February 2009

Study: DRM demise clears way for home audio innovation

So-called "whole-home" audio systems that allow users to rock out to their music in multiple rooms via remote controllers have, so far, not quite caught on with the public. While a variety of options have existed for some time between the high end, like Sonos, and the low end, like the Roku SoundBridge or even Apple's AirPort Express, a new study claims that 2009 may be the year that whole-home systems get their groove on. Forrester's study, called "How Whole-Home Audio Products Can Find Their Rhythm," argues that two primary barriers to entry for these systems are finally at their tipping points now: networked homes and DRM. According to the report, 28 percent of US homes are now networked properly to provide the bandwidth required to push audio all over the house. Further, Apple's announcement in January that it is finally removing all DRM technology from iTunes Store music purchases means that the most popular music store in the US is finally selling the same clean MP3s as its many competitors. Compiled alongside other factors in a new "Convenience Quotient" methodology, Forrester believes networked homes and the freedom provided by music DRM's demise allows manufacturers to shift their battle to the most important factor for new product adoption: convenience.

Understanding What The Broadband Stimulus Does, and What It Doesn't Try To do

What are the merits of the broadband stimulus package? Looking at the broadband piece alone, it appears to be designed to address a very narrow problem: how do
you get build out in the high cost (usually rural) areas? And how does it do so in a way that creates the most jobs on the short term? It makes a nod to urban and suburban. And it is being used by the Administration to leverage, NOT SOLVE, the overall issues on how to keep incumbents from messing with "openness." Those who observe that this doesn't do enough for urban or how it doesn't address the question of convincing people they even need broadband in the first place, ignore how other portions of the bill work in different ways to re-enforce each other. The billions for health IT, digital education reform, and urban renewal and smart grid all act to supplement the build out and uptake issues. People who see no reason to get broadband will do so if it saves them a trip to doctor, for example. Funds "to deliver health IT services" go readily to build urban community wireless systems in poor neighborhoods.

ACA Backs Broadband Stimulus Spending

The American Cable Association, which represents smaller independent cable operators, voiced its support for federal spending on broadband-network services in letters last week to congressional leaders, saying the money will create new jobs. The ACA urged lawmakers to make federal assistance available to cable providers as part of the economic stimulus package pending in Congress to deliver faster broadband service in these communities.

Senate Decides Millions of Rural Homes Don't Deserve Next-Generation Broadband

The Senate cut $2 billion for rural broadband from the stimulus over the weekend, reducing from nine to seven. Two billion dollars budgeted for partial loan guarantees could have empower tens of billions of private capital to flow into rural next-generation broadband. Tens of billions of dollars means millions of rural homes getting connected. And there are projects ready to start deploying within weeks all across America creating thousands of jobs if we could get this support through the gears of government quickly. We can't just be thinking about how to reduce government spending; we need to find new mechanisms to spend those dollars in smart ways. Because the way things stand now we're on the verge of taking away the opportunity to get connected with next-generation broadband from millions of rural homes, and Daily can't see how that's either good policy or smart politically.

Can the DOE stimulate the smart grid?

Although the federal stimulus package is a work in progress, it seems pretty clear that substantial funding will be directed to the Department of Energy for promoting smart grid programs, aimed at providing finer grained control of usage, distribution, and pricing of power in the grid. A smart grid involves building a large network of devices to monitor and control the flow of power, and it's possible that some of the money dedicated to expanding broadband could help in this regard. There are also some tax breaks in the form of accelerated depreciation that could benefit utilities, and money in the form of state aid could go to grid projects in some states. Still, the DOE allotment appears to contain the vast majority of the money for the grid.

PA's proposed budget eliminates public TV funding

Amid Gov. Ed Rendell's new budget for the 2009-2010 fiscal year, one budget cut certainly wasn't broadcasted: the elimination of all state funding for the Pennsylvania Public Television Network. Last year, according to press materials issued along with the governor's budget proposal, PPTN had $12.3 million in state funding. Rendell's budget proposes eliminating that funding and transferring PPTN's infrastructure responsibilities to the state Office of Administration. PPTN used the funding for its own operations and to allocate to eight public television stations throughout the state. According to the PPTN's 2007 annual report, the most recent available, the agency distributed more than $8.9 million to its member stations statewide that year. PPTN Chairman Tony May said the allocation was reduced to $7.9 million last year, but still represented approximately $1 million in grant funding to each of Pennsylvania's eight public stations. While Pennsylvania's public stations receive only about 10 percent of their funding from the state, May said, the grants play a key role in leveraging matching funds from the federal government and other sources.

Obama on Recovery.gov

President Obama, in his town hall-style meeting in unemployment-battered Elkhart, Indiana, fleshed out his views of what Recovery.gov, the administration's own stimulus watching Web site, will be designed to do: "We're actually going to set up something called Recovery.gov—this is going to be a special website we set up, that gives you a report on where the money is going in your community, how it's being spent, how many jobs it's being created so that all of you can be the eyes and ears. And if you see that a project is not working the way it's supposed to, you'll be able to get on that website and say, 'You know, I thought this was supposed to be going to school construction but I haven't noticed any changes being made.' And that will help us track how this money is being spent. ...The key is that we're going to have strong oversight and strong transparency to make sure this money isn't being wasted."

Five trends that will shape business technology in 2009

When downturns hit, there is a certain inevitability to their impact on IT. Declining profits will place tremendous pressure on IT budgets in most sectors and regions. CIOs will be called on to rationalize projects, downsize organizations, renegotiate contracts, and seek out other cost-reduction opportunities. Taken together, this combination of cost pressures and IT organizations that are leaner, larger, and more vital to company goals will have new implications for business technology in 2009. Here's what may be in store:

1) IT and corporate finance converge;

2) Tension around IT budgets increases;

3) organizations that have used IT less successfully in the past will probably throw up their hands and shut off all discretionary;

4) Regulators demand more from IT; and

5) The offshoring and outsourcing landscape shifts.

Limbaugh, Hannity, and the GOP: an iron triangle of stimulus misinformation

On any given day during the current congressional debate over the economic recovery plan, chances are good that Rush Limbaugh or Sean Hannity will say something false about the administration's or congressional Democrats' efforts to pass a bill. And they do not promote these falsehoods in isolation; they are often promoted concurrently with each other and with Republican members of Congress. Hannity and Limbaugh have created an echo chamber of Republican talking points and misinformation criticizing the economic recovery plan. And given the acknowledgment by some national journalists that they pay attention to Limbaugh and Hannity, it follows that they care what the two are saying about the stimulus -- CNBC anchor Erin Burnett said as much about Limbaugh, touting his op-ed in The Wall Street Journal on that topic as "serious."

FCC's Consumer Advisory Committee to Meet March 4

The Federal Communications Commission's Consumer Advisory Committee will meet on Wednesday, March 4, 2009, 3:00 P.M. to 5:00 P.M., at the Commission's Headquarters Building, Room TW-C305, 445 12th Street, S.W., Washington, DC 20554.

The CAC will consider internal matters relating to its structure, operations, and future agenda, which were not addressed at its January 30, 2009 meeting because of time constraints. The Committee may also consider other matters within the jurisdiction of the Commission.

It is anticipated that a majority of Committee members will participate via teleconference. A limited amount of time on the agenda will be available for oral comments from the public attending at the meeting site. The purpose of the Committee is to make recommendations to the Commission regarding consumer issues within the jurisdiction of the Commission and to facilitate the participation of all consumers in proceedings before the Commission.

Benton

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