Submitted by acohill on Tue, 04/01/2014 - 08:42
In a surprise announcement this morning, Apple CEO Tim Cook announced that the giant computer and phone maker has purchased the Radio Shack Corporation. Radio Shack has attracted a lot of attention recently for the company's clever "The eighties want their store back" ads that attempted to highlight Radio Shack's shift in marketing strategy. But industry analysts have been uncertain that the changes were enough to bring some momentum back to the company.
When interviewed about the move, Cook had some interesting comments. "With the continuing success of our Apple stores, we wanted to dramatically expand our retail footprint, and we've nearly exhausted the big city venues. Radio Shack's most valuable asset are the thousands of stores in smaller towns and cities. This gives us an opportunity to expand quickly."
Cook went on to reveal a stunning new product line that could dramatically alter Apple's future direction. Cook explained, "We kept looking at the huge success of Maker Spaces and of products like the Raspberry Pi single board computer. Personally, I just got tired of hearing there is no innovation left at Apple. So we said, "To hell with it, let's go for broke." We are renaming the Radio Shack stores as "Apple Shacks," and the flagship product is going to be a keystone item in an entirely new Apple product line aimed at Maker Spaces and experimenters: The Apple Pi."
Norman Feisterburger, Apple's new head of the Apple Shack line of business, provided more detail about the new product. "The Apple Pi is a single board computer designed for the huge surge in interest that Maker Spaces are bringing to the hobbyist market place. The Apple Pi comes with everything you need to get into programming, house control, media control, and "maker" projects. The board has HDMI, Ethernet, and USB interfaces, and comes with 32 Gig of storage space in a micro SD card. And best of all, the Apple Pi comes loaded with the command line version of Unix and the Mach kernel that runs on all Mac, iPad, and iPhone products. We're opening up the Mac platform to a whole new generation of "makers," and we expect that the Apple Pi will become the dominant platform for development in the "Internet of Things."
When asked about the cost of this new venture, Tim Cook brushed off the financing issues. "Radio Shack has been struggling for so long, we were able to pick up the whole company, including all the stores, for a little less than $7 billion. And to tell you the truth, we came up with the idea when an intern was cleaning out some filing cabinets in Steve Job's office and she found $14 billion stuffed in a bottom drawer in an assortment of international currencies. We looked at the cash and said to ourselves, "We are getting slammed in the press for not being innovative. What this calls is a really futile and stupid gesture be done on somebody's part!" So we all shouted, "Let's do it!" I got on the phone with the CEO of Radio Shack and we closed the deal in less than a week.
Cook indicated that the rebranding of the stores will take place on April 1st, 2014, and he also hinted that a Retina-based 12" iPhone may be released at the same time.
Submitted by acohill on Mon, 03/17/2014 - 09:00
I was in a rural community recently that is already in crisis because of poor broadband service. What they told me is that new hires for businesses in the town simply won't live there. Instead, they are locating their families about an hour and a half away and enduring two to three hours of commuting each day to work.
What are the issues? The kids can't do their schoolwork at home because of poor connectivity. The stay at home spouse can't effectively use online shopping to support living in a rural area with limited bricks and mortar stores. The kids feel cut off because social media sites like Facebook, Pinterest, and many others run slowly or not at all. Families can't use services like Hulu and Netflix and there are no video stores left. Home-based workers and home-based business development is completely stalled out because the very poor quality DSL and cable modem services in the area simply won't support two way video (e.g. Skype, GoToMeeting, Webex), moving large files back and forth, and efficient access to cloud-based services.
I still have some economic developers who look at the Netflix stats (video on demand services are using over a third of all the bandwidth in the U.S. on nights and weekends) and don't see the connection to economic development. But if you can't attract workers to your community, you also are going to have problems attracting businesses to your community. It's all one problem.
The businesses that were already in the community were screaming for more bandwidth and desperate for both more than one service provider and more than one cable path out of town. Redundancy has become a huge issue even for small and medium sized businesses as more and more business data is moved in real time between the businesses and off-site servers (i.e. the "cloud").
Submitted by acohill on Thu, 02/13/2014 - 10:39
Comcast and Time Warner have agreed to merge, with Comcast buying Time Warner. Although this merger has to be approved by Federal regulators, the article suggests that since the two companies don't have overlapping territories, it may well be approved.
The merger would combine Comcast's 22 million subscribers with Time Warner's 11 million subs, and Comcast has said it would sell off 3 million subscribers to keep the new company below 30 million customers. Supposedly that is some threshold that determines if the company will have too big an influence on the market.
