Over at Mobile Future, Jonathan Spalter looks at the future of wireless and finds that as mobile video consumption contines to boom, fiber-based networks will become more and more critical. As he writes:
[A] Cisco report predicts that in five years, 85 percent of Internet consumption in the United States will be from video, primarily over mobile devices. While freeing up more spectrum is critical to meet the demand for mobile Internet and video services, wireless infrastructure also requires backhaul networks with sufficient capacity to deliver these bits between a wireless tower and the Internet backbone.
Deploying that fiber-based infrastructure will take a substantial amount of investment, and as Spalter points out, regulators have — so far — encouraged that investment:
The FCC in 2007 and 2008 decided to forbear from regulating the Ethernet services companies like AT&T and CenturyLink provide, and it predicted competition would increase even further without heavy-handed regulation. Through its Enterprise Broadband Orders the FCC expressly concluded that the market for packet-switched broadband services was “highly competitive” and recognized that the demand for such services was sufficient to incentivize deployment and entry by competitors absent regulation.
As Spalter notes, competition for Ethernet-based special access services has “skyrocketed” since the FCC’s Enterprise Broadband Order. But that hasn’t stopped some companies from urging the FCC to wield a heavier regulatory hammer. Spalter again:
[F]or all of their complaining that the government needs to intervene in the market and lower just their costs of doing business (a refrain these carriers bring to the spectrum set aside and roaming debates as well), national carriers like Sprint and T-Mobile, as well as smaller regional ones have managed to operate their networks and succeed in the marketplace over the past decade without greater government involvement, often as the low cost provider. There is no justification to increase regulation of legacy special access services when the backhaul marketplace is functioning perfectly well on its own, producing remarkable investment, a stream of new competitors and increasing consumer value.
Put another way, what companies like Sprint and T-Mobile are seeking is a form of corporate welfare; a bailout from the government that will only ding their competitors. It’s not exactly the spirit of competition, but you can’t really blame them for trying.
But unfortunately, as Spalter notes, the FCC may be listening to the unfounded complaints:
Competition in the special access market has flourished due to the bipartisan hands-off approach taken by Chairmen of both parties for over a decade. It defies logic for the FCC to continue spending so much energy attempting to regulate legacy services like DS1 and DS3 special access connections provided by incumbent carriers. The Commission should accept the success of its deregulatory approach in which unregulated entities have stepped up, as expected, to create a highly competitive special access market.
If we want to encourage more fiber deployment — and keep our wireless economy humming — let’s hope the FCC is listening to sensible arguments from the likes of Spalter rather than the unfounded complaints of a few companies.
Wednesday, October 01
At Mashable, T.L. Stanley has an interesting look at how advertising — especially with the rise of mobile broadband — has drastically changed in the past decade:
Because consumers are always on the go, agencies have had to learn how to cater to a smartphone- and tablet-wielding populace. Increasingly, the target may be sporting smartwatches or other tech-enabled wearables, providing even more challenges for companies and their agencies.
These new devices are the key to a consumers’ information, communication, social networks, payment methods and more. Ad execs are looking to utilize those gadgets with just the right pithy, useful or entertaining messages.
Over at The Hill, Julian Hattem breaks down how the FCC is looking to improve mobile broadband:
The commission on Friday announced that, at its meeting next month, it will take up a series of proposals to explore ways for companies to use more of the nation’s airwaves and build new antenna systems. The FCC will also look at an item to help broadcast companies share the same channel, which would incentivize them to give up their current spectrum licenses for wireless companies to bid on in next year’s auction.
“Seizing the opportunities of mobile innovation is one of the FCC’s highest priorities,” Chairman Tom Wheeler wrote in a blog post.
So far, wireless companies are onboard with the proposal, and rightly so. Everyone benefits from better use of the airwaves.
In order for the auctions to be successful — not to mention generate a sizable chunk of revenue for the Federal Government — broadcasters need to be on board. Hopefully, the FCC can negotiate a deal that makes everyone happy.
