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New Players in Broadband Wireless Market?
Rumors are flying that when the FCC auctions off a portion of the analog TV spectrum on January 16, 2008, we could see some new players in the broadband wireless market, including Google, eBay, DirecTV or even Apple. The 700Mhz spectrum auction requires a $4.6 billion minimum bid, and is expected to bring in $9-$10 billion, so the auction players will have to be well capitalized. This spectrum will allow a wireless broadband signal that can be faster than 3G cell networks or even WiFi, and, like broadcast TV performs now, it can penetrate buildings and cover the entire nation. The question is whether new entrants would want such a gigantic new service added to their core business—it could be a distraction, to say the least, and would also require a potentially risky investment in capital infrastructure. But some people say this is a “once in a lifetime” opportunity that could completely transform the business of the auction winner. Peter Burrows at BusinessWeek speculates that Apple —which has plenty of cash—could start its own high-speed network for iPhone customers, vastly expand its reach for iTunes customers who could download music, movies and TV shows anywhere, and cut the tether with AT&T or any other traditional telecom provider. The economics might even work out, because the telcos’ attempt to get fiber to homes is costing them tens of billions of dollars. But would Apple, or Google, want to take on such a huge and different kind of business?
Seattle Times: FCC Has Failed the People The Seattle Times, in a strongly worded editorial on September 10, 2007, said, “The Federal Communications Commission has failed the people and the democratic system it is supposed to protect.“ The editorial, part of the newspaper’s series called “The Democracy Papers,“ went on to say, “America’s press, and other sectors of the media, will continue to be marginalized unless politicians act on the currents of energy created by the growing media-reform movement. Politicians, both Republicans and Democrats, should push back on the FCC.“ The newspaper identified three areas that need attention by concerned citizens:
The editorial concluded, “It is time the FCC acted in the best interests of the people it was created to serve, instead of large corporations.“
Cable TV Launches $200M Ad Campaign on DTV Transition The National Cable and Telecommunications Association, the industry group for cable TV, launched a $200 million ad campaign to tell consumers that if they have cable TV, they will have no problems when the U.S. switches to digital TV in February 2009. The new TV ads can be seen here. UPDATE: Consumers Union has a different take on these ads, pointing out that cable customers will probably have to upgrade to more expensive digital service and buy or rent a converter box for their television.
UT Austin to Launch Belo Center for New Media The Belo Foundation of Dallas has given the University of Texas at Austin a $15 million gift to help launch the Belo Center for New Media, which will be built on the site of a current parking lot, across Dean Keeton Street from the College of Communications. Construction for the $35 million complex is expected to begin in January 2009 and take two years. It will expand the facilities of the College of Communication and feature state-of-the-art classrooms, labs, production facilities and auditoriums for performances and film showings. The College’s promotional brochure for the Center (a PDF file) says that the goal is for the Center to become “the premier center for research and teaching on media convergence in the United States.“
Dept. of Justice Opposes Net Neutrality In an unusual move, the U.S. Department of Justice issued a press release on Thursday, September 6, that described the DOJ’s opposition to regulations that would require “net neutrality.“ The document says that the DOJ’s Antitrust Division has determined that “‘net neutrality’ could deter broadband Internet providers from upgrading and expanding their networks to reach more Americans.“ The DOJ press release compares differential pricing on the Internet to differently-priced modes of delivery offered by the U.S. Postal Service. As Om Malik notes, however, the USPS is confronted in its marketplace by FedEx, UPS and DHL, among other mail and package carriers, while U.S. broadband consumers typically have no more than two service providers to choose from, and in many areas only one. Moreover, the Postal Service doesn’t examine what you’re sending and make decisions based on what they see you’re doing, the way some “net neutrality” proponents predict telecom companies will act—e.g., blocking certain kinds of services (competing Voice-over-IP, perhaps peer-to-peer file sharing), or “steering” service requests to specific online partners or even their own online sites.
How PDAs are Saving Lives in Africa UN Dispatch, a United Nations publication online, features an article titled “How PDAs are Saving Lives in Africa,“ by Joel Selanikio, MD, co-founder of DataDyne.org. Dr. Selanikio writes:
AP: FCC Policies Leave Public in the Dark The Associated Press released an article saying that the Federal Communications Commission’s procedures have routinely left the public in the dark about major policy decisions. The article described FCC Chairman Kevin Martin’s recent steps in preparing a plan for the auction of spectrum in the current analog TV band, an auction scheduled for January 16, 2008. The article notes that Martin’s rules in a draft proposal was hidden from public scrutiny and only released 10 days after they had been approved by a Commission vote. Martin said that his plan would provide for a ‘'truly open broadband network—one that would open the door to a lot of innovative services for consumers.‘’ But now it appears that the Commission did not go as far on openness as it could have, and the spectrum auction is likely to reinforce the positions of the current large telecom providers.
Three-Fifths of Americans in the Dark About DTV Transition Three out of five Americans don’t know that the U.S. is scheduled to turn off the long-familiar, over-the-air analog TV system on February 18, 2009, according to polls. While only about 19% of Americans still get their TV using an antenna, the transition to digital TV is confusing or even unknown among most Americans. We can expect a big public education campaign in 2008; IBM was awarded a contract of $120 million to help educate Americans about the DTV transition. The federal government features a Web site about the change, and there is a comprehensive Web site available from the DTV Transition Coalition, a large, diverse industry and nonprofit coalition.
Google: Japanese Running Away With Internet Richard Whitt, Google’s Washington Telecom and Media Counsel, has posted a blog entry on Google’s Policy Blog that notes that “Americans invented the Internet, but the Japanese are running away with it.“ Whitt notes that Japanese Internet users commonly get much faster speeds for Internet access than Americans, as much as 30 times as fast for cheaper prices. The reason? According to the Web site Save the Internet, the Japanese government mandated open access policies that stimulated competition, lowered prices and raised speeds.
Microsoft Loses Vote on Open Office XML Microsoft failed to get an international standards body to approve its Open Office XML as an international standard, according to this AP article of September 4. Microsoft had hoped that its version of XML, built into Office 2007, would head off the trend of many governments and archivists looking at open standards. The Free Software Foundation of Europe was critical of Microsoft, raising the issue of how open Open Office XML would actually be. Microsoft has promised to license its XML for free. But Microsoft got only 53% of the votes needed from the International Standards Organization, instead of the two-thirds majority it needed.
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