Thursday, May 20, 2010

Google's Views on How to Save the News Business

"Google is killing the news business," many say. Though that might overstate the case, there is no doubt but that the Internet is reshaping business ecosystems in many ways, typically altering not just distribution formats but also profit margins.

But some argue Google also depends on a vibrant "news" and "journalism" business for its own good, "is trying to bring it back to life."

The company’s chief economist, Hal Varian, likes to point out that perhaps the most important measure of the newspaper industry’s viability—the number of subscriptions per household—has headed straight down, not just since Google’s founding in the late 1990s but ever since World War II (click image for larger view). 

In other words, there are some trends in the "news" business that were in place long before the Internet, including a shift first to television news and now Internet news.

This Atlantic magazine piece is long, but it is the Atlantic's forte, after all. It also is authored by James Fallows, an engaging writer. It is worth a read.

It's Inevitable: US is Going to be Greece

Structural financial problems at the state and local government level are inevitable, and have been for some time. Forget all the old arguments about the size of government or the appropriate level of taxes. There now are obvious structural problems that must be addressed, and are not matters of political preference. Local governments face similar problems as state governments do with unfunded pension obligations.

This can cannot be "kicked down the road."

Kellogg Management School analysis of State pension obligations

TeliaSonera: Slow uptake of LTE blamed on no handsets - FierceWireless:Europe

TeliaSonera is thought to have only attracted around 1,000 customers to sign up for its new fourth-generation "Long Term Evolution" network, and the company says lack of handsets are a major reason adoption has been so slow.

The LTE network is said to provide coverage to almost 400,000 residents in Stockholm and Oslo. Ridiculously low adoption is based in part on the fact that, up to this point, TeliaSonera has chosen to launch service with no voice handsets. That has meant that the only thing a 4G network could be used for was PC connections.

As important as that application is for some users, it apparently provides no incentive for most users to switch from 3G to 4G. It remains to be seen whether 4G networks wind up being mostly about "faster downloads" or whether there really are distinctive applications that come to be seen as providing the value of 4G service.

LTE Adoption Will Take Some Time: It Always Does

It will take at least five years before Long Term Evolution devices represent 25 percent of mobile broadband device sales (PC dongles, not phones), once they are introduced, and it might take as long as 16 years before LTE device sales reach their peak, based on past experience with new mobile air interfaces and device sales, according to Keith Mallinson, founder of WiseHarbor Research.

Assuming the first LTE networks activate in early 2011, that implies it will be 2016 before dongles and aircards based on LTE will represent a quarter of broadband dongle and aircard sales.

Mallinson also predicts it will be 2019 before LTE device sales are equal to CDMA-based technology devices, such as those using EV-DO, and HSPA/HSPA+.

History suggests that new mobile technologies to peak demand takes far longer than the five years, and as much as 16 years for a mobile technology to mature.

That suggests today's third-generation networks will be dominant for quite some time. AT&T Mobility, for example, recently surprised observers when it decided that, instead of moving directly to LTE, it would upgrade its existing 3G network to HSPA+. That will prove a quick bandwidth boost from about 3.5 Mbps to 7.2 Mbps for a relatively small amount of capital investment, even as it plans to start building its 4G network in 2011.

But such plans also mean that AT&T can target its 4G build to the most-dense markets, and count on the faster 3G network in less-dense areas that the company might take some time to build out, as typically is the case when new mobile networks are constructed..

link

Mobiles for E-Commerce: 12% of Users

According to the Mobile Marketing Association, about 12 percent of consumers recently surveyed report having used their mobiles to get coupons or other promotions, buy goods or services using the mobile device.

Some 17 percent say they have used their handsets to purchase applications or other digital content. Given current penetration of smartphones, somewhere above 30 percent of the installed base of all mobile phones, those are impressive statistics, since it implies more than half of all smartphone users have downloaded apps, while about 40 percent have used their mobiles for digitally-delivered coupons or promotions.

Twitter for iPhone: No Twitter Account Needed

Twitter for iPhone and iPod touch is available for free on the iTunes App Store and people can even use Twitter to read top tweets, browse trends, find people and read public tweets from users located nearby without actually having a Twitter account.

The whole idea is to make it real easy for people to use Twitter on their iPhones. Discovery and consumption of interesting, relevant information is a central focus.

Quick and easy signup exists within the application so new users won't need to visit the Twitter web site to create an account.

iPhone Users Want VoIP "Dialer"

Toktumi recently conducted asurvey of their Line2 iPhone users asking them if they would be interested inusing Line2 as their primary dialer instead of the built-in iPhone cell dialer.

Apparently, more than ver 82 percent (998 out of 1210) of respondents said they would be interested inswitching to Line2 VoIP as their primary mode of calling.

It isn't so clear whether that represents a desire for lower-cost mobile calling, a desire for a different "dialer" app, or better indoor signal reception. There is some indication it actually is signal reception that drives the results, rather than calling cost or dialer functionality.

The number one reason users gave for trying Line2 was to make calls over Wi-Fi VoIPdue to poor cell reception.

The Roots of our Discontent

Political disagreements these days seem particularly intractable for all sorts of reasons, but among them are radically conflicting ideas ab...