What a surprise: Higher prices dampens sales

In a shocking discovery, music publishers have found that the law of supply and demand works. Apple loosened up pricing rules for music on the iTunes Store last year. Record companies immediately raised prices. Buyers immediately bought less music. The record companies are shocked, shocked that buyers don't want to pay more. What could have gone wrong? Higher prices signal less supply, and in turn, demand tends to drop.

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Portland City WiFi Being Dismantled

The City of Portland, Oregon's municipal WiFi experiment is coming to an end. It was a public/private partnership between the City and a firm called MetroFi, which reportedly spent between $2 million and $3 million to build the network. But it never worked well, and residents reported it did not work well indoors. MetroFi went into bankruptcy in 2008, and the hundreds of antennas that were mounted on City property are now being removed.

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Agency model = Revenue share

Apple, as the company has in the past, has begun to upset, er, apple carts. With the announcement of the iPad, Apple also announced a book section in the iTunes Store, with a business model that is exactly the same as the hugely successful music model they use. For both books and music, Apple will collect 30% of the sales price of the item, and the publisher/seller collects 70%. The seller of the item sets the actual price. This is called the "agency model."

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New Hampshire towns demand right to control their economic future

A coalition of New Hampshire towns and other interested parties are encouraging state legislators to give New Hampshire towns and cities the right to bond for telecommunications infrastructure. Unsurprisingly, the incumbent providers are not excited about the notion, even though largely rural New Hampshire has tens of thousands of residents still on dial-up and one of the providers is having severe financial difficulties. The towns see it as an issue of economic survival.

Community news and projects:

Is the iPad designed for kids?

The iPad continues to generate enormous discussion on the Intertubes; while I have seen a lot of commentary about how it might be used in higher ed, I have seen very little about how it might be used by kids. The most obvious higher ed connection is as a replacement for textbooks, which are murderously expensive. A college student with an iPad can carry around an entire library of textbooks and should be able to save a lot of money at the same time.

The third way: Why open access networks work

I receive a lot of inquiries asking for help understanding open access. The broadband stimulus funding has raised awareness of this business model, and I have written a short paper explaining how it works and why. The PDF is attached to this article, or you can visit the Design Nine Web site to download it.

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Broadband Information:

How Apple's tablet could change things

A short, good analysis of six industries that Apple's tablet computer could change. Apple is expected to roll out the device next week.

First round stimulus rejection letters in the mail

Some applicants for first round broadband stimulus funds report they have received their rejection letters today (1/25/2010). It does not appear that the letters provide any information about why an application was rejected, other than to note that it did not score high enough.

USDA/RUS releases additional broadband stimulus awards

USDA/RUS has announced an additional $313 million on stimulus funds, going mostly to rural telephone company projects.

Intelligent Community Smart 7 awards announced

The Intelligent Community Forum announced their Smart Seven communities for 2010 yesterday.

One of Design Nine's projects, nDanville, was one of the ICF's Smart 21 communities this year, and got a mention for its success in attracting new jobs by building community fiber.

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Are broadband investments peaking?

A story in the Financial Times (registration may be required) suggests investments in broadband are peaking. The article is a little misleading, because it suggests that this is a sign of "maturation." Maybe. Maybe not.

Technology News:

Broadband helps job seekers

A new study by the Phoenix Center indicates that job seekers with access to broadband are more likely to find jobs. The study says it best to have broadband access, but even those still stuck on dial-up do better in their job searches than those with no Internet access at all.

Technology News:

Google's phone no match for cellphone contracts

Steven Levy has a Wired article that illustrates some of the problems that Google, and by extension, all cellphone users face. The new Google Nexus One can be purchased unlocked and without a cellular contract. You can then (in theory) go to any provider and get a service contract.

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Benton Foundation Municipal Broadband News

I have added the Benton Foundation to the blogroll on the right. Benton has been posting some very useful items on community broadband and municipal broadband projects.

Technology News:

How about 100 meg symmetric connections for $13/month?

Hong Kong Broadband Network Ltd. is offering 100 megabit symmetric connections to its customers for $13/month. Costs are going to be lower for them because most of the customer base is living in high rise apartment buildings, which are less expensive to cable. I don't know about Hong Kong, but in Japan, the building codes require telecom duct to every apartment from the ground floor, meaning it takes under an hour to run fiber to a new customer in a Tokyo apartment.

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Community fiber should be locally controlled

Chris Mitchell of the Institute for Local Self-Reliance has an excellent article on municipal and community broadband at Ars Technica. Mitchell discusses some of the positive outcomes from the Lafayette, Louisiana municipal network, where you can get a 50 megabit symmetrical Internet access connection for just $58/month--which would qualify it for the lowest prices in the country.

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Clash of the titans: Apple and Google

This article from MacWorld does a nice job of highlighting the emerging class of the titans. Apple and Google are ramping up for an epic fight, and we all win when two big companies compete for marketshare.

Technology News:

Will the iTablet finally bring true data roaming?

New rumors about the Apple iTablet (or iSlate, or iSomething) suggest that it may come with 3G wireless network access built in. Big deal, since all smartphones already have this, right? No, the rumormongers are suggesting that iTablet owners will be able to pick and choose from several different cellular providers--but only for data, not voice.

It is likely that current cellular roaming agreements that make it possible to use your cellphone on any network would be modified to allow data roaming independent of voice contracts.

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Apple's iSlate (or iTablet) is going to transform publishing

Here is a roundup of rumors about the new Apple tablet. Apple has announced a media event late this month, but is not saying what the announcement is about. Until very recently, most pundits were guessing Apple's table computer would not be announced until June of this year, but I think the increasing interest in the Google Android phone may have caused Apple to move up their announcement to suck all the oxygen out of the room and take the media focus off Android.

Knowledge Democracy:

Orem City saves $50,000 per month with community broadband

Via MuniNetworks, a link to a podcast that describes how Orem City, Utah is benefiting from the open access, open services, community-owned Utopia network. Local governments in Virginia that have invested in open access, open services networks are also benefiting in the same way.

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