This smells of desperation to me. Cable TV is dead, dead, dead, with Over The Top (OTT) services like Netflix and Hulu killing off cable and satellite TV. I was in a rural community for a week recently. There were three complaints:
Aside from the fact that copper-based coaxial cable is grossly inferior to fiber, the cable companies simply can't provide business class symmetric services over their "entertainment" networks in any sort of consistent way, and they know it. So they are going to merge to give them market clout on the content side, and they are going to continue to try to buy laws at the state level, like they just tried in Kansas.
In less than ten years, most American homes will have fiber. It is as inevitable as flush toilets, which were once considered a luxury. And when the dust settles, the communities that introduced competition by creating shared digital road systems are going to be doing much better economically.
Submitted by acohill on Wed, 02/12/2014 - 13:43
Broadband Communities magazine has a story that should be required reading for every community wondering if there is linkage between Gigabit fiber and economic development. Lafayette's municipal Gigabit fiber network has brought Hollywood special effects jobs to the community, more than a hundred, because the high performance Gigabit network lets Pixel Magic move the computer files back and forth between Lafayette and California quickly.
Pixel Magic brought jobs to Lafayette because the local economic developers created a 3D visualization facility (Louisiana Immersive Technologies Enterprise, or LITE) that was designed specifically as an economic hub. LITE has been a huge success that has attracted several new companies to Lafayette. You don't think of Gulf Coast Louisiana as a high tech destination, but the combination of Gig fiber and a broad economic development vision has been successful.
Lafayette's success also demonstrates that you can't rely on the Field of Dreams model: "If we build it, businesses will come." Lafayette has been successful because they linked their fiber network to a carefully thought out economic development strategy. Be sure to read the whole article. It's an eye-opener for those arguing that communities should not be investing in fiber.
Submitted by acohill on Wed, 02/12/2014 - 10:18
In the nineties, as the Internet became more popular, there was a long-running and often tedious discussion of what the "killer app" was going to be that would make everyone get Internet access. I always thought the whole discussion was a waste of time, because it was obvious to me that at that time, email WAS the killer app. People signed up for Internet access because they recognized the value of email for business use, personal use, or both.
There is a similar discussion underway for broadband and particularly broadband over fiber (i.e. fiber to the home). I think it will be health services and applications. The Internet has already begun to disrupt the way health services are delivered, but we have barely begun to see what is possible. Today, services like Fitnet provide personalized interactive work out sessions, along with related products like the Nike collaboration with Apple that tracks runners and joggers. Apple watchers suspect that the company is going to roll out sophisticated new apps for both iPhones and Macs.
Other companies are preparing to offer doctor visits via HD webcam-enabled software, and if companies like Apple lower the cost of sensors that monitor your health (e.g. blood oxygen levels, heart rate, blood sugar and insulin levels) we could see significant changes in the way health care is provided.
The most potential is for improvements in the management of chronic health problems like diabetes and heart disease, where the ability of low cost sensor to provide hourly and daily monitoring of key information could lead to early diagnosis and better treatment.
Most of these services are going to require a broadband connection, and cutting out just one $80 copay for a doctor visit per month will easily cover the cost of a fiber connection to the residence. Communities with aging populations and/or are desirable retirement locations will want fiber everywhere to deliver health care services where they are needed.
Submitted by acohill on Thu, 02/06/2014 - 10:22
An old friend of mine once remarked, "In Texas, we have the best laws money can buy." Apparently, folks in Kansas can make the same statement, as a blatantly anti-muni broadband bill was introduced in the legislature last week. The bill was so stringent that it would have made the Kansas City/Google deal impossible, which is a good example of a public/private partnership that brings a lot of benefit to the residents and businesses of the city.
But the Internet exploded, and the bill has been tabled for the time being." You do have to give Kansas Senator Julia Lynn some credit for honesty, as she remarked, ""I visited with industry representatives, and they have agreed to spend some time gathering input before we move forward with a public hearing," she said."
At least she is not shy about admitting that the incumbents are telling her what to do, rather than the citizens that she supposedly represents.
These kinds of bills are going to continue to pop up, because the incumbents have been successful in states like North Carolina, where a slightly less stringent bill was passed about three years ago.
I remain an optimist in spite of these attacks on communities, because there are ways to get Gigabit networks into communities even if the state legislature has made it difficult to do so. Over at WideOpen Networks, we're already well on the way to solving this problem for good.
