August 2012

Ready to Move to Kansas City? Think Again

Tech-company founders in Kansas City have some impressive new bragging rights. Unlike their peers in more established entrepreneurial hubs like Boston and Silicon Valley, the entrepreneurs on both sides of the Missouri and Kansas line will be able to test new products on Google Fiber, the ultra-fast Internet and cable service network that can transfer massive data at high speeds. But while the rollout of Google Fiber is expected to give entrepreneurs in the Kansas City region a jolt of creative energy, some remain skeptical that the region has what it takes to be an entrepreneurial haven. That's because the area still is missing a key ingredient in most start-up hotbeds: ample early-stage venture financing. Missouri and Kansas ranked 22 and 27, respectively, by dollars invested, in state rankings of venture-capital investments last year, according to the National Venture Capital Association. Missouri entrepreneurs received about $134 million and Kansas about $61 million that year.

Apple Gorging on Mobile Industry Revenue

Samsung shipped about 50 million smartphones last quarter — about double the number Apple sold and, according to IDC, the largest number of units ever shipped by a handset vendor in a single quarter. But does it matter? No. Because when you look at the broader mobile industry, Apple — thanks to the higher gross margins of the iPhone and iPad — far outshines its rivals in both revenue and operating profits. Though it shipped only about 6 percent of the industry’s smartphones and tablets in the second quarter, Apple captured about 43 percent of the industry’s revenue, according to Raymond James analyst Tavis McCourt. And it generated an astonishing 77 percent of the industry’s operating profits. This, even in a seasonally weak period for iPhone sales.

Judge rejects Apple's request for sanctions against Samsung

A federal judge rejected a motion by Apple for heavy sanctions against rival Samsung as punishment for leaking blocked evidence to the media in connection with the patent-infringement trial involving the two companies. But U.S. District Judge Lucy H. Koh said there could be more investigation into Samsung's actions after the trial, according to Reuters, and added: "I will not let any theatrics or any sideshows distract us from what we are here to do." She also questioned each of the nine jury members in the trial individually, asking if they had read anything about the case since July 31, Reuters said. Jurors have been warned repeatedly by Koh not to do their own research into the case, and to not speak with anyone about the trial, including on social media. The jurors all said they could still be impartial.

Tweets, social media help more officials get the word out

City, county, state and federal governments nationwide are increasingly embracing social media — everything from the standbys of Facebook and Twitter to the emerging technologies of Google+, Instagram, Pinterest, Tumblr and others.

Social media provide municipalities and government officials a quick, easy way to engage and interact with a wide swath of constituents, according to the International City/County Management Association in Washington, D.C. "The utility," says Evelina Moulder, the association's director of survey research, "is to get actionable information out quickly." The U.S. Conference of Mayors, based in Washington, says social media allow government leaders to communicate more quickly and effectively with constituents than traditional channels allow.

Court battle gives glimpse into Apple’s core

Struck by a daily onslaught of rumors and speculation about the next iPhone or iPad, Apple always refuses to discuss future product launches. Surprise is an essential ingredient for Apple’s product launches, generating millions of dollars in free press coverage, as testimony from senior Apple executives in the technology group’s court battle in California with its South Korean arch-rival Samsung showed. However, Apple’s battle over intellectual property rights has undermined its arsenal of marketing strategies and reliance on secrecy as evidence obtained and submitted to the public court by Samsung has spoiled some of its plans with the revelation of discussions last year about a smaller iPad.

A San Jose courtroom last week heard detailed testimony from Apple executives who rarely give press interviews, detailing the development and marketing strategies behind the technology industry’s biggest hype machine. The secretive technology group was required to reveal that it spent $535m marketing the iPad and iPhone last year, with the budget for its tablet computer doubling over 2010 to overtake the smartphone’s ad spend, figures it does not usually disclose in financial filings.

After defeat of Senate cybersecurity bill, Obama weighs executive-order option

Senate Republicans recently blocked cybersecurity legislation, but the issue might not be dead after all. The White House hasn't ruled out issuing an executive order to strengthen the nation's defenses against cyberattacks if Congress refuses to act.

“In the wake of Congressional inaction and Republican stall tactics, unfortunately, we will continue to be hamstrung by outdated and inadequate statutory authorities that the legislation would have fixed," White House press secretary Jay Carney said. "Moving forward, the President is determined to do absolutely everything we can to better protect our nation against today’s cyber threats and we will do that," Carney said. The White House has emphasized that better protecting vital computer systems is a top priority.

Google to allow candidates to target ads by House district

Political candidates will be able to target online ads to users within specific congressional districts under a new system unveiled by Google.

The feature is part of Google's AdWords product, which allows users to buy ads not only on Google, but on thousands of sites around the Web. Advertisers previously had been able to display ads only to users within particular zip codes, but the new feature will allow targeting to any of the 435 congressional districts. The feature will be especially helpful for candidates running in oddly shaped districts, which may sprawl across sections of numerous zip codes.

Verizon Wireless spectrum deal in for tough remedy

Verizon Wireless may need to agree to tough conditions to win approval for its deals to buy spectrum from cable companies and market each other’s products, according to three sources knowledgeable about the negotiations.

Negotiations with the Justice Department's Antitrust Division have been bruising, focusing on plans by Verizon Wireless and Comcast, the biggest mobile carrier and the biggest cable company, respectively, to market each other's products. There has also been concern about a plan for a joint venture to develop new technologies, such as one to allow consumers to move seamlessly between wired and wireless hookups. Critics say it could create cutting-edge products only available to the consortium. The path that the talks are on would lead to a consent decree that would forbid the cross marketing agreement where Verizon markets its FiOS product, according to the three sources, who were not authorized to speak on the record. Cross marketing in the rest of Verizon's footprint and the joint research and development project would be allowed but only for a limited period of time, the sources said.

FCC Consolidates Verizon Spectrum Deals Reviews

The Federal Communications Commission consolidated its review of four sets of applications filed by Verizon Wireless, Leap Wireless, SpectrumCo, Cox TMI Wireless, and T-Mobile License for spectrum suitable for the provision of mobile broadband service. The FCC concluded that there is a commonality of issues, particularly with respect to the aggregation of spectrum and the public interest arguments raised by the applicants and various petitioners and commenters.

FCC Continues Wireless Backhaul Reform

The Federal Communications Commission adopted measures promoting further deployment of mobile broadband service, continuing its reform of rules governing use of microwave frequencies for wireless backhaul as part of the FCC’s Broadband Acceleration Initiative and its regulatory reform agenda.

Building on recommendations in the FCC’s National Broadband Plan, and following up on the Commission’s August 2011 Wireless Backhaul Report and Order, the actions will speed the rollout of fourth-generation (4G) broadband networks, accelerate the role of expanded wireless broadband communications in national economic revitalization and job creation, and bring new broadband services to rural areas. The FCC’s actions also continue the FCC’s regulatory reform agenda by eliminating unneeded regulations and ensuring that necessary regulations reflect current technology.

The Second Report and Order permits fixed microwave operators to use smaller antennas in certain microwave bands, which can result in significant cost savings to operators. The Rural Microwave Flexibility Policy adopted today will provide increased opportunities for broadband deployment in rural areas, increasing coverage and reducing cost. The Commission also updates existing microwave efficiency standards to reflect modern digital technologies.
The Second Further Notice of Proposed Rulemaking and Second Notice of Inquiry continue the Commission’s effort to reform and modernize its wireless backhaul rules. Among other things, the Commission considers accommodating new types of antennas to reflect advances in technology, and proposes to allow smaller antennas in an additional microwave band.