Apple Advertising Platform Praised

“iAds make it possible to communicate with users without interrupting them,” said Shravan Goli, President of Dictionary.com. In addition to "being relevant," that's likely one of the most important objectives an advertiser can achieve.

http://www.stockbriefings.com/apple-inc-nasdaqaapl-advertising-platform-praised/3171389

Google and Apple Prepare for Mobile Ad War

Apple has been analysing the purchasing history of its 150 million iTunes account holders worldwide who also use iPhones and iPads. Its own hardware produces a separate stream of data about what users do, and where and how they do it. Notably, the privacy policy associated with the iPhone 4 allows Apple, for the first time, to collect anonymised real-time location data on its users.

Despite different approaches to advertising, one thing unites Apple and Google. Both companies want to hold on to a relatively large proportion of the ad revenue they generate. Apple, for example, proposes to pass on to developers 60% of the revenue generated by iAds. Google continues to suggest it passes on to publishers "at least 50%" of the revenue generated by ads it runs next to publishers' content. These levels of commission will look high to anyone who recalls the 15% commission that used to go to media agencies for bringing in advertising for publishers.


http://www.feedset.com/2010/08/09/google-and-apple-prepare-for-mobile-advertising-battle/

WiMax 2 Will Support 100 Mbps Average Speeds

The WiMAX 2 standard, 802.16m, is slated to be finalized this winter, with device certification in 2011, suggesting WiMAX 2 devices could reach the market in volume in 2012.

WiMAX 2 will be significantly faster than its predecessor, featuring downlink speeds of more than 100Mbps to users. In contrast, Sprint's initial Xohm WiMax offering, which debuted commercially in 2008, delivered downlink speeds ranging between 3.7 Mbps to 5 Mbps. Coverage should be equal to that of the first WiMAX generation, around 31 square miles per access point.

For some observers, the possible implications might include market advantage for WiMAX 2 operators or possibly new life for WiMAX as a fourth-generation mobile standard. Others might simply observe that Long Term Evolution will catch up, in terms of bandwidth, and that its lead in device volume will simply be too much for WiMAX to overcome.

LTE or not, WiMax 2 set to roll out in 2012

Economic Impact of Higher-Speed Broadband Remains Unclear

Logic suggests that there is some positive relationship between broadband availability and economic growth, though it is hard to separate "causal" from "correlated" effects.

"We estimate that between 1998 and 2002, communities in which mass-market broadband was available by December 1999 experienced more rapid growth in employment, the number of businesses overall, and businesses in IT-intensive sectors," say researchers By William H. Lehr, Carlos A. Osorio and Sharon E. Gillett of the Massachusetts Institute of Technology and  Marvin A. Sirbu, of Carnegie Mellon University. See http://www.broadbandproperties.com/2005issues/dec05issues/Measuring%20Broadband%20Eco%20Impact,%20Lehr,%20Gilett,%20Sirbu.pdf.

Connected Nation likewise argues that broadband promotes economic growth. See http://connectednation.org/_documents/Connected_Nation_EIS_Study_Full_Report_02212008.pdf. The Organization for Economic Cooperation and Development likewise concurs. See http://www.oecd.org/dataoecd/62/7/40781696.pdf.

What remains unclear is what relationship exists between "ultra-high" broadband and merely "fast" broadband. One might legitimately point out that it is hard, in advance, to determine the impact of features not widely used. But the question is a fair one, given the huge investments that will have to be made to provide 100 Mbps service, for example. If one assumes investmetn capital will be scarce, a rather reasonable assumption, then the question becomes a matter of where to make broadband investments to reap the highest social reward.

These days, it is hard to argue that returns are not greater in the wireless, than in the fixed network sphere.

Nor is the eivdence about how broadband availability affects rural areas uniformly clear or positive. See
http://bits.blogs.nytimes.com/2009/02/20/rural-broadband-no-job-creation-machine/. In fact, Professor Raul Katz says it simply isn't clear whether broadband in rural areas is all positives, and no negatives. See http://www.elinoam.com/raulkatz/Dr_Raul_Katz_-_BB_Stimulus_Working_Paper.pdf.

Beyond that, the issue is whether the economy and society are better served by investment in mobile or fixed networks, beyond a certain point, if choices have to be made. And few would doubt that choices in fact must be made. There simply isn't enough capital, or enough demand, to invest very aggressively in both fixed and mobile networks, if the goal is 100 Mbps on the fixed network and 50 Mbps or more on the wireless networks.

That's one reason why fixed network investment has been "starved" so the wireless network can be fed, or why the number of employees in the wireline segment have been shrinking, while the number of employees working on the wireless network has been growing.

The issue is not so much whether there will be investment in either network. The issue is how much investment, and where those making the investment believe they can earn the higher returns.

The point is simply that, so far, there is no real evidence that the return from 100-Mbps networks is twice that of 50-Mbps networks, in terms of economic growth or social welfare.

Just about anybody likely would argue that a 100-Mbps network is better than a 50-Mbps network. The rub is that it is harder to determine whether 50-Mbps wireless networks might be even better, or whether 50-Mbps fixed or wireless networks would provide more economic growth and welfare than 100-Mbps fixed networks.

"Chrome to Phone" A Fixed-Mobile Integration Indicator

Google's new "Chrome for Phone" extension is one more way fixed-line applications and services are interworking with mobile apps and services.

"Chrome to Phone" adds a button to a user's Google Chrome browser that instantly sends the current web page, map, YouTube video, or selected phone number or text to that user's Android device running Froyo (Android 2.2).

Net Neutrality is a Serious Compromise

Predictably, some policy advocates have said the Google-Verizon agreement on network neutrality does not go far enough, as it exempts wireless networks from the agreed-upon rules, namely the reservation of any quality-of-service features to Google, and barring Verizon from applying them.

In the past, though, many have argued that network neutrality rules that forbid any packet discrimination, even when users may want it, would impair network investment and prevent service providers from innovating in the access business.

The Google-Verizon agreement essentially creates this situation for Verizon, though exempting the wireless network, which has more technically-challenging network management issues. Some observers have opposed network neutrality rules precisely because they would remove incentives for continued investment in the network.

But that is what Verizon has agreed to. It cannot offer enhanced services beyond the plain-vanilla Internet access service to content providers at any price. Some will note that this is a form of price regulation, and that one should expect the normal response to price regulation, which is a shift of attention and investment elsewhere, where prices are not regulated, and where growth prospects are not constrained.

The point is that Verizon has made serious compromises, as has Google. That's generally what happens in such policy debates when industry contestants face a major change in regulation and they want to have some say in shaping the outcome.

The compromise agreement is not a disaster, or an unqualified win, for either Verizon or Google. Google might face some constraints in the wireless realm as Verizon faces constraints in the fixed network realm.

All initiative now rests with Google as far as creation of real-time Internet services whose value can be captured financially, on Verizon's fixed-broadband network. Verizon has had to trade away initiative on fixed networks to keep its options for wireless services.

The agreement also means Google is free to innovate in the realm of Internet services, while Verizon has to concentrate on managed services not part of the Internet. You might argue that allows each company to play to its historic strength. It also might be fair to say neither company was forced to play in realms where it has no natural advantages. That's a compromise, maybe even a grand compromise.

Why Business Should Oppose Net Neutrality - Robert E. Litan and Hal J. Singer - The Conversation - Harvard Business Review

Chrome to Phone Launches

Google has officially launched "Chrome to Phone" to the public. The extension allows you to push web pages, phone numbers and maps directly from your Chrome browser to your Android phone.

On the roadmap? An update that will provide push capabilities in the other direction, from phone to browser.

download the extension here