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Research shows 20 percent of households worldwide to be connected by year’s end

Thursday, November 19th, 2009

If there were any lingering doubts that broadband is truly the future world platform for innovation, the information technology research and advisory company Gartner Inc. put some of those to rest with their recent projections on worldwide broadband penetration.

Knight Community broadband penetration figures
Gartner reports 60 percent of U.S. households have a fixed broadband connection. Curious to know how your Knight Community ranks? The following figures are from a demographics study that determined what percentage of respondents said they connect to the Internet from home using a broadband or high-speed connection:
Aberdeen, S.D.	46.9 percent
Akron, Ohio	45.7 percent
Biloxi, Miss.	53.0 percent
Boulder, Colo.	69.7 percent
Bradenton, Fla.	45.7 percent
Charlotte, N.C.	58.2 percent
Cleveland	38.5 percent
Columbia, S.C.	55.1 percent
Columbus, Ga.	50.8 percent
Detroit	35.8 percent
Duluth, Minn.	54.3 percent
Fort Wayne, Ind.	48.1 percent
Gary, Ind.	35.1 percent
Grand Forks, N.D.	57.4 percent
Long Beach, Calif.	49.5 percent
Macon, Ga.	39.9 percent
Miami-Dade County	44.6 percent
Milledgeville, Ga.	41.2 percent
Myrtle Beach, S.C.	48.8 percent
Palm Beach County, Fla.	63.1 percent
Philadelphia	45.0 percent
San Jose	62.3 percent
St. Paul, Minn.	53.8 percent
State College, Pa.	68.6 percent
Tallahassee, Fla.	57.1 percent
Wichita, Kan.	51.6 percent
Source: Demographics Now

Overall, Gartner projects 422 million (about 20 percent) households worldwide will have a fixed broadband connection by the end of this year, a roughly 11 percent increase from the number of households that had a fixed broadband connection at the end of 2008.

According to Gartner, South Korea is currently the leader in household broadband penetration with 86 percent of South Korean households connected to broadband, followed by the Netherlands (80 percent), Denmark (75 percent), Hong Kong (72 percent), Canada (69 percent) and Switzerland (69 percent). Gartner reports the U.S. lags behind with a 60 percent broadband penetration rate, but expects it to pass several nations in the next four years as projections have the U.S. adding 27 million new connections and raising its penetration rate to 78 percent by 2013.

Gartner also predicts several developing nations will see a massive rise in their number of broadband connections with an additional 135 million in the next four years. The firm expects Brazil, Russia, China and India to account for more than two-thirds of new connections in the developing world and nearly half of all new connections worldwide.

At the Knight Center of Digital Excellence, these numbers tell us what we already know: The cry for better broadband can be heard all over the world and it’s not being ignored any longer. Nations that have been at the forefront will continue to grow and innovate further (Gartner predicts South Korea’s household broadband penetration rate will be 93 percent in 2013.), while nations that have gotten a late start will begin to utilize the same life-changing applications many already take advantage of.

Tags: Aberdeen, Akron, bandwidth, Biloxi, Boulder, Bradenton, Brazil, broadband, Broadband Expansion, broadband penetration, California, Canada, Charlotte, China, Cleveland, Colorado, Columbia, Columbus, Demographics Now, Denmark, Detroit, digital, Duluth, Florida, Fort Wayne, Gartner Inc., Gary, Georgia, Grand Forks, high-speed, Hong Kong, India, Indiana, infrastructure, innovation, Internet, Kansas, Knight Center of Digital Excellence, Knight communities, Long Beach, Macon, Miami, Milledgeville, Minnesota, Mississippi, Myrtle Beach, Netherlands, network, North Carolina, North Dakota, Ohio, Palm Beach, Pennsylvania, Philadelphia, Russia, San Jose, South Carolina, South Dakota, South Korea, St. Paul, State College, Switzerland, Tallahassee, Wichita
Posted in Digital news, Knight Center of Digital Excellence, broadband | 3 Comments »

SUPERCOMM 2009 brings up interesting broadband issues

Wednesday, November 18th, 2009

A recent event that didn’t get a lot of attention but managed to bring in a lot of the communication industry’s heavy hitters was SUPERCOMM 2009, held in Chicago during late October.