Submitted by acohill on Wed, 01/29/2014 - 11:03
A couple of weeks ago, a U.S. Appeals Court told the FCC that their net neutrality rule was invalid. This has caused a huge debate among broadband industry folks about what comes next. The court ruling hinges on the way the FCC categorizes services like TV, phone, and Internet as either a "telecommunications service" or an "information service." To make things even more complicated, the FCC definition of "common carrier" also factors into the rules.
I have read at least two dozen opinions about what all this means, and I have yet to see even one address what I think is the core problem: the FCC is trying to make rules about Internet use based on two definitions (information service, telecommunications service) developed decades ago when cable TV was based on a technology completely different from voice telephone service.
When we can deliver literally hundreds of services from competing providers over a single fiber strand to a customer, why are we trying to make rules based on outmoded and antiquated service classifications.
I have always been a contrarian with respect to net neutrality; despite protests from the incumbents over the FCC's net neutrality rules, I have always thought the incumbents were the biggest beneficiary of net neutrality, as it makes it more difficult to build a business case for a competitive network in a community. There is going to be some pain associated with migrating away from the current de facto incumbent monopolies that exist in most communities today. Better to get it over with sooner rather than later, and get more businesses and residents connected to a truly competitive fiber network, rather than trying to prop up the incumbents.
Submitted by acohill on Thu, 01/16/2014 - 15:22
The Blackphone is a smartphone based on the Android OS, but with additional layers of security and encryption, giving Blackphone users secure use of email, messaging, and voice telephony.
It maybe that Snowden's leak of NSA data collection may turn out to have a silver lining, as we may see a market for these kinds of devices develop much faster than anyone would have thought.
Submitted by acohill on Wed, 01/15/2014 - 17:17
This CNet article is one of the best summaries of the foofaraw over the FCC net neutrality reversal.
I have always been a contrarian on this issue. The big fear is that if the incumbents are free to charge differential pricing for different kinds of content, content will get more expensive. The classic example, which is used in the article, is that Comcast or Verizon will charge subscribers $10 a month more to access Netflix or Youtube because those services use so much bandwidth.
My response is "So? They are running a business. They should be able to charge whatever they want. If they price their service too high, a truly open market will introduce competition and they will a) lose customers, or b) lower prices."
Now this is where some people will start grumbling about incumbent use of public right of way and the obligation of right of way users to be "fair."
If Comcast raises their prices on their old-fashioned copper infrastructure, it might create the right market conditions for a new company to lay fiber...in the right of way...and provide a better service at lower cost. Net Neutrality, as currently conceived, benefits the incumbents more than it hurts them by discouraging "true" pricing and thereby limiting competition. I suspect that the incumbents find it useful street theatre to complain about net neutrality but actually like it. It keeps the riff-raff start ups out of their markets.
Submitted by acohill on Tue, 01/14/2014 - 15:12
Google has purchased Nest, a maker of innovative thermostats and smoke detectors. The purchase is apparently for $3.2 billion.....which seems like an awful lot of money for a niche manufacturer of a niche product: "smart" thermostats. One has to wonder what Google has in mind for the technology it has just bought.
Submitted by acohill on Tue, 01/14/2014 - 08:35
An article in the Wall Street Journal details a new business in Toronto that has placed WiFi sensors in major shopping and nightlife districts of the city. The sensors grab WiFi data from passing smartphones and builds profiles of what people are doing and where they are going. The data is sold to local businesses, who also allow the sensors to be placed inside their businesses. It is an interesting innovation, but has some troubling prospects for privacy. As we carry around our smartphones, tablets, and laptops, the MAC addresses in each of them provide a unique identifier for this kind of data collection. Once this kind of data is known to exist, it can be subpoenaed for civil and criminal investigations. And the government could use it as part of an investigation into your habits and whereabouts.
Maybe an Indiegogo-funded Faraday cage wallet for smartphones would be a good idea.
Submitted by acohill on Tue, 12/17/2013 - 10:40
A new study suggests that being "connected" all the time takes a toll on our psyche. An experiment with hundreds of college students suggests that some cellphone users experience high levels of anxiety and lower academic performance because they cannot put the phone down.
I see this in some meetings, where younger people are obsessively playing with their phones while most folks over forty are more engaged in the meeting and paying more attention to what is actually happening in the room.
