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According to a Pew Research Center Internet & American Life Project study, "The Mobile Difference," nearly 40 percent Americans have positive and improving attitudes about their mobile communication devices, thereby further immersing themselves into a more robust digital lifestyle. Read more

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How will broadband affect burgeoning controversies over health care? The answers to this question and more came courtesy of a Broadband Cenus-hosted, hour-long panel discussion. View a video of the discussion. View Now




President Obama on Innovation and Sustainable Growth. President Barack Obama has new plans to strengthen the economy that will all favor people with hi-tech educations.
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Elevate Miami, a comprehensive Digital Inclusion program launched by the city of Miami, aims to serve youth, low-income families, minorities, seniors and residents facing barriers to digital inclusion.
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The Knight Center of Digital Excellence held its first Stimulus Webcast Session for Knight communities and program directors July 23. Watch it online now.
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By pushing hard on broadband, lawmakers hope to close the "digital divide" that has long separated rural America. In doing so, they hope to give rural consumers access to the same sorts of high-speed services and opportunities - think telemedicine, distance-learning and Web-based commerce - that city dwellers have enjoyed for years.
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Posts Tagged ‘Apple’

Real-time online gaming scores high with broadband consumers

Wednesday, October 21st, 2009

Here’s a sentence you’ve probably seen in a number of recent Knight Center of Digital Excellence articles: “AT&T has publicly stated that real-time gaming is an ‘aspirational service’ and not a core broadband application.

The statement has been used multiple times as an example the growing debate between service providers and other industries since Federal Communications Commission (FCC) Chairman Julius Genachowski’s Sept. 21 net neutrality webcast at the Brookings Institution.

Let’s take a closer look at AT&T’s statement, though. Should real-time gaming be considered an “aspirational service” and not a core broadband application? After all, video games are more or less for kids, right?

Not quite. Growing survey data presented in a 2008 Harvard Business School study on video games and broadband revealed the traditional gamer stereotype of the teenage boy is outdated. Consider these recent Entertainment Software Association numbers:

  1. The average gamer is 35 years old and has been playing for 12 years.

  2. Forty percent of all gamers are women. Additionally, “women over 18 years of age” is one of the industry’s fastest growing demographics. Adult women represent a greater portion of the game-playing population (34 percent) than boys age 17 or younger (18 percent). In addition, 57 percent of online gamers are male and 43 percent are female.

  3. Twenty-five percent of gamers are over the age of 50, an increase from 9 percent in 1999. This figure is expected to rise in coming years with nursing homes and senior centers across the nation now incorporating video games into their activities.

  4. Forty-two percent of homes in America have a video game console.

  5. Thirty-seven percent of heads of households report they play games on wireless devices such as a cell phone or PDA, up from 20 percent in 2002.

The statistics regarding wireless devices are particularly interesting because the FCC is still considering how issues such as net neutrality will affect wireless Internet. Regardless of what the FCC is thinking now, numbers seem to indicate devices that have a strong gaming component are likely to gain the attention of consumers.

The Harvard Business School study demonstrated that innovative devices, ubiquitous broadband access, improved games and increased reach led to U.S. sales of software, hardware and accessories reaching $18.9 billion in 2007, an almost 40 percent growth over 2006 sales. The Nintendo DS, a handheld broadband gaming device, was the top-selling gaming device in 2007 with 8.5 million units sold. Overall, more than 12 million handheld broadband video game devices were sold that year, in addition to 13 million console units that are capable of real-time online gaming.

The application side of online gaming claims a large audience as well. World of Warcraft, an extremely popular online role-playing video game, claimed 11.5 million monthly subscribers in August 2009. Facebook, the popular social media application with over 130 million subscribers, offers a number of “freemium” video games such as “Farmville” and “Mafia Wars” that not only attract millions of players, but also revolve around social networking. Gamesbrief (a video game industry blog) analyst Nicholas Lovell has claimed that many “freemium” games on Facebook make close to $20 per player on average, as players have the option to pay real money for virtual items that enhance play.

Non-video game device manufacturers are paying attention to these numbers. At a recent media gathering, Apple showed off updates to its line of iPods, pointing out there are more than 21,000 game available on the company’s App store for its iPhone and iPod Touch. In an interview with the New York Times, Apple CEO Steve Jobs said the company’s customers saw the iPod Touch as a strong gaming platform.

Major gaming device companies such as Microsoft, Sony and Nintendo have typically written off Apple as a major threat to their industry status. However, that hasn’t stopped those companies from moving in Apple’s arena as well. Both Sony’s PSP Go and Nintendo’s DSi are relatively new efforts by traditional handheld video game manufacturers to add more broadband-heavy functions to devices.

Could AT&T’s statement be pushback rhetoric from a service provider whose infrastructure can’t support gaming? Is AT&T trying to undermine not only competitors but also an entire platform of innovation that millions of Americans take advantage of on a daily basis?