Speakers presenting on their insights and strategic plans included top-ranking officials from many major communications companies such as Verizon Communications, AT&T Operations, NBC Universal and Cox Communications – just to name a few. Verizon Communications Chairman Ivan Seidenberg delivered a keynote address touching on using networking technology to create a “smarter planet, smarter health care and smarter education.”

Private sector interests were also represented by Hardik Bhatt, Chicago’s chief information officer; Jonathan Adelstein, administrator, Rural Utilities Service; Larry Strickling, assistant secretary for Communications and Information and administrator, National Telecommunications and Information Administration; Blair Levin, executive director, Omnibus Broadband Initiative, Federal Communications Commission; and Aneesh Chopra, U.S. chief technology officer and associate director for technology in the White House Office of Science and Technology Policy, who delivered a keynote address on how he feels broadband will change the U.S. economy.

The event featured a number of suppliers showcasing the latest in broadband innovation as well as exhibits that demonstrated an industry-wide commitment to “green broadband,” which explores green regulations, recent studies on business opportunities in the low-carbon economy and how applications like intelligent monitoring can help reduce the energy burden of broadband.

Despite “always on” operation, broadband devices typically don’t consume a large amount of energy on their own, according to a U.S Department of Energy report. However, the appreciable indirect energy consumption they cause through extended use of related devices is proving to be significant. Figures presented at SUPERCOMM showed the standby power-draw from routers in 61 million U.S. homes served with broadband represents enough energy to meet the needs of the entire city of Oakland, Calif.

SUPERCOMM 2009’s complimentary programming also focused on broadband solutions. Technology-focused sessions took a forward-looking approach at how certain technologies were deployed in a network or how a service was applied, and how that technology or service will evolve to apply to future needs. Educational sessions covered topics such as the upcoming national broadband plan, digital content, service-oriented networks and social media.

While a number of interesting topics were discussed, it was good to see such a diverse group of key public and private sector thinkers convene to discuss how future innovation benefits everyone. It’s evident that key players in the communications game are placing an emphasis on broadband technology and the kinds of services and applications it can potentially power.

Tags: Aneesh Chopra, AT&T, Blair Levin, Broadband Expansion, California, Chicago, Cox Communications, digital, digital content, digital divide, economy, electricity, FCC, Federal, green broadband, Hardik Bhatt, high-speed, Illinois, infrastructure, innovation, Internet, Ivan Seidenberg, Jonathan Adelstein, Larry Strickling, national broadband plan, National Telecommunications and Information Administration, NBC Universal, NTIA, Oakland, Omnibus Broadband Initiative, Rural Utilities Service, RUS, service-oriented network, social media, SUPERCOMM 2009, U.S. Department of Energy, utilities, Verizon
Posted in Digital news, broadband | 3 Comments »

Is broadband access a civic requirement?

Tuesday, November 17th, 2009

A crucial part of President Barack Obama’s transparency agenda has always been to increase public participation in government by bringing it online. In fact, you may have heard him or a member of his administration discussing e-government as a key element of a national broadband plan.

These statements are not just rhetoric – using broadband to increase civic participation in policymaking efforts is the law. No, you didn’t just misread that sentence – there’s a law stating what a national broadband plan must include, and e-government is stamped right on it.

Now that we know the law, let’s take a closer look at what drives successful e-government initiatives – information. After all, information has allowed civilians to participate in local and national government since there’s been a government.

“Informing Communities: Sustaining democracy in the Digital Age,” a report by The Knight Commission on the Information Needs of Communities in a Democracy, provides an outstanding perspective on how “information is as vital to the healthy functioning of communities as clean air, safe streets, good schools and public health.”

