Wednesday, June 16, 2010

World Cup: Webmasters Complaining About Less Searches, Traffic

Some webmasters are complaining that they are noticing less traffic to their web sites due to possibly people watching the world cup.

"The Problem With the Internet"

More fun watching this than working, I'll say that.

Tuesday, June 15, 2010

BlackBerry To Introduce First Touchscreen Devices to Rival iPhone

I loved my BlackBerry when I first began using one years ago. Over time, my business reasons for using a smartphone have changed, with the biggest change being that email is no longer mission critical, but web apps are way more important. As much as I have loved composing text messages on a BlackBerry, the web experience has simply gotten to be painful.

Maybe RIM's new line will fix that. I'm not saying I'd go back, as I am more intrigued by Android devices. I do miss my keyboard, though.

AT&T Issues First Warning About Common Carrier Regulation

The great danger of the Federal Communications Commission's drive to regulate broadband access as a common carrier service is that it will choke off investment that is needed if we are to get the 100-Mbps network the FCC says it wants to see built.

Now AT&T has fired the first warning shot, saying it will reevaluate spending on its broadband access networks if the Federal Communications Commission decides to regulate broadband access as a common carrier service, the Wall Street Journal reports.

The warning can hardly come as a surprise. Both policy advocates and financial analysts already have warned that a capital strike is precisely what will happen if Title II regulations are imposed on broadband access.

"We would expect a profoundly negative impact on capital investment," warns Stanford Bernstein analyst Craig Moffett in a research note to clients.  "The only potential winners are the satellite providers, DirecTV and Dish Network, for whom incremental broadband regulation would dramatically reduce the risk of competitive foreclosure in the video business at the hands of bottleneck broadband providers," he says.

Former FCC Commissioner Harold Furchgott-Roth says the Federal Communications Commission's drive to reclassify broadband access as a common carrier service is "reckless" and "risky," will lead to a dampening of investment in networks, years of legal challenge and replaces an investment climate with a "casino" environment.

Of course, the drive to regulate broadband access as a common carrier service, despite being described as a targeted "third way" between unregulated information services and regulated common carrier services can be no such thing. The service either is an unregulated data service or it is a common carrier service under Title II. There is no permanent middle ground, as the FCC can later apply virtually any Title II common carrier obligations if it so desires, once the change is made.

In fact, the FCC's latest effort is the fourth time the FCC has launched inquiries into the status of information services, concluding three times before (Computer Inquiry I, II and III) that information or enhanced services are in fact to remain unregulated.

"The uncertainty the proposal creates will create a dampening effect on investment in the broadband business,"
says Furchgott-Roth, former FCC commissioner. Companies aren't sure what will happen and will delay
investment until there is certainty, he says.

If the FCC proceeds, and succeeds, "things will be tied up in courts for years an investors will gravitate to areas with greater certainty and opportunity for profit.

"There is a very clear correlation between certainty and investment," says Furchgott-Roth. "Unfortunately, both regulation and uncertainty is where we appear to be headed."

Some policy advocates will dismiss the AT&T threat as bluffing. "If this Title II regulation looks imminent, we have to reevaluate whether we put shovels in the ground," AT&T Chief Executive Randall Stephenson says, according to the Wall Street Journal.

AT&T could cut back spending on its U-Verse home television and Internet service, a move that would damage the FCC's other initiatives to spur more-rapid broadband adoption, at speeds up to 100 Mbps, for 100 million U.S. households.

U-verse service based on AT&T's fiber-to-curb archtiecture now is available to 24 million homes, and AT&T has a target of making it available to 30 million by the end of 2011. But AT&T warns that those plans could grind to a halt if common carrier changes the economics of fiber plant upgrades, which many observers believe is likely.

The reason is simple: common carrier regulation, even if touted as initially having a "light touch," would reverse decades of policymaking in the data services business and give the FCC ability to apply price regulations and wholesale obligations with mandatory pricing. The last time the FCC did that, in the wake of the Telecom Act of 1996, carriers put the brakes on new investment. In fact, Verizon did not begin its aggressive FiOS build until price controls were lifted.

Though the FCC says it won't invoke the most onerous Title II rules, such as regulating pricing, telecom companies worries that posture could be changed easily. And why wouldn't they?

"I'm a 3-2 vote away from the next guy coming in and saying I disagree with that, I take it away," Mr. Stephenson says.

