February 2010

Amazon's price war

[Commentary] The publisher of some of Koss's books, Macmillan, took a stand recently, telling Amazon that it would no longer agree to Amazon's selling its e-books at a default price of $9.99.

It not only intended to raise prices on Macmillan e-books, but it was no longer willing to split the revenues generated by them 50/50 with Amazon. Amazon did not take the ultimatum well. The bookseller insisted it was fighting on behalf of the people, who want cheap books. Macmillan held firm, saying it wanted to raise the price of its e-books to as much as $15. The dispute grew more bitter over a period of months, with each side refusing to back down. Finally, Amazon reared up and, with one mighty swipe of its terrible claw, cut the power to every "buy" button of every book published by Macmillan, and not just on e-books but on hard cover and soft too. Even on audio books. An eerie silence fell. The giants lumbered off to seethe. Authors waited meekly, wondering about paying the gas bill. Shoppers went elsewhere, or bought other books. Then, POOF! Just as suddenly as they disappeared, the "buy" buttons were back, and authors could resume gazing uncomprehendingly at their inexplicably changing rankings online.

'iGeneration' has no off switch

Move over, Millennials. You're not the younger generation anymore. For the past decade, you were the ones to watch. But now, as the eldest among you are fast approaching 30, there's a new group just begging for some attention.

They're still kids, and although there's a lot the experts don't yet know about them, one thing they do agree on is that what kids use and expect from their world has changed rapidly. And it's all because of technology. "It's simply a part of their DNA," says Dave Verhaagen, a child and adolescent psychologist in Charlotte. "It shapes everything about them." To the psychologists, sociologists, and generational and media experts who study them, their digital gear sets this new group (yet unnamed by any powers that be) apart, even from their tech-savvy Millennial elders. They want to be constantly connected and available in a way even their older siblings don't quite get. These differences may appear slight, but they signal an all-encompassing sensibility that some say marks the dawning of a new generation.

Kathryn Montgomery, a communication professor at American University and author of the 2007 book Generation Digital, hears similar stories from her students. "They tell me their younger siblings have different relationships with these technologies," she says. The difference is that these younger kids "don't remember a time without the constant connectivity to the world that these technologies bring," she says. "They're growing up with expectations of always being present in a social way — always being available to peers wherever you are."

Apple IPad's Components Cost as Little as $219

Apple's iPad tablet computer carries component costs of as little as $219.35, less than half its retail price, according to a preliminary estimate by market research firm ISuppli Corp.

Materials for the iPad, due to go on sale in March and April, include a touch-screen display that may cost about $80 and a $17 processor designed by Apple and made by Samsung Electronics Co., according to El Segundo, California-based ISuppli. Apple introduced the device on Jan. 27. Even the lowest-priced iPad, with 16 gigabytes of memory and a retail price of $499, may be beyond the reach of budget- conscious consumers, some analysts have said. The relatively low price of the iPad's materials gives Apple flexibility to reduce the retail price over time, ISuppli analyst Francis Sideco said.

Joint request seeks additional time to complete 2GHz BAS relocation

As the 2GHz Broadcast Auxiliary Service relocation effort approaches completion, 28 designated market areas (DMAs) were not expected to meet the Feb. 8 deadline and should be given relocation deadlines on a market-specific basis, according to a joint request filed Feb. 1 with the FCC's Office of Engineering and Technology. The filing from Sprint Nextel, the Association for Maximum Service Television (MSTV), NAB and the Society of Broadcast Engineers (SBE) modifies a joint request made Dec. 31, 2009, in which the parties told the commission that nine DMAs would need until Aug. 9 to complete the relocation. Other DMAs would also require an extension, but were expected to complete the project before Aug. 9, the filing said.

The Georgetown Center for Business and Public Policy
The Newseum
555 Pennsylvania Avenue NW
Washington, DC 20001
Wednesday, February 17, 2010
9:30am
http://cbpp.georgetown.edu/88326.html

This round table discussion will bring together academics, government officials and industry leaders to consider the future of the journalism industry. Specifically, what does a future economic model for the journalism industry look like? What is the role of new media in modern journalism? How can news papers integrate web-based news into their business models? How can government entities, particularly the Federal Trade Commission and the Federal Communications Commission, help to form a sustainable 21st century model for journalism in the United States.