According to the report, “America needs ‘informed communities,’ places where the information ecology meets people’s personal and civic information needs. This means people have the news and information they need to take advantage of life’s opportunities for themselves and their families. They need information to participate fully in our system of self-government, to stand up and be heard. Driving this vision are the critical democratic values of openness, inclusion, participation, empowerment and the common pursuit of truth and the public interest.”

Are you an informed community?

According to the report, a community is a healthy democratic community – an “informed community” – when:

• People have convenient access to both civic and life-enhancing information, without regard to income or social status.

• Journalism is abundant in many forms and accessible through many convenient platforms.

• Government is open and transparent.

• People have affordable high-speed Internet service wherever and whenever they want and need it.

• Digital and media literacy are widely taught in schools, public libraries and other community centers.

• Technological and civic expertise is shared across the generations.

• Local media – including print, broadcast, and online media – reflect the issues, events, experiences and ideas of the entire community.

• People have a deep understanding of the role of free speech and free press rights in maintaining a democratic community.

• Citizens are active in acquiring and sharing knowledge both within and across social networks.

• People can assess and track changes in the information health of their communities.

The commission also states that to achieve its vision of informed communities, the following three fundamental objectives must be pursued:

Maximizing the availability of relevant and credible information to communities

The availability of relevant and credible information implies creation, distribution and preservation. Information flow improves when people have not only direct access to information, but the benefit also of credible intermediaries to help discover, gather, compare, contextualize and share information.

Strengthening the capacity of individuals to engage with information

This includes the ability to communicate one’s information, creations and views to others. Attending to capacity means that people have access to the tools they need and opportunities to develop their skills to use those tools effectively as both producers and consumers of information.

Promoting individual engagement with information and the public life of the community

Promoting engagement means generating opportunities and motivation for involvement. Citizens should have the capacity, both individually and in groups, to help shoulder responsibility for community self-governance.

A large part of the report also focuses on the importance broadband technology and new media in revitalizing traditional journalistic roles and values. Since the advent of the 24-hour news cycle and the subsequent rise of sometimes superfluous content, many have forgotten the media was initially created to serve as a “watchdog of the government” – to provide civilians with accurate information on what their elected public officials were doing and to take those officials to task when they overstepped their bounds.

Traditional, accurate journalism efforts on civic affairs have always played a crucial role in providing individuals with the necessary information to participate in government. That service can only be enhanced as consistent innovation creates new information channels. The challenge for media outlets is to revamp their old business models to better incorporate new broadband technologies while staying true to their original “watchdog” role.

However, it’s extremely difficult to predict what kinds of innovation will occur in any industry, yet alone communications. But given what we have today, it’s imperative for public bodies to invest in the creation of universal broadband access for all Americans. Enabling citizens to participate in civic affairs through the accessibility of a national broadband infrastructure is a proper role for government.

Tags: 24-hour news cycle, Barack Obama, broadband, Broadband Expansion, community, digital, e-government, education, government transparency, high-speed, information, information channel, informed communities, innovation, Internet, journalism, Knight, Knight Commission on the Information Needs of Communities in a Democracy, network, new media
Posted in Opinion, broadband, national broadband plan | 3 Comments »

The role of collaboration in creating a community vision

Thursday, November 12th, 2009

collaboration3 When the Knight Center of Digital Excellence prepares to enter one of the 26 Knight Communities, it has a specific methodology to measure progress as that community works to become connected. Regardless of where the community is located, what its population size is, or what its needs are, the steps followed to reach the end point do not change much.

Basically, every community map points to the same spot. It’s the route and mode of transportation that’s different.

Knight Center Community Program Manager Lynda Goff provided an example of this by comparing two of her Knight Communities: Lexington, Ky., and Aberdeen, S.D. Communities such as Lexington already realize what benefits broadband technology can bring and may already have a few projects in the works. Communities such as the more rural Aberdeen may realize their needs, but aren’t fully aware of what the benefits of a broadband network may be.

