October 2008

Tech teeters on the brink of a recession

The tech sector took another beating Friday as fears of a global recession fed a widespread market selloff. The pervasive selling mood has intensified after a string of third quarter earnings announcements. Citing concerns about the ailing economy and a sudden slump in orders, several big players offered bleak sales outlooks and lowered their financial targets. Tech's recovery hinges on the buying power of consumers and large businesses. Declining home values and rising unemployment have put consumers under pressure. And drooping sales in a tough credit market haven't exactly encouraged businesses to beef up IT spending. It's possible that "2009 could be a trough" where stocks hit a bottom and start to rally ahead of a recovery. But given how hard it is to predict the severity of the downturn, pegging the timing of the recovery could prove even harder to get right.

Telemedicine Could Save $197 Billion, But Only With 'Smart Networks'

Broadband-enabled improvements to health care could save $197 billion over 25 years, but only if carriers had the incentives and freedom to deploy so-called "smart networks," according a study financed by AT&T. Widespread broadband deployment would be necessary to achieve these savings, according to the study, report author Robert Litan, vice president of research and policy at the Kauffman Foundation. The 63-page report, "Vital Signs Via Broadband: Remote Health Monitoring Transmits Savings, Enhances Lives," was presented at a press briefing by Better Health Care Together. The group seeks comprehensive changes in the health care system. Senior citizens generally lag in technology adoption. But because they are likely to be the greatest beneficiaries of widespread broadband-enabled health monitoring, it may be necessary for the government to incentive broadband adoption if it wants to realize those savings, said Litan. Among the incentives that should be deployed, said Litan, are investments in Internet education, rural broadband infrastructure and "telecommunications policies that allow broadband providers to experiment with different offering that attract marginal users without sacrificing profits on other users," according to a summary of recommendations. In his remarks, Litan said: "We need not only a take-up of broadband, but a take-up of smart broadband, or smart networks."

Forrester: Social Web Now Mainstream

US consumers are flocking to use social networks and other participatory venues to the extent that the activity is now mainstream, according to Forrester Research. The company's polling indicates 2008 has marked significant growth for social media, with a decided majority of users now taking part. A consumer poll done in the second quarter found that 75 percent of Internet users participate in some form of social media, up from 56 percent in 2007. Adoption rates vary by the type of activity. For example, Forrester found large growth in participation among those reading blogs and writing product reviews. "Spectator" rates jumped from 48 percent to 69 percent. Likewise, those identifying themselves as "critics" increased from 25 percent to 37 percent.

Sputnik Moment: The Call for a National Broadband Policy

The Soviet Union's successful launch of the Sputnik 1 satellite in 1957 served as a rude awakening for the United States. That single act catapulted the two nations into a space race, and the US came to realize that it was no longer the putative technology leader. Fifty years later, America finds itself in a similar situation—increasingly outpaced by other developed nations in terms of broadband deployment, penetration, availability and affordability. With broadband vital to so many aspects of our daily lives, can the US afford to fall behind?

SAG Again Urges FCC to Boost Disclosure on Product Placement

The Screen Actors Guild is reiterating its position that the Federal Communications Commission should take an in-between step on TV product placement: Heighten requirements for disclosure at each show's beginning and end, but not every time a product is seen. In comments filed at the FCC, SAG suggested that despite what advertisers and broadcasters say, "stealth messages" are blurring the line between programming and advertising. The FCC is examining whether its current requirements for product placement disclosure go far enough. Some critics of product placement have urged the FCC to require disclosures every time a paid product placement is seen on a show. Advertisers and broadcasters, meanwhile, have questioned whether consumers are really being misled and questioned the need for changes. SAG, which had earlier expressed its concerns, in its latest comments said there are problems with product placement, but the better answer was to require clear video and audio disclosure of the products' use at the beginning and end of each program.

Remembering Al Gore and government's tech role

[Commentary] Before he set out to save the planet, Al Gore played a key role in cultivating the Internet that is often forgotten today. With the Presidential election less than two weeks away, it is instructive to look back at how properly directed government leadership can stimulate meaningful change - without spending billions of dollars. Back in 1994, Vice President Gore issued marching orders to all executive branch agencies to get a web presence by that fall. There were no excuses or exceptions accepted - every federal agency from the Consumer Products Safety Commission to the Central Intelligence Agency had to get a web site up. The action ended up providing two benefits to the embryonic commercial Internet. First, it provided Internet startups with an array of "name" customers outside of the traditional university geeks and high-tech companies that had been using the 'net for email. Secondly, a lot of content appeared online that Joe Citizen could suddenly get for "free." Vice President Gore didn't "invented" the Internet, but through his actions, he helped fan the flames of growth. A new administration would do well to remember that properly directed government leadership by example in technology and telecommunications is just as critical as government spending - and, it can be just as effective.

Reding to offer concessions to EU telecommunications regulators

Facing opposition in Brussels, the European Union's telecommunications commissioner, Viviane Reding, is scaling back her proposal to create a new Europewide telecommunications agency with the power to intervene in national markets to mandate consumer-friendly changes in regulation and pricing. Reding may propose a compromise that would reduce the staff of the new agency to 20 from 50 and give the telecommunications regulators from the 27 EU countries - most of which do not want the new overseer - an effective veto over any decisions taken by the new agency.

Schools mull digital TV's implications

US schools have less than four months to prepare for the switch from analog to digital TV broadcasting. But there is still a great deal of confusion about what, exactly, this switch will entail -- and whether schools and other institutions are ready. The impending switch has prompted many school technologists to consider "what-if" scenarios. One of their chief concerns is whether the coaxial radio-frequency cable networks that currently carry analog TV content in schools will be able to handle digital content adequately.

Russia blocks big Google ad deal

Russia's antitrust regulators blocked Google's $140 million acquisition of contextual online advertiser ZAO Begun. On Thursday, the Federal Anti-Monopoly Service, or FAS, refused Google's application to buy the unit from search engine operator Rambler Media.

Tribune's DC bureau faces cutbacks

With the Tribune Company cutting back across its various holdings, Washington (DC) staffers expect major changes to rock the bureau after election day. Fiery owner Sam Zell believes the Washington operation is bloated, and needs to be streamlined to avoid coverage overlap between the company's papers. During the conventions, Tribune papers worked more closely together than before, and there are meetings daily between bureau chiefs. But further consolidation is ahead.

Benton

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