Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
Community leaders are often concerned about whether or not their citizens and businesses would actually use a community broadband system, with some justification--we do not have a lot of good data on community broadband projects. In the last couple of weeks, I have had conversations with leaders in two different communities who were concerned that too few citizens used the Internet to make the investment worthwhile.
But the thing to remember with Open Service Provider Networks (OSPN) is that the community is offering much more than Internet access. An OSPN network typically offers a wide variety of services, including telephony, TV programming, computer backups, home and business security monitoring, telemedicine, telehealth, online gaming, desktop computer management, and much more. So you do not have to "sell" people on the Internet at all. Even if you have a resident who loudly proclaims that they do not have a computer and have never been on the Internet, they are still likely to be a customer if you have an OSPN system in the community.
Why?
Take a look at VoIP telephone provider Skype's plans to offer unlimited calling to any telephone in the U.S. for $30/year. That is not a typo. If you bring Skype in as a provider on your OSPN system, you are not selling broadband at all. You are giving residents and businesses an opportunity to cut their phone bills by as much as 90%!
Given that service option, how many people would say, as you hook up the community fiber to their home, "I'm very happy paying ten times more for phone service, and am not interested in saving money?" If your community has high unemployment and/or a large elderly population on fixed incomes, saving several hundred dollars per year on their phone bills can be very significant. It frees up that money for other needs, and some of that money will be spent at businesses in the community, rather than typically being mailed out of state to a large telecom firm.
Selling only "broadband," or just Internet access, is not only old fashioned, it is not financially viable over the long term. We know better now, and the future for communities is to build digital roadways that offer citizens and businesses not just Internet access but a whole array of IP-enabled services that save them time, money, or both.
I probably need to start a whole new category of news items that just include iPod accessories. In fact, there are whole blogs devoted to just that topic. Here is the latest indication that the iPod continues to have continued influence on the whole economy. A company has designed winter gloves with special fingertips to make it easier to use iPod controls with the gloves on. The iGloves could be a perfect stocking stuffer.
According to this article, the state of California will make $460 million available for broadband in the state. $400 million is to speed up telemedicine uses, and will probably benefit hospitals the most, but the other $60 million is intended for accelerating broadband deployment. A broadband task force has been formed, but appears to be mostly industry insiders, who usually don't lobby for open service provider networks. What often comes out of these high level commissions and committees are special deals for business friends of legislators. Nonetheless, California gets some credit for at least recognizing the problem and putting some money behind it. It will be interesting to see what emerges in a year or two as the funds are disbursed.
A recent analysis of credit card purchases suggests that music lovers hate digital rights management (DRM), the software that tries to limit what we can do with our music and videos. The study shows that sales of digitally-protected music is dropping while online sales of CDs is increasing by comparison--meaning that we are still buying music, but prefer CDs that we can rip without limitations.
But this article, like so many others about the music industry, ignores what I think is the elephant in the room--that there is a shortage of good music to buy, and has been for years. As just one example of the completely backward thinking of the music companies, they are lobbying the online music sites like iTunes to increase the percentage of royalties paid to the music companies and decrease the amount paid to artists--even though the record company cost of distribution is essentially zero for digital downloads. That's just crazy; ultimately, if artists don't have some financial incentive to create new music, the record companies will have nothing to sell.
I have never seen an industry so determined to hate and vilify its own customers. Music sales are down, so it must be that customers are crooks--it could not possibly have anything to do with the quality of the music. Everybody I know, young and old, complains bitterly about the lack of new and interesting music, but it must be our fault for not buying the dreck that passes for popular music. It could not possibly be incompetent record companies. Music is not going away; music is something that is part of our DNA. Every culture in the world has a rich musical tradition, so despite the best (worst) efforts of the record companies to kill music, that won't happen. But one thing that could die is the current music and marketing distribution model. And that might be all for the good.
