September 2008

Start-up wants to provide free broadband

M2Z is a small wireless start-up with a big goal: free broadband for the masses. Milo Medin, M2Z's chairman and co-founder and a broadband pioneer, wants the ad-supported service to ultimately be available to 95% of the USA. To make that happen, the company must snag a chunk of wireless airwaves being auctioned next year by the Federal Communications Commission. If all goes according to plan, free broadband could be available as early as fall 2009. The free service, if it launches, would run at 768 kilobits a second, 10 times faster than dial-up. Big wireless carriers currently charge a lot more — $60 to $80 a month — for a lot less, 400 to 500 kilobits or so. Premium services at higher speeds — 3 to 6 megabits initially, Medin guesses — would start at just $20 a month. M2Z plans to have its services built into laptops, home routers and other portable devices. Medin says the company is "in discussions" with a number of major device makers but declines to say which ones. For consumers, built-in service means "instant installation," Medin says. "You'll go to Best Buy or Target, buy a (Web-enabled device), turn it on — and you're connected." M2Z's success hinges on whether it is able to buy wireless spectrum known as advanced wireless services-3, or AWS-3. The spectrum could fetch $50 million, at least. A number of companies are eyeing the block. Wireless carriers are grousing about M2Z's plan, saying the new service could cause service disruptions for their data customers. The most vocal opponent, by far, is T-Mobile. It spent $4 billion two years ago to buy the AWS-1 block, which abuts the now-idle AWS-3 spectrum. Medin says incumbents are just trying to throw out roadblocks. Why? Because they don't want to compete against free broadband, he says.

Wilmington (NC) gets ready for switch to digital TV

At noon on Monday, Wilmington's five commercial broadcast stations are scheduled to become the nation's first to permanently switch to all-digital signals, serving as a test of the government-mandated transition that other stations across the country will make in February. dozen FCC staffers have spent the summer crisscrossing the region like tourists to raise public awareness. They've visited the Poplar Grove Plantation farmers market and the Pender County Blueberry Festival. They've been to the 30th anniversary party for the public library in Elizabethtown and made friends at the Mae Coffee Shop in Whiteville. FCC Chairman Kevin J. Martin has visited five times to spread the word. By all accounts the region is ready after the unprecedented FCC effort, which supplemented an aggressive publicity campaign by broadcasters. But the all-out federal effort is a major reason a successful test of what one Wilmington station has dubbed "the big switch" could turn out to be a big illusion. "It's great Wilmington has come forward and offered to be the canary in the coal mine," said Joel Kelsey, a policy analyst with Consumers Union, the nonprofit publisher of Consumer Reports magazine. "But we have several concerns about just how good a canary Wilmington is going to be." One is that no other place will get the type of personal oversight that the FCC has showered on Wilmington. Other media markets will be visited by only a single FCC commissioner, accompanied by a few staffers, for a couple of days.

Tribune TV stations downplay affiliation with CW network

The CW television network launched its new fall prime-time season with some of its highest ratings Monday night, but not before its TV station partner, Tribune, took steps to downplay its association with the youth-oriented network. Chicago-based Tribune, which also owns the Los Angeles Times and the Chicago Tribune, has begun redesigning some of its websites, including that of KTLA-TV Channel 5 in Los Angeles, by dropping the CW network brand and instead focusing on its local identity. The moves underscore the uneasy alliance between Tribune, which is under pressure to boost revenue amid a slowdown in advertising, and the CW, which failed last season to attract a large audience. The CW's pursuit of young viewers clashes with Tribune's focus on its newscasts, which generate most of its TV stations' revenue and appeal to older viewers. Tribune switched affiliation from CW to Fox Broadcasting Co. at its San Diego station this year, leaving 13 of 23 Tribune stations still airing CW programs.

Americans Can't Live Without DVRs: Survey

According to a survey commissioned by NDS, which sells DVR software, most Americans say a digital video recorder is indispensable -- and that it has improved their marriages by decreasing the likelihood of arguments over what to watch and allowing couples to watch shows of mutual interest together. About 81% of Americans surveyed said a DVR is an essential technology, beaten only by those who said they couldn't live without their mobile phone (92%).

4 Journalists Arrested as Minneapolis Protests Turn Violent

Protesters attacked delegates, smashed windows, punctured car tires and threw bottles Monday, a violent counterpoint to an otherwise peaceful anti-war march at the Republican National Convention. Police wielding pepper spray arrested at least 56 people. At least four journalists were among those detained, including Associated Press photographer Matt Rourke and Amy Goodman, host of Democracy Now!, a nationally syndicated public radio and TV news program. Goodman was intervening on behalf of two producers for her program, Sharif Abdel Kouddous and Nicole Salazar, when she was arrested, said Mike Burke, another producer. The trouble happened not far from the Xcel Energy Center convention site, and many of those involved in the more violent protest were clad in black and identified themselves to reporters as anarchists. They wrought havoc by damaging property and setting at least one fire. Most of the trouble was in pockets of a neighborhood near downtown, several blocks from where the convention was taking place. But the main antiwar march was peaceful, police said, estimating about 10,000 people participated. Late Monday afternoon, long after the antiwar marchers had dispersed, police requested and got 150 Minnesota National Guard soldiers to help control splinter groups near downtown. Free Press called on St. Paul Mayor Chris Coleman and local law enforcement officials to drop all charges against all journalists arrested while covering protests outside the Republican National Convention. Josh Silver, executive director of Free Press, said, "We condemn the arrest and harassment of journalists before and during the Republican National Convention. We call on the mayor, district attorney and police chief to rein in the overly aggressive -- and even violent -- tactics of law enforcement. Arresting and detaining journalists for doing their jobs is a gross violation of free speech and freedom of the press. We call for the immediate release of any journalists being held in the Twin Cities and for all charges to be dropped immediately. Reporting by independent journalists is the only way for the American public to learn the full story, and they must be free to do their jobs without intimidation."

