February 2010

Wi-Fi rides to wireless networks' rescue

Good old Wi-Fi could be the fix to an impending explosion of data on wireless networks.

Nearly three years after Apple introduced the game-changing iPhone, wireless operators around the globe are feeling the effects of the wireless data tsunami that is well under way. Even networks that don't support the iPhone are feeling the pinch as a generation of new wireless devices offering bandwidth-hungry Web applications are hitting networks. The result, as many iPhone users in New York City and San Francisco will tell you, is a network that drops calls and offers wireless Net surfing at the speed of a turtle. Savvy smartphone subscribers with Wi-Fi-enabled devices have already been seeking out Wi-Fi hotspots for their Internet surfing, music-streaming, and video watching. But as more devices, such as the Apple iPad come online and the forecast for wireless data shoots through the roof, wireless operators are looking at Wi-Fi as a way to offload some data traffic from their overburdened 3G networks. And as wireless data is expected to continue to grow rapidly over the next several years, they're looking at Wi-Fi as a part of their long term wireless strategies as well, even as they build out 4G wireless networks.

Wi-Fi Turns Rowdy Bus Into Rolling Study Hall

Students endure hundreds of hours on yellow buses each year getting to and from school in Vail, a desert exurb of Tucson (AZ), and stir-crazy teenagers break the monotony by teasing, texting, flirting, shouting, climbing (over seats) and sometimes punching (seats or seatmates). But on this chilly morning, as bus No. 92 rolls down a mountain highway just before dawn, high school students are quiet, typing on laptops. Morning routines have been like this since the fall, when school officials mounted a mobile Internet router to bus No. 92's sheet-metal frame, enabling students to surf the Web. The students call it the Internet Bus, and what began as a high-tech experiment has had an old-fashioned -- and unexpected -- result. Wi-Fi access has transformed what was often a boisterous bus ride into a rolling study hall, and behavioral problems have virtually disappeared. Internet buses may soon be hauling children to school in many other districts, particularly those with long bus routes. The company marketing the router, Autonet Mobile, says it has sold them to schools or districts in Florida, Missouri and Washington (DC).

Google Defends Book Settlement, Setting Stage for Court Hearing

Google urged a federal judge to accept a $125 million settlement that would allow it to distribute digital books.

The agreement won't hurt competition in the growing digital books market, the company said in a filing last night with a U.S. district court. The company sought to counter objections by the U.S. Justice Department and others that the class-action settlement grants Google rights that go beyond the disputes raised in the lawsuit. The settlement "is not 'a bridge too far'," Google said in a filing in U.S. District Court in Manhattan. Terming the settlement "remarkably creative," the filing said it "will open the virtual doors to the greatest library in history, without costing authors a dime they now receive or are likely to receive if the settlement is not approved." A rejection of the settlement "will keep those library doors locked while inviting costly, fragmented litigation that could clog dockets around the country for years," the filing said.

The filing represents the final written word in the case before District Court Judge Denny Chin holds a hearing on Feb. 18 and reiterates arguments Google has previously made in support of the settlement.

Democrats rush to curb corporate election spending before Nov. vote

Democrats are hoping to fast-track a set of sweeping new campaign finance regulations to prevent the Supreme Court's landmark Citizens United decision from affecting the November midterm elections.

Sen Charles Schumer (D-NY) and Rep Chris Van Hollen (D-MD) on Thursday unveiled the majority party's legislative response to the Citizens United case, which they and other Democrats -- including President Barack Obama -- have sharply criticized as one that will "open the floodgates" to corporate financing of federal elections. Opting against a constitutional amendment to undo the court's rejection of existing laws that ban certain political spending by corporations, Democrats are proposing to ban donations by foreign-influenced and taxpayer-assisted corporations, as well as a series of tough new disclosure requirements on corporations that would still be allowed to steer money toward political action groups.

R&D and Jobs Bill

As expected, the Senate Finance Committee's draft jobs bill released Thursday includes language that would provide a one-year extension of the research and development tax credit, retroactive to Dec. 31, 2009, when it expired.

The measure also would provide an extension of satellite television licensing provisions that expire on Feb. 28. Senate Finance Chairman Max Baucus, D-Mont., and Finance ranking member Charles Grassley, R-Iowa, said in a joint statement that "action on the expired provisions is long overdue. Timely action on incentives for economic activity and job creation also is needed." The R&D tax credit and other business tax breaks expired at the end of 2009 when the Senate failed to take up legislation extending those provisions, which the House passed. The issue is a key priority for technology and other companies that do research in the United States. Tech groups have been urging lawmakers to make the R&D credit permanent and update it to keep pace with research incentives offered by other countries.

