November 2011

With Newsstand, Apple Finally Does Publishers a Favor

Thanks to Apple's Newsstand, sales of magazines' tablet editions have been soaring.

Now comes the real test: Can publishers turn those editions into viable ad vehicles? Publishers do see that kind of dual-revenue stream in their future, but it could be a year or more off. Consistent sales volumes, engagement data, and buying standards will have to be established before advertisers make regular commitments to the medium. There are conversations with Apple about letting people give e-editions as gifts, which could further bolster sales.

3,000 sign We The People petition seeking "vapid response," cookies

Over 5,000 people have signed a the following We the People petition:

We demand a vapid, condescending, meaningless, politically safe response to this petition.
Since these petitions are ignored apart from an occasional patronizing and inane political statement amounting to nothing more than a condescending pat on the head, we the signers would enjoy having the illusion of success. Since no other outcome to this process seems possible, we demand that the White House immediately assign a junior staffer to compose a tame and vapid response to this petition, and never attempt to take any meaningful action on this or any other issue. We would also like a cookie.

FCC Commissioner McDowell Opposes Unlicensed Spectrum Set Aside

Speaking to the Global Forum in Brussels, Federal Communications Commission member Robert McDowell pitched using a combination of already allocated unlicensed-use spectrum in the TV band - the so-called "white spaces" - with better spectrum management by cellular companies as a way to address the current spectrum needs of all those new smartphones and tablets.

"We should work together to encourage wireless providers to deploy enhanced antenna systems more aggressively and provide targeted consumer education on the benefits of using femtocells, both of which are ready off-the-shelf," said Commissioner McDowell. But he does not support setting aside a large continuous swath of unlicensed spectrum - as some computer companies have been advocating - as part of the current push to consolidate broadcasters and reclaim their spectrum for wireless auctions. "At this early stage, it is not apparent that we should stop the progress well under way in the white spaces arena to create a solution for a problem - an alleged shortage of unlicensed spectrum in the 700 MHz Band -- that may never exist." And then there is the budget issue. "Given today's unprecedented budget deficits, I question whether the U.S. can afford not to auction any and all spectrum recovered in this band," he said.

Verizon to double data amounts for 4G smartphones

Starting soon , any customer who has a Verizon 4G smartphone will be eligible to get double the data for the same price. For example, someone who subscribes to the 2GB for $30 plan will receive 4GB instead. For $50 you can get 10GB instead of 5GB, and for $80 you can get 20GB instead of 10GB per month. Existing customers will have to request the change via customer service or through their My Verizon accounts, while new customers can request this when they sign up. The doubling of data promotion is only for a limited time, so Verizon customers should get on this quickly.

Ericsson expects mobile traffic to triple by 2016

Ericsson has created a hyper-color portrait of the fast-moving mobile industry in its new "Traffic and Market Data" report, which is packed with quotable facts such as that the world's networks gained 135 million new subscriptions during the recent third quarter alone. It found the global mobile penetration rate to be at 82%, with mobile subscriber numbers at now nearly 5.8 billion, driven swiftly by India and China, where 50 million new users were added during the quarter. Total mobile traffic, Ericsson expects, will triple in 2011, and by 2016, big city dwellers — "those living on less than 1% of the Earth's total land area" — will be responsible for 60% of mobile traffic. In short, plenty of reasons for any carrier not already stressing and building out its network to get started.

Report argues for interoperability in broadband spectrum bands

Interoperability among wireless carriers in the sub-1 GHz spectrum band could enable the U.S. government to earn as much as $3.5 billion more in upcoming spectrum auctions than if interoperability is not mandated, argues a report issued by Information Age Economics.

The report, titled “Non-Interoperability at 700 MHz: Lower Revenues & Higher Prices,” was sponsored by the Rural Cellular Association. It offers harsh criticism for AT&T and Verizon, arguing that those companies have introduced 700 MHz services based on non-interoperability that “increase their market power in the U.S. at the expense of all other service providers and stakeholders.” Without an interoperability mandate, the report authors argue that many potential bidders will not bid in future 700 MHz auctions because they will be “discouraged by the prospect that they may not be able to acquire competitive devices, in terms of cost and performance, in a timely manner because component and device vendors will understandably focus their limited development resources on the larger business opportunities and profits offered by the Big Two.” Already device manufacturers focus on the Big Two in designing 700 MHz devices--and the report authors note that 700 MHz spectrum won by operators other than the Big Two in recent auctions has been “forced to remain unused for a much longer period than is desirable to the detriment of the U.S. economy, small and medium sized wireless operators and their customers.” The report authors argue that the Big Two are using potential interference concerns as an excuse for not supporting an interoperable approach to the 700 MHz band but that those concerns are unjustified.

Request for Information on Public Access to Digital Data and Scientific Publications

The America COMPETES Reauthorization Act of 2010, signed by President Obama earlier this year, calls upon the White House Office of Science and Technology Policy (OSTP) to coordinate with agencies to develop policies that assure widespread public access to and long-term stewardship of the results of federally funded unclassified research.

