November 2015

How Mergers Damage the Economy

[Commentary] In many industries, like airlines, telecommunications, health care and beer, mergers and acquisitions have increased the market power of big corporations in the last several decades. That has hurt consumers and is probably exacerbating income inequality, new research shows. Under the George W Bush administration, the wireless phone industry consolidated from six national companies to four. The two largest, Verizon and AT&T, now command about 70 percent of all subscribers. The Justice Department’s antitrust division has in recent years won nearly every merger challenge it has brought. The division and the Federal Communications Commission prevented Comcast from buying Time Warner Cable and AT&T from acquiring T-Mobile. But the division’s record suggests that it could be taking a tougher line.

Congress should also study whether there are ways to strengthen the antitrust laws. It could, for instance, require regulators to consider whether mergers in concentrated industries are in the broader public interest, not just whether they would harm consumers through higher prices. The Federal Communications Commission can already use such a test to evaluate media and telecommunication deals to determine, for example, whether a merger will limit the diversity of opinions in media. Unfortunately, Congress is unlikely to adopt new antitrust legislation while Republicans are in control of both houses.

Your phone company already limits your data. Your cable company could be next.

After years of quiet experimentation on Internet pricing, Comcast rolled out its latest trial in Atlanta (GA): an unlimited data plan that lets heavy users surf as much Internet as they want for an extra $35 a month. The voluntary add-on waives the 300-gigabyte monthly limit on data consumption that Atlanta residents have been subject to since 2013. It's a limited trial, but the economics of Comcast's unlimited plan make it a potentially dramatic shift in the way we'll buy broadband in the future. If Comcast decides it's working, other markets where the 300 GB data cap is in place could start seeing similar offers, and it's not crazy to think the plan might someday roll out nationwide. Here's why.

When Comcast surveyed these folks, it found that 60 percent were willing to pay a flat $30 to $40 a month extra to be freed from overage payments. Which is how we arrived at the $35 unlimited plan in Atlanta; also, a separate experiment launched this fall in parts of Florida that charges slightly less -- $30 -- for unlimited service. This is why the Atlanta trial is so significant: It costs $5 more. And this is how Comcast could turn the unlimited plan into a revenue source in its own right. Even if there are only 100,000 people in the entire country who behave this way, that's an extra half-million in free money for Comcast every month if they all signed up for the plan. More, if it can entice non-heavy users to buy into it, too.

With Google and Twitter still blocked in China, executives woo Beijing

[Commentary] China’s Great Firewall is still blocking the services of Facebook, Google and Twitter, but that hasn't stopped top brass from all three Silicon Valley firms from visiting Beijing in a span of less than 10 days, perhaps hoping to boost their business prospects on the mainland. Following in the footsteps of Facebook CEO Mark Zuckerberg -- who gave a much-discussed speech in Chinese late in Oct at Tsinghua University -- senior executives from Google and Twitter made appearances in Beijing on Nov 2, attending a technology conference.

“In fact, we do hope to provide service in China, and we continue to communicate with the Chinese government. This is also why I’m here this week,” said Eric Schmidt, executive chairman of Alphabet/Google. He added that the company has “always been in touch with the Chinese government" and that Chinese officials had visited Google offices in California in the past. When Google decided to abandon the Chinese search market because of censorship and hacking concerns and move its servers to Hong Kong in 2010, it kept about 500 employees on the mainland who are mainly responsible for selling Google’s ad services to Chinese companies looking to reach consumers overseas.

Lessig drops out of presidential race

Presidential candidate Lawrence Lessig dropped out of the race Nov 2, accusing the Democratic Party of shutting him out of its debates. The Harvard law professor and former tech advocate, who ran an unorthodox campaign focused almost solely on campaign finance, said his only chance of success was to get a slot in the primary debates.

"I must today end my campaign for the Democratic nomination and turn to the question of how best to continue to press for this reform now," he said in a YouTube video. He blamed the Democratic Party for changing its debate rules midstream, adding that he wanted to run as a Democrat, but "the party won't let me." When asked about an independent run, he said, "nothing (legal) has been ruled out."

T-Mobile Will Let Subscribers Bring Tiny 4G LTE Towers Into Their Homes

Wireless carriers have been experimenting with small cell technology to boost a network’s performance in crowded neighborhoods or smaller places, like coffee shops or doctors’ offices. T-Mobile said it would allow subscribers to bring this technology into their homes, with the 4G LTE CellSpot -- essentially a mini-tower that will deliver a 4G LTE wireless signal inside a residence or small business.

“It helps T-mobile in areas where coverage might not be optimal -- say, [if] you are an organization that would like to consider T-Mobile as your provider but coverage in the office is poor,” said Kantar Worldpanel research chief Carolina Milanesi. “It’s no coincidence that the release mentioned, specifically, small businesses. Second, it gives customers another reason not to leave.” Other carriers offer signal boosters that amplify an existing network strength in the home. AT&T markets a MicroCell Wireless Network Extender. Verizon offers something called a Network Extender to enhance indoor calling and data.

The Strategic Imperative of Gigabit Broadband for 21st-century Communities

Access to a high-speed broadband network infrastructure is as important to today’s communities as the electrical, telephone and interstate highway networks were in the last century. Absent commercial build-out of the infrastructure, many states, cities and counties are taking it upon themselves to address this need. By leveraging best practices and a structured, comprehensive planning process communities can optimize their chances for developing an approach that delivers the necessary capabilities in a sustainable manner.

The next information revolution will be 100 times bigger than the Internet

[Commentary] In today’s age of information, mobile devices and global connectivity have brought an impressive amount of knowledge to our very fingertips. The Internet and powerful text search tools enable us to discover nearly everything about anything we can describe with words -- any text that can be typed into a search engine. But words cannot express the reality of the entire human experience. That said, for all our advancements, the human experience remains largely driven by sight, as it has for millennia.

Unsurprisingly, eyeballs have always had a shorter path to the brain than any other sense. And, our ability to quickly derive information and make decisions based on visual data evolved far before our ability to understand language and invent the alphabet. When the next information revolution arrives, it must then open the door to the physical, visual world and enable people to quickly discover contextual information about the objects and images around them. The future of discovery will be pointing at things we’re curious about and learning relevant information without even having to ask a question. This revolution will transform how we access shared knowledge and impact nearly every aspect of our lives at home and in the workplace.

[Ambarish Mitra is cofounder and CEO of Blippar]

How the New York Public Library Is Reinventing Itself

[Commentary] The future of libraries now has a very long history. Like all futures, it’s a moving target, changing as new experiences, expectations, and technologies change our sense of what’s possible. When the main branch of the New York Public Library opened on Fifth Avenue in 1911, it was a state-of-the-art futurist landmark, with pneumatic tubes zipping call slips to librarians who retrieved bound titles from enormous steel stacks and placed them on Ferris-wheel conveyor belts. Today, the building has been a historical landmark for 50 years, the tubes retired, the stacks empty. Yesterday’s futures become today’s nostalgic baseline.

In its own way, the mission is all very traditional. Collect and preserve original materials; make them available to researchers and the public; both serve and draw on your membership and community. And just as the Web has become increasingly not just mainstream but central to many of our lives, the projects by teams like NYPL Labs may still be experimental but less R&D than central to the basic proposition of what a library is in the 21st century. Every day, the future becomes the present, just before it disappears altogether.

[Tim Carmody is a reporter and recovering academic who writes about technology and media]