Thursday, July 15, 2010

Do not Neutralize Search Innovation, Google Argues

Google has responded to growing European Community scrutiny of Google's search algorithms in a Financial Times opinion piece. Google is right, as far as the opinion piece goes.

Algorithms embody rules that decide which information is “best”, and how to measure it, and search competitors ought to be free to sort in different ways.

Clearly defining which of any product or service is best is subjective. "Yet in our view, the notion of 'search neutrality' threatens innovation, competition and, fundamentally, your ability as a user to improve how you find information," Google VP Marissa Meyer says.

Ironically, Google does not take the same view where it comes to other partners in the Internet ecosystem, though. Fighting to retain or gain as much advantage as possible within the ecosystem is normal. The irony is that the "freedom for me, regulation for thee" stance can backfire. EC regulators might decide it is Google that requires regulation, not other participants in the value chain.

In all likelihood, the whole ecosystem would be better off with a "lighter touch" that lets clever developers and entrepreneurs, and the consumer response to new products, sort most of these issues out, most of the time.

Stimulus? Really?

Stringing along workers with temporary federal freebies isn’t a sustainable enterprise, and Department of Education adviser Maura Policelli admits as much when she says taking the cash “does involve the possible risk of investing in staff that you may not be able to retain in the 2011-12 school year."

Temporary spending that allows state government to avoid inevitable hard choices a year later is not investment or stimulus, despite the nonsense we keep hearing in certain quarters.

Google Faces More Regulatory Pressure

Google might need regulation, the New York Times seems to suggest.

Google argues that its behavior is kept in check by competitors like Yahoo or Bing. But "a case is building for some sort of oversight of the gatekeeper of the Internet," the Times writes.

In the past few months, Google has come under investigation by antitrust regulators in Europe, for example.

In the United States, Google said it expects antitrust regulators to scrutinize its $700 million purchase of the flight information software firm ITA, with which it plans to enter the online travel search market occupied by Expedia, Orbitz, Bing and others.

Not all software companies are used to such scrutiny by regulators. But Microsoft is. Apple also has come into the spotlight as well, of late. "Freedom for me, regulation for thee" doesn't always work.

Wednesday, July 14, 2010

HTC Seems to Be Taking Motorola Android Share

The latest survey of smartphone demand by Changewave Research suggests HTC is taking Android device share from Motorola.

The change seems to have occurred about March 2010.

BlackBerry Satisfaction Plummets, Changewave Finds

Though end user satisfaction with the iPhone has remained fairly constant over the last year, Research in Motion BlackBerry devices seem to have suffered a dramatic decline in satisfaction, dropping from a high of about 55 percent in January 2008 to June 2010, Changewave Research reports.

A reasonable observer would suggest this portends some trouble for RIM, the reception issues with the new iPhone 4 notwithstanding.

Apple iPhone Demand Seen Exploding

ChangeWave's latest smart phone survey of 4,028 consumers shows an "explosive transformation" occurring in consumer demand, suggesting some major new mobile handset winners and losers for second half 2010.

Changewave says its latest survey shows the strongest interest in smartphones ever recorded in a Changewave survey. But there's a significant change within that demand pattern: Apple and HTC devices are getting strong demand at the expense of Motorola and Research in Motion.

The future buying plans suggest coming huge moves upward for Apple and HTC, with a whopping 52 percent of respondents who plan to buy a smart phone in the next 90 days saying they'll get an Apple iPhone.

It also appears that Android demand has shifted to HTC and away from Motorola.

Net Neutrality Issues for Google in Search?

Network neutrality proponents implicitly assume that the key bottleneck, in terms of innovation or competition, is to be found in the broadband access connection, and the way such connections are managed.

It now appears that antitrust regulators in Europe have begun to look at other potential bottlenecks, and search practices already are getting a look, the Financial Times reports. Google's purchase (or planned purchase, as there might be antitrust review) of ITA Software, a travel technology company, is not going to help.

Joaquin Almunia, Europe’s top competition official, already has hinted that European Community regulators are taking Google’s search power seriously. An informal review of search practices already is underway, and seems to be getting more pointed attention now, given the growing issues regulators now seem to be detecting in the mobile content space.

Google has powerful competitors who will not be shy about adding their concerns, and U.S. regulators have been paying more attention to both Google and Apple of late.

The point is that gatekeepers might exist at potentially multiple levels in the Internet business ecosystem, and raising the issue in one area seems to be raising issues in other areas as well.

Access Network Limitations are Not the Performance Gate, Anymore

In the communications connectivity business, mobile or fixed, “more bandwidth” is an unchallenged good. And, to be sure, higher speeds have ...