One needs a facilitator. The other needs an advisor. Both need to emphasize different types of collaboration to get the right community projects moving.

In Lexington, the University of Kentucky and local government have some existing network sharing, but it wasn’t until a more collaborative community process was established that current key stakeholders were able to define what projects really were needed. A more collaborative process with the community brought other people to the table to develop a stronger, more representative voice.

The Knight Center facilitated the formation and on-going support of the Lexington Broadband Coalition, a group that has designed plans to extend the existing four square mile, downtown wireless network to cover a 10-square-mile area and extend a fiber connection from University of Kentucky’s Coldstream Research Park to the Kentucky Horse Park, site of the upcoming 2010 Alltech World Equestrian Games. The city expects over 600,000 visitors during the event, and plans to utilize the expanded wireless network to allow downtown visitors access up-to-the-minute event results and information on area transportation, parking, traffic, airports and hotels/restaurants/clubs.

Best Practices: New series to focus on what’s working in communities

With our November newsletter, we’re introducing a new series aimed at helping those facing the everyday challenges of planning and building broadband networks in communities across the country. From now on, when you see a newsletter story or blog entry labeled “Best Practices,” you’ll know it is part of this series.

Through the “Best Practices” articles, we’ll share our best examples of what’s working – and what’s not – in communities investing in broadband.

Among the topics we’ll examine:

• Business models for sustaining open broadband networks in communities;

• Data-driven realities to keep you updated on facts and figures that can play into decision-making;

• Planning for both short-term and long-term – so it’s clear how your community will take full advantage of new networks once they are built.

• Creative ways to bring community organizations together to work toward advancing economic development through broadband applications.

In November’s newsletter, our series begins with two stories: One looking at the role of collaboration in two very different kind of cities – Lexington and Aberdeen - and the other pointing to data that can help with decision-making.

As we go along, please share your own stories with us so we can mutually benefit from valuable experience emerging from communities throughout our nation – as we transition together toward broadband speeds (gigabit, we believe) that can change the way we work and live while advancing our national economy and our competitive position in a global marketplace.

But the wireless network project won’t stop when the games are over. With a more thorough collaborative effort, Lexington leaders were able to take a few months to form a team with stakeholders from various levels of the community to look at how the network can be used to increase public safety and move broadband into underserved areas of the city.

In Lexington, Goff said her experience in getting key stakeholders together and motivated was relatively easy since discussions were already taking place. Groups were small and the people needed to move projects forward were easily identified. However, a facilitator was needed to keep discussions ongoing and help leaders prioritize projects.

In Aberdeen, a broadband leadership role had never been fostered until the Knight Center began its work there. In fact, the small city had never even really discussed what a broadband network could help it achieve. With proper advising, however, the city is now having robust discussions on how to use broadband to build out to rural communities. Absolutely! Aberdeen, an online economic development and marketing program designed to improve the quality of life and job creation in the Aberdeen area through promotion, has stepped up as the area’s main leader in talking to individuals and facilitating a more regional discussion.

Absolutely! Aberdeen’s regional development plan, Prairie Vision, outlines an understanding: By unifying shared concerns and pooling resources, the region strengthens its voice and effects positive change and development while building relationships and bringing about mutual opportunities.

Those concerns center on services. Consider the rural area Aberdeen is located in. The city itself is home to 25,000 people. The surrounding 12-county area has a low population density, stretching 14,000 square miles with only nine inhabitants per square mile. That leads to some interesting questions. How do you effectively deliver health care to these people? How do you form interoperability so public safety forces can talk to each other?