Possibly. But the point is that while AT&T may want to classify real-time gaming as an “aspirational service,” it seems that device manufacturers, online application creators and American consumers are taking a more serious stance.

The FCC and net neutrality: Part three of four

Wednesday, October 14th, 2009

The third in a four-part series on the Federal Communication Commission’s six net neutrality principles:

During a recent webcast from the Brookings Institute, Federal Communications Commission (FCC) Chairman Julius Genachowski explained six principles of net neutrality and proposed making them official rules. Let’s take a closer look at proposed rules three and four, which focus on devices and competition.

No. 3: As long as they don’t damage the network, consumers can connect any legal devices of their choosing.

If you follow the wide-ranging discussion on devices, you’ll find there’s a lot of overlap. The third principle would seem to relate only to third-party devices like Sling Media’s Slingbox (a TV and video streaming device that is blocked on some 3G networks), but many industry executives involved in the net neutrality debate are also chiming in on what devices are used to connect directly to broadband networks.

We’ve seen the obvious example at work – a cell phone. But when considering the phrase “any legal device of their choosing,” the FCC’s third principle includes any non-phone device that contain Wi-Fi modules, such as Apple’s iPod Touch, Microsoft’s ZuneHD and Blu-Ray players that offer integrated Netflix streaming. Internet radio devices, web-connected home security systems and cameras with integrated wireless connectivity should be considered as well.

With all these devices in play, the net neutrality issue quickly becomes handset exclusivity – a practice where wireless carriers make exclusive deals with device manufacturers. Two examples at work currently include Google’s partnership with Verizon Wireless and Apple’s partnership with AT&T.

Both the FCC and Congress have spent some time looking into wireless handset exclusivity arrangements, especially as it plays into the FCC’s fourth net neutrality principle:

No. 4: Consumers have a right to competition.

The FCC’s fourth principle would ensure customers have the right to competition across the Internet spectrum, not simply in terms of choosing a service provider.

Net neutrality advocates claim there is a necessity to regulate the infrastructure and prohibit private enterprise from implementing methods to alter or promote one entity over another.

A worst-case scenario would be if a service provider would favor information from Microsoft over Google by purposely slowing Goggle’s content delivery to create a competitive disadvantage. Another would be a wireless carrier making enough exclusive deals with equipment manufacturers to effective eliminate smaller competitors and force consumers to choose between device or service.

An Internet stranglehold by a handful of organizations could also limit across-the-board innovation. Consider AT&T’s public statement that real-time gaming is an “aspirational service” and not a core broadband application. It’s an interesting statement, considering a Harvard Business School study on the video game industry demonstrated that innovative devices, ubiquitous broadband access, improved games and increased reach led to U.S. sales of software, hardware and accessories reaching $18.9 billion in 2007, an almost 40 percent growth over 2006. The Nintendo DS, a handheld broadband gaming device, was the top-selling gaming device in 2007 with 8.5 million units sold.

Could this statement be pushback from an infrastructure that can’t support gaming and is trying to undermine not only a competitor, but also an entire platform of innovation that millions of Americans take advantage of on a daily basis?

The rise of various, multi-tasking devices that can provide broadband access and other services has various industry leaders looking for ways to best position themselves as the market begins to take a more concrete shape. The FCC’s net neutrality principles as they relate to devices and competition (and how it eventually chooses to enforce them) will play a major role in that process.

Further reading:

Part one
Part two
Part four

The FCC and net neutrality: Part two of four

Monday, October 12th, 2009

The second in a four-part series on the Federal Communication Commission’s six net neutrality principles:

During a recent webcast from the Brookings Institute, Federal Communications Commission (FCC) Chairman Julius Genachowski explained six principles of net neutrality and proposed making them official rules. Let’s take a closer look at the first two, which focus on Web content and applications.

No. 1: Consumers are entitled to access whatever legal content they like.

Once considered a “future-proof” application, the Internet has significantly evolved over the past few years, giving users access to content previously found solely on store shelves or through other outlets. In some instances, service providers have restricted access to this kind of content. For example, AT&T censored a Pearl Jam concert in 2007. A month later, Verizon Wireless was taken to task for blocking text messages from the National Abortion and Reproductive Rights Action League. (Both companies have since apologized for the censorship.)

Those are just two examples, however. There have been other public incidents that have drawn the ire of organizations such as the Open Internet Coalition, which represents consumers, grassroots organizations and businesses working to keep the Internet fast, open and accessible to all Americans.

So what would happen to the Internet landscape if it weren’t fast, open and accessible? If Internet service providers were allowed to choose among content, businesses would have the ability to slow down or even block their competitors’ Web content. A cable company whose leaders disapprove of a particular political or social cause could block sites supporting that cause.

The FCC’s first principle of net neutrality would ensure those scenarios never happen.

No. 2: Consumers can run whatever legal applications – and use whatever legal services – they like, with some exemptions for law enforcement purposes.

This principle is essentially the same as the first, though it relates to applications.

