April 2011

SimpleGeo Makes Location Data Free, Complicates Smartphone Tracking Worries

SimpleGeo has placed 20 million locations for "places" in the public domain to drive developers of location-based service apps. The thing is that data, combined with location-tracking smartphones, could spark unsavory uses too. In a direct challenge to Foursquare's effort to become the "Rosetta stone" for location-data on identifiable geo-located "places," SimpleGeo is trying to spark a revolution in location-based app writing by making the data for 20 million places available on its servers under the Creative Commons Zero license--essentially placing the data for free into the public domain. It's a bold move, because platforms like Foursquare and Yelp, which rely on venue data tied to precise geo-locations, have to struggle to build up their own internal places database over time, relying on multiple database entries from their userbase to create a reliable table of locations.

Networks Ready to cash In

With about three weeks to go before the broadcasters unveil their 2011-12 upfront slates, you don't exactly have to place a call to Dionne Warwick and the old Psychic Friends Network to figure out that the TV networks are going to make a killing.

According to a new forecast issued by analyst Anthony DiClemente of Barclays Capital, the Big Four broadcasters are likely to increase their upfront commitments by 7.5 percent year-over-year to $9.23 billion, beating the previous high-water mark of $8.8 billion in the 2008-09 bazaar. DiClemente sees CBS leading the market with sales of $3.01 billion, or a gain of 15.6 percent from a year ago. ABC’s sales should rise by as much as 12 percent to $2.68 billion, while Fox will see a 6.4 percent lift, taking in $2.11 billion. With NBC expected to move less inventory than its peers, The Comcast owned network should experience a concomitant decline in dollar volume. DiClemente is forecasting a 10.7 percent drop for the Peacock, with upfront orders adding up to $1.43 billion.

Can Dish plus Blockbuster unseat Netflix?

Earlier this month, Dish bought Blockbuster off the auction block for $320 million. The move was as puzzling to industry watchers as it was intriguing.

Blockbuster, the bricks-and-mortar video chain, had been knocked flat by Internet companies such as Netflix, who were quicker to move from DVD rentals to streaming movies online. It was a tale of fast-shifting fortunes: Blockbuster’s stock was delisted from the New York Stock Exchange this past summer, and it filed for Chapter 11 bankruptcy protection — a steep falloff from the $1.6 billion it was worth in 2002. Netflix, by contrast, has built a market capitalization of $13 billion (up from $288 million in 2002) and now streams content to more than 200 devices. Observers say that under different management, Blockbuster could do better. In a lengthy article in the Harvard Business Review, former Blockbuster chief executive John Antioco said the business was held back by squabbling by former parent company Viacom’s shareholders and management over the company’s online strategy. Viacom didn't want to put its movies and television shows online because it was making more money from theaters, DVD sales and licensing fees with cable companies. While Blockbuster shareholders spent precious time debating the merits of late fees for video rentals and retail store tie-ups with companies such as Barnes & Noble, Netflix was renting videos online and building the technology to stream video over game consoles, laptops and mobile phones. And Redbox was offering cheaper rentals at grocery stores. “I firmly believe that if our online strategy had not been essentially abandoned, Blockbuster Online would have 10 million subscribers today,” Antioco said, “and we'd be rivaling Netflix for the leadership position in the Internet downloading business.”

NPR's social media specialist lives the tweet life

As National Public Radio's senior strategist specializing in social media, Andy Carvin, 39, is known to more than 43,000 Twitter followers as @acarvin.

From his office in Washington and his nearby home, he spends up to 17 hours sending nearly 300 Twitter tweets a day about minute-by-minute events, mostly in North Africa and the Middle East.Called a curator of information, he re-tweets first-person experiences, often shocking and heart-wrenching, of the so-called Jasmine Revolution. In the process, he puts a human face on the Arab and Muslim freedom fighters. "If part of my tweeting helps expose the American public to a broader understanding to what Arabs and Muslims are like, so much the better," Carvin said. His effect is so far-reaching that Time magazine recently included him in its poll of 100 Most Influential People. "Everybody who follows the Middle East owes a debt to Andy," said New York Times columnist and two-time Pulitzer Prize-winner Nicholas Kristof. "He's the maestro of the region's Twitter feed."

