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

Rural Wireless--not traditional "high tech" businesses

USA Today wrote an article about a month ago that I just stumbled across that's worth a read if you live in a rural area. The article details some of the new breed of rural wireless ISPs (WISPs) that are changing the way broadband is delivered in rural communities.

I am constantly surprised at the number of people who believe rural farmers don't want or don't need broadband. It's a myth, pure and simple. An ag agent told me over a year ago that half the cattle in Virginia are sold over the Internet. I met a farmer in southern Illinois last year that had built his own WiFi network to connect up weather and moisture sensors on his three farms. As we sat in his 150 year old farmhouse, he pulled up real time weather information from his sensors; he checks moisture levels every day without having to waste time riding around--he is using technology on a family farm to be more efficient and increase production.

The USA Today articles chronicles the work of big and small wireless firms, with an emphasis on the small outfits. One used an old farm silo to mount the antennas that supplies broadband to his customers. Another got into the wireless business to sell off expensive excess bandwidth he needed to run his own business.

As you read this article, one thing you notice is that these are not typical Manufacturing Economy businesses. They are not building manufacturing plants and office buildings. They are not renting space in business or industrial parks. They are not even renting space in the local business incubator. Many are home-based.

Does your economic development strategy include: a) Identifying these businesses (clue: they aren't relocating to your area and are not in your business park), and b) Providing capital, business planning and management, and marketing assistance?

These are "classic" Knowledge Economy businesses; they don't fit any of the old business stereotypes. But they are creating jobs and income in rural communities, and providing a valuable service as well.

Hydrogen from sunflower oil

The Register reports on a new process to extract hydrogen from sunflower oil. It's potentially a breakthrough technology, because one of the drawbacks of hydrogen-powered cars is the difficulty of storing hydrogen. Using sunflower oil, scientists envision extracting hydrogen in real time from the oil while you drive your car.

The process is still expensive, but now that scientists understand the potential, it's likely that they will find ways to drop the price. It's just one more piece of the hydrogen economy, falling into place. Good news for northern Iowa, among other places (they grow sunflowers there). So rural Iowa may become an important part of the emerging Energy Economy. Who would have predicted that?

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TA Travel Centers map their WiFi

Dave Winer points out that the TA Travel Centers have provided easy Web access to their car/truck stops with WiFi.

As I mentioned in an earlier post, Winer is on a cross country road trip, and is choosing his evening stops based largely on the availability of WiFi, like so many other travelers these days.

The TA folks not only have a page of links, but each link takes you direct to more information about each page. Note that the location page and latitude and longitude on it. Why, you might ask? So that the ever-increasing number of cars and trucks with GPS-enabled travel direction systems can use that information to direct you right to TA Travel Center.

The TA folks get it--that travelers and truck drivers are jacked in and want to stop where they can get Internet access. How about your community? Have you mapped your hotspots? Is that hotspot map easy to find on your community portal? Have you provided GPS coordinates?

All this stuff is easy to do, and will provide direct benefits as more travelers stop in your community to spend their travel dollars.

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The changing economic development landscape

There is a mildly partisan op-ed piece in yesterday's USA Today about how jobs are and are not being counted in the U.S. Whichever side of the political fence you happen to be on, it's well worth a read. It does a nice job of summarizing the differences between the Payroll Survey (the traditional measure of jobs growth) and the Household Survey.

Briefly, the growing problem with the Payroll Survey is that it measures Manufacturing Economy growth (or lack of it). It measures only payroll changes. But in the Knowledge Economy, more and more workers are self-employed, and have little or no payroll. Many of these self-employed, if they expand, hire other self-employed workers on a project by project basis. This means that while they are providing employment for others, they are not adding to the Payroll Survey.

The Household Survey tries to take these other employment measures into account. Contrast the results of the two surveys in July of this year. The Payroll Survey reported an anemic 62,000 jobs added to the economy. The Household Survey reported a stunning 629,000 jobs added to the economy.

For communities, it is critical to understand the difference between the two and to adjust your economic development strategies appropriately. These numbers are nonpartisan statistics gathered by the Department of Labor. If you are measuring the success of your economic development program by the local growth of payroll jobs, you are missing (potentially) some 90% of the new jobs being created, based on the July numbers.

Are your economic developers shifting course and reallocating resources to better foster growth locally of self-employed workers, microenterprise businesses, and small business? If not, your region is at a major disadvantage--just look at the numbers.

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HP releases iPod

Today, HP put their iPod on sale. This long awaited product is licensed from Apple, and is very similar in appearance to the current, 4th generation iPod. HP has also released "Tattoos," which is an ink jet media that you can print on and then apply as a cover to your iPod.

The iPod continues to be a remarkable product with remarkable sales strength. It has spawned literally thousands of add-on products. Some of the most popular add-ons are small, portable speakers that usually have a dock of some kind for the iPod, creating a mini-stereo system.

Duke, which has given iPods to all 1600 freshman, has apparently created a lot of animosity among the rest of the students who did NOT get iPods.