Google Glass is certainly controversial, but as Kim-Mai Cutler of TechCrunch points out, the wearable tech is already leading to innovation in health care:
While Google Glass has generated a healthy debate over privacy, etiquette and whether the device will ever gain broader acceptance in society, there are some obvious specialty use cases for Glass.
Remedy, a startup founded by two sisters who are a Thiel fellow and medical student, is betting that doctors will find Google Glass useful in quickly collecting and piecing together case data on patients.
They’ve done a pilot with three Harvard-affiliated hospitals in the Boston area to test out a Google Glass app with some paired desktop software that lets physician assistants quickly collect and share visuals of patients to surgeons on call. Normally, these assistants just call the surgeons over the phone and verbally describe the status of the patient.
Via Mike Dano of Fierce Wireless, a new report predicts that investment in wireless networks won’t be slowing down anytime soon — assuming policymakers don’t throw a wrench in a well-oiled machine, that is. As Dano writes:
According to a new report from the Telecommunications Industry Association, U.S. wireless carriers will spend a total of $159.3 billion on wireless network equipment and infrastructure during the next four years, up fully 40 percent from the $113.9 billion in cumulative spending during the previous four years.
Wireless carriers have been some of the biggest investors in America’s economy for years now, which is one of the reasons placing heavy-handed regulations on the industry is a really bad idea.
Wednesday, June 18
Wireless organization CTIA wants to focus on getting more spectrum to the market for mobile broadband. As Phil Goldstein of FierceWireless reports:
CTIA President Meredith Attwell Baker wants to create a spectrum “report card” that would assess how efficiently government agencies are using their spectrum. That’s one piece of a broader agenda she has for getting more airwaves for mobile broadband use beyond this fall’s coming auction of AWS-3 spectrum and next year’s incentive auction of 600 MHz broadcast TV spectrum.
Baker, who became the head of the wireless industry’s trade association and lobbying arm earlier this month, said a report card would “keep people’s feet to the fire to make sure we’re utilizing the spectrum, [and that] we’re not warehousing it.” She said that CTIA is going to continue to work towards the goal President Obama laid out in 2010 to free up 500 MHz of spectrum for mobile and fixed wireless broadband use by 2020. Baker said CTIA might push to go beyond that but wants to hit that milestone.
Given the popularity smartphones and tablets — and the mobile broadband that power them — making sure the single-largest holder of the nation’s airwaves, the government, is using those airwaves most efficiently is a critical step in keeping the mobile broadband economy booming.
Wednesday, May 14
Over at VOXXI, IIA Broadband Ambassador Kristian Ramos highlights why the FCC’s incentive spectrum auctions need to be open to every bidder willing to invest. An excerpt:
What many fail to realize is that the rate of growth in spectrum usage continues to accelerate. For example, the amount of spectrum used by mobile broadband data doubled in 2012 and is expected to increase eightfold by 2018.
To address this impending “spectrum crunch,” in 2012 Congress authorized the FCC to conduct a voluntary incentive auction as a way to make additional spectrum from television broadcasters available to commercial wireless providers so that they can meet the ever increasing demand for wireless broadband.
The proceeds of the incentive auction will be used to compensate broadcasters for relinquishing their spectrum and pay for a nationwide broadband public safety network consistent with the recommendation of the 9/11 commission, with leftover funds going toward deficit reduction.
However, for the auction to work properly, the FCC needs strong participation from as many broadcasters and bidders as possible. In fact, 78 House Democrats recently told the FCC as much, writing in a letter: “The FCC must invite as many participants as possible ‘on equal terms’ to an ‘open and fair’ broadcast TV spectrum incentive auction.”
Participation in the incentive auction matters. Remember: The auctions are voluntary, which means broadcasters that are participating do not have to sell their unused spectrum if they do not feel as if they are being fairly compensated.
By increasing the number of bidders participating in the auction, the FCC would improve the financial impact of the auction and enhance broadcaster participation. The more broadcaster spectrum that is available at auction, the more spectrum is available for consumers.
