October 2010

Why Cable May Let the Google Fox Into the Henhouse

[Commentary] The most interesting Google news this past week wasn't hardware-related; it was the partnership Google struck with DISH Network, a sign that one of the biggest pay-TV providers just let the fox into the henhouse.

Cable operators like Comcast are a different story: They're notorious control freaks when it comes to consumer experience and content, and they're not hobbled like satellite operators are when it comes to interactive services and video on demand. Still, this hasn't stopped Google; news indicates the company is pursuing integration deals with cable companies. But will cable companies bite? A Google TV platform will be a tough sell, but I think after a decade-plus journey through the interactive TV desert with OCAP/Tru2Way, many cable operators are too tired and thirsty to resist what Google could offer in the form of applications and interactive services.

Cyber czar: Threat protection is a shared responsibility

The government, individual users and the private sector all play critical roles in protecting the nation against cyber threats, said Howard Schmidt, special assistant to the president for cybersecurity.

Speaking to a group of high school students at a cybsersecurity education workshop, Schmidt that said while government plays a vital role in securing networks, it tends to thwart innovation and "the last thing we want to do is slow that down." The private sector and users must take responsibility for their actions, according to Schmidt. For example, individuals who use social networking have an obligation to think through the ramifications of putting information online. "We as users have to make sure we're doing what we can to protect each other," he said. Given the ubiquity of technology in most people's daily lives -- Schmidt noted he carried both a BlackBerry and an iPhone -- it is critical for everyone to be proactive in protecting data the data they control. "We all have to do our part," he added.

Army is evaluating full-color flexible displays that can be worn on the wrist

The Army is testing a prototype "watch" that's lightweight and thin and has a full-color display.

This display is built on flexible materials encased in a rugged plastic case and can be worn on a wristband to display streaming video and other information. It uses newly developed phosphorescent materials that are efficient at converting electricity into red, blue, and green light, which means the display needs less power to work. Most phones, laptops, and TVs today use liquid-crystal displays (LCDs) controlled by electronics built on glass. To make more energy-efficient displays that are controlled by flexible electronics, which are lightweight and won't shatter like glass, many companies are turning to organic light-emitting diodes (OLEDs). The pixels in OLED displays replace the layers of electronics and filters in LCDs with organic dye molecules that emit light in response to electrical current. For consumers, flexible OLEDs promise portable electronics with beautiful screens that don't drain battery life and won't shatter when dropped. But so far, no companies have developed economically viable manufacturing methods for producing flexible OLEDs with long enough lifetimes and consistent quality.

The U.S. military has been funding development with the aim of providing soldiers with rugged, thin communications devices that can display maps and video without adding too much weight to their load.

Scientific American's Flawed Broadband Analysis

[Commentary] Scientific American's editors declare in its October 2010 issue that broadband prices in the United States are too high and speeds are too low. As a result, the editors implicitly assert, the U.S. has fallen to 40th place in "progressing towards a knowledge-based economy." They conclude that remedying the situation requires unbundling access to local loops, mandating net neutrality, and classifying broadband under Title II of the Telecommunications Act of 1996. Scientific American has the right concerns and objectives: ensuring that the United States remains a technological leader and that its broadband market is competitive. However, a closer look at the facts, as explained, for example, by the National Broadband Plan, reveals a more nuanced story that does not support their confident policy proposals.

Editorials like Scientific American's help to keep us mired in the seemingly endless debate over net neutrality and infrastructure sharing as the broadband world moves on. The best thing policymakers could do to improve U.S. broadband is to move spectrum into the market to make it easier for existing carriers to offer better services, and cheaper for new competitors to enter the market. Eliminating barriers to wireless broadband growth is far more relevant to the future of broadband and national competitiveness than is the availability or price of 100 Mbps residential broadband.

[TPI is an industry-supported think tank.]

How Republicans Are Using Social Media to Win Mid-term Elections

Matt Lira, digital communications director for House Minority Whip Eric Cantor, spends his days making social media a core ingredient of conservative strategy, and it's already beginning to show signs of success.

Republicans have passed Democrats in social media use. Mid-term candidates, a central focus of Cantor's position as House Whip, are crushing their left-leaning opponents in Facebook fans and Twitter followers. "We've been very enthusiastic about spreading the good word about social media," Lira says. "Television changed not just how politics and government worked, but it changed who was in government--social media is doing the exact same thing." But Lira has a different, more important goal in mind for social media that goes beyond partisan politics: policy. What goes on behind the closed-off doors of Congress has pushed legislation out of the public's grab, surrounded by all-too-high walls of insular Washington culture. Lira hopes social media will help begin tearing those barriers down.