Senate jobs bill drops SHVERA

The Senate's jobs bill was to be the vehicle for the much-delayed renewal of DISH Network's and DirecTV's licenses to reach 1.7 million people. But after the Senate Finance Committee Thursday morning released a draft of its massive jobs bill containing provisions to renew the law for another five years -- until Dec. 31, 2014 -- the section was stripped out in the afternoon, along with several other tangential riders. They were dropped to make the underlying jobs legislation "more targeted" so it can move more quickly. The provisions would have renewed the Satellite Home Viewer Extension and Reauthorization Act (SHVERA) which provides satellite providers' ability to import distant TV network affiliates to viewers who can't receive their local affiliates through broadcast or cable service. Satellite companies' right to send these signals to customers were set to expire at the end of 2009. But in December, Congress extended SHVERA by 60 days. The satellite licenses have to be reauthorized by Congress every five years. Congress is running out of time to approve the provisions in the jobs bill. If the licenses expire, about 1.7 rural satellite customers could lose access to programming from the likes of NBC, CBS, ABC and FOX.

How Much Will Google's Fiber Network Cost?

Google's proposed fiber network won't be cheap. It will pass between 20,000 and 200,000 homes and it will cost Google between $3,000 and $8,000 per home, or roughly $60 million to $1.6 billion, depending upon the final size and footprint of the network. If Google reaches, say, 100,000 homes, it would cost the company about half a billion dollars. Google's final tab will depend on where it decides to build out the network -- Calix Networks says population density is the single most important factor in calculating the cost of fiber connection per home.

After Facebook, Google Looks to Eat Comcast's Lunch

Tech bloggers are expecting big things from Google's proposed high-speed network:

  • Don't Underestimate This Move, writes Mark Sullivan at PC World: "This is Google we're talking about. It has massive influence in business, and, increasingly in regulatory circles. The announcement comes right on the heels of the federal government releasing the first round of funding for broadband networks to rural and under-served areas. It appears to be intended as an adjunct to the FCC's own Broadband Plan, as if to say: 'See, you can do it like this.'"
  • Self-Interest Rightly Understood, writes John Paczkowski at All Things Digital:"[This is] an altruistic goal, but a selfishly altruistic one. By providing Internet speeds of 1Gbps — more than 100 times faster than what most of us are used to, Google will drive further usage of its various services and the contextual ads it peppers them with. At the same time, it will humiliate the telcos into improving their own networks and — given Google's stated focus on 'openness and choice,' perhaps even change market dynamics."
  • Google On-Demand Here We Come, writes James Turner at O'Reilly Radar: "Once Google has a pipe into the house, they can easily become a player in VoIP and landline telephone service, as well as cable TV and on-demand. Of course, these areas are fraught with regulatory issues. Many towns require cable providers to enter into individual franchise agreements in order to provide service, which can be a nightmare when you multiply it times N towns. But it's much easier to offer when you have a bit pipe already in place. And a 1Gb service will allow for HD or even Blu-Ray 3D service on-demand to the house."
  • Finally a Challenge to Comcast, writes John Cook at TechFlash: "Broadband Internet customers love to rail against Comcast, one of the dominant providers of Internet service in the Pacific Northwest. But customers who are dissatisfied with Comcast service or prices eventually could have an alternative. And it is coming from none other than Google."

Google Is NOT Getting Into The Network Business

[Commentary] The telecom world is abuzz with Google's announcement it will build high-speed networks. So what does Google want? Not to be a network operator. Google has a history of stepping up to do things that further its core business when no one else wants to step up, as witnessed most recently by their submitting a bid to serve as the database manager for the broadcast white spaces devices. But what it actually wants to do is modify the behavior of the platforms on which it rides to better suit its needs.

Google's Gonna Do What?!

[Commentary] By getting an extensive feel for fiber deployment, they'll get a better sense of where the economic value to Google lies.

Galen Updike, Telecommunications Development Manager at the State of Arizona's Government Information Technology Agency (GITA), recently made an interesting point. It's darn near impossible for private sector companies to financially benefit from broadband's economic development benefits to communities. That means someone has to do some serious eyes-wide-open examination of this nut to figure out how to crack it. However, there's serious upside to being the nutcracker. Google could provide investments and strategic relationships to those entities that become the actual network builders and service providers. In the end, these deals could work out very well for Google. And frankly, they work out best for consumers and businesses too because you don't want your content provider and your access provider to be one and the same. That's what leads to monopoly and duopoly strangleholds on markets, and goes to the core of why many of us are fighting for net neutrality.