The answer turned out to be broadband communications. The right program turned out to be the Northeast South Dakota Rural Broadband Project, which was made possible through a partnership between the Knight Center, TelServ Communications and the North East Council of Governments. The project aims to bring a wireless broadband super-highway linking 12 contiguous counties in rural Northeast South Dakota and provide broadband connectivity to more than 60,000 people. The Knight Center also worked with both partnering organizations to submit a Broadband Information Program application for funding.

In Aberdeen, stakeholders are now looking at broadband solutions to determine how to address regional concerns. What was once a topic that was never discussed has now developed into a strategic, long-range plan with a strong community leader receiving input from different sectors in the community.

Both Lexington and Aberdeen are looking at a broadband map pointing to the same spot. The route and mode of transportation each is using to get there is what’s different. Regardless, as both communities continue to plot their broadband directions, guided collaboration and leadership will help pave the way.

Tags: 2010 Alltech World Equestrian Games, Aberdeen, Absolutely! Aberdeen, broadband, Broadband Expansion, Coldstream Research Park, community, digital, digital divide, healthcare, high-speed, infrastructure, innovation, Internet, Kentucky, Kentucky Horse Park, Knight Center of Digital Excellence, Knight communities, Lexington, Lexington Broadband Coalition, Lynda Goff, methodology, network, North East Council of Governments, Northeast South Dakota Rural Broadband Project, Prairie Vision, public safety, rural communities, South Dakota, telemedicine, TelServ Communications, University of Kentucky
Posted in ARRA, Knight Center of Digital Excellence, broadband | 4 Comments »

My broadband life

Thursday, November 12th, 2009

By Doug Adams, Knight Center of Digital Excellence

My life is not that different from most men in their early 40s. Weekends are hectic, filled with kids’ games, events and errands – all while never straying too far from “work mode” as I am connected via Blackberry and laptop seven days a week. Was life this crazy for my father when I was young?

My father might not have had three soccer leagues plus football to juggle, or a workday that extended beyond nine-to-five to deal with, but I can manage my responsibilities and take advantage of so many new opportunities thanks to broadband. In many ways, my life is very different from what I envisioned it would be as a kid – or even what I envisioned five years ago. While the substance of my life is much as I would have anticipated, I never imagined being able to watch my beloved Indianapolis Colts via an iPhone application at the same time as my son Jack is scoring a goal at his soccer game. Being a supportive father in 2009 may require more work – but it is also a whole lot easier.

About a year ago, I introduced my son to U2. He loves the music almost as much as I do now, which is great – because what good is having kids if you can’t teach them to like what you like? Unfortunately, the 2009 U2 concert tour did not make it our way, but we watched the Los Angeles show this weekend streaming live via YouTube from start to finish.

Last weekend, I awoke on Saturday to my 4-year-old daughter on a Skype Internet call with her grandma in Connecticut. Zoe, a child of broadband and the numerous educational games available online, had dialed-up grandma on her own. Just an example of how her exposure to the resources on the Web have made her so aware of the present world around her and poised to compete in a future one.

We’re a multiple laptop family – so at the same time Zoe was speaking with Grandma, 9–year-old Abby was playing her favorite online game, which requires her to organize, prioritize and accomplish tasks before being rewarded with the next level. It’s no coincidence we’ve seen these same behaviors manifest in her daily life.

My family is by no means alone in terms of how pervasive broadband has become in our everyday life. Earlier this year, eMarketer reported that consumers, even in this tough economy, are scaling back in other places while keeping their broadband services intact. When asked what they would give up if forced to scale back, Americans ranked broadband way behind digital television and telephone service (both mobile and land lines). More than 66 percent of broadband users said they would keep broadband access at the same level or even scale up.

Tags: bandwidth, Blackberry, broadband, Broadband Expansion, Connecticut, digital, digital divide, digital television, eMarketer, FCC, Federal Communications Commission, high-speed, Indianapolis Colts, infrastructure, innovation, Internet, iPhone, Knight Center of Digital Excellence, laptop, Los Angeles, network, Pew Research Center Internet & American Life Project, Skype, U2, YouTube
Posted in Knight Center of Digital Excellence, Opinion, broadband | 3 Comments »

FCC votes on open Internet rules … now what’s next?

