Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
A California start up backed by the Google founders may have developed, finally, the break through that the solar energy business has been waiting for. Traditional solar cells have always required an expensive fabrication process that used silicon as a raw material. Nanosolar has developed a process that prints a nanotechnology based ink onto thin sheets that can be put on roofs of buildings, on top of cars and trucks, and anywhere that electric power is needed. The sheets produce electric power at about one-tenth the cost of existing panels.
This article suggests that the iPod may be the new TV and radio. The writer talks about how she is regularly downloading radio and TV programs to her iPod and watching them on her train ride home every afternoon from the office.
In Apple's last round of largely unnoticed iPod upgrades, one of the things it did was change the size of the iPod nano display to a widescreen format and added the ability of the tiny music player to play back video. This change makes the tiny nano much more versatile, and gives it the ability to behave much like a portable DVR (digital video recorder). While it can't record directly from a TV, it is quick and easy to grab free and fee-based TV and video programs from the iTunes Store and watch them later.
Unlike other content strategies that require either a single purpose device (like the Slacker Portable) or a never-ending subscription fee, the combination of the iPod and the iTunes store puts the user in complete control.
Internet radio dropped off the radar years ago because of royalty issues. Start up Internet radio stations streaming music were not always paying royalties, and the record companies responded by imposing absurdly expensive royalties that put most Internet radio stations out of business.
But the grudging acceptance of digital music by the record companies has led to more reasonable royalty rates, and a radio start-up called Slacker is trying to make a go of it by introducing yet another portable music player that is half iPod and half radio. The Slacker Portable, when connected to your computer, downloads an ever changing selection of tunes, based on your own preferences. You can listen to them anytime, in the same way you would listen to your own music on an iPod or other MP3 player.
Slacker's niche is that you are not stuck with your own, unchanging playlists; Slacker updates and changes the playlists automatically when you plug your Slacker Portable in to your computer.
It is a neat idea, and is likely to be popular if they can break the link between the service and the requirement for yet another specialized device. There are only so many gadgets people want to carry around.
Both houses of Congress have passed the Community Broadband Act of 2007. The bill fixes a defect in the 1996 Telecom act that says "any entity" may offer telecom services. The meaning of "any" was challenged repeatedly in state level lawsuits, and some misguided state legislatures went even farther and made it illegal for local governments to start telecom service offerings.
In general, I think it is better for communities to invest in "digital road systems" and let the private sector use those digital roads to sell telecom services directly to customers. This creates a public/private partnership that does not put local government in direct competition with the private sector. But communities should still have the option of offering retail telecom services if they think that is the best way to proceed. In some areas, that may be required for certain services, like TV programming, because of market size.
I was in another meeting with economic developers, and there was a growing recognition that broadband and power are the new water and sewer. In the Manufacturing Economy, it was water and sewer capacity that often made the difference when trying to attract manufacturing plants to a region.
Today, it is redundant broadband cable routes, multiple broadband service providers, redundant electric service, and reliable backup electric power that is driving relocation decisions. Medium and large companies are decentralizing their back office and server farm operations, moving them into more rural areas with good quality of life and a lower cost of living. But they are looking for business parks with electric power coming from two different substations, so one electric line could go down and there would still be power available. A single medium-sized server farm building may require 30 megawatts of power, and needs a substantial backup diesel or natural gas generator.
Companies also want broadband access not just from two or three different firms but also two or even three different cable routes. And they want all these facilities in place--they can't wait twelve to eighteen months while they are built. Relocation decisions are often made in as little as two to three months.
Can your economic developers answer all these questions? Does your region have an economic development strategy to address the broadband and power needs of Knowledge Economy businesses?
I spent a good part of the day with a group of economic developers in a major northeastern state. We had some businesspeople in the meeting as well, and listened as two business owners described their frustration with the lack of connectivity outside of major metropolitan areas. In one case, the business owner had moved his staff and business headquarters from the New York metro area to a small city with a lower cost of living and great recreational opportunities near by (relocation based on quality of life issues, not water and sewer availability). The other business was moving many of its operations centers into rural areas for much the same reason.
