January 2011

AT&T Pins 4G Label to Existing Network

AT&T flipped a switch and turned on its 4G wireless network. The switch, however, was in the company's marketing department.

By relabeling its existing 3G network, the country's second-largest wireless carrier joined the noisy fray over so-called fourth-generation wireless technology, which promises mobile Internet speeds so fast that huge files can be downloaded in minutes and streaming video can be watched without the interruptions of earlier-generation technologies. As recently as September, AT&T executives had referred to the company's current network, which runs on a technology it calls HSPA-plus, as 3G. But AT&T has subtly shifted its marketing message since then, now proclaiming "the nation's fastest mobile broadband network" instead of the fastest 3G network. The 4G network claim is already prominent on its corporate website and will be affixed to new phones being rolled out for its network this year. AT&T also said it will spend more aggressively to complete an even more advanced network technology called Long-Term Evolution by the end of 2013, a year ahead of its previous target. That acceleration, however, won't be felt until 2012.

Internet sales tax could ease California deficit

[Commentary] Dear Gov. Jerry Brown: As you've been so busy, you may have missed some data points of relevance as you put your budget together: U.S. Internet sales are growing by 10 percent annually. By the time you do, or do not run for re-election, in 2014, they will have grown to $250 billion, according to Forrester Research.

Had online retail companies, like Amazon.com, paid sales tax in the four years from December 2005 to December 2009, according to the State Board of Equalization, California would have captured $600 million in revenue. In its last quarter, Amazon recorded $7.56 billion in revenue, and a 16 percent increase in earnings. With its Kindles flying off the shelves this holiday season, one suspects its next reported revenue and profit will be even greater. In October, the Texas comptroller's office sent Amazon a $269 million bill covering four years of unpaid sales taxes. Amazon will probably fight it, as it has in other states like New York, whose legislated imposition of a sales tax on online retailers like Amazon that have no physical presence in the state, was upheld by a court in November. Rhode Island, North Carolina and Colorado have taken on Amazon and other non-taxpaying e-tailers, and Illinois is about to. California might have joined with these others, had your predecessor not gone all girlie-man in the face of threats from the likes of Utah's Overstock.com to pull its affiliate business out of the state if he didn't veto an Internet tax bill by Assemblywoman Nancy Skinner, D-Berkeley, in 2009. Subsequent attempts have fared no better.

A Bonanza in TV Sales Fades Away

By now, most Americans have taken the leap and tossed out their old boxy televisions in favor of sleek flat-panel displays. Now manufacturers want to convince those people that their once-futuristic sets are already obsolete.

After a period of strong growth, sales of televisions are slowing. To counter this, TV makers are trying to persuade consumers to buy new sets by promoting new technologies. At this week’s Consumer Electronics Show, which opens Thursday, every TV maker will be crowing about things like 3-D and Internet connections — features that have not generated much excitement so far. Unit sales of liquid-crystal and plasma displays were up 2.9 percent in 2010 from the previous year, according to figures from the market researcher DisplaySearch. That is tiny compared with the gains of more than 20 percent in each of the prior three years. Those heady days of the last decade were the result of an unusual set of circumstances. The rise of flat-panel television technologies like plasma and LCD almost perfectly coincided with a government-mandated switchover to digital broadcasting and the availability of high-definition shows and movies — something these new televisions were all ready to display. That sparked a mass migration of consumers from using the old cathode-ray tube television sets to the thinner and lighter plasma and liquid-crystal displays.

Booming TV market a boon for app makers, tech firms

Nearly 350 million Web-enabled TVs, Blu-ray players, game consoles and other devices will be sold worldwide by 2015, four times the number from last year, according to new research from Parks Associates. That blossoming market is going to be a boon for app developers because of the growing consumer demand for access to online video, streaming music, photos, social networking, personalized news, games and other content on their TVs. And, of course, that will have implications for tech companies like Apple, Google, Yahoo, Netflix and others that are clamoring for a piece of the action.

"Content options are finally catching up to the hardware innovations, and growing libraries of on-demand movies and TV available are starting to unlock the potential of connected TV devices as multifunction online entertainment and communications platforms," Kurt Scherf, vice president of the Dallas research firm, said. Parks released the report in time for the Consumer Electronics Show in Las Vegas, which will be flooded with the latest, greatest Web-enabled TVs and other devices.

Cisco 'Videoscape' To Arm Ops In Co-Opting Over-The-Top

The Cisco Videoscape platform encompasses an IP-based media gateway for the integration of voice, linear and online video, high-speed data, Wi-Fi and network traffic routing; the Videoscape IP set-top box, to support all video forms delivered to a TV; software clients that extend the services to a variety of home and mobile devices, from connected TVs to tablets and smartphones; and the Videoscape Media Suite, which provides content lifecycle management.

