October 2009

A Big Deal, but Not a Good One

Content never became king — search did — but the notion continues to lure otherwise careful companies to the deal altar with its abundant charms. Sometime in the near future, Comcast, the largest cable system operator in the country, is likely to buy a majority stake from General Electric in NBC Universal, a huge enterprise with content assets in broadcast, cable and film and on the Web. It's just like the good old days, when media titans strode the earth in search of the grail of synergy, a magical elixir that emerged from vertically integrating seemingly disparate enterprises. In this case, Comcast — a company with around 24 million customers in 39 states that make up 95 percent of its revenue — wants to diversify when cable systems are under a variety of threats. Nothing like a little deal flow to get the blood pumping. We haven't seen anything quite like it since the merger of Time Warner and AOL. And that turned out well, right?

Pulling the TV cord yet staying plugged in

A small but apparently growing number of people are cutting the television service connections from cable satellite and telephone companies in favor of viewing their picks over the computer. For reasons that include saving money, convenience, personal choice and a hatred of commercials, these viewers are cutting the cord from cable, satellite and telephone suppliers of TV service, and even throwing away the rabbit ears and other antennas that brought in over-the-air broadcasts. There have been no mainstream studies on just how many people have cut the cord to established TV program suppliers, and the percentage of viewers who have done it is probably small. But there's plenty of evidence that the number of people who are watching TV shows online is growing. According to a survey released last month by the nonprofit Conference Board, nearly 1 in 4 households in the U.S. have watched television online. Meanwhile, about 20% of responders said they were watching less TV delivered through traditional broadcast or paid cable-type providers.

Studios' Quest for Life After DVDs

Movie studios, desperate to return their home entertainment divisions to growth, are scrambling to shape the post-DVD era. While DVD and Blu-ray will remain a huge profit center for years to come, studio executives are finally confronting an uncomfortable reality: little silver discs — for reasons of convenience, price and consumer burnout — may never recover their sales power. To grow, studios need to figure out digital distribution. Everyone is trying to solve one problem: consumers, the industry believes, will be reluctant to open their wallets for digital movies and TV shows until they get more portability and can watch the same content on several devices. Studios want to make consumers collect digital entertainment the way they would DVDs or books.

Court says cities have the right to bar telecommunications towers

Earlier this month, the U.S. 9th Circuit Court of Appeals sided with Palos Verdes Estates (CA), ruling that city officials could bar the construction of unsightly cellular towers. The city's victory was hailed by urban planners concerned about the proliferation of visual blight in the name of technological progress. Like Palos Verdes Estates, San Francisco, San Diego County, La Cañada Flintridge and other communities have fought the purveyors of cellular service in court on aesthetic grounds and, for the most part, have won. The recent legal disputes, planners say, could encourage telecommunications companies to develop more creative alternatives amenable to residents' concerns -- or spur more litigation. In its ruling the three-judge panel paid heed to the esoteric benefits of landscape unmarred by the accouterments of modern public utilities.

Are retailers going too far tracking our Web habits?

Companies have been monitoring our online behavior for almost as long as there's been an Internet, often using our online footsteps (cookies) whenever we search, browse or buy online. Tracking technology has advanced so much that everything from how long we linger over a product description to whether we are searching for sexual-dysfunction drugs can be collected and stored on individual profiles. Our profiles are numeric descriptions, not our real names, but in some cases, it's not hard to determine personal information behind the numbers. Privacy concerns abound, and several privacy and consumer groups are urging Congress to enact laws on what can and can't be collected and for how long. But the tracking continues in earnest, in few places more avidly than among retailers. With the approach of a holiday season that even the most hopeful of industry analysts think will see only a 1% sales increase, retailers are increasingly turning to the Web for answers — and sales. Even retailers beating the odds, such as thriving teen retailer Aeropostale, find their online growth far surpasses that in their brick-and-mortar stores.

