunications goals?
We are in the January technology doldrums. New product announcements won't start to appear for another couple of weeks, and communities with projects underway need a couple of weeks back at work before moving forward. 2007 predictions articles are popular, with most of them listing the "top ten" trends for the year, or something like that. Most of the speculation is pure guessing, and hardly worth commenting on.
I have only two predictions for 2007. First, we will see some communities in the United States roll out true open service provider networks (OSPNs), where any and all service providers are invited to offer services on a level playing field. In those communities, we will see telecommunications costs drop by an average of 15% to 25% across the board, resulting in substantial savings for local governments, which will spend fewer tax dollars on telecom. Businesses will also be big winners in those communities, because money saved on telecom can be used to expand the business and/or create new jobs. And residents will also see savings that can be used for other purposes. Those communities will be particularly attractive to relocating businesses and entrepreneurs, because affordable broadband lowers the cost of doing business. And there is data to back this up. A CMU/MIT study released last year showed that communities with affordable broadband experience a higher rate of economic growth.
My second prediction is that many communities are going to be left behind, largely because local leaders are afraid of broadband and simply choose to wait. The longer that communities put off making investments, the harder it will be to catch up later.
Arguably, there are way too many college football bowl games. If you just don't have time to watch them all over the next three or four days, don't worry. You can watch them via the Internet. All of the bowl games are going to be available on the iTunes Store and other online media stores within 24 hours of each game's finish. It is one more sign that cable and satellite TV as we know it are nearly dead. It also indicates that we are going to need a whole lot more bandwidth than we have right now.
One big change in the switch to an all IP-based telecommunications system is that businesses may see lower taxes. Franchise fees, carrier line assessments, subscriber line charges, and other state and local telecom taxes often add up to nearly 50% of the cost of a business telephone line. Most or all of those charges disappear when a business switches to VoIP. Local and state governments may not like that, but over-taxing businesses just makes local businesses less competitive in a world economy (it is not accident that Asia is roaring ahead economically--business taxes in high growth Asian countries are usually much lower than in the U.S.).
High business taxes on essentials like phone service simply leave businesses with less money for new jobs and business expansion. Government can't have it both ways: high taxes on businesses and good economic growth.
But community broadband does not mean local governments have to give up revenue from telecom. Just the opposite is true. By designing a fairly structured open service provider network, more telecom users pay for the cost of right of way and community infrastructure, and the cost of providing the network (and some fair return to a government's general fund) is more evenly applied across the community, with a lower burden for businesses. As a bonus, the open competition of an OSPN community system tends to lower telecom costs for business.
With an open service provider network, everyone wins. Businesses get more and better telecom services at lower costs while paying lower taxes, citizens and local government pays less for telecom, and local government actually gets more revenue than it would with the crazy patchwork set of taxes and franchise fees in use now.
Sound interesting? Call us to talk about doing a financial engineering study of how your local government would benefit financially from an OSPN community broadband system.