May 2010

Has the Time Come To Embrace Telehealth as a System Solution?

A growing number of health care providers say that telemedicine is the key to health reform, arguing that the technology can enhance record keeping, reduce waiting times, cut unnecessary hospitalizations and reduce costs.

There also are those who view telemedicine as an expensive, intrusive technology, ostensibly a gimmick promoting exotic health care reform. Reportedly, half of the ailments in the U.S. can be treated via technology-driven delivery systems. It has been estimated that health care costs could be reduced by as much as 40% using advanced tele-diagnostic techniques. Meanwhile, medical services delivered to the workplace electronically, rather than sending sick employees home or to a traditional clinic can realize significant savings. Such services would be most needed where access to doctors' offices is limited because of distance, wait times or cost. Providing telehealth services in proximity to rural schools means less classroom time missed to travel to health appointments and less work time missed by parents to take their children to health appointments.

Slim to merge Brazil fixed, mobile business

Mexican billionaire Carlos Slim, the world's richest man, plans to merge his mobile and fixed-line businesses in Brazil in a bid to slash costs, Folha de S.Paulo newspaper reported. Slim plans to merge fixed-line company Embratel with Claro, the local unit of America Movil, in up to two months, Folha said. Jose Formoso Martinez, the chief executive of Embratel, will likely be named to head the combined company. Slim has been dissatisfied with the results of his Brazilian units and plans the restructuring to fend off competition from France's Vivendi, Spain's Telefonica and Portugal Telecom, Folha reported.

Agency data isn't perfect and transparency isn't enough

Raw data isn't always the same as government transparency, said speakers and audience members during a May 25 session at the Gov 2.0 Expo in Washington, D.C.

Said one audience member, "there are lies, damned lies, statistics and government data." John Sheridan, head of e-Services and Strategy at the United Kingdom's Office of Public Sector Information and co-chair of the W3C's eGovernment Interest Group, said it's important that agencies consider whether or not they are publishing data responsibly. "If I put a CSV file with some statistics on the web, that's great. But often there's a piece of context--maybe we changed the way we calculated the figure between two sets between 2002 and 2003. Maybe there's a particular piece of prominence associated with the data in terms of how it was collected or which agency collected it," said Sheridan. That information should be incorporated into the data in some way.

Google Apps Should Be $1 Billion Business Within 4 Years

Since 2004, Google's revenues have grown 12 times to $24 billion. Video and Google apps are where the next big growth will likely come from, according to Nikesh Arora, president, Global Sales Operations and Business Development for Google.

Yahoo's CEO Carol Bartz referred to Google as a "one-trick pony," as it relies on search for 90 percent of its revenues. Arora was amused, saying, "It's a pretty good trick, right?" He then dismissed that, noting that the company is building a lot of new tools and products that will buttress the search revenues in their own right. But search will remain central to digital advertising and Arora sees no reason to disregard it either. "The advertising market is $500 billion worldwide and about $250 billion in the U.S.," Arora said. "In the next five years, 50 percent of the consumption will happen through digital paths. That number is going to grow four-fold during that time."

India Broadband Spectrum Bids Reach $884 Million on Third Day

India's government got bids totaling 41.8 billion rupees ($884 million) on the third day of an auction for licenses to offer faster wireless broadband for computers nationwide, according to a statement on the Department of Telecommunications's website.

Eleven companies, including Qualcomm Inc., the world's biggest maker of mobile-phone chips, and Vodafone Group Plc, the largest mobile carrier by sales, are competing for two bandwidth slots in each of 22 regional zones in the world's second-largest wireless market by subscribers. To ensure nationwide spectrum, a company would have to win bids in all 22 zones. Nine companies bid 509.7 billion rupees for licenses to offer third-generation, mobile-phone services last week. None of them, including Bharti Airtel Ltd., India's biggest wireless operator, and Vodafone, acquired the rights to national 3G coverage by winning licenses in all 22 regions up for auction. That may drive them to bid for broadband spectrum to fill the gaps.

Houston hopes $8K-a-year program can save millions in e-Rate funding

The Houston Independent School District (HISD) will implement monitoring software to ensure that district employees abide by federal e-Rate compliance rules, after the district settled a lawsuit with the Federal Communications Commission (FCC) in which former district employees were accused of accepting gifts and meals from e-Rate vendors.

HISD is in the process of purchasing Hoover's Relationship Manager, which district e-Rate Compliance Manager Richard Patton said will help the district monitor its e-Rate vendors. The district will pay almost $8,000 a year for the service, which officials hope will keep HISD from missing out on additional e-Rate funding as a result of program violations. According to the Houston Chronicle, HISD lost out on at least $82 million in potential e-Rate funding during the FCC's investigation. Patton said the software will help district officials identify potential conflicts of interest among board members and e-Rate vendors through campaign and business receipts, which must be turned in within seven business days. HISD's agreement with the FCC stipulates that HISD board members, as well as e-Rate program employees, are not permitted to accept gifts of any kind from e-Rate vendors. If a trustee on the board has accepted more than $500 in annual campaign contributions or $2,000 in business contributions from an e-Rate vendor, that board member is not allowed to vote on e-Rate contracts. Additionally, once a request for a proposal is issued, HISD trustees must not communicate with or contact e-Rate vendors until a contract is awarded.