Thursday, October 29th, 2009

The Federal Communications Commission’s unanimous vote Oct. 22 to begin developing an open Internet policy served a major victory for those, such as the Knight Center of Digital Excellence, who support the idea that the Internet should be fast, open and accessible to all Americans.

However, as we covered in our net neutrality blog series, which took an in-depth look at each of the FCC’s proposed six net neutrality principles, there are numerous organizations and individuals that are putting some heavy commercial and political pressure on the issue, the FCC and each other.

Major broadband providers feel strongly that the billions of dollars they’ve poured into their networks should provide them the exclusive right to operate those networks however they want. That includes offering premium services over their lines to differentiate themselves from competitors – and earn a healthy return on their investments in the process.

Many Republican congressmen have spoken out against the proposed net neutrality principles as well, expressing the opinion that the regulations would likely discourage broadband providers from expanding and upgrading their systems, thereby stifling innovation and hurting the job market.

Sen. John McCain is one prominent politician who holds that view, which is the main reason he introduced the Internet Freedom Act of 2009 the same morning as the FCC vote, which would block the agency from regulating the Internet.

Other congressmen have come forward to say they feel the FCC doesn’t have the legal right to enforce net neutrality rules. Even FCC Chairman Julius Genachowski, who introduced the proposal, feels there is a legal gray area with regards to enacting and enforcing Internet regulation. He said in a previous interview that his agency is faced with a “dangerous combination of an uncertain legal framework with ongoing as well as emerging challenges to a free and open Internet.”

What’s clear is that while the issue might have been voted on, the debate is far from over. Keep in mind the vote doesn’t put any principle in place as law; it simply states the FCC will start the process for creating regulation to keep the Internet open and use the six principles as a foundation.

Regardless, the vote is a step in the right direction in ensuring all Americans will have access to an Internet that’s fast, open and innovative.

Tags: broadband, Broadband Expansion, digital, FCC, Federal Communications Commission, high-speed, infrastructure, innovation, Internet, Internet Freedom Act of 2009, John McCain, Julius Genachowski, Knight Center of Digital Excellence, Net Neutrality, network, Republican party
Posted in Digital news, Knight Center of Digital Excellence, broadband | 2 Comments »

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:

The average gamer is 35 years old and has been playing for 12 years.
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.
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.
Forty-two percent of homes in America have a video game console.
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.

Tags: Apple, aspirational service, AT&T, bandwidth, broadband, broadband applications, Broadband Expansion, Brookings Institution, cell phone, digital, digital divide, economy, Entertainment Software Association, Facebook, Farmville, FCC, Federal Communications Commission, Gamesbrief, Harvard Business School, high-speed, infrastructure, innovation, Internet, iPhone, iPhone Touch, Julius Genachowski, KCoDE, Knight Center of Digital Excellence, Mafia Wars, Microsoft, network, New York Times, Nicholas Lovell, Nintendo, Nintendo DS, Nintendo DSi, online gaming, PSP Go, real-time gaming, Sony, Steve Jobs, video games, wireless, wireless devices, World of Warcraft
Posted in Digital news, Knight Center of Digital Excellence, broadband | No Comments »

The FCC and net neutrality: Part four of four

Tuesday, October 20th, 2009

The final piece 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 five and six, which focus on devices and competition.

No. 5: Broadband providers can’t block or demote lawful traffic, or privilege their own content over that of their competitors.

The FCC’s fifth rule touches on a number of examples we’ve discussed in previous parts of this series, such as AT&T’s classifying real-time gaming as an “aspirational [broadband] service,” and Verizon Wireless being taken to task for blocking text messages from a political organization.

