Will Financial Industry Need Underwater Data Centers?

Recent advances in high-frequency financial trading have made light propagation delays between geographically separated exchanges relevant,” write MIT professors Alexander Wissner-Gross and Cameron Freer.

The MIT researchers have done detailed calculations about where trading networks can locate data center infrastructure to capture additional microseconds. They first mapped out the locations of major global exchanges, and then charted the optimal placement of servers to create “chains” that could accelerate the transmission of pricing data and execution of trades. Many of the locations are under oceans.

read the paper here

Verizon Wireless to Sell iPhone: Only Issue is How Many

Among the longest-running "dramas" in the mobile business has been the question of when the Apple iPhone would be for sale by a second U.S. mobile provider. The betting generally has been that it would be Verizon Wireless. Here's a discussion of the potential differences, based in part on the different air interfaces and networks AT&T and Verizon Wireless operate.

Dish Wants to Buy a CLEC

Dish Network wants to acquire a competitive local exchange carrier, Liberty-Bell Telecom, that would give Dish the ability to bundle telephone service in 10 states, the Denver Post reports.

Liberty-Bell serves 6,000 residential and 4,000 business customers in Colorado, New Mexico and Utah. More important though, is that it is licensed to offer services in 10 states and has applications pending in four other states.

The historic take on the satellite TV providers has been that they might suffer as telcos and cable companies offered triple-play services. But Dish Network and DirecTV appear to be taking clear moves to alleviate that concern, in part. Dish would have to file applications in other states and acquire business rights to common carrier voice services in those additional areas to offer voice services on a wider basis.

Dish looks to acquire Liberty-Bell telecom - The Denver Post

No Current Plans to Acquire Clearwire, Sprint Says

Sprint has no current plans to acquire the rest of Clearwire, the company says. The statement, and other actions recently taken by Clearwire's owners, seem aimed at reassuring Sprint investors that the company would not be affected by any Clearwire default on its debt obligations.

The company does have the right to acquire more "exchangeable notes" in Clearwire, an option exercisable up to Jan. 2, 2011, that could be converted into more Clearwire shares.

But Sprint says "no decision on whether to exercise its preemptive rights has been made."

Sprint says it continues to hold discussions with Clearwire regarding further investment in the company but "has no plans at present to acquire Clearwire."

Sprint also said that the shareholder's agreement has been amended to permit Sprint, at any time, to unilaterally surrender voting securities to reduce its voting security percentage below 50 percent. That's important because some observers have worried that Sprint could be affected by any potential financial default on Clearwire's part.

Sprint now has additional flexibility to avoid any risk that Sprint incurs a default under its debt agreements because of its voting interest in Clearwire. Any reduction would only affect Sprint’s voting shares in Clearwire. Sprint’s economic interest in Clearwire would not be affected.

Sprint Newsroom | Sprint Statement on Closing of Clearwire Debt Offering

Google Voice for the iPad & iPod Touch

Google Voice now is available for the iPod Touch and iPad, Google says. Users can download a new version of Google Voice that lets them use all the features of the app on these devices, such as sending and receiving free text messages, with the exception of direct mobile calls.

While users can’t use their iPods or iPads as phones, they can use it to initiate Google Voice calls with your phones, as would be the case for many other Google Voice use cases, as when Google Voice is used to create a call session between two actual phones, with Google Voice as the set-up intermediary.

Google Voice Blog: Google Voice app now supports iPad & iPod Touch

Where is Innovation in the Telco Space?

Dave Michels asks Craig Walker, Google Entrepreneur in Residence where the innovation is now at telecom companies, either established or startups.

"Tough question," Walker says. "I think there's a lot of innovation on the mobile side with regards to the network, devices and applications."

"As for telephony services and features themselves though, most of the innovation seems to continue to come from the non-traditional providers like Google, Digium" and others.

In part, that is partly because most of the newer ways of providing voice services using fixed lines have something to do with web-based feature integration. Mobility, on the other hand, has the advantage of faster introduction and replacement of multi-function devices, more on-board processing and memory, video and multimedia features that are difficult to replicate on the wired networks.