Twitter Serves Up Ideas From Its Followers

Technology companies have been the most active in relying on others to innovate for them. This is in large part because the Internet lets people exchange ideas easily and rapidly with large groups, and computing tools let people design new products cheaply. Twitter started two years ago as a bare-bones service, offering little more than the ability to post 140-character messages. Then, it outsourced its idea generation to its users. The company watches how people use the service and which ideas catch on. Then its engineers turn the ideas into new features. In the next several weeks, Twitter users will discover two new features, Lists and Retweets, that had the same user-generated beginnings.

India Is Set to Begin Bandwidth Auction

India will launch auctions on Jan. 14 to allot radio bandwidth for third-generation, or 3G, telecommunications services. The government will hold a separate bandwidth auction for broadband wireless access, a document on the Department of Telecommunications Web site said Saturday. The telecom department said it will auction about four blocks of radio bandwidth in most of the nation's 22 telecom service areas. The government is validating the frequency available across all circles for the auction, the department said. "Final details of the frequencies to be auctioned will be notified in the notice [that invites applications for bidding]," the note said. The department will also auction one block for telephony services on code division multiple access, or CDMA, technology. Indian companies holding licenses to offer telephony services would be allowed to bid for 3G bandwidth, the department said. Companies without an existing Indian license will be allowed to bid, but will have to procure a license before they launch their 3G services.

Russia's last independent TV stations to move into Kremlin-owned studios

Russia's last two independent TV voices, citing financial distress, have announced a major "restructuring" that may involve partnering with state agencies, with what many liberal critics fear could be an inevitable loss of editorial freedom. Officials of the National Media Group, which owns the independent REN TV and the outspoken St. Petersburg Channel Five, insist they're just looking for economic efficiencies in the reported plans to move REN's operations into a giant Moscow TV center run by the Kremlin's pocket news agency, RIA-Novosti, and home to its 24-hour English-language satellite TV station Russia Today (RT). But liberals say they've seen this happen several times before, beginning with the Kremlin's stealthy use of a commercial dispute to take over the only nonstate nationwide TV network, NTV, at the beginning of the Vladimir Putin era in 2001.

Obama Launches Global Tech Fund

The White House on Friday invited private equity fund managers to submit proposals for the establishment of a fund that will invest in technology access in countries with large Muslim populations. The so-called Global Technology and Innovation Fund fulfills a promise Obama made during his June remarks in Cairo on America's relationship with Muslim communities worldwide. The administration will finance between $25 million and $150 million in capital for each fund selected. The funds will focus on, among other tech markets, IT, healthcare and telecommunications to benefit countries throughout Asia, the Middle East, and Africa.

Information Technology and Innovation Foundation
1101 K Street, NW, Suite 610A
Washington, DC 20005
Tuesday, November 17, 2009
10:00 AM - 11:30 AM
http://www.itif.org/rsvp/event.php?id=3

The mobile phone has evolved from a simple personal communications device to become both a platform for commerce and an indispensable part of our "lifestyle infrastructure" that enhances personal productivity, manages financial transactions, and makes life far more convenient and efficient. Around the world, mobile phones are used in conjunction with near field communications (NFC) technology as electronic-wallets to pay for public transit, to check in at airline gates, to make purchases from merchants, kiosks, and vendors, and, in some cases, to supplement or fill-in entirely for underdeveloped banking and financial infrastructures. But the United States lags in leveraging the mobile phone as a platform to effect commercial transactions.

ITIF releases a new report, "" that will identify which countries lead the world in mobile commerce and payments activity, identify where the United States stands vis-à-vis the world leaders, and offer a set of policy recommendations for how we can speed the arrival and adoption of more sophisticated forms of mobile commerce transactions in the United States, better leveraging the usefulness and potential of these increasingly powerful mobile communications devices.

This will be the second in a series of six ITIF events that will explore international IT application leadership.

Moderator:
Robert Atkinson
President, The Information Technology and Innovation Foundation

Presenters:
Stephen Ezell
Senior Analyst, The Information Technology and Innovation Foundation

Pragnesh Shah
Vice President & GM, Network Solutions LLC, formerly President & CEO of Mobilians International, Inc.

**Additional speakers to be announced**