BusinessWeek has an article on outsourcing that has some useful insights in it. The good: Outsourcing does not always save time or money. As many of knew when the outsourcing craze began to heat up, it is a lot of work to manage workers on the other side of the world who are 10 or 12 hours out of sync with your own office hours. In India, where IT outsourcing has helped fuel the economy, rapidly rising salaries and very high turnover (often above 50% a year) is driving U.S. businesses away. Some of that work is coming back to the United States, and there are opportunities in low cost of living rural areas to capitalize--if you have a tech-savvy workforce and affordable broadband.
The bad news is that even though some outsourcing is moving out of India, some jobs are being moved to other low wage countries. What that means for the U.S. is that IT salaries are flat, and are likely to stay flat for some time. But I have maintained that many IT jobs have been priced too high for years--an artifact of the rapid growth in IT in the nineties. Some adjustments are not necessarily bad. But overall, we are in a world economy, like it or not, and your community is competing with other countries, not just the next county or the next state. And no matter how much local leaders may not see that or deny it, it is a fact. Every community in America has to be looking over its shoulder at the world economy now. We aren't in Kansas anymore.
This short article talks about the Google/Microsoft war, and suggests that Google may be winning. The theory is that Microsoft is way behind Google in being able to deliver Web-enabled applications. The author points to Google's still fledgling word processing and spreadsheet applications that run via the Web.
I am not so sure. Vista is going to be a very painful upgrade, and the high cost may drive a few more people to look at the Mac and Linux as alternatives, but Microsoft makes a lot of money in the corporate and business environment, and very few serious businesses are going to try to save a few bucks by using Google's free or low fee Web apps. Are you willing to store all your company secrets and financial information on a Google server that you do not control? It is not a likely scenario. Microsoft has the deep pockets to play a long game of catch up with Google, and another flawed assumption here is that Google is doing everything right. Google has already had several flops, and it still has been unable to significantly improve its search engine, despite the long lead it has had over competitors. This will remain an interesting horse race for a long time.
A Turkish company is about to release a device designed for home use that will monitor your heart. It has a USB interface so you can plug it in your computer to store the data and/or transmit it to your doctor. Small, inexpensive devices like this are going to revolutionize health care, and within ten years, I expect most homes will have an under $500 device that will provide most of the clinical tests you now have to go to a doctor's office for. We'll see a single, integrated device with an easy to use interface that will take blood pressure, heart rate, blood oxygen, EKG, blood glucose levels, and probably several other blood tests. In home data collection of transient health problems will make it much easier to diagnose many kinds of diseases, and will cut down on trips to the doctor.
In a widely reported story, a Danish study indicates a no more than normal incidence of cancer among cell phone users. Unlike many other studies, this one involved hundreds of thousands of people--a number large enough to make it statistically reliable. Researchers caution that the we still don't have enough long term data to know for sure that cellphones are completely safe. There is widespread agreement that cellphone and cordless phone frequencies in the gigahertz range do cause measurable changes in cell activity. What we don't know is whether or not this causes health problems. In the meantime, I'll continue to use a wired headset as much as possible (Bluetooth wireless headsets use microwave frequencies, so they are not an improvement).
I have been unimpressed with the in car navigation systems I have tried, mostly in rentals. Aside from the highly distracting nature of the devices, they are only as good as the data that they have. A case in point is the London, England ambulance crew that was supposed to transfer a patient to a hospital about twenty miles away. The crew, which was apparently new to the job, relied on the in-vehicle GPS system, which took them on a 200 mile trip because the data in the device was faulty. The crew was reprimanded and told to "learn to think for yourselves." Indeed.
A government study in Britain recommends Faraday cages for examination rooms. A Faraday cage is basically a metal-lined room that blocks all radio frequency signals. In other words, test takers won't be able to use their cellphones to text message friends for exam answers. The study also recommends scanners to detect MP3 players and other devices. It seems that some students are recording notes on their iPod and playing the content back during the exam.
I am less disturbed by the "new" uses of technology than I am about the apparent epidemic of cheating, which really has nothing to do with technology at all. Whatever happened to working hard and earning your way?