That same sort of difference also occurs even on the fixed network. If you were trying to create something new, would you design for a PC with web browser and broadband Internet access, or a telephone? Pretty much the same sort of decision making might inform an entrepreneur's decisions about distribution channels as well.

Would you rather create an application that can be served up from any web browser, or an app that requires telco permission to offer or sell?

Also, there is the sheer matter of opportunity. As big and important a business as voice communications is, would you rather develop apps that create new businesses and markets, or take some part of what already exists?

In other words, creativity increasingly is deployed elsewhere for all sorts of good reasons.

No Jitter | features | Craig's Wild adVentures

U.S. Army May Make Smartphones Standard Issue

The U.S. Army wants to issue every soldier a smartphone, both for training and in-the-field operations. According to the Army Times, approved devices might include iPhone or Android devices, and it is possible each soldier will have a choice of preferred device.

The Army also is looking at paying some portion of monthly phone bills for the troops.

Lt. Gen. Michael Vane, director of the Army Capabilities Integration Center said the Army would issue these smart phones just like any other piece of equipment a soldier receives.

Army sees smart phones playing important role - Army News | News from Afghanistan & Iraq - Army Times

Do Consumer Electronics Trends Tell Us Anything About Content Consumption?

Best Buy has reported "difficult" third-quarter earnings. Best Buy Co. reported a 4.4 percent drop in fiscal-third-quarter profit on weak sales trends on Dec. 14, 2010.

The company also reduced its per-share profit forecast for the year to $3.20 to $3.40, below the level it had seen before raising the view to $3.55 to $3.70 in September.

Market share shifts might explain some of the activity. Maybe it explains nearly all of the weakness. The company said it was facing market share pressure, and one would have to think Wal-Mart and Amazon are factors.

But broader industry data on retail sales for November 2010 suggests electronics are not selling as well as other categories, which might seem curious in light of strong demand for tablet PCs, e-readers and smartphones. Electronics sales in November were were up 0.9 percent from November of last year, while total retail sales were up 7.7 percent from last year. Sporting goods were up 12.3 percent from last year. Clothing was up 7.5 percent. Food and beverage sales were up 3.2 percent.

One has to wonder if the sales weakness, notwithstanding strength in tablet PCs and smartphones, suggests something about changing consumer demand for products that support some content consumption modes. Some think the newer devices are enabling consumer use of "non-traditional" content applications and services.

By way of example, more people choosing to watch movies on their tablets or PCs or smartphones might mean less demand for big-screen TV displays. Online delivery might be cutting into demand for Blu-Ray players.

It's Official: The Traditional Electronics Industry Is Getting Thrashed

http://online.wsj.com/article/SB10001424052748704694004576019272298673158.html (subscription required)

Facebook World

This visual shows ten million pairs of Facebook friend relationships. As is the case for many other sets of data, the visual also shows that activity occurs where people live.

Some will interpret the data as evidence of the borderless world of Facebook. Aside from that observation, the data also reflect that fact that people do things, make things and consume things where they live.

This visual also is evidence of where network-connected people live, not just where they communicate with, and are conntected to, "friends."

Facebook | Visualizing Friendships

Android And iOS Lead Smartphone Impression Share

Android tied with iOS as the largest Smartphone OS on the Millennial Media network for November 2010, with both mobile operating systems sharing 38 percent of ad impressions on the network.

Millennial’s ads reach 63 million of a total of 77 million mobile web users in the U.S., or 81 percent of the U.S. mobile web.

Millennial: Android And iOS In Deadlock Again For Monthly Smartphone Impression Share

NBC/Universal, Sprint Feature Mobile Content to Create Uniqueness

Amy Randall, VP of creative partnerships and innovation for NBC/Universal, posed a simple question recently at the L.A. Mobile Entertainment Summit: “There’s a lot of things you can do [to market content] with a mobile phone. Our question is: What should you be doing?”

For “Heroes” in 2009, NBC/Universal and Sprint rolled out a 10-week story arc for a character in the series, offering Sprint customers the chance to watch the episodes a full 24 hours before anyone else got to see them.

One angle here is the creation of a unique experience for Sprint users. Given that some marketers believe there is much more room for creating experience differentiators using content, the campaign points to how that can be done.