A scenario the Knight Center of Digital Excellence proposed in a previous blog is that if the FCC’s net neutrality rules are not enacted: A service provider could favor information from Microsoft over Google by purposely slowing Goggle’s content delivery to create a competitive disadvantage.

Since Genachowski’s webcast, a more critical eye has been turned to service providers that had been trying to find ways to better position themselves for a future Internet stranglehold. Verizon was recently taken to task for its numerous handset exclusivity deals, for example. (It has since responded by publicly stating it would work to reduce these type of deals.)

No. 6: Broadband providers must be transparent about their services.

Both the fifth and sixth principles have recently been added to a list the FCC has been touting for quite some time, but have caused the heaviest debate between various providers. The sixth principle, in particular, has been a major sticking point.

If all providers are forced to be transparent about their services (as well as follow other rules that limit handset exclusivity, for example), it becomes increasingly difficult to establish a competitive advantage and handicap smaller providers from having equal access to consumers. It could also lead to consumers having complete freedom to choose what device they want to use and what service that device will use to connect. No one, for example, will be forced to choose AT&T as a provider because he or she simply wants an iPhone.

Those are great scenarios for consumers, aren’t they? Imagine: Instead of providers trying to ignore or hide new types of innovative programming, they’ll simply have to develop the infrastructure to support it, right?

Not necessarily. Both broadband providers opposing Genachowski’s proposal and Republicans that sit on the FCC and in Congress have expressed the opinion that network neutrality regulations would likely discourage broadband providers from expanding and upgrading their systems.

How do you view that statement? Are major providers trying to make the point that falling profit margins would simply lead to a lack of research and development dollars? Or is it a threat to essentially hold innovation hostage until they get what they want?

No matter how you view it – or any of the examples we’ve provided throughout this series – the fact remains that there are a lot of complicated issues to sort through – even well after the five-member FCC votes on Genachowski’s net neutrality proposal Thursday, Oct. 22.

For his part, Genachowski commented in a recent interview that as long as cable and telecommunications networks are delivering “high-speed, affordable broadband to all consumers in a given area,” marketplace limitations should be sufficient. However, if they “fall short” in any area or attribute, he said the FCC will propose “alternative and creative solutions” as part of its plan.

Further reading:

• Part one
• Part two
• Part three

Tags: AT&T, bandwidth, Brookings Institution, competition, Congress, digital, economy, FCC, Federal Communications Commission, Google, high-speed, infrastructure, innovation, Internet, iPhone, Julius Genachowski, KCoDE, Knight Center of Digital Excellence, Microsoft, Net Neutrality, network, Republican party, Verizon
Posted in Knight Center of Digital Excellence, broadband | No Comments »

Net neutrality across the globe

Tuesday, October 20th, 2009

Ever since Federal Communications Commission (FCC) Chairman Julius Genachowski’s Sept. 21 net neutrality webcast at the Brookings Institute, an intense debate on the subject has raged between a number of industry executives, policy makers and other concerned parties.

What everyone seems to agree on, however, is the impression the FCC made by publicly stating its stance. Stephen Collins, head of global regulatory affairs for Skype, one of the loudest voices for net neutrality from within the high-tech industry, said, “This puts the FCC at the forefront of global Internet policy. It was a bold statement that could have ripple effects across the globe.”

It’s difficult to imagine what the exact effect would be across the globe if the U.S. were to implement and enforce a robust net neutrality policy. Other nations have different needs, different broadband infrastructures and considerably diverse government models.

A few nations, such as Norway and Japan, have net neutrality rules in place similar to those proposed by Genachowski. Others have dismissed such policies, including several European nations and emerging nations, because telecommunications companies are either controlled by or closely connected to the government. The government plays an even larger role in nations such as China, Iran and Ethiopia, where content and connection speeds are so heavily censored and restricted that there may as well be no Internet service at all.

However, a large number don’t even have a need to consider policies at all because consumers already enjoy both a greater level of competition and more bandwidth than in the U.S.

