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

Broadband: Why are prices going up when prices are going down?

Stop the Cap! has a great analysis of the slow but steady shift to usage-based charges for bandwidth. The wireless providers have been moving from unlimited data subscriptions to metered subscriptions for about a year. On cellular data networks, this makes a certain amount of sense, as the capacity of these wireless networks is extremely limited, despite the wild claims of "world's fastest wireless network" and the marketing hype of 3G, 3.5G, 4G, LTE, and soon to come, 5G, 6G, Infinity and BeyondG, and so on. But on wired networks, despite the increase in use by businesses and residents, prices for Internet connectivity in the wholesale market are dropping sharply, and more and more fiber is being built on inter-city routes that are making the drop in cost possible. So why are the retail providers shifting to metered bandwidth?

There are at least three reasons:

  • Because they can. The duopoly of the cable and telephone companies allows them to maintain cartel-like pricing in most markets because buyers of services have no other options.
  • Their old copper-based networks are overloaded, they won't admit it, and metered pricing is one way to force customers to use less bandwidth.
  • The cable companies are terrified of the shift away from TV towards video via the Internet. Despite the low margins in the cable TV business, cable subscriptions provide enormous cash flow for these companies and represent the core business. As more customers drop their cable subscription in favor of just keeping their Internet service, at some point this behavior introduces a death spiral for the cable companies, as switching to 100% video/TV from the Internet (see the Hulu announcements as one example) by customers simultaneously reduces revenue while putting more pressure on already overloaded and ancient, asymmetric copper networks.

The solution, as always, is to introduce competition via a single, high performance fiber network that is owned by the community and shared among all private sector service providers. That approach simultaneously eliminates limits on bandwidth while solving the service provider capital expenditure (capex) problems. Everyone wins in that scenario, but some companies would rather destroy the economic vitality of the communities they serve than change their outmoded business model.

Think this is all crazy talk? Read this comment from the article about Hulu changes. This is happening every day.

We cut the cord to conventional TV a year ago and have never looked back. All of our content now comes from Hulu, Netflix, and YouTube. I do subscribe to Hulu+ and Netflix, effectively turning what used to be a $120 per month charge into a $20 per month charge. We view most content on our TV via an AppleTV, and the remainder is viewed using iPads. This setup is working well for us.

$120 a month to $20 a month...that's the death spiral I mentioned....

Technology News:

Camino Coop: Make room for community broadband

The Camino Fiber Network Cooperative, located in a rural part of California, has filed an excellent brief with the California PUC. It does a superb job of providing short, concise answers to a whole range of questions regarding state and Federal utility policy and its effects on local and regional community broadband efforts. This should be distributed and read widely by any locality or community group that is engaged in developing community-owned broadband infrastructure. For convenience, I have also attached a copy to this article.

AttachmentSize
PDF icon Camino_CA_PUC_brief.pdf400.06 KB

Technology News:

Engineers and scientists apologize for the Super Bowl half time

On behalf of all the engineers and scientists that invented and then perfected all the technology on display at the Super Bowl half time, let me apologize. The fact that you CAN suit up several hundred people in radio-controlled LED light suits and send them prancing around a football field does not mean that you SHOULD. And the fact that you can put lampshades on the heads of some of those, uh, "dancers" and have them prance around behind Black Eyed Peas does not mean that you should.

It is hard to decide what was worse: the abuse of technology, or the millions of gallons of ear bleach needed by those of us who perversely refused to turn the sound off during the half time performance. If nothing else, it is now established that all four members of Black Eyed Peas can't do that thing with their throat and lips that some of us call, um, "singing."

Technology News:

Is the cloud a force for political empowerment

SandMonkey, a prominent Egyptian blogger who was briefly detained by Egyptian security forces, advocates that opponents of repressive regimes should store all their documents, writing, and information (e.g. email addresses and data on compatriots) on a cloud-based service located in a different country. That way, if a laptop is confiscated, there are no incriminating documents on it.

It's a fascinating view of an emerging technology, and of course, terrorists can do the same thing. As always, technology is politically neutral. But there is no doubt that bloggers and the technology of the Internet is changing politics, mostly for the good, by making it harder to hide graft, corruption, nepotism, and incompetence.

Technology News:

Community news and projects:

Knowledge Democracy:

Private search: An idea whose time has come

It was inevitable that someone would see a business opportunity by providing private search. Starting Page is a search engine that promises to keep your searches private, unlike Google, Bing, and others that build dossiers on what you search for. The search data is sold to third parties and is also used to target ads. I've written recently about how an hour of searching for camping items resulted in weeks of ads about camping stuff.

We are still in the Model T era of the Internet, with lots of evolution and innovation still to come. Starting Page is not the first search engine to challenge Google, and it won't be the last. But Internet time passes quickly, and if people decide they have had enough of Google, "enough is enough" will come quickly.

