Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
The state of California has put together an extensive plan to review every voting system in use in the state. The work will use several groups of indepedent scientists with excellent credentials who will review both electronic voting systems and other, older voting systems, including paper-based balloting.
The state is serious about this; the plan includes the use of independent "red teams" that will work independently to try to break into the electronic systems. This is not likely to be very difficult, since you can go right to YouTube and watch a short video on how to break into some systems.
The tragedy here is that this kind of analysis and review should have been done before California spent a half billion tax dollars buying untested voting equipment. State and local officials in California and in every other state ignored the pleas of computer scientists and technology experts across the country and blindly wasted billions buying flawed equipment. Most of it will end up being replaced.
The good news: at least the problem is getting fixed before a massive vote fraud creats a constitutional crisis in a major election. Let's hope every state addresses this issue promptly.
The cable industry is showing off their next generation broadband cable modems, which promise much faster speeds. The cable companies are under some pressure from the fiber rollouts of the phone companies.
There are some problems, however. The new technology continues to rely on copper to the home, and in fact, the "new" technology simply involves using four TV channels instead of two to carry broadband data. It is still a hybrid system that uses a fifty year old cable TV design to carry data. It's main advantage is that it is cheap to upgrade.
The second problem is that the cable companies, like the phone companies, want to be the gatekeeper for advanced services. If you want VoIP service, they don't want to offer a choice of providers; they want to sell you their service, at their price, and this will become a bigger problem as time goes on and truly open systems start offering a much wider range of prices and services than closed systems.
Finally, cable companies are anti-economic development, in the sense that they see themselves as selling "entertainment," not business class services. I had a problem recently with my cable modem service and was told the normal repair time was two weeks because the Internet service I was buying was "entertainment" and did not require any faster response. This kind of attitude makes it either impossible to work from home or much more expensive. Some cable companies will sell a "business class" service for your home, charging much more for exactly the same service.
The bottom line for communities is simple: Do you want a large incumbent with its headquarters many states away deciding your economic development future, or do you want to more control locally? If your answer is the latter, local broadband investments can help energize economic development and actually provide funds for other community and economic development projects.
Here is an interesting idea that could put an end to phishing. Everyone has received those emails claiming to be from some well known bank, urging you to log in immediately to update your bank information. The URLs look like legitimate Web sites, but belong to crooks who want to capture your account information so they can empty your bank account.
This new proposal from an Internet security expert is simple and likely to work. It would create a new top level domain, .bank, that would be issued only to legitimate financial institutions and it would cost a lot of money (e.g. $50,000) to register the domain, rather than the trivial $10 that it costs a criminal now to register a phony bank site.
Banks would be likely to move quickly to the new domains, because phishing fraud is a major headache that costs them millions. And it would eliminate some of the spam in our mailboxes. Let's hope this idea gets traction quickly.
This New York Times article (registration required, link may disappear) says that schools that give laptops to students have been wasting their money. This was entirely predictable, because just putting technology "stuff" in the classroom was never going to change anything.
Unfortunately, I got an early lesson in that in Blacksburg in the mid-nineties when we had the first schools in the country with broadband in every classroom. I learned some hard facts from teachers, and figured out that if you want technology to have an impact on learning in the classroom, you have to do five things.
We can barely teach kids the three Rs these days. It is naive to think spending money on feel-good initiatives like laptops will have any effect without extensive structural changes in the entire learning process. But at least we are finally learning these lessons.
HughesNet has rolled out new lower pricing for their satellite broadband service. The dilemma in rural areas is how to help residents and businesses get something better than dial up access when DSL or cable service is not an option, and the one to four year timeframe needed to bring fiber to rural homes may be too long.
Satellite broadband has steadily improved over the past several years, with prices that are now very competitive with cable and DSL, and improved systems make the long latency less of an issue. Because every packet has to make a 45,000 mile round trip, the delay (latency) is much longer than when packets traverse a terrestial route. But for routine email and Web surfing, most people would never notice. The latency tends to affect voice and video more.
The equipment and installation for the Hughes service is now down to about $300, easily affordable for most homes and businesses, and the monthly cost for 700 kilobits down and 128 kilobits up is $60, or not much more than what many people pay for cable modem service, with speeds close to what low end DSL services deliver. Business class services with a 1.5 megabit (T1) download speed and 300 kilobit upload speed starts at just $100--an excellent price. Business class equipment costs a bit more--about $600 for equipment and installation.
In rural areas, satellite from Hughes or Blue Sky, another satellite provider, is an excellent option to get a region less reliant on hundred year old copper copper technology and provide a bridge to a fully integrated fiber and wireless deployment.
If you like to believe everything vendors tell you, WiMax will solve all our broadband problems, give us younger looking skin, and get rid of grey hair.
WiMax has been lurking for ages, a technology that has been "just a few months away" for at least three years. But it takes a long time to bring an entirely new wireless technology to market, with extensive testing required to make sure the systems don't interfere with other wireless systems, among other issues.
The approval by the FCC of the first WiMax laptop card is a good sign that we may finally be able to starting thinking about WiMax as a "real" system. WiMax base stations (the gear that powers big towers) is still very expensive, but there have been few ways to for users to actually receive WiMax signals affordably. Over the next several years, we will finally see a bunch of WiMax products enter the marketplace, and dropping prices.
Is WiMax the holy grail of broadband? Not by a long shot, but it is a much better technology than WiFi, which was designed for indoor use and short distances. WiMax was designed from the ground up to provide much more robust and interference-resistant signals over longer distances, with more bandwidth. It will gradually replace WiFi, and it will be interesting to see how it competes with EVDO, the cellular-based wireless technology favored, naturally, by the cellphone companies.