Mobile Experts Mull Future | homemediamagazine.com

Mobile Ad Trends 2011

Google Mobile Payments System Could Track Advertising Effectiveness As Well

Google's new Nexus S device is the first Google device to include built-in near field communications. Normally considered a way to support mobile payments, Google might also be angling for a new way of validating, measuring and quantifying the impact of mobile advertising. If Google's NFC system supports payments, as well as identity, location and payment, it might be able to better demonstrate to advertisers the effectiveness of advertising.

Sure, Google's mobile ad network can be used to deliver coupons and other offers to mobile devices. But the payment capability might be important for reasons other than "payment."

In mobile and local advertising, the last few feet between a consumer seeing an ad and stepping into a store to make a purchase is largely untraceable. But if the mobile ad or coupon could be linked to the payment through an NFC chip in your phone, then Google can begin to measure the full cycle of click-throughs to purchase.

In other words, Google might be able to document the link between advertising and offer and actual purchase behavior. Advertisers will like that.

Google Bought Stealthy Mobile Payments Startup Zetawire

The major wireless carriers came together in 2003 to create short codes to allow marketers to easily communicate with consumers. Since then text messaging has exploded in popularity. Short codes haven’t seen growth to match. Why?

A long, opaque and expensive setup process prevents all but the largest brands from marketing to their customers with text messages. Enter the long code, otherwise known as a "phone number." Long codes offer instant setup, affordable transparent pricing, and no one standing between your company and your customers, some argue.

Short codes were supposed to bring mobile marketing to the masses. Long codes, virtual mobile phone numbers that can send and receive text messages stand ready to finally fulfill that promise. Or at least some of the potential. Most of us would agree that short codes have their place.

Wireless service providers, and marketers, have an obvious stake in such matters. Mobile marketing potentially is a revenue source for carriers and marketers as well. But for many marketers, ease of use matters. Some think long codes can help.

The Death Of The Short Code at Text Message Marketing Blog

As Streaming Grows, Will Physical Media Be Important, or Not?

"Ultimately, it will be impossible for physical disc kiosks to compete with the in-home or in-store download-to-rent business model,” says Keith Nissen of In-Stat.

Broadly stated, it is hard to argue with the general thrust of the prediction.

In-Stat notes that the home-video market will shrink $4.6 billion from 2009 to 2014, which is consistent with other estimates of the revenue providers will make renting and selling DVDs, with the most-significant changes coming from DVD sales.

Meanwhile, revenue from broadband streaming and downloading is projected to climb by $4 billion over that same period.

One suspects most observers would be comfortable with changes of about that magnitude.

But it also is possible that the changes will be more complex than a simple substitution of streaming for DVD rental, for example. One might argue that Netflix is cannibalizing DVD sales; that Netflix is competing with HBO, Showtime and Starz; that gaming and web-based entertainment is competing with DVD rentals and sales or that users are shifting discretionary entertainment spending to devices, and away from movie rentals.

All of those trends likely are contributing. One might further hypothesize that Netflix and kiosk-based rental services such as Redbox also have changed consumer expectations about the value and price of a movie event, compared to buying or renting a DVD from a retail outlet.

"One dollar for one night" might simply have replaced "five dollars for one week" as the standard of value. To be sure, $6 for a pay-per-view viewing also seems to be a more-accepted part of the market.

Still, to a greater extent that we might believe, changes in consumer expectations about the "proper" price to view a movie in a catalog have changed. The important shift might be less a matter of technology or even convenience and more a matter of changing evaluations of "value."

With the caveat that the big change seems to be less appetite for "owning" movies, there probably is quite a lot more scope for distributing new releases and recent releases in a variety of formats, and physical media could well a role, and a substantial role, for quite some time.

That would especially be true if studios reevaluate the deals they are willing to entertain, with direct impact on the retail prices possible using any distribution format.

The installed base of devices able to easily display content on standard TV screens; possible emergence of new physical media methods and broadband pricing policies also will play important and key roles.

The easy call is "streaming wins." The harder call is determining where streaming wins, and where physical media still competes. Price always matters in the consumer market, and we are far from having exhausted all the ways value and price can be matched in the movie market.

Streaming As Kiosk Killer? Not So Fast | paidContent