Featuring

  • Mark MacCarthy, Adjunct Professor, Georgetown University
  • Steve Waldman, Special Advisor to Chairman on New Media, FCC
  • Susan DeSanti, Director of Policy Planning, FTC
  • Adam Thierer, Progress & Freedom Foundation
  • Andy Schwartzman, President, the Media Access Project

To RSVP please email cbpp@msb.edu



Australia's Internet: non-neutral and proud of it

If you want a good look at what a non-neutral Internet looks like, take a gander at Australia where bandwidth caps are common. But Australian Internet service providers take the idea one step further by setting up partnerships with entertainment services and music download companies. Any data usage directed at one of these favored services doesn't count against the monthly bandwidth cap. This is quite clearly non-neutral behavior in any sense of the term. ISPs shape traffic when the quota is reached, meaning that all traffic to non-partner sites is slowed dramatically, while the favored services continue at full speed. This isn't an outright "blocking" of other websites, which can be freely accessed until the cap is reached, but the effect is quite similar. How are high-bandwidth services like video streaming going to compete against those services favored by an ISP? How will new players ever gain market share?

The Second Digital Divide: Closing the Gap on Broadband

[Commentary] Over the past ten years, Americans have enthusiastically embraced and adopted broadband Internet. Although we have made significant progress, a real digital divide still exists in the African American community. The Obama Administration's $7 billion stimulus investment in broadband and technologies like web-enabled smart phones are helping to close this divide, but we must continue to do more to ensure that our community gets connected.

Simply put, broadband has become a critical life tool. Whether it's looking for a job, managing your finances or healthcare, pursuing a higher education, staying connected to friends, family and community, high-speed Internet is the great enabler and equalizer. There are many more effective ways to address the digital divide than divisive new regulations unrelated to adoption or deployment, which bring a high degree of uncertainty and could have unintended consequences.

The FCC should invest its time and political capital where the returns are highest: in the National Broadband Strategy - a common goal for all parties - if it really wants to help connect every American to the benefits of high-speed Internet. The net neutrality distraction will disserve efforts to remedy persistent digital divides and imperil critical elements of the National Broadband Strategy.

[David Sutphen is the co-chair of the Internet Innovation Alliance.]

US Broadband Speeds Rose 28% in 2009

The US residential broadband speeds continue to increase, albeit at a slower rate than in 2008. Between year-end 2008 and year-end 2009, downstream bandwidth rose by 28%, reports In-Stat. The average downstream speed of a US broadband connection is 7.12Mbps. More than one quarter of survey respondents also had a mobile wireless broadband connection in addition to their wired broadband connection.

Google analyst: U.S. Internet needs to get faster

A Q&A with Google Policy Analyst Derek Slater in which he offers insights about increasing today's sluggish Internet speeds and why a unified Web can change peoples' lives.

Google long has been an advocate of a single Web, one that's free of government censorship and barriers to information access. That's not the reality in today's world however. Governments from China to France put various roadblocks in the information superhighway to serve their interests, filter speech or protect copyrights. And high-speed Internet connections haven't reached all corners of the globe -- not even all parts of the United States.

Lowell, Massachusetts becomes testing ground for boosting broadband adoption

Increasing broadband adoption isn't just about building out networks in underserved areas -- it's also about showing people who don't use broadband what they're missing.

To that end, the federal government has awarded the University of Massachusetts in Lowell a grant of $783,000 to design and implement a broadband promotion program in Lowell, Mass. The grant awarded is part of the $4 billion in broadband stimulus funding released by the government this past summer. The program's key initiative will be to build 11 public computer centers that UMass Lowell estimates will "serve 6,650 new broadband users and add 7,500 additional broadband subscribers" in Lowell and the Merrimack Valley area. Robert Forrant, a professor in the Department of Regional Economic and Social Development at UMass Lowell, says the program will have three major areas of focus: working with local youth organizations to help students get after-school broadband access; working with senior centers to help educate elderly residents in the Merrimack Valley area about the uses of broadband technology; and building the 11 computer centers.

"Our goal is to democratize broadband usage," Forrant says. "By creating a larger and wider infrastructure, the project will hopefully help the economic development of the region. If more people have access to high-speed Internet communications, the better the region will be equipped for what we hope will be an economic revival in the future."