Cisco chairman and CEO John Chambers emphasized that the Videoscape vision -- which ties together elements across Cisco's divisions, including IP set-tops, the umi videoconferencing system and Flip camera -- is not about an individual set-top or device, but rather a software architecture. He also reiterated that Cisco will work with operator customers to deliver the converged technologies to consumers. "It's not about devices, in our opinion, it's about the intelligence in the network -- it's a software architectural announcement," Chambers said. "The Videoscape experience is about how you have an infinite source of content -- how do you allow any device, over any network, to [access] content it's authorized to get." He added that 75% to 80% of Cisco's investment in Videoscape is in software.

The idea: to let service providers counter over-the-top services, by integrating Internet-delivered content and services seamlessly across multiple screens. "The customer will say, ‘I really want to align with the service provider on this,' instead of going to five or six different providers," Chambers said.Cisco is currently working with several major global service provider customers, including Australian telecommunications company Telstra, to enable next-generation video experiences through the Videoscape platform. SNL Kagan analyst Ian Olgeirson said Cisco's deliberate operator-oriented approach -- with the vendor disavowing a retail play for over-the-top devices -- would give it an advantage over competitors that are targeting consumers directly. "It is a nice way for Cisco to present all the things they've been cobbling together for years," he said.

Turner Chief Explains How TV Industry Will Neutralize Netflix

Turner Broadcasting chairman and CEO Phil Kent talked in depth about how the TV business is circling the wagons to marginalize Netflix.

Addressing what he called “the elephant in the room,” Kent singled out Netflix as the fly in the ointment when it came to the syndicated acquisitions two of his biggest cable properties, TBS and TNT, count on as key to their businesses. He spoke of a dawning awareness throughout the TV industry “to the long-term effect to having top-tiered programming on SVOD services,” he said, referring specifically to Netflix. “We tell our suppliers, the studios we buy from: This is going to have a significant impact on what we'll be willing to pay for programming or even bid at all.” But if you thought Kent was being hard on the studios—Warner Bros. is actually a corporate sibling of Turner’s—that’s nothing compared to what he says the industry is doing to Netflix to effectively block Reed Hastings from getting his hands on premium TV series. The new and old broadcast sitcoms and dramas Turner pays billions for may never even get an opportunity to be on Netflix because Kent implied SVOD rights are being “frozen” in the latest rounds of dealmaking.

Scott Kamber On His ‘Spate’ Of Lawsuits Over Internet Privacy

A Q&A with Scott Kamber who heads KamberLaw. He's a high-profile lawyer who’s at the heart of the small, but growing, world of online privacy lawsuits and may be best known in privacy circles for leading the litigation against Facebook’s Beacon Ad program.

In recent months, Kamber has filed a series of class action lawsuits alleging various privacy violations on the part of Internet companies. He’s sued interclick and its customers for ‘browser history sniffing’ and improperly using Flash cookies to track users; Quantcast and Clearspring over different allegations of misusing Flash cookies (they settled); and Apple and Google over other privacy issues. In an interview with paidContent, Kamber talked about why he’s suing these firms and also explained why he believes litigation is an effective tool to protect users’ privacy online.

Right Wing Hijacks Radio: GOP Wins!

Radio is still the country's number one source of news and information, but fewer than 10% of the country is able to hear any progressive talk radio. Those who do tend to vote for more Democrats than those who do not.

Unplugged: How Obama’s bid to expand Internet access ran into big trouble

[Commentary] More than a quarter of Americans do not have home Internet access and more than a third lack a high-speed, broadband connection. Compared to 30 other industrialized countries, the U.S. ranks fifteenth in broadband quality and penetration. The most egregious disparities are predictable: The poor, the disabled, minorities, and seniors have abysmal rates of broadband use. Ostensibly the most powerful, prosperous, technologically advanced country in the world has left over a fourth of its citizens disconnected.

President Obama has made closing this digital divide a priority. In December 2008, when he signed the American Recovery and Reinvestment Act, he declared that we would “renew our information superhighway.” The $787 billion stimulus allotted $7.2 billion for the increase of broadband use in rural and underserved areas, and mandated the creation of a National Broadband Plan (NBP) by the Federal Communications Commission (FCC) to devise a way to connect 100 million more Americans -- a third of the U.S. population -- with affordable broadband by 2020. It has been nine months since the NBP was delivered to Congress, and those billions of dollars have been spent. And yet, we are only slightly better off than we were at the outset. Achieving better Internet access will not be easy, but widespread broadband access is essential. For every person like my father who has opted out of the Internet revolution, there are communities of people who are scrambling to catch up.

Rep. Blackburn gets Democrat's support on legislation to strike network neutrality

Rep Marsha Blackburn (R-TN) filed legislation Jan 5 to strike down Internet line regulations passed by the Federal Communications Commission (FCC) in December.

She already has a Democrat supporting her effort, with Blue-Dog Democrat Rep Dan Boren (D-OK) joining her on the bill. Blackburn's office said she is also joined by more than 60 members, including the majority of Republicans on the House Commerce Committee. The bill states that regulations impacting the Internet must be left to Congress, striking the FCC's rules.