An example of application “censorship” is Apple’s recent rejection of the iPhone application Google Voice, an Internet-based service that would permit users to make low-cost calls without using AT&T, which has an exclusive arrangement for the iPhone in this country. (Apple said it is still considering the application.)

Net neutrality should apply to the Internet no matter where or how it’s accessed. With the increase in the number of devices that have wireless Internet capabilities, the FCC needs to be vigilant from the beginning when deciding on how to ensure American consumers have fast, open and accessible service.

Further reading:

Part one
Part three
Part four

Genachowski opens up on Net Neutrality

Wednesday, September 23rd, 2009

In a recent webcast from the Brookings Institution, Federal Communications Chairman Julius Genachowski opened up on Net Neutrality, proposing new rules that would protect an open Internet on all wired and wireless networks.

The FCC has disciplined home broadband providers for traffic censorship in the past, but has never laid down a set of solid rules until Genachowski’s speech. Specifically, Genachowski spoke on measures that would prohibit discrimination of content or applications by Internet service providers and would ensure network management practices are transparent. His speech also touched on regulating how wireless companies carry Internet traffic to cell phones – an industry first.

Genachowski’s remarks come at a time when both the FCC is becoming more proactive in seeking input for a national broadband plan, and other Net Neutrality issues being discussed at both the private industry and government level. For example, the federal government is currently investigating Apple’s process for approving iPhone applications and the video game industry is going on the offensive against pushback from an AT&T suggestion that real-time gaming is an “aspirational service” and not a core broadband application.

At the Knight Center of Digital Excellence, we support Genachowski’s thoughts on Net Neutrality as it ties in to our ideas on the subject of open network s. (For a more information, read Chief Technology Officer Mark T. Ansboury’s column, “The case for open broadband infrastructure.”) It’s in everyone’s interest to pay close attention to this issue. Net Neutrality can serve as a way for our nation to move our networks further faster.

From digital hub to digital America

Wednesday, April 1st, 2009

By Doug Adams

“I believe that America should lead the world in broadband penetration and Internet access. Full broadband penetration can enrich democratic discourse, enhance competition, provide economic growth, and bring significant consumer benefits.”
– President Barack Obama, January, 2008

Our nation’s economy is poised for transformation and broadband can be a key component to the nation’s innovation and growth. As we work on expanding and improving broadband, we can envision the potential impact on our economy by looking at how new technologies have changed our lives thus far.

The entertainment and consumer electronics industries underwent a transformation when broadband’s initial adoption changed the Internet – and the computer – forever.

In 2001, Apple visionary Steve Jobs predicted the computer would evolve to be the “digital hub” of the home – driving applications and electronics that were just emerging.

In coming years, the electronics world boomed as iPods and digital cameras flew off the shelves. This happened in conjunction with broadband’s initial expansion.

Much as computers and other devices have changed the way we live our lives, broadband and the digital applications it enables have already begun to change the way America does business. Digital platforms continue to gain popularity because they open up new choices for consumers. And with these choices come new opportunities for industries to develop new markets and revenue streams.

Consider the Hollywood writers’ strike of 2008. While studio executives initially bemoaned the Internet as an “advertising killer,” this labor dispute was based in large part over how to share online revenue.

Just this month, CBS’ “March Madness on Demand,” an online platform to view NCAA tournament basketball games, is expected to generate over $30 million during the 10-day tournament. That’s 15 to 20 percent more revenue than last year. Online advertising is supplementing, not replacing traditional TV advertising.

So much for the Internet being the death of advertising.

The economic impact of broadband and the Internet doesn’t stop there. Consider Facebook, YouTube, eBay, Amazon and countless other online applications that help drive a significant portion of our nation’s economy.

What’s the next iPod or Amazon? We may never know our full potential if the U.S. fails to make a serious commitment to further increase broadband penetration and speeds.

The fundamental first step is to create the platform for innovation. From there, we can accelerate a process that is already beginning, with initiatives, for example, that enable people to seek medical diagnoses from a doctor through online videoconferencing.

This is why Obama sees broadband as such a vital part of our nation’s recovery. His objective is to take Jobs’ vision to the next level, so that beyond having digital hubs within our homes, we create a digital America.

Jobs understood that America stood at the precipice of broadband’s initial growth. Obama understands it today. Enhanced broadband penetration and speed is key to our nation’s ability to innovate and compete in the global economy.

Jobs once said, “A lot of times, people don’t know what they want until you show it to them.”

And that’s part of our job at the Knight Center of Digital Excellence. We’re here to show people the possibilities – those on the drawing board and those we can’t yet imagine.

Doug Adams oversees public information efforts for the Knight Center of Digital Excellence, serving 26 U.S. communities served. The center is operated by Cleveland-based technology nonprofit OneCommunity, in partnership with The John S. and James L. Knight Foundation, and is dedicated to creating connected communities through strategies that utilize information technologies to drive civic progress and economic development.