Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
Newspapers have been having a hard time with the Internet. Readership of the ink on dead trees editions decline year by year, and instead of taking any responsibility for the lack of appeal, they blame it solely on the Internet itself, although I see a few signs of change.
Our local paper, the Roanoke Times, has been adding new faces to the line up with writing that does not neatly fit the "news" model of olden times. The RT has a great weather column that I read regularly now, and they just did a week long story series on some high school students who went storm chasing in the Midwest--a kind of blogging on dead trees, but a lot more interesting than reprinted AP stories.
Meanwhile, as Internet advertising continues to be very profitable for many Web sites and ad brokers like Google, the New York Times has decided to charge for content with a $50/year subscription. Huh? It seems to me that the NYT has a wonderful opportunity to take a Google-like approach to ads and make a bundle--I suspect a lot of companies would pay to be able to place an ad on the pages of the New York Times. Instead, they have decided to choke off readership by making everyone pay in advance to see anything.
Another national paper I read regularly has just started requiring registration, so I've stopped reading it. The registration is annoying if not dangerous from a privacy issue, since you don't have any control over what they do with the information (yes, you can lie and put false information on the form, but that bothers me too).
I remain convinced that there is an important role for newspaper organizations in the future, but more change and more innovation is going to be needed, or we will start to see some papers fail.
The Seattle Post-Intelligencer has an article on a report issued by a City of Seattle task force that concluded that the city has to take broadband seriously, and must begin immediately.
This is a must read article that makes many good points. Rather than rehash them, here are some of them verbatim:
The city task force was originally instructed by the City Council to look at doing a citywide wireless project, but after studying the issue, came back with a different set of recommendations that focused on fiber. One city council member has proposed creating an Office of Broadband to study the problem further.
Pat Valente, the Deputy Director for the Department of Development of Ohio, spoke at the Ohio CDC Technology conference about the state's strategy for economic development. Here are the key points:
What is most interesting about Valente's remarks is what went unsaid. There was nothing about industrial recruitment or giving lavish tax breaks to big companies. Ohio is probably still doing some of those things, but the emphasis on entrepreneurs and support for innovation is refreshing. The state is also headed in the right direction by identifying assets and competencies already in the state and trying to leverage those, rather than just imitating what has worked elsewhere or just trying a lot of stuff and hoping something sticks.
As examples of this strategy, Valente mentioned a focus on fuel cells as an alternate power source. The state is funding research to use biomass as a feedstock for fuel cells, leveraging the state's agricultural industry. It is also funding the development of new polymers (plastics) from soybeans rather than fossil fuels, because the state is a big soybean producer.
If Ohio sticks to this plan, it will have an advantage over many other states that don't have the same level of focus. I thought only one thing was missing--a statement of intent to ensure that every business in the state has affordable broadband. If Ohio is serious about competing in the global economy, you can't leave this to chance.
ISUS (Improved Solutions for Urban Strategies) has an innovative alternative high school education program that helps high risk youths get a high school diploma while giving them a heavy dose of on the job construction training and high tech manufacturing skills.
The program provides proficiency-based high school classes that are integrated with work training in the construction industry. But the effort has a real high tech twist, and takes vo-tech to a whole new level by building and selling houses at market prices in distressed neighborhoods.
The program has a CAD-CAM manufacturing facility where students used computer design systms to design the homes, and these are very sophisticated homes, mirroring the traditional styles used in the nieghborhoods in the early part of the twentieth century--in other words, real style. Instead of the traditional industry approach of building on site, many of the walls and floors are built in the high tech manufacturing plant using computer controlled panel assembly equipment. Students learn to build using state of the art computer and manufacturing systems, then take the parts right to the work site and put the house together.
At risk youth are getting marketable job skills, graduating from high school, and in the neighborhood where the houses are being built, the new homes are raising property values and have encouraged others in the neighborhood to rehab and fix up other homes--a win-win-win for the kids, the homeowners, and the community.
I am at the Ohio Community Development, Innovation, & Technology Conference in Columbus, Ohio, and I'll be posting highlights from the meeting for the next day or so. The conference is sponsored by the Ohio Community Development Corporation Association.
Ohio, which has faced some real challenges over the past several decades as manufacturing has declined, is doing a lot of things surprising well. Lt. Governor Bruce Johnson described the state's "Third Frontier" initiative, which is well-focused, and state leaders have wisely tried to first identify strengths in the state first, and then have followed up with strategic investments to leverage existing assets. That may seem obvious, but I see a lot of economic development strategies that don't really do those things.
Among the Third Frontier strategies are to look for new markets for traditional agricultural products like soybeans. Researchers in the state are looking at producing new kinds of polymers from soybeans (the state is a big producer of soybeans).
