October 2009

Valuing Journalism

[Commentary] The news has always been subsidized - whether by the government (as with National Public Radio), advertisers (most newspapers), or other forms of income (such as the Washington Post's ownership of the Kaplan Test Prep company). As other systems of subsidies are failing, we are left with a clear and present need, and the government has a key role to play. A focus on value makes it clear that it is not readers who should pay for the news, but all of us who should be footing the bill. We all benefit from a vibrant watchdog press, from in-depth reporting, from the value quality journalism adds to our communities. We all should support that value, and policy is the vehicle to make it happen. We need government to focus on the question of value, not the question of cost. The question of cost is a Wall Street question. The question of value is a Main Street question. By shifting the conversation to the value that local news organizations provide, we get closer to finding actual solutions to the problems facing journalism.

Online ads: Big Brother or customer service?

US marketers and consumer advocates are preparing for battle over the rules governing online advertising tailored to individual browsing habits, often tracked and collected without notice or permission. Congress is due to intervene in the issue in the coming weeks, with a bill in the House of Representatives that would oblige websites to state explicitly how they use the information and allow those using the site to opt out. A billion-dollar industry and consumer privacy are at stake. Advertisers and popular websites say visitors prefer ads that are targeted to their interests and must accept advertising as a necessary condition to obtain free content. But 75 percent of Americans said in a recent survey they were opposed to tailored advertising if it meant their behavior surfing the Internet was being tracked.

Information Technology and Innovation Foundation
1101 K Street, NW, Suite 610A
Washington, DC 20005
Friday, October 16, 2009
3:00 PM - 4:30 PM
http://www.itif.org/rsvp/event.php?id=1

On Friday, October 16, professor and author Eric Brynjolfsson, one of the world's leading authorities on the role of information technology in driving economic growth, will present findings from his new book Wired for Innovation: How Information Technology is Reshaping the Economy. The book examines how a wave of business innovation, empowered by information technology, is driving a productivity resurgence in the U.S. economy, exploring the specific links through which IT affects productivity, innovation, competition, pricing, consumer surpluses and other aspects of the economy. Brynjolfsson has specifically tailored the book to help policymakers and business managers understand how information technologies drive productivity and growth at both the corporate and national economic levels.

Read more about WIRED for Innovation

America's Mobile Broadband Future

Speaking at a wireless industry event in San Diego, Federal Communications Commission Chairman Julius Genachowski admitted, "It's all about mobile." As a business executive and investor, Chairman Genachowski witnessed mobile's evolution from futurist fantasy, to a nice-to-have part of a company's gameplan, to a must-have strategic priority. Now every business has to have a mobile strategy. The FCC's goal, Genachowski said, is "fostering innovation and investment, promoting competition, empowering and protecting consumers, all in an effort to help ensure the U.S. has a world-leading communications infrastructure for the 21st century." The FCC's specific objectives are unleashing spectrum for broadband; removing obstacles to 4G deployment, like delays in tower siting; developing fair rules of the road to preserve the openness of the Internet, while recognizing the differences between wired and wireless technologies; and empowering consumers by supporting a vibrant, transparent and competitive mobile marketplace.

AT&T's Bid To Prevent Wireless Neutrality Rules

Last year, as the Federal Communications Commission was investigating Comcast's blocking of peer-to-peer visits, the Internet service provider announced that it would develop a protocol-neutral system of traffic management. Now, with policymakers focusing on competition in the wireless industry, AT&T has said it no longer objects to Skype and other VoIP apps running on the iPhone's 3G network. AT&T's change of heart comes five months after broadband advocates complained to the FCC about AT&T and Apple limiting VoIP apps for the iPhone to the Wi-Fi network. It also comes just several weeks after FCC chair Julius Genachowski proposed that the agency enact neutrality regulations that would extend to wireless broadband networks. AT&T seems poised to argue that its decision to allow VoIP apps on the 3G network shows there's no need for such rules -- at least for the wireless Web. The company has already made clear it opposes wireless neutrality rules. Just today, AT&T Mobility chief Ralph de la Vega insisted at CTIA that "the marketplace is vibrant" and that there is "is no need to burden the mobile Internet with onerous new regulations."