Those are important categories to consider – competition and infrastructure. When you strip down many of the arguments made for or against FCC-proposed net neutrality rules, those seem to be two concerns that are most prevalent in the overall debate. Read the Knight Center of Digital Excellence’s four-part series on the FCC’s six net neutrality rules for specific examples on how the relative lack of broadband competition and low levels of available bandwidth in our nation are pitting major industry players against each other.

Looking at nations that considered competition and infrastructure issues from the onset adds an interesting facet to the net neutrality debate: Is it a short-term solution to answer for a lack of long-term planning?

Net neutrality is important, and rules governing it should apply to the Internet no matter where or how it’s accessed to ensure American consumers have fast, open and accessible service. At the same time, we hope they don’t detract attention from big-picture problems – the need for more robust competition in broadband markets and the building of higher speed, best-effort infrastructure.

Tags: bandwidth, broadband, Broadband Expansion, Brookings Institution, China, competition, digital, Ethiopia, Europe, FCC, Federal Communications Commission, high-speed, infrastructure, Internet, Iran, Japan, Julius Genachowski, Net Neutrality, network, Norway, Skype, Stephen Collins
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One hand clapping - broadband availability without adoption doesn’t have much sound

Friday, October 16th, 2009

When the federal government announced its investment in broadband, the broadband community applauded. Financial assistance would be in place to augment commercial investments in rural areas, provide opportunities for expanded municipal wireless networks and supplement middle-mile fiber builds connecting schools and government buildings.

Buried in the $7.2 billion funding allocation was a relatively miniscule allotment of $250 million for “sustainable broadband adoption,” with $150 million to be dispersed in the first round of funding. Yet, this small Sustainable Broadband Adoption (SBA) pool drew 328 applications totaling nearly $2.5 billion in “asks” - 10 times the amount of funding available. Why so much interest?

It’s simple. Broadband availability without adoption, use and innovative product and service development is like one-hand clapping - not much of a sound and very little real connection. The pool of 328 applications to the SBA fund indicates a huge pent-up demand, a desire to create change and the know-how to promote broadband adoption.

The Federal Communications Commission (FCC) recognized as much in a recent report, saying the “Internet creates value only if applications are adopted by consumers; greater adoption yields greater value.”

The challenge becomes one of holding out a vision that Americans can embrace - one they can see and understand how their individual lives can benefit from broadband. As the FCC has outlined, broadband provides:

Individuals a platform for education and training, wherever one lives, whatever one’s circumstances;

Businesses a platform for innovation, greater cost efficiency and access to world markets; and

Governments a platform that improves efficiency and responsiveness,

One stimulus application designed to connect broadband networks with quality of life in communities is the Connect Your Community (CYC) proposal from the Knight Center of Digital Excellence. The plan is to engage, train, equip and support communities across the county to develop and test training tools, in-depth tracking and analysis. But CYC is just one of the many proposals vying for the tiny pool of SBA funds.

Given the great demand and very limited funding for broadband adoption initiatives, we risk developing broadband networks that may result in under-usage. This is due to many Americans not understanding the benefits of new high-speed, high-capacity communications and how to participate in them fully. Part of the federal government’s job in considering applications is to weigh priorities. We hope this basic first step - of getting Americans up to speed with the what the ramifications of these new high-speed Internet highways can be - will get the attention it deserves.

America applauds the building of broadband networks, because we see the vision of a better life as a result. Our national investment in broadband will take on new relevance and excitement in communities across our nation.

Tags: American Recovery & Reinvestment Act 2009, broadband, broadband availability, Broadband Expansion, Broadband Technology Opportunities Program, community, Connect Your Community, CYC, digital, economy, FCC, Federal Communications Commission, high-speed, infrastructure, innovation, Internet, KCoDE, Knight Center of Digital Excellence, Middle Mile, network, stimulus, stimulus watch, sustainable broadband adoption
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