Telecom industry protests University of Wisconsin's broadband plan

The University of Wisconsin System is coming under fire from the state's largest association of telecommunications providers for planning to use millions of dollars in federal stimulus funds to expand high-capacity broadband Internet services in communities across Wisconsin.

Bill Esbeck, the executive director of the Wisconsin State Telecommunications Association, argues the project will duplicate an existing network and take revenues out of the pockets of local Internet providers. The group is asking for a state review of the plan and is considering legal action, says Esbeck. But those backing the undertaking argue it will bring faster and more reliable Internet service to public safety agencies, health care providers, schools and community organizations in Platteville, Superior, Wausau and the Chippewa Valley (Eau Claire) area. The project would expand Community Area Networks, which essentially are regional co-ops for owning and managing broadband fiber. Critics say it would duplicate and compete with BadgerNet, an already existing network that is provided by local telephone companies to municipalities and other public entities under a deal with the Wisconsin Department of Administration.

"This grant seems like a bizarre thing to fight, but if you look carefully at who is pushing this, it's the same not-so-invisible hand of AT&T," says UW-Madison professor and telecommunications expert Barry Orton. "This is an industry protecting its own nest. It's the equivalent of the railroad industry 50 years ago saying, 'You don't need to put money into airports and please don't put any federal funding into highways.'"

Did Borders' New Self-Publishing Tool Make Blogs Smarter or Books Dumber?

Borders is trying a new experiment to combat Amazon and Barnes & Noble in the e-book wars: It's partnered with BookBrewer, which will bring self-publishing powers to its platform. And the intriguing chance to turn blogs into e-books.

Self-publishing is something other players in the e-reader game are trying too, so Borders probably had to make a similar move in order to keep its e-publishing service relevant. Its clever choice, rather than building its own system, is to partner with BookBrewer--a relatively new company that's already offering some self-publishing. The basic deal costs just $90 to authors, but this includes proper ISBN coverage for the publication (which usually costs more than $90, all by itself). The advanced deal is a serious-sounding $200, but this does include creation of a full ePub edition of the publication, with the authors themselves retaining ownership of this file so it can be distributed on other platforms (including the iPad). BookBrewer's other selling point is its speed and simplicity--it is essentially a one-click "create book" affair, once you've uploaded the text and chosen a cover graphic. BookBrewer's other offering is more intriguing: Its service allows a blog (via an RSS feed) to be quickly transformed into an e-book format, so it can also be sold through the same channels as more traditional texts.

It's a kind of reversal of thinking about digital publishing, almost like printing out your Facebook friend pages as a paper-and-ink book. Yet it's also strangely powerful: Popular blogs can sell their back editions for off-line perusal on e-readers, with little overhead charge. This will appeal to folks off on long vacations who're looking for a different kind of reading experience to the usual glossy-covered airport novel.

The Era Of Newspaper Bankruptcies

In a two-year stretch, nine US newspaper chains filed for and subsequently emerged from bankruptcy.

Rupert Murdoch grilled about donations

Questions about two $1 million political donations to groups with ties to the Republican Party took over a good portion of the News Corp. annual shareholder meeting Oct 15.

Faced with criticism that the donations had political motivations and no business benefits, chairman and CEO Rupert Murdoch said "a fair amount of change" in Washington was "in the interest of the country and all the shareholders." He also argued that they have "nothing to do with the editorial policies or the journalism" that the company provides.

Sir Rod Eddington, News Corp.'s audit committee head who came under pressure ahead of the meeting due to the donations, also told shareholders that the donations decisions were made with shareholder interests in mind after input from executives and the general counsel. "I understand the concerns and the calls for transparency," he said. Asked if the company will provide disclosures on political donations in the future, he said "that's something the board will consider."

Joe Barton makes play for House Commerce Committee gavel

Republicans don't even have the House majority yet, but Rep. Joe Barton is already making a play for a chairmanship his leadership is highly unlikely to give him.

In his quest to lead the Commerce Committee, the Texas Republican is petitioning the Steering Committee that awards chairmanships to "clarify" whether the party's six-year term limits for the position apply to time served in the minority. He's already talking about investigations he'd like to launch and asserts that he's got a "very good" shot at the chairmanship. Michigan Rep. Fred Upton is talked about by Hill insiders and K Street sources as having the upper hand in the chairmanship battle. Florida Rep. Cliff Stearns and Illinois Rep. John Shimkus are also in the mix. Why so much maneuvering for a chairmanship before the election? The panel, under a Republican majority, could become the launching pad for ideological battles that would define a GOP House digging in on global warming, cap and trade, energy bills, health care repeals and a wide range of business regulations.

Benton

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