FCC Might Limit Spectrum Holdings to Regulate Competition

The Federal Communications Commission could overhaul the way it measures competition in the wireless industry, The Hill's Hillicon Valley reports. Those measures could include both quantitative limits (total amount of spectrum) as well as qualitative standards (how much of the "best" spectrum any single carrier owns or controls). 

According to the report, FCC Chairman Julius Genachowski plans to circulate an order with the other commissioners next week that would launch a review of the FCC's rules for analyzing whether any one company has accumulated too much spectrum. 

The commission is expected to vote on the proposal at its September 2012 meeting. 

T-Mobile USA, for example, has argued that the current method, which is quantitative, does not account for qualitative differences, such as ability of lower-frequency signals to penetrate walls, for example. 

"The present screen is inadequate as applied to the current wireless  market, particularly because it fails to recognize the vast difference in value between low (below 1GHz) and high (above 1 GHz) frequency bands, T-Mobile USA has argued. 

The Point is to "Be Good," not to "Feel Good"

There is a genuine difference between "being good," or "doing good," and "feeling good." Too often, we opt for the latter, instead of insisting on the former. Consider all-electric cars, something that makes us feel good and virtuous. 

There is a scientific argument to be made, though, that when electricity is generated by coal-fired plants, such vehicles do not actually make a positive contribution to carbon emissions. But it makes people feel good, even when they are not, objectively speaking, "doing good." 

Even when electricity is generated in some other lower carbon way, such as from windmills, there is no such thing as a moral free lunch. Wind farms kill birds and golden eagles. Perhaps that does not cause many qualms. But if not, neither will accidental killing of dolphins when fishing for tuna. 

The specific energy of gasoline — measured in kWh per kg, for instance — is about 400 times higher than that of a lead-acid battery, and about 200 times better than the Lithium-ion battery in the Chevrolet Volt. We should not expect batteries to rival the energy density delivered by our beloved fossil fuels — ever, many correctly would note. 

The point is simply that the important matter is to do good, not just feel good. If you want to lower carbon footprint, then lower it, objectively. Don't posture. Don't substitute "feeling good" for "doing good."

Why One-Sided or Incomplete Thinking is Necessary, and Eventually has to be Corrected

Generally speaking, executing on a strategy takes focus and concentration on a small number of things. Just as certainly, all businesses exist in environments that are complicated. So ultimately, even concentrating on "just one thing," or "just a few things," will eventually prove to be necessary but insufficient. 

Compared to the situation of perhaps four years ago, the telco strategic context needs to be considered in a broader or different context, according to  STL Partners. That is to be expected. Even a "big new idea" necessarily is incomplete as a prescription for organization success. 

So where the key point was the idea of "two-sided business models," STL now says that is something that has to be kept in context. Of course. That was true four years ago, as well. But organizations and people can only focus on so much at one time. So the unchanging requirement is to focus on a few things at a time, even if that is objectively "unbalanced" and "incomplete."

Have Tablets Overtaken Smart Phones as the Device with Star Power?

The Apple iPhone now drives revenue at Apple. But the iPad now seems to have become the product with more appeal.

While both tablet and phone historically enjoy good scores on YouGov's U.K. "BrandIndex," a measure of public's perception of well-known brands, the iPad now might have reached an inflection point.

On a couple of measures, the iPad now gets more attention than the iPhone, YouGov says. That suggests the point just about has been reached when the revenue contribution from the iPad could start to drive more of Apple's overall revenue success. 

FCC Wants New Tax for Connect America Fund

Perhaps it comes as no surprise that the U.S. Federal Communications Commission wants to create a new tax on broadband access services to support its Connect America Fund, essentially the replacement for the older Universal Service Fund.

Aside from the change of nomenclature, the emphasis has shifted from guaranteeing voice services in rural and isolated portions of the country to supplying broadband access services to such areas.

“What started as a program with important goals (making sure rural farmers can make phone calls and ensuring the poorest among us can dial 911) turned into an unaccountable corporate slush fund,” says S. Derek Turner, Free Press research director.

Today USF is an $8 billion annual program, nearly quadrupling in size since its inception, with the bulk of those revenues going to landline and wireless phone companies.

Maybe this massive growth would be no concern if USF were a model program with a sterling reputation for efficiency. “But it’s not,” says Turner.

One recent study found that 59 cents of every USF dollar raised for rural networks was spent on administrative expenses and general overhead. A 2010 audit of the rural USF program found that one out of every four dollars sent to participating phone companies was an “overpayment,” with nearly a billion dollars unaccounted for.

So some would argue that higher taxes are unwarranted.

Phones Will Remain the Signature "Mobile" Device Through 2015

Smart phones will be the signature mobile device globally over the next five years, says Leif-Olof Wallin, a research vice president at tech analysis company Gartner. And Gartner thinks Microsoft will be the big winner, representing 20 percent of the market in 2015. 





While the global mobile market as a whole is shrinking, smartphone adoption will continue to explode.

Mobile U.K. Shoppers Still Prefer to Buy Using a PC

U.K. Internet users are comfortable using mobile devices for researching and browsing products, but they still prefer to turn to a PC when it’s time to buy, a study by Kenshoo and publishing and events company Figaro Digital indicates. 

That study mirrors in key ways the findings of a Google study that suggests as many of 90 percent of people use multiple devices when shopping, for example.



The preference for purchasing using a bigger-screen PC is pronounced when looking even at research activities such as clicking on paid search ads. 

Some 11 percent of all paid search clicks in the United Kingdom in the first quarter of 2012 came from mobile devices (not including tablets), the Kenshoo study suggests. Another 5.8 percent of paid search clicks came from tablets. 

Computers accounted for the lion’s share, at 82.8 percent, according to U eMarketer. 

But actual transactions are more likely to be conducted on a PC. More than nine in 10 said they preferred to buy using a PC, compared to three percent who would rather to do so on a smartphone and two percent on a tablet.