But fiber is still a necessity. Wireless services are not the first choice for businesses because of bandwidth, security, and reliability issues. And home use is being driven by high bandwidth video applications and services, which WiMax cannot support. We need well-designed fiber and wireless systems in our communities, and communities that design for both will have a significant economic development advantage.
This article notes that the number of cellphone calls has declined in the UK for the first time ever, suggesting that the "newbie" period for cellphones is over. Since 1993, I have been able to observe the "newbie" phenomenon firsthand as new systems and technology are embraced by the public, and in fact, it is a well known process that is often ignored, strangely enough, by many in the IT business, who want to believe in endless growth and by extension, endless profits.
It never works that way, and the dot-com bubble was fueled by large numbers of new Internet users and a naive belief that there was a never ending supply of new users. Of course, there was not, and we all know how things turned out. Companies that had built vacuous business plans based on fantasy-based market growth collapsed.
It is good news that cellphone use is starting to level off. Most people that need or want cellphones have them, they work in most places, and the number of cell towers will start to level off. The article notes that text messaging is still picking up as many find that a useful alternative to the phone--less obtrusive and more immediate than leaving a voicemail.
It also means that the etiquette of using cellphones appropriately will start to solidify. With a decreasing number of new users who don't know the rules, we have a better chance of actually using cellphones more sensibly over time.
This editorial from the LA Times discusses rumblings from the FCC that the agency may try to regulate "violence" on television, and may try to extend the agency's control to cable and satellite broadcasting--entirely new for the FCC.
The FCC is apparently using the recent catastrophe at Virginia Tech (right here in Blacksburg) as justification for extending its reach. But the editorial has it right. The FCC is not our "mommy and daddy." With hundreds of cable channels and millions of IP TV choices, and the rapid growth of alternative video programming, what the FCC should be discussing is getting out of the business.
When TV was available only via the scarce resource of over the air radio spectrum, there was some justification for having a watchdog agency. But with so many ways to get video programming today, the notion that a) oversight and control is still needed is archaic, and b) how on earth does the FCC propose to monitor literally thousands and thousands of "channels?"
This is a fundamental failure of government to adapt to change. Recall that this is the same FCC that believes if a single person in a zip code has broadband, everyone does. And we want these folks telling us what we can watch on TV?
It is tawdry for the agency to be using the deaths of my friends and neighbors as an excuse to expand the power of the Federal bureaucracy. If we don't like what is on a TV channel, we can change the channel ourselves, or just turn off the TV.
And I can tell you that in Blacksburg, most of us did just that once NBC started airing the demented ravings of the lunatic murderer and tried to call it news. We had better things to do, like attending funerals. The OFF button is a wonderful thing.
The FCC has announced that the agency will take another look at broadband, meaning the Federal Communications Commission might actually revise the definition of broadband to something that is actually meaningful, rather than the current 256 kilobits, or in shorthand, "...a little faster than dial up."
While one third of Japanese homes and businesses already have fiber connections, with 50 megabit service going for as little as $27/month, the FCC has stubbornly tried to prop up incumbent telephone and cable broadband providers by setting the broadband bar so low as to make the U.S. the broadband laughingstock of the rest of the world. Vienna, Austria is busying running fiber to every premise in the city, while "advanced broadband" discussions in the U.S. usually mean a couple of underpowered wireless access points on Main Street.
Even more encouraging, the FCC is apparently going to rethink the way it counts broadband in the U.S. Currently, if a single home in a zip code area has DSL or cable modem service, the FCC counts the entire zip code as having broadband. This explains why we see government statistics claiming something north of 90% of the U.S. has broadband.
The Federal government is not going to solve the broadband problem for communities. Most state governments do not have the funds to help with much more than initial planning efforts. So communities that want to increase economic development and help create new job opportunities will have to do it themselves. Fortunately, there is plenty of money locally to do this, and raising taxes is not required. Call us if you want more information about how to get real broadband in your community or region.
India has announced an ambitious plan to provide free wireless broadband throughout the country.
It is not at all clear that "free broadband" is sustainable. The longstanding problems with free services (in any market, not just broadband) include market distortion and low quality service.
Market distortion occurs because "free" services suggest to users of the service that supply is inexhaustible, and so users use as much as possible. Not everyone thinks this way, but a small number of users who hog bandwidth can consume all available supply.
This leads to low quality of service, in part because there is no pricing feedback to users (see above), and in part because the lack of revenue makes it difficult to expand capacity as demand increases.
In fact, fees alone do not guarantee a sustainable business model. In the U.S. and most other markets, the current broadband business model is upside down. Service providers enjoy maximized profits when customers, paying a fixed fee for Internet access, don't use the service at all. Service providers make the least profit if customers
like the service and use it a lot.
From an economic perspective, charging a fixed fee no matter how much bandwidth a customers uses is exactly the same as giving the service away for free. Neither one provides the funds necessary to expand capacity, increase service areas, pay for proper maintenance and upkeep, and add new services.
A solution is to move to a service oriented architecture (a different network architecture AND a different business model) that conveys a clearer relationship between supply and demand to customers. Customers pay for services, rather than buying a bucket of bandwidth. Service fees are based on the real cost of providing the service, thus providing information to customers about supply and demand. This can be done easily with both wired and wireless networks.
If the Indian government is going to build a digital road system and let private companies use the road system to sell services in return for a share of revenue, the system could work very well.
Providing a free 2 megabit connection but no services is very similar to the way roads are managed--governments build roads but allow businesses and customers to use those roads for entirely private business transactions.