Cable Industry to Get Clipped by FCC

In a move that will limit business opportunities for Comcast and Time Warner Cable and help independent networks, the Federal Communications Commission is preparing to impose significant new regulations to open the cable television market to independent networks, after determining that cable operators are too dominant in the multichannel video entertainment market.

Satellite and telco competitors should benefit at least in part, as the new rules are expected to force cable-affiliated programming networks to sell their content to competitors at better rates.

The new rules essentially would prevent Comcast from acquiring any other system assets, and limit Time Warner Cable's ability to make large acquisitions, shutting off a revenue growth path for both firms.

One of the proposals under consideration by the commission would force the largest cable networks to be offered to the rivals of the big cable companies on an individual, rather than packaged, basis. Up to this point cable-affiliated programmers have used the "bundled" wholesale tactic to get wider carriage for niche networks that piggyback on the popularity of major networks. In other words, to get the "must have" channels, competing service providers have to buy the weaker networks as well.

The agency is also preparing to adopt a rule that would make it easier for independent programmers to lease access to cable channels. Cable operators oppose that measure because it reduces their control over scarce channel slots.

Though consumer advocates believe the rule changes will lead to lower prices, that might not happen. What might happen is that consumers will be able to buy more targeted channels and packages without the "buy through" requirements that typically result in viewers "paying" for scores of channels they don't want.

In all likelihood, the changes will benefit a small number of viewers that really are interested in just a few channels, or who do not want to buy sports programs. For most viewers, who watch eight to 12 channels fairly regularly, it likely still will make sense to buy a broad package.

ESPN and sports programming in general is a major reason cable prices have risen so much over the past couple of decades, so opting out of ESPN carriage is one way consumers might save some money. Conversely, the rule changes could be damaging to ESPN if any significant number of consumers they can live without it.

Do Patents Retard Innovation?

Is the patent system broken? Supposedly a way to protect genuine intellectual property and spur innovation, patents these days seem most likely to wind up being used as a weapon of business warfare, and may actually retard innovation in many cases. Vonage and Research in Motion come to mind, as many observers think the patents Vonage is said to have infringed should not have been granted in the first place, and RIM had to pay what amounts to greenmail so its carrier and enterprise partners would not suddenly have to make all BlackBerry services "go dark."

In fact, it seems to be common these days to attempt to patent common business practices, obvious to anyone in the field. That leads to patent "trolls" buying up intellectual property and then suing companies as a business model.

Suing is a repugnant business model. And most patents seem trivial or--to a layman--overly broad. It is important to foster innovation and reward effort, and some innovations fit that bill. But isn't it obvious we ought to encourage people to work on really hard problems, and reward them, rather than encouraging lots of trivial stuff? Sure, it sometimes is hard to distinguish between an idea of significance and "prior art."

Now there's a big, socially useful problem that Google ought to be able to help with.

Whether it is the patent system or the way it gets used in business, something is out of whack. One might argue it is a necessary evil. Perhaps it isn't so necessary (at least the way currently practiced), though perhaps it often is evil.

Google Tailors Search

One of the best things about Web services is that user experiences can be personalized and customized . So it is that Google uses many signals to rank search results and in some cases filters returns based on a user's location, device or preferences.

You've probably noticed that hyphenation doesn't limit results. "T-Mobile" and "TMobile" results both come up. Helpful since hyphenation conventions vary from one document and user to the next. However, typing "+TMobile" only brings up results that do not have the hyphenation.

Google defaults to eliminating duplicate search results, which normally is desirable. There be some cases where a particular search might return multiple results from a single Web page, and a user might want those results. Typing "&filter=0" at the end of Google's URL will disable that function.

I find it useful that Google senses when I am searching from a mobile and formats the display accordingly. If, by mistake, you are searching from a PC and get the mobile version by accident (I can only say it can happen; it has never happened to me), use the "http://www.google.com/webhp" URL.

Personally, I prefer the localized version. But if you want the global version, go to
"http://www.google.com/ncr".

To get more targeted results, type "&gl" at the end of the Google URL.

Skype, Logitech Partner for Video Calling

In 1970, AT&T introduced "Picturephone" service in Pittsburgh. It flopped. In fact, the average person wouldn't normally think to turn to a telephone or cable company to buy or use video-enabled communications. Instead, one might think of WebEx, Cisco, Packet8 or Skype. And options on the mass market front just got better.

Skype and Logitech have partnered to create a High Quality Video experience using Skype 3.6 for Windows and Logitech QuickCam software, version 11.5.

The new capability provides VGA-quality video calls (640-by-480-pixels) at up to 30 frames per second over connections of 384 kbps connection or higher, when using a
High Quality Video-certified Logitech webcam and a PC with a dual-core processor.

Obviously, both end points need the set-up to ensure the best experience. This is a potential experience changer, as it should allow full-screen images with decent quality.

Skype 3.6 for Windows is expected to be available in early November in 28 languages. The Logitech QuickCam software version 11.5 is expected to be available at the same time.

The Logitech QuickCam Pro 9000 and Logitech QuickCam Pro for Notebooks webcams are now available for a suggested retail price of $99.99 in the U.S. and EUR 99.99 in Europe.

The Logitech QuickCam Orbit AF is available now in the U.S. market and Europe for $129.99 and EUR 129.99, respectively.

RIM Lawsuit is Silly

Most litigation in the U.S. business markets is crap. So put Research in Motion into the camp of crappers. RIM is suing to prevent LG from using the words "Black Label, Strawberry and Black Cherry" for its wireless phones, arguing that the "fruit" names are too similar to its own, and infringe on its trademarks.

I don't know. I just can't imagine anybody confusing a BlackBerry with any other device, no matter what the name.

LG isn't the only company to have faced a challenge from RIM over the BlackBerry name. Last December, RIM filed a suit in the same court against Samsung Electronics Co. Ltd. alleging that company's BlackJack wireless device was creating confusion between the two products. RIM and Samsung settled the suit.

The current dispute with LG appears to go back to March, 2006, when LG filed an application with the U.S. Patent and Trademark Office to use the Black Label brand.

Over the next 10 months, LG filed additional applications for the Chocolate Black Label Series, Black Jewel, Black Jewelry, Blackruby, Blackpearl, and Pearlring names, which were disputed by RIM, the complaint alleges.

Then in May, 2007, U.S. wireless carrier Verizon Wireless allegedly asked RIM for permission to use the names Black Cherry and Blueberry for the line of Chocolate wireless devices it carried from LG. RIM said no.

It's crap, really.

All Carriers Cave on Early Termination Fees

Users hate early termination fees that come with their mobile service contracts. Now, in part because of pressure from lawsuits filed challening the practice, all four major U.S. wireless carriers are softening the blow.

Verizon Wireless was the first to prorate early termiantion fees last year. at&t Wireless did so in October. T-Mobile and Sprint now also say they will start prorating their early termination fees in the first half of next year.

The fees aren't gone. But the amount will decrease the closer you get to contract end date. Sprint also says it will allow allow users to change plans without renewing the contract, something Verizon started doing in October.

All the moves are user friendly. Look for more signs of "friendliness" as use of unlocked phones starts to spread, open source Android phones start to make their appearance and, just maybe, a new carrier decides to push the envelope even more.

Clearwire Shares Drop 25% at Market Open

...as a result of the scuttling of its proposed agreement with Sprint to build a natinal WiMAX network reaching 100 million potential users. Investors reason that Clearwire now will need a new cash infusion, as it continues to lose money on its operations.