Submitted by acohill on Tue, 12/10/2013 - 13:48
MuniNetworks reports on the success of the City of Palm Coast's FiberNET project. The all fiber City-owned network is operated as a multi-service, multi-provider open network, and is delivering substantial savings to both public and private entities and businesses connected to the network. The project is in the black, and FiberNET is expected to pay back all of the initial City investment in less than six years. Design Nine provided the network design, the financial planning, and the project management for the City of Palm Coast.
Submitted by acohill on Fri, 12/06/2013 - 10:18
My hat is off to Microsoft for their extremely aggressive efforts to encrypt customer data. In the wake of the Snowden leaks that revealed NSA collecting data from companies like Apple, Microsoft, Facebook, Google, Yahoo!, and others, Microsoft has correctly recognized the serious impact that data collection could have on the company's bottom line, both in the U.S. and abroad.
Like most companies providing Internet-based services, the marketplace is global, and international customers are not going to be particularly happy that the NSA is collecting their email, text messages, and documents. Here is a snippet of what is being done, directly from Microsoft:
In light of these allegations, we’ve decided to take immediate and coordinated action in three areas:
I never bought into the idea that these companies were actively cooperating with the NSA. It's just too easy to capture data streams from, say, a Microsoft data center somewhere else in the network.
There was a time when heavy encryption was processor-intensive and therefore expensive to do, but processing power is so cheap now it can be added without much cost or effort, and in the future, we will see nearly every personal and business communication that traverses the public Internet will be encrypted. It's just good business.
Submitted by acohill on Tue, 11/26/2013 - 13:58
nDanville, the first muni multi-service open network in the U.S., has waiting list for fiber connections, and a growing list of new jobs and businesses that are being drawn to the community because of the low cost, high performance fiber infrastructure. Design Nine helped the City plan and design the network, and the investment is beginning to pay off as manufacturers keep moving to the fiber-connected business parks.
Submitted by acohill on Tue, 11/26/2013 - 13:51
FastRoads is a Gigabit network designed and built by Design Nine for New Hampshire FastRoads LLC, a wholly owned subsidiary of the Monadnock Economic Development Corporation. One of the surprises, as we add more customers, is the unexpected demand for the 50 Meg Internet service, which is turning out to be higher than expected. On the FastRoads network, every connection is a Gigabit circuit capable of delivering multiple services from several different providers.
Submitted by acohill on Fri, 11/15/2013 - 10:55
The big players on the Internet--Google, Facebook, Yahoo!, Microsoft, and others--are making changes in the way they push their data and services around the Internet. Stung by revelations that the NSA has been vacuuming up their customer data, these firms are adding new encryption to their data streams between data centers and between their data centers and customers. As they should. Communications on the Internet has been too open to snooping for a long time, and this is overdue.
Submitted by acohill on Wed, 11/13/2013 - 08:29
A new report illustrates just how dire the situation is for the cable companies; Netflix and YouTube use half of all the bandwidth on the Internet. Cable TV is brain dead, but the body is still on life support. There is no future in cable, and satellite will be the next to go as more fiber is deployed into areas unserved by cable. This is not a matter of "if" anymore, it's all about the "when." I think it is safe to say that most of the country will have fiber connections by 2025.
Submitted by acohill on Mon, 11/11/2013 - 11:01
I've been talking about this for fifteen years. New data, from an article at Forbes, suggests that demand for office space may have peaked in the U.S, and that what may be the trend in the future is work from home and business from home activities. According to the article, the number of people working from home as self-employed has risen 14% in the past decade.
Neighborhoods are business districts, and need to be treated as such by economic developers.
This means that you want to be able to deliver business class high performance affordable broadband into your neighborhoods, and that generally means you want fiber, with business class symmetric service available. Places like FastRoads in rural New Hampshire are already doing this (a Design Nine project), and not surprisingly, a lot of homes (er, business locations) are signing up for 50 meg service--well beyond what cable and DSL is able to offer in most places.
It's not that communities should stop paying attention to downtowns and business parks....just the opposite. But if your community's economic development strategy does not have goals and objectives focused on supporting neighborhoods as business districts, you are missing some business attraction and job creation opportunities.
Submitted by acohill on Fri, 11/08/2013 - 10:19
I'm not even going to try to link to them, but a flood of privacy-enabled apps and services are already beginning to appear.....heavily encrypted email apps, encrypted VPN apps, Web browsers that automatically route queries through proxy services that mask your IP address....the Internet was designed to survive a nuclear holocaust. Snooping by the NSA....anything the NSA can do, geeks can probably route around without a whole lot of effort.
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