But both had broadband horror stories. One business, located in a downtown area, said they needed a fiber connection to service provider facilities a block away, but thought that the city permitting process might take as much as a year. The other business, which had moved from the New York area, had to leave their data servers there because they could not get redundant data connections to an appropriate facility in the more rural small city.
Both stories illustrate the shift in economic development. The old real estate truism about the three most important issues for a business ("Location, location, location") has changed to "Location, location, connectivity." There is a growing trend among medium and large businesses, after 9/11 and Katrina, to decentralize operations and to have multiple data centers to ensure that the business can keep running after a local emergency. Communities that have the right connectivity options and good quality of life will have lots of opportunities.
USA Today and many other papers and news outlets are carrying stories on Google's gPhone, which will be an open source software-powered cell phone. Sort of. The phone will use a variant of Linux, and users will be able to load non-Google software on it.
But the exact business model is still under wraps. It will probably be free or very low fee, but Google is in the business of making money. The company already intends to put many of its own applications and services on the phone, and one has to wonder if you will be able to remove them or use competing software.
You also have to wonder what role ads will play. Will you have to scroll through a bunch of ads every time you want to make a phone call? Will you have to watch a 30 second ad video to make a call?
Finally, you have to wonder about privacy. Google has a terrible track record with privacy, and in return for using this cheap or free phone, Google will probably get to capture all your phone numbers and contacts. And if there is email and Web browsing supported on the phone, as there almost certainly is, Google will likely be capturing every email address and will be storing every Web site you visit.
But the phone is free! While the phone may have widespread appeal to college kids and people on a budget, I suspect a lot of people will look at the terms of service and pass.
The city of Minneapolis negotiated a deal with the wireless provider US Internet last year to provide a citywide wireless system. As part of that deal, the city is receiving about a half a million dollars a year for ten years. The funds will be used to support community portals for neighborhoods in the city. Planning for those portals is taking place right now. It is a great idea, but the city left a lot of money on the table.
Over the next thirty years, the residents and businesses of Minneapolis (Minneapolis only, not St. Paul) will spend 8.4 billion dollars ($8,403,268,500.00) on telecom services, and so there is plenty of money to build not just wireless but the world's best, full integrated fiber and wireless system, to every home and business in the city. Over thirty years, such a city-managed multi-service open network, designed with end to end automated Layer 3 provisioning, could put nearly 600 million dollars in city coffers ($594,041,030.00). That's a bit more than the projected $11 million from wireless.
The iPhone has broken all customer satisfaction records, with 82% of iPhone owners saying they are "Very satisfied" with the device. This is the highest rating that any cellphone has ever received, and an indication that Apple once again has raised the bar for a market.
If you have not had a chance to try out an iPhone or an iPod touch, stop in an Apple store or an AT&T and store and play with it, especially the Web browser. Browsing the Web on cellphones, even phones with relatively large screens like the Treo, has always been an exercise in frustration. But on the iPhone or iPod touch, it is effortless to navigate and easy to read. Apple's multi-touch interface makes it simple to move around a Web page, scroll down as you read, and make the text bigger or smaller.
The iPhone is not just a better cellular phone, it is an entirely new device that, like the iPod, is going to change the entire marketplace for portable devices.
Newsweek reports that Google search may be slipping. I have complained for a long time that Google searches tend to have too many results, and many of those results are not relevant. It turns out lots of other people have noticed that as well. More and more Internet searches are being performed by other search engines like Ask, Dogpile, Yahoo, and Microsoft.
One of Google's weaknesses is that a primary criteria it uses for search results is the number of other links that point to a site. This worked very well when Google was starting up, but it is easy to create links, and this has led to link farming, which is setting up sites with nothing but links to other sites. Link farm sites improve the Google rating score, but also typically carry Google ads, so link farmers get ad revenue and can artificially force their own sites to the top of Google searches.
Google search has proved more resistant to competition than I expected, but as other search engines get better, Google could lose ground quickly if the tide turns. Just ask former giants like AOL.