AT&T/T-Mobile deal offers risk, reward for Obama

AT&T's controversial $39 billion bid for T-Mobile officially got under way, crystallizing a big risk and possibly a big opportunity for President Barack Obama.

The risk: allowing a deal that could, in time, leave Americans with just two choices for cellphone providers. The potential opportunity: extending high-speed wireless to virtually the entire country, which AT&T has promised if the deal goes through. The political implications don't end there: Blocking the acquisition would mean alienating a stalwart member of the business community. Approving it, critics warn, could lead to steep layoffs as the two phone companies merge overlapping operations. Those tensions lie at the heart of what's shaping up as one of Washington's fiercest regulatory and lobbying battles in recent memory. On one side is AT&T, stocked with a battalion of lobbyists and prepared to spend probably tens of millions of dollars to cinch Justice Department and FCC approval. On the other side is Sprint and a collection of public interest groups that say the deal would allow a quasi-duopoly in the wireless market — AT&T and Verizon would control about 80 percent of the market — leaving consumers holding the bag with higher prices for poorer service.

AT&T Admits It Can't Handle The iPhone

In a new filing explaining why it wants to buy T-Mobile, AT&T essentially admits that its network wasn't ready for the iPhone, and won't be able to handle new smartphones and tablets as they come on board.

The filing says:
"A smartphone generates 24 times the mobile data traffic of a conventional wireless phone, and the explosively popular iPad and similar tablet devices can generate traffic comparable to or even greater than a smartphone. AT&T’s mobile data volumes surged by a staggering 8,000% from 2007 to 2010, and as a result, AT&T faces network capacity constraints more severe than those of any other wireless provider."

Those dates aren't a coincidence. 2007 is when the iPhone was introduced as an AT&T exclusive. AT&T warns the problem is getting worse as more consumers use video and enterprise apps on their smartphones, and guesses that its network will carry more traffic in the first five to seven weeks of 2015 than it did in all of 2010. It's nice to see AT&T finally admitting it has a problem. One has to wonder why it didn't see this coming when it signed the iPhone deal in the first place, though.

AT&T Doesn't Show Its Cards in FCC Filing

AT&T signaled tough negotiations lie ahead over its proposed $39 billion acquisition of T-Mobile by not volunteering any regulatory conditions in a 381-page filing with the Federal Communications Commission that outlines the public-interest benefits of the deal. Critics complain the transaction could result in higher prices, fewer choices, and obstacles for competitors, especially those requiring access to AT&T’s nationwide network.

By contrast, Comcast and NBC Universal, whose joint venture was strongly opposed by a coalition of cable networks and advocacy groups, made a series of pro-consumer commitments early on to assuage concerns about the combination, which won approval in January. Instead, AT&T emphasizes in its submission that the wireless carrier is facing a severe shortage of spectrum and needs to combine with T-Mobile to free up more airwaves that it can use to deploy new services, including superfast 4G wireless broadband. Joan Marsh, vice president of federal regulatory with AT&T, insisted at a briefing that it is “way too early” to discuss possible conditions. Gary Phillips, associate general counsel with AT&T, noted that the company already has acknowledged that it expects the FCC and/or Justice Department, whose approvals are required for the deal, to impose restrictions. Marsh said the transaction is necessary for T-Mobile because it also faces spectrum constraints and has an added problem: no immediate plans for deploying 4G service. She argued that the wireless marketplace is sufficiently competitive to absorb this corporate union, which would remove the fourth-largest nationwide mobile carrier (T-Mobile) from the marketplace. Despite the possibility it might have to divest some assets to win approval of the purchase, Marsh said AT&T would still fulfill its promise of extending 4G service to 97 percent of Americans.

AT&T, arguing T-Mobile merger won’t curb competition, talks up smaller rivals

These days, the nation’s second-tier and regional wireless carriers are receiving some glowing advertising from a seemingly odd pitchman: AT&T.