Towards that goal, OSTP last week released two Requests for Information (RFI) soliciting public input on long term preservation of and public access to the results of federally funded research, including digital data and peer-reviewed scholarly publications. OSTP has established two interagency policy groups under the National Science and Technology Council—the Task Force on Public Access to Scholarly Publications and the Interagency Working Group on Digital Data—to identify the specific objectives and public interests that need to be addressed by any policies in these two areas. The groups will take into account the varying missions, types of data, and dissemination models associated with the range of Federal science agencies and scientific disciplines, and will help OSTP address other public access requirements of COMPETES—keeping in mind the need to follow statutory requirements and best practices for protecting personal privacy, proprietary interests, intellectual property rights, and author attribution.

The Tweaker

One of the great puzzles of the industrial revolution is why it began in England. Why not France, or Germany? Many reasons have been offered. Britain had plentiful supplies of coal, for instance. It had a good patent system in place. It had relatively high labor costs, which encouraged the search for labor-saving innovations. In an article published earlier this year, however, the economists Ralf Meisenzahl and Joel Mokyr focus on a different explanation: the role of Britain’s human-capital advantage—in particular, on a group they call “tweakers.” They believe that Britain dominated the industrial revolution because it had a far larger population of skilled engineers and artisans than its competitors: resourceful and creative men who took the signature inventions of the industrial age and tweaked them—refined and perfected them, and made them work.

In 1779, Samuel Crompton, a retiring genius from Lancashire, invented the spinning mule, which made possible the mechanization of cotton manufacture. Yet England’s real advantage was that it had Henry Stones, of Horwich, who added metal rollers to the mule; and James Hargreaves, of Tottington, who figured out how to smooth the acceleration and deceleration of the spinning wheel; and William Kelly, of Glasgow, who worked out how to add water power to the draw stroke; and John Kennedy, of Manchester, who adapted the wheel to turn out fine counts; and, finally, Richard Roberts, also of Manchester, a master of precision machine tooling -- and the tweaker’s tweaker. He created the “automatic” spinning mule: an exacting, high-speed, reliable rethinking of Crompton’s original creation. Such men, the economists argue, provided the “micro inventions necessary to make macro inventions highly productive and remunerative.”

Was Steve Jobs a Samuel Crompton or was he a Richard Roberts? In the eulogies that followed Jobs’s death, last month, he was repeatedly referred to as a large-scale visionary and inventor. But Walter Isaacson’s biography suggests that he was much more of a tweaker.

What happens when a community loses its newspaper?

In New England alone, 13 daily papers have closed or gone to weekly publication. Most of those have been in Massachusetts, where six dailies have converted to weekly publication—the Clinton Item, Dedham Daily Tran­script, Haverhill Gazette, Marlboro Enterprise, Hudson Sun, Melrose News, and Waltham News-Tribune—and three—the Beverly Times, the Peabody Times and the Transcript-Telegram—have closed.

All but one of the surviving daily newspapers in New England have seen dramatic drops in circulation, some as high as 70 percent. (The exception is the St. Albans Mes­senger in Vermont). They’re part of a national story about the decline of local newsrooms. The Federal Communi­cations Commission’s recent report entitled “The Inform­a­tion Needs of Communities” estimated that newsrooms have eliminated 13,400 jobs in the past four years, reducing reporting ranks to about the same level as in 1970. A similarly dire study by Rick Edmonds of the Poynter Institute, an independent journalism research center, concluded that annual spending on news gathering also plunged by $1.6 billion. In a sentence, communities across the nation are being covered by fewer reporters armed with fewer resources. And yet, does it matter?

China's Internet firms vow to tighten regulation of Web

China's top IT firms have pledged to step up the regulation of their services as government authorities have intensified calls to control the development of the nation's Internet.

Representatives from 39 companies made the pledge during a government sponsored meeting last week, stating that "Internet companies must strengthen their self-management, self-restraint, and strict self-discipline," according to a report from state-run press agency Xinhua. Attendees included the CEO of China's largest search engine Baidu, the heads of Chinese firms operating social networking sites, and executives from the country's three mobile carriers. The public declaration comes as the nation's authorities have tightened control of China's online social media sites, going as far to detain Internet users who have allegedly fabricated rumors. Authorities have said they want to promote the "healthy development" of the Internet in fighting such rumors. But experts have said Chinese officials are in fact worried that the nation's Twitter-like social networking sites are becoming platforms to criticize the government. Chinese companies are already required to abide by the country's strict censorship laws, which block content and websites deemed politically sensitive or anti-government. Foreign sites like Facebook, Twitter and YouTube are currently blocked. During last week's meeting, China's top IT firms also agreed to crackdown on Internet rumors, online pornography and scams. The head of China's IT authority, the State Internet Information Office, said the companies must also take the lead in enhancing the credibility of online media companies while also strengthening their management.