S. Derek Turner, research director of Free Press, said, "The FCC's oversight and forward thinking has prompted AT&T to halt their anti-competitive practices. After more than two years of blocking VoIP applications, the FCC has succeeded in getting AT&T to open their network to the applications consumers want. We commend the agency and are pleased that consumers will now finally have access to more applications like Skype. But the FCC should not be distracted or delayed in efforts to protect Net Neutrality on all networks, to investigate the exclusive contracts that punish consumers, and to promote a truly competitive wireless market. The arm-twisting that led to AT&T's belated announcement is a critical reminder of why we need the FCC walking the beat to protect consumers."

The iPhone Is Not an All-You-Can-Eat Buffet

Ever since it became the exclusive carrier for the iPhone, AT&T's fortunes have resembled a scene out of Indiana Jones—a scramble to get out of the way of an unstoppable boulder. The iPhone has prompted millions of people to join AT&T, but paradoxically, it has also hurt the company's image. The problem is that all of those customers use their phones too much. The typical smartphone customer consumes about 40 to 80 megabytes of wireless capacity a month. The typical iPhone customer uses 400 MB a month. AT&T's network is getting crushed by that demand. A lot of technologies exhibit a positive network effect—they get better as more people use them. The iPhone is just the opposite—as more people in your city sign up, local cell towers get more congested, and your own phone performs worse. In New York, San Francisco, and other places with lots of iPhones, people have terrible trouble getting calls to go through or taking advantage of the supposed speed of AT&T's 3G network. The wireless provider is taking the blame: Half of all iPhone owners say they'd switch to another carrier if Apple dropped its exclusive deal with AT&T, which reports say could happen next year. AT&T also scored lower than any other U.S. carrier in a recent customer-satisfaction survey—the first time it has ever claimed last place.

Should Stimulus Dollars Fund 3G Deployment?

Should broadband stimulus funding go to third generation wireless? Cause 4G and LTE are just around the corner, right? We may not be able to afford to invest in lagging edge technology, in networks that may be duplicative, or in networks that may not be financially self-sustaining.

Smart-Phone Makers Call the Doctor

The medical waistband is the latest front in the battle among smart-phone makers for the business customer. Pagers have long reigned in hospitals, where they are prized for their dependability. But with doctors treating more patients and hospitals facing pressure to be more efficient, companies like Apple Inc. and Research In Motion Ltd. see an opportunity to peddle their devices. Last month, Stanford Hospital & Clinics, started a trial with Apple and Epic Systems Corp., a provider of health-care information systems, to test software that will let medical staff access patient charts on Apple's iPhone. Stanford is studying ways to use the devices to reduce the risk of error as patient care is increasingly handed off from one doctor to another, says Pravene Nath, chief medical information officer.

High Court Takes Up Copyright Case

Publishing giants like Reed Elsevier, Dow Jones and the New York Times will face off against freelance authors Wednesday as the Supreme Court considers whether federal judges have the power to approve settlements in copyright fights. The case stems from a New York court's approval of an $18 million settlement of a class-action brought by writers who argued their work was improperly reproduced for electronic distribution.

Tech Jobs on the Upswing

According to new research, the number of vacancies for tech professionals in the third quarter of this year increased by 23 per cent, compared to the previous quarter. Tech jobs have been harder to come by during the recession as organizations have cut back on non-essential IT projects and cut costs wherever possible. And more good news for those hoping to change jobs: the number of applicants per position has fallen by 25 per cent between the second and third quarters of this year. Research from recruiter CVScreen found that the number of individuals applying for the same post has fallen from 109 in May to 68 last month.

Benton

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