The praise is hardly intended as flattery but is a critical element of AT&T’s strategy to persuade federal antitrust officials that its $39 billion acquisition of T-Mobile will not harm competition in markets across the country. “Sprint has already achieved substantial success in the marketplace by offering attractive pricing plans and upgrading its smartphone portfolio,” said Joan Marsh, an AT&T vice president focusing on federal regulatory affairs, sounding much like a spokeswoman for the rival company. “MetroPCS and Leap, which are the leading all-you-can-eat data providers ... have enjoyed great success focusing on value-oriented services, and both have begun moving upmarket,” Marsh gushed. The rivals were not convinced. Sprint and smaller niche players that belong to the Rural Cellular Association countered in dueling media calls and statements that AT&T’s move to consolidate two of the three largest wireless carriers will crush their business prospects.

AT&T: T-Mobile sucks (and we'd like to buy it for $39 billion)

$39 billion -- that's a lot to pay for a company. It must be awesome, right? Here's how AT&T describes acquisition target T-Mobile:

  • "T-Mobile is not an important factor in AT&T’s competitive decision-making."
  • "As a standalone company, however, T-Mobile USA would continue to face substantial commercial and spectrum-related challenges. It confronts increased competition from industry mavericks such as MetroPCS, Leap, and others; its percentage of US subscribers has been falling for nearly two years; and it has no clear path to LTE."
  • "T-Mobile USA, in contrast to others, does not have a differentiated network position. T-Mobile USA has admitted that it suffered from its late transition to a 3G network, and unlike Sprint, which first promoted a 4G network, T-Mobile USA’s HSPA+ launch appears to have been lost among other carriers’ 4G messaging."
  • "AT&T does not believe that T-Mobile USA has a particularly compelling portfolio of smartphone offerings as compared to AT&T, Verizon, and Sprint."
  • "To the extent that T-Mobile USA’s prices are lower than those received by AT&T and Verizon Wireless for otherwise comparable subscribers, T-Mobile USA’s lower prices have not stimulated growth in its share of retail subscribers. This indicates that other aspects of T-Mobile USA’s service are in some way lacking."

And it's not just T-Mobile; AT&T can't say enough bad things about the imminent problems with its own network.

Media’s Spotlight Shines Less Brightly on Palin

One of the few pieces of statistical evidence that we can look toward at this early stage of the presidential campaign is the number of media hits that each candidate is receiving.

Apart from being interesting unto itself, it’s plausible that this metric has some predictive power. At this point in 2007, Barack Obama and John McCain were receiving the most coverage among the Democratic and Republican candidates respectively, and both won their races despite initially lagging in the polls. In contrast to four years ago, however, when the relative amount of media coverage was fairly steady throughout the campaign, there have already been some dramatic shifts this year. Sarah Palin’s potential candidacy, for instance, is only receiving about one-fifth as much attention as it did several months ago. During the month of November 2010, Ms. Palin’s name retrieved 777 hits, according to this technique. That represented just over half of the 1,533 citations for all 23 candidates combined. So far this month, however, Ms. Palin has accounted for just 124 hits out of 1,090 total, or roughly 11 percent. Instead, her place has been taken by Trump, who has accounted for about 40 percent of the coverage. The decline in media coverage for Ms. Palin tracks with a decline in her polling numbers. Whereas she was pulling between 15 and 20 percent of the Republican primary vote in polls conducted several months ago, she’s down to about 10 percent in most surveys now. Trump, meanwhile, whose media coverage has increased exponentially, has surged in the polls, and is essentially in a three-way tie for the lead with Mitt Romney and Mike Huckabee over an average of recent surveys. A Pew poll released yesterday, which asked voters which Republican candidate they'd heard the most about, found Mr. Trump’s name mentioned far more often than any other. The voters in Pew’s survey passed this quiz with flying colors: so far this month, Mr. Trump has in fact received as much coverage as the next six candidates combined.