Gustav brings down cell, Internet service

Power outages caused by Hurricane Gustav brought down cellular and Internet service in parts of Louisiana, but its impact was much milder than that of Katrina. AT&T, the main landline phone company in the state, said it had 2,000 employees working to assess damage and perform repairs. Most of its cellular towers in areas hit by the hurricane were working Tuesday, according to spokesman Drew Giblin. Verizon Wireless said fewer than 1 percent of its Gulf Coast cell towers were out of operation Tuesday morning, mostly due to power outages. "Power is the only critical issue affecting our network," added Sprint Nextel Corp. spokeswoman Stephanie Vinge-Walsh. On Tuesday morning, the company was waiting for permission from officials to enter stricken areas so it could connect portable generators to blacked-out cell sites and refill the fuel tanks of those that have their own generators. T-Mobile USA said it had also some network disruptions in south-central Louisiana due to commercial power issues. The Associated Press bureau in New Orleans had no landline phone service Tuesday morning, and reporters had problems with their cell phones. Katrina had a wider impact on telecommunications in 2005, prompting the Federal Communications Commission to propose a requirement that cellular carriers have eight-hour backup batteries for all their cell sites. Wireless industry association CTIA, Sprint and T-Mobile fought the requirement in court and have prevented it from taking effect. The carriers say that requiring each cell site, even in areas that aren't disaster-prone, to have its own backup power is expensive and robs the companies of the flexibility to deploy generators in more sensitive areas.

GOP to networks: Please cover us

Republican officials are asking the television networks to expand coverage of their convention now that Hurricane Gustav is no longer a threat to New Orleans. Sen McCain decided to move ahead with the partisan convention program after consulting with Federal Emergency Management Agency officials, Louisiana Gov. Bobby Jindal and New Orleans Mayor Ray Nagin.

Based Solely on Olympics Ads, McCain Wins

If the outcome of the November general election were based solely on the impact of the candidates' Olympics ads, John McCain would defeat Barack Obama, according to research just out from Nielsen IAG. In the Olympics, both McCain and Obama spent between $5-6 million on ads. And according to the analysis by Nielsen IAG, based on responses of 1,600 likely general election voters who tuned in to the Beijing Games, McCain's Olympic ads were tops in what the research firm labels "breakthrough" (essentially aided recall), candidate recall, effectiveness in communicating the basic message and intent-to-vote increase. The research focused on four ads, two from each candidate. McCain's "Celebrity" ad, the one negative commercial in the batch, portrayed Obama as an empty-headed celebrity lacking in substantive ideas. The ad broke through by a margin of 18 percentage points higher than Obama's best scoring ad, and with a communication effectiveness rating of 90 percent, also far exceeding Obama's ads. But there was also significant backlash for McCain from the "Celebrity" ad. While 17 percent said they had a lower opinion of Obama after seeing the ad, and 22 percent said they'd be more likely to vote for McCain, 27 percent said they'd be less likely to vote for McCain after seeing his negative ad. Obama scored higher points in a single key metric, likeability, although neither candidate came close to the Olympic likeability average of 58 percent. But ultimately Obama's ads couldn't overcome McCain's ads' huge lead in general recall, which translated to a net boost in intent to vote for McCain of 10 percent compared to a 7 percent lift for Obama. While 3 percent may not seem like much of an edge, "it's a meaningful difference from our perspective in terms of viewers walking away more likely to vote for McCain," said Kaplan. The silver lining for Obama: looking at just the undecided voters in the survey the net impact was virtually the same for both McCain's and Obama's ads. McCain still had a commanding lead in breakthrough, but Obama was stronger on driving intent among viewers who remembered his advertising.

McCain Campaign Pulls Ads in Wake of Gustav

Sen John McCain's campaign (R-AZ) suspended advertising for the week because of the storm. The suspension comes at a cost. This is the last week the campaign can spend money raised for the primary. Once McCain is formally nominated Thursday, his campaign gets federal financing and can no longer use funding raised in the primary for expenses.

The Limits of 'Unlimited'

[Commentary] Comcast announced that, starting Oct 1, it will impose a 250 GB cap on usage. At the moment, the announcement is relatively benign, although there are lots of dangers lurking in the weeds. However, this new cap doesn't appear to help Comcast meet its network management challenges. By Comcast's own admission, this new cap will, at the moment, affect less than one percent of their users, so it's not as if demand will be suppressed sufficiently to help the network run more smoothly. The whole concept of a "heavy user" is, of course, open to interpretation. Today's heavy user is tomorrow's medium or light user. It's like buying a computer. Today's newest and fastest model will be the middle of the road in a few months. As more bandwidth-intensive applications become more prevalent, whether streaming HD movies or gaming, customers are going to use lots more of their more or less unlimited bandwidth. We don't know how Comcast will adjust the cap as time goes on. We do know that it will have to be adjusted.