If the FCC is counting on private capital to build the 100-Mbps new networks, and it is, then the drive to impose common carrier regulations virtually everyone expects will dry up investment is an unwise move. Whether the FCC understands this any better than it did in 1996 is questionable.

Users Now Spend 22% of Their Online Time With Social Media

Three of the world’s most popular brands online are social-media related (Facebook, YouTube and Wikipedia) and the world now spends over 110 billion minutes on social networks and blog sites, according to Nielsen.

This equates to 22 percent of all time online or one in every four and half minutes. For the first time ever, social network or blog sites are visited by three quarters of global consumers who go online, after the numbers of people visiting these sites increased by 24 percent over last year.

;The average visitor spends 66 percent more time on these sites than a year ago, almost 6 hours in April 2010 versus 3 hours, 31 minutes last year.

link

Digital Content 1/3 of Total by 2014

By 2014, digital spending will make up one-third of total spending, up from 24 percent last year, according to PriceWaterhouseCoopers. The recession, the firm says, only accelerated the shift to digital, with digital spending increasing 10.2 percent and non-digital spending dropping 6.4 percent last year.

But with offline spending still accounting for 66 percent of the total even four years from now, the firm says the industry needs to “embrace digital not as a competitor to traditional analog services, but as a complement."

Google TV Demo

You can draw your own conclusions about the success Google TV will have. But there's little mystery about how it is supposed to work.

Mobile App Store Downloads 7X Bigger by 2014

Mobile app store downloads will increase by a factor of seven between 2009 and 2014, according to Pyramid Research. In 2010 Pyramid Research projects that 36 percent of paid apps will be downloaded through app stores and 86 percent of free downloads will take place through them.

App stores have become an important element in the mobile value chain in part because a wide range of easily accessible apps has quickly become a prerequisite for handset and platform vendors. Vendors also gain a new revenue stream, a powerful customer loyalty tool, an important gateway to additional revenue streams and an attractive resource for potential operator partnerships.

Advertising revenue is expected to play a big role in allowing developers to create revenue streams from free apps.

Developers will be the biggest winners, not only as they gain a higher portion of revenue but also because competition among stores will greatly improve support, payment terms and transparency.

Most third-party stores and aggregators will lose out over time to vendor and operator-sponsored stores, though Getjar might be the salient example of an exception to the rule.

Android Outsells iPhone in First Quarter

Smartphones carrying Google’s Android operating system outsold the iPhone in the first quarter of 2010, say researchers at NPD Group. During the quarter, Android handsets accounted for 28 percent of smartphone sales, beating out iPhone OS and its 21 percent share.

BlackBerry remains the bestselling OS, with its devices capturing 36 percent of the market. NPD attributes the shift to strong sales of the Motorola Droid and Droid Eris.

Strong sales of the Droid, Droid Eris, and Blackberry Curve via these promotions helped keep Verizon Wireless's smartphone sales on par with AT&T in the first quarter. According to NPD, smartphone sales at AT&T comprised nearly a third of the entire smartphone market (32 percent), followed by Verizon Wireless (30 percent), T-Mobile (17 percent) and Sprint (15 percent).

The continued popularity of messaging phones and smartphones resulted in slightly higher prices for all mobile phones, despite an overall drop in the number of mobile phones purchased in the first quarter. The average selling price for all mobile phones in the first quarter reached $88, which is a five percent increase from the first quarter of 2009. Smartphone unit prices, by comparison, averaged $151 in the first quarter of 2010, which is a three percent decrease over the previous year.

link

Latest Motorola Droid?

It appears Motorola is getting ready to launch the next version of its "Droid" device, called by some the "X," by others the "Shadow." It reportedly features a metal frame, as the iPhone 4 does. The Droid "Xtreme" supposedly features a 4.3-inch screen, as does the HTC Evo, has "HDMI Out,"  as does the Evo, but will ship with Android 2.1, a new version of Motoblur, and a 750Mhz OMAP processor, unlike the 1-GHz processor the Evo ships with.

You might get an argument about screen size. Some argue the X will have a larger screen than the Evo. It doesn't sound like that will be the case, though (not that a 4.3-inch screen is inadequate by any means). Some think the X will have a larger screen than the Evo, but so far the leaks suggest a same-size screen.

Some worry about the overall size of the device, but I haven't noticed the Evo is a problem in the pocket. Lots of people seem to be more adept at typing on a smaller screen, but I'm not one of them, so the larger screen helps when doing data entry. Others notice the heft of the device, as is true of the Motorola Droid, or Incredible. I also don't find that to be an issue.