Longtime readers know that I think the iPod represents the next generation of computing devices. Ten years from now, desktop and all-in-one computers will seem quaint; we'll all have a pocket size device that allows us to carry all our files, work, music, and pictures wherever we go--oh, wait, the iPod does that now.

Lost in the dizzying success of the iPod as a platform for music is the fact that the iPod is a fully programmable computer that comes out of the box ready to use as a calendar, an address book, and a file system (it also comes with some games). Load your desktop files into the capacious iPod, and then plug it into any Mac anywhere in the world, and you have your entire work life ready to use. Once you get back to your home desktop machine, plug it in again and it will automatically sync up all those files.

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Map your hotspots

Dave Winer, who in many ways invented blogging, is on a coast to coast road trip. Guess what his number one complaint is? How hard it is to find hotspots at night so that he can get online and take care of work.

Everyone I've talked to in the past couple of months has laughingly agreed that they no longer care about hotel chains, frequent traveler points, or the quality of the breakfast buffet. One road warrior summed it up this way: "I'll sleep on the floor in a sleeping bag, but I want broadband."

Hotels are catching on, and many chains now advertise their broadband access heavily. But others don't, and Winer's complaint is that it is too hard to find public hotspots. He wants local and regional maps he can pull up on the Web that identify where WiFi is available.

How does your community portal measure up? Can visitors quickly determine where the hotspots are in your community? How about your economic development Web site? Can your out of town relocation prospects find broadband access locations easily on your Web site?

A robust community portal, designed to meet the needs of visitors and economic development prospects, sends a strong message that your community "gets it." I still visit too many communities complaining about their lack of jobs and lack of economic development activity, but a quick check of the Web often reveals the following: no county Web site or a very limited one that looks like it was last updated in 1998; no community portal or a mediocre "tourist brochure" approach that is mostly pretty pictures and little information. Or the worst of all--dueling Web sites that all claim to be the "official" community portal. The latter situation is a clear signal that the community lacks leadership and direction.

The community portal is the world's window into your community. How your community portal portrays your schools, your civic organizations, your recreational activities, and the business life of your community counts. Disclaimer: Design Nine helps communities design and implement community portals.

VoIP getting even easier

Daily Wireless discusses a new NetGear home router product that has voice phone ports built in. NetGear is one of the biggest manufacturers of those cheap WiFi router/hubs that have been selling like hotcakes.

What's important about this is that it reduces the box count (and thereby the complexity) of the network in our homes and small offices. Stuff this like must strike fear into the hearts of the telcos; expect that two years from now, virtually every home router/hub will have phone jacks built in. Homeowners will be able to switch their entire set of home phones by simply unplugging the jack in the NIU (Network Interface Unit--the grey box on the side of your house) and simply plugging that wire into this NetGear box.

So we now have a sub-$100 box that provides broadband data and voice telephony. What's next? In a couple of years, we'll have the same kind of box with a coax connector on it to distribute television programming throughout the home.

AT&T still in the consumer market

This article [link no longer available] suggests I was write a couple of months ago when I said that AT&T still planned to offer consumer dialtone, despite their announcement that they were getting out of the consumer local and long distance market.

I suggested that this masked a push by AT&T to become a major VoIP player. AT&T is helping consumers who don't yet have a broadband connection to get one, using CableLabs' Web-based tool. This is a shrewd move, and VoIP may yet save AT&T, which over the past twenty years has made a whole series of poor business moves.

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VoIP saves small businesses money

Om Malik points to a story in the Tri-City Herald about the benefits reaped by a local small business that is using VoIP. A local florist with stores in both Washington and Oregon estimates that he is saving $100/month by using VoIP instead of traditional long distance services.

Economic developers can help small businesses grow and add jobs by helping them understand the benefits of VoIP and how to pick a VoIP provider. With existing small businesses creating most jobs, one of the best job creation activities ED folks can engage in is saving existing businesses money on overhead like telephone service. The savings can be ploughed into business expansion. How does your region rate on helping existing businesses expand? What programs are in place to educate and train busy small businesspeople in new technologies?

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Tapping our phones: A waste of time?

The New York Times (registration required) has an article this morning on the FCC's decision to require VoIP service providers to implement phonetapping equipment. There will be public hearings before a final decision is made, but if the Federal government proceeds with this, it will burden the nascent industry with large costs and it will be mostly for naught.

Wiretapping a Voice over IP phone requires much more sophisticated equipment than the legacy phone system, and indeed, the term "wiretapping" hardly makes sense, since with VoIP you tap packets, not a physical wire connection. Those costs will be passed directly to consumers, increasing the cost of VoIP services and slowing the potential cost savings to consumers and businesses.

If VoIP tapping is implemented, bad guys won't use it. They will, instead, use any of a myriad of point to point voice conferencing software packages that are already in wide use. It's a little less convenient, but beyond the control of the government to stop. Outlaw such software (very unlikely), and bootleg software to do that will quickly become an illegal business opportunity.

Like so many businesses and governments, the FBI and other Federal agencies have failed to adapt to a changing environment. One can only hope that the public hearings bring this out and save us from the expense, waste, and lost business opportunities.

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