A few experiments with search phrases seems to deliver just a couple of pages of very relevant results, and those results are refreshingly free of link farms and "shopping" sites, which Google now seems to favor. That's my beef with the bigger search engines (Bing also favors link farms, although not quite to the extent of Google, in my experience). Most of these "make money on the Internet" schemes are focused on building sites on specialized topics that have a broad interest (e.g. "camping and hiking"), adding a thin veneer of content (frequently stolen from legitimate sites), and then larding up the site with ads and links to bigger shopping sites. In theory, you could make some money with this approach and provide some useful content, but most of the sites are rubbish. Nonetheless, since they are hawking ads, the search engines happily put them right at the top of the search results. What gets lost are the legitimate blogs and topical sites, which end up far down in the search results. So good luck to StartingPage; I hope it does well. We need it.

Technology News:

Knowledge Democracy:

Bandwidth boost for southwestern Virginia

The Roanoke Times ran an article yesterday (Sunday) in the business section on two stimulus projects building fiber in the Blacksburg-Roanoke region. The two middle mile projects are not linked to any comprehensive last mile efforts, which is also the challenge for many stimulus-funded middle mile projects in other areas.

Technology News:

Community news and projects:

USB wall socket now shipping

I wrote about this little device a while back, but it is now available for order. I'm thinking about getting a couple for the house, to replace existing wall sockets where we tend to drop our iPhones and iPods at the end of the day. This USB wall socket has two standard 120 volt AC outlets and two powered USB outlets. So you don't need chargers cluttering up your sockets. And of course, it can charge any device that has a USB charging option.

Technology News:

The Daily will sell for $1 per week

The Daily is the new online newspaper that will be designed expressly for the iPad and other tablet devices. Developed by The News Corporation, the weekly subscription will be priced at 99 cents, or about $4 per month. By comparison, many newspaper subscriptions are closer to a dollar per day. I have long maintained that the extremely low cost of online distribution of content, even for video, should drive subscription prices down, but most newspapers and magazines have stubbornly kept their online subscriptions close to the cost of the dead trees subscription out of fear of cannibalizing the old media version. But The Daily has no old media version to worry about, and I expect it will be very popular. And with its success, we will see lots of other start ups jump in with similarly low cost online-only subscriptions. And perhaps we will finally see some of the old media adjust to the new reality.

Technology News:

Knowledge Democracy:

Evoke Flow rethinks radio

The Evoke Flow is a new take on what a radio ought to be. While it's nice to have fifteen thousand songs on your home computer, it is not always handy or convenient. Even if you have some of the gadgets that let you stream the music around the house, many of those still require fussing at your computer (some need more fussing, some need less). The Evoke Flow looks like an old sixties AM radio; the form factor includes a handle to encourage you to carry it around the house. It supports three kinds of content: traditional FM radio, Internet radio stations, and streamed content from local computers (e.g. iTunes music libraries). It has a mono speaker, so it's not designed to provide room-filling stereo. Instead, the emphasis is on portability--listen in the kitchen, on the deck outside, in the den, in the bedroom. It's a neat idea, and based on this review, the product still has a few rough edges. For example, it seems odd not to include AM radio, and it would not have been expensive to add a second cheap speaker and provide low fidelity stereo. And it would appear the attempt to provide a simplified "retro" look created some difficulties using the controls effectively. I think we will see more products like this, and the maker of the Evoke is a firm called Pure, which has several other similar products.

Technology News:

Is social media a fad? Required viewing for all elected officials....

This video, while it has a advertisement for the book Socialnomics at the end, is an extremely compelling look at how social media is changing the way we communicate. Some of the statistics include:

  • 96% of young people (the Millennial generation) have joined a social network
  • It took 38 years for radio to reach 50 million users. It took the Internet 4 years to reach 50 million users. Facebook added more than 200 million users in less than a year.
  • More than 1 billion pieces of software (apps) were sold for the iPod/iPhone in less than one year. Note that this kind of business did not exist four years ago.
  • 80% of businesses use Facebook for recruiting employees, and 95% of those firms use LinkedIn.
  • The fastest growing group of Facebook users is in the 55-65 year old group.
  • YouTube is the second largest search engine in the world, with 25+ hours of video uploaded every minute.
  • There are 200,000,000 blogs, and 34% of bloggers write about products and brands.

The lesson for communities is that local leaders need to understand the change in communications strategies by young people and ensure that the infrastructure is in place to support these new modes of communication. Rural communities do not have the luxury of complaining that their young people are growing and leaving, never to return, while simultaneously refusing to make the infrastructure investments needed to keep and attract young people, young couples, and families.

Technology News:

Knowledge Democracy:

Pages

Subscribe to Front page feed