But that's the whole point of having lots of devices with different form factors, isn't it? We all get to pick devices that make different design trade-offs.

Online Ads Will Overtake Newspapers by 2014

PriceWaterhouseCoopers says online advertising will become the second-largest advertising medium in the United States, after television, within the next four years, and will increase by over $10 billion in that same time frame.

Online advertising will increase from $24.2 billion in 2009 to $34.4 billion in 2014 to overtake newspapers which will continue to lose ad revenue over the next four years, falling from $24.82 billion in 2009 to $22.3 billion in 2014.

That explains the interest firms such as News Corp. have in e-book readers.

Free Phones from T-Mobile on June 19

T-Mobile USA plans to give free phones to customers who sign up for group calling plans at its retail stores on Saturday June 19, 2010,  just days before rival At&T will start selling Apple's latest iPhone. Starting at 8 a.m., new customers will be able to get as many as five free handsets of their choice by signing up for a "family plan," which is a calling plan that has at least two users.

Current T-Mobile customers can convert a single-user plan into a family plan by adding at least one user, or adding lines to a family plan they already have. Customers using that option can get up to five free phones with a single family plan, though each will come with a two-year contract.

The promotion includes T-Mobile's newest smart phones running Google Inc.'s Android operating software, such as the HTC myTouch 3G Slide, which usually sells for $180 with a two-year contract and rebate, and Garminfone, which usually costs $200 with a two-year contract and rebate.

U.S. Smartphone Penetration Climbs to 20 Percent

Smartphone penetration in the United States has grown from 11 percent of mobile subscribers in April 2009 to more than 20 percent in April 2010, nearly doubling in just one year. The total number of smartphone subscribers now totals more than 48 million.

The biggest player in the smartphone market remains RIM, with more than 40 percent share of smartphone subscribers. Apple is second with 25 percent share of mobile subscribers, up from 20 percent in April 2009.

Apple’s market share has stabilized at 25 percent in recent months. Google’s Android platform in April 2010 captured 12 percent market share, up from just three percent six months ago. Android is inching closer to the number-three spot currently held by Microsoft at 15 percent, and could overtake Microsoft in a few months.

Verizon Wireless LTE Coverage Will Match 3G by 2013

Verizon Wireless says it is on track to complete its fourth-generation wireless network by by 2013, at which point the Long Term Evolution coverage map will match it's current 3G coverage. The company still plans to launch commercially in 25 to 30 markets in 2010, covering 100 million people.

Global Broadband and Video Revenue to Grow Robustly

Spending on wired and mobile Internet access will rise from $228 billion in 2009 to $351 billion in 2014, PriceWaterhouseCoopers now predicts, representing growth of about 54 percent. Video subscriptions will grow as well.

The global television subscription and license fee market will increase from $185.9 billion in 2009 to $258.1 billion in 2014, a compount annual growth rate of 6.8 per cent. This will outpace TV advertising, which will grow at a CAGR of 5.7 per cent.

The biggest component of this market is subscription spending and this will increase at 7.5 per cent CAGR to $210.8 billion in 2014. Asia Pacific will be the fastest-growing region with a 10 per cent compund annual increase rising to $47.1 billion in 2014 from $29.2 billion in 2009.

Total global spending on consumer magazines fell by 10.6 percent in 2009, PwC says. The firm projects an additional 2.7 per cent decrease in 2010, a flat market in 2011, and modest growth during 2012–14. As a result, spending will total $74 billion in 2014, up 0.7 percent compounded annually from $71.5 billion in 2009.

Electronic educational books will grow at a CAGR of 36.5 per cent globally throughout the forecast period yet will still only account for less than six per cent of global spend on educational books in 2014.

As a whole, the media and entertainment market will grow by five percent compounded annually for the entire forecast period to 2014 reaching $1.7 trillion, up from $1.3 trillion in 2009. The fastest-growing region throughout the forecast period is Latin America growing at 8.8 per cent compound annual rate during the next five years to $77 billion in 2014.

Asia Pacific is next at 6.4 per cent CAR through to 2014 to US$475 billion. Europe, Middle East and Africa (EMEA) follows at 4.6 per cent to US$581 billion in 2014. The largest, but slowest growing market is North America growing at 3.9 per cent CAR taking it from $460 billion in 2009 to $558 billion in 2014.

AI Impact: Analogous to Digital and Internet Transformations Before It

For some of us, predictions about the impact of artificial intelligence are remarkably consistent with sentiments around the importance of ...