Consumers Experience Mobile Bill Shock and Confusion About Early Termination Fees

On May 25, the Federal Communications Commission released the findings of an agency survey on the consumer mobile experience. The survey indicated that 30 million Americans -- or one in six mobile users -- have experienced "bill shock," a sudden increase in their monthly bill that is not caused by a change in service plan. It also shows that nearly half of cell phone users who have plans with early termination fees (ETFs) -- and almost two-thirds of home broadband users with ETFs -- don't know the amount of the fees they're accountable for. The survey notes that 83 percent of adults in this country have a cell phone, and 80 percent have a personal cell phone (i.e., one for which their employer does not pay the bill). 58 percent of cell-phone users say they are very satisfied with the number of places they can get a good signal.

The survey finds that of the 30 million Americans who have experienced bill shock:

  • 84 percent said their mobile carrier did not contact them when they were about to exceed their allowed minutes, text messages, or data downloads.
  • 88 percent said their carrier did not contact them after their bill suddenly increased.

The amount of bill shock varies widely but is often sizeable. In the survey, more than a third of people who experienced bill shock said their bills jumped by at least $50, and 23 percent said the increase was $100 or more.

The survey also asked consumers about early termination fees for cell phone and broadband service. Of the respondents with personal cell phones, 54 percent said they would have to pay an ETF should they terminate their contracts before the expiration date, and 18 percent didn't know whether they would have to pay or not. Of those who are subject to an ETF, 43 percent said it was $150 or more, but 47 percent didn't know how much it was. One reason for the confusion is billing practices: Only 36 percent of cell phone customers who are familiar with their bills said that they include "very clear" information on ETFs.

The findings were similar for home broadband termination fees, with some differences. Only 21 percent of home broadband users say that their contracts include an early termination fee. Of those consumers, however, fully 64 percent don't know what the fee is -- a higher level of confusion than for cell phone service.

The survey shows that ETFs are one factor that can keep cell phone customers from switching carriers even when their service is not ideal. Forty-three percent of these customers said ETFs were a major reason they would stay with their current service, almost exactly the same number who said they would be deterred from switching by the cost of setting up a new service or by paying a deposit on a new service.

Georgia Reps on the National Broadband Plan and Small Business

On February 16, 2010, Reps Nathan Deal (R-GA) and Phil Gingrey (R-GA) wrote a letter to Federal Communications Commission Chairman Julius Genachowski to share a proposal written by Jim Geiger concerning the National Broadband Plan.

The proposal would allow telecom innovators to gain access to the bandwidth necessary to push efficiency-enhancing, cloud-based applications to small businesses, applications such as virtualized desktops, hosted digital image and file management, high-resolution video conferencing, broadcast/live video streaming, robust data protection, cloud-based backup, and sophisticated video security systems. These advanced applications would lower start-up costs for small businesses and enable them to implement their business plans, innovate and create jobs. At the same time, the incumbent local exchange carriers would sell more bandwidth at the same prices as they sell to any other customer.

On May 12, Chairman Genachowski wrote back to Rep Gingrey (Mr Deal had already resigned from Congress) noting that Geiger's company, Cbeyond, had submitted his proposal to the FCC in the form of a Petition for Rulemaking. While the Plan did not male a decision on that Petition the FCC does plan to review its whole ale competition policies.

Rep Thompson on the National Broadband Plan

On March 3, 2010, Rep Bennie Thompson (D-MS) wrote to Federal Communications Commission Chairman Julius Genachowski recommending that the FCC, in crafting the National Broadband Plan, consider promoting infrastructure expansion, require affordable service through regulatory measures; prescribe data collection, implement requirement tracking of equity impacts and support last mile projects that improve public health and education and stimulate economic development and job creation.

He asked the FCC take the following steps:

  1. Promote federal support for projects that combine Infrastructure expansion, community access and development of demand.
  2. Require affordable service In communities of color and low-Income communities through subsidies or expansion of the Universal Service Fund Lifeline.
  3. Prescribe reporting and publication requirements that allow assessment of project impacts in low-opportunity communities and communities of color.
  4. Call for funding for projects that solve the last mile problem for providers of important services such as health and education and initiatives that foster job creation and economic development.

On May 12, Chairman Genachowski replied, noting that many of the ideas Rep Thompson proposed are incorporated into the broadband plan.

Network Neutrality: Who's In Charge Of The Internet?

Next month, Congress will meet to discuss proposals to revamp current telecommunication laws that were last examined in 1996. The current laws hardly mention the Internet; the "bipartisan, issue-focused meetings" announced by Sen John D. Rockefeller IV (D-WV) and Rep. Henry Waxman (D-CA) will examine whether they address current consumer needs. Earlier this month, the Federal Communications Commission announced that it plans to reclassify broadband Internet service as a telecommunications service so that high-speed Internet would be closely monitored by the FCC. The reclassification would also give the FCC control over net neutrality, the idea that information on the Web should be treated equally and cannot be blocked by broadband providers.

Journalist Amy Schatz, who covers tech policy and the FCC for The Wall Street Journal, explains the conflicts between the FCC, Internet companies and telecommunications providers like Comcast and Verizon — and how their battle might determine what the future of the Internet looks like. "Basically, the idea here is: Who is going to control those lines that go into your house?" Schatz tells Fresh Air's Terry Gross. "And there's never really been any rules that talk expressly to Internet lines because we've relied on rules that were [applicable to] phones, but it really gets into a really big issue as more Americans use the Internet to make phone calls or watch movies or just connect with their kids and e-mail and things like that, so it's becoming a really big issue."