The state is also not just throwing money at projects. It insists on real, cash on the table collaboration before it will provide funds for new ventures, and says that it is getting a 13:1 match from the private sector on joint ventures--a pretty good track record. The state extends this collaborative approach to university research, insisting that if universities think they can build a better mousetrap and want money from the state, then the university has to put some of its own money on the table.
All in all, good sensible stuff from Ohio.
This article about grass roots television programming illustrates the perfect storm developing that has the potential to wreck the Hollywood-based entertainment corporations. Since the days of Milton Berle's live broadcasts, television content has been generated largely by Hollywood. It's been a tight knit cartel of writers, directors, producers, and production companies that have kept video content locked up pretty tightly, in large part because of the cozy relationship with the broadcast networks. Cable has been chipping away at that, but innovation in cable has meant largely following the same old model, but just doing everything as cheaply as possible.
The limitation has always been the same, whether you were delivering a television program over the air, by cable, or by satellite--you have only twenty-four hours per day per channel, so everything is a trade-off of demand versus air time.
Like nearly everything else it touches, the Internet just plain breaks that apart. On the Internet, content is not bound by the delivery mechanism, so we are seeing the end of CDs, the end of DVDs, the end of radio "channels," and the end of TV "channels." Channels were a construct based on the scarcity of bandwidth, and there is no scarcity on the Internet.
So for $1.99, you can download and watch a 45 minute video on how to barbecue a whole pig. But that's not even the interesting part. DaveTV, which is offering the video service, has a BBQ "channel" with more than 1000 video segments, just on barbecuing. Try doing that using the traditional television programming system. You can't. But the Internet makes it simple.
So here's the thing--Hollywood no longer has an edge--none at all. What about your region? Do you have some of the pieces in place to start some Internet TV video production companies? Is your town on a major fiber backbone that could be used to pump video to the rest of the country? Do you have some program assets that could be the basis of a channel like the BBQ channel?
Side note to my southwest Virginia readers: If I lived on a crooked road, I'd be pretty excited about the potential to market assets to a worldwide audience. And a major piece of the puzzle is just down the road in Tennessee. There's another piece over in Danville.
The beauty of the Internet is that it changes the math. With the Internet, you can add 2 + 2 and get 10 if you do it right. And there's a 10 not only in southwest Virginia but many more all over the country.
Of course, there is never a free lunch. To get to that 10, communities have to be willing to do things differently, and that's the real challenge, not the technology.
If your community is looking at Broadband Over Powerlines (BPL) as a cheap way to get broadband out to neighborhoods or rural areas, you should read this article over at NewsForge, which says BPL still has some issues that have to be worked out.
Among the problems this article raises are relatively high costs, the need to deploy a fiber backbone to support neighborhood level BPL, and radio interference in frequencies used by public safety (fire, police, rescue).
In short, BPL is no shortcut, and may not even be a bargain, compared to other entry level broadband systems like wireless.
Loma Linda, California, a community of 20,000 people, may be the first town in the country to require broadband infrastructure in new housing. This article from the May, 2005 issue of Broadband Properties (scroll down to get the PDF file) details the ordinance that requires builders to install structured Ethernet (broadband) cabling in every living space in new homes, as well as run fiber to the homes in the development, and to provide neighborhood colocation space for network equipment (what I call an NSAP, or Neighborhood Service Access Point).
This kind of approach future-proofs the community and reduces the cost of broadband access. Builders install the neighborhood infrastructure and turn it over to the town when the development is complete, just as they turn over other infrastructure like streets, sidewalks, water, and sewer. The article cites a study that shows homes with fiber to the home (FTTH) sell for $4,000 to $14,000 more than the same home without broadband access. So the builders easily recoup the additional cost, and the increased value of the home provides tax benefits to the town (which helps pay for maintenance).
Instant messaging (IM) is not just a social networking tool for bored teenagers. A British study shows that while some abuse of IM is occuring in the workplace (no different than the telephone, the Web, or email), IM has some solid business benefits, including improved communications, faster decisionmaking, and better information gathering.
The article says that 62% of British businesses do not use the technology at all, suggesting that most firms lag well behind the curve in making good use of technology.
New Zealand, which is a country smaller than most U.S. states, is investing heavily in broadband, with a budget in the tens of millions of dollars. While too many state legislators (14 states at last count) are trying to limit broadband, we've got countries that are going in the opposite direction.
We don't really have a broadband problem in the United States, we have a leadership problem. When our elected leaders are more interested in maintaining a Manufacturing Economy status quo, rather than helping their own communities and states compete in the global Knowledge Economy, that's not a technology problem, it is an education problem. We need to be helping our leaders understand the issues affecting economic development, and in particular, why we need to be looking at what is happening in other countries. It's not sufficient just to complain that they are not doing their job--we need to roll up our sleeves and help them understand what our communities need, and why.