Monday, April 21
With the FCC moving toward its upcoming incentive spectrum auction, The Hill‘s Kate Tummarello examines a debate over Wi-Fi:
Next year, the Federal Communications Commission will auction off airwaves worth billions to wireless companies. While the agency has pledged to set aside some unlicensed airwaves — which fuel consumer electronic devices like garage door openers and Wi-Fi routers — some fear the FCC might not reserve enough of the valuable airwaves as it tries to meet congressionally set revenue goals.
The highly anticipated 2015 auction will involve buying airwaves back from broadcasters and then selling new licenses for those airwaves to spectrum-hungry wireless companies looking to expand their networks.
While most focus on the battle between wireless companies over the agency’s plans to limit certain companies in the auction, the tech industry is watching to see how much of the available spectrum the FCC will set aside for unlicensed use.
With wireless companies in dire need of more airwaves — and the government in need of revenue — it’s clear the FCC faces a precarious balancing act. Finding a solution that works for everyone will be tricky, but it needs to be done in order for consumers not to end up on the losing end of the auction.
Monday’s move by the Federal Communications Commission to open up the 5GHz band for Wi-Fi and other unlicensed uses has the potential to kickstart the expansion of new, faster Wi-Fi technology. That’s a win — for consumers, for innovation, and for America’s digital infrastructure.
But even as those of us who have long pushed for expanded high-speed Internet access pop champagne corks, it’s worth noting that the FCC’s action is just a step in what should really be a sprint by the Commission when it comes to making more spectrum available for mobile broadband. As Commissioner Ajit Pai said in his statement:
“If we’re to keep pace with consumers expectations, we need more 5GHz Wi-Fi spectrum, not just better use of existing 5GHz Wi-Fi spectrum. We must redouble our efforts on making an additional 195MHz of spectrum available for unlicensed use.”
Commissioner Pai is right on the money, but that quote only tells half the story. In order to a) keep up with consumer demand, and b) truly advance mobile broadband deployment and speeds across the country, the FCC must also make more licensed spectrum available for commercial use. Or, as Commissioner Jessica Rosenworcel succinctly put it, “Good spectrum policy requires a balance of licensed and unlicensed [spectrum].”
Again, the FCC’s 5GHz Wi-Fi move is worth celebrating. But there’s still a lot of work to be done. To quote Commissioner Mignon Clyburn, “We need to be ambitious in finding more ways to provide licensed and unlicensed spectrum for commercial services.” And with consumer demand for mobile broadband not likely to diminish anytime soon, the clock is ticking.
Friday, March 21
President Obama’s ConnectED initiative aims to provide high-speed broadband (as in, 100 Mbps) to every school in America within five years. It’s a worthy — and necessary — goal, but like most major initiatives, it faces the daunting question of funding.
Enter a new proposal from the Center for Boundless Innovation in Technology (CBIT), which, the organization believes, provides a path for making ConnectED a reality. This article from Telecompetitor does a good job of digging into the details of the proposal, but in a nutshell it goes something like this:
Currently, wireless provider Sprint leases 2.5Ghz Educational Broadcast Spectrum (EBS) from numerous educational institutions that hold this resource around the nation. Under the Center’s proposal, that spectrum — which, according to CBIT, is going unused in 800 counties across America — should be made available through an incentive auction and its proceeds made available to compensate the educational spectrum licensees and fund the President’s ConnectEd initiative.
It’s rare these days when a proposal can appeal to both the left and the right, yet CBIT’s auction idea has the potential to hit that sweet spot where public good and the free market meet. Even Sprint stands to benefit since, as Telecompetitor’s Joan Engebretson writes in her article. Citing an argument from CBIT Executive Director Fred Campbell:
“Sprint and other wireless carriers would benefit from this proposal because assigning the EBS spectrum for purely commercial use and assigning the 2.5 GHz white spaces would enhance the value of existing commercial spectrum in the band. In addition, it would give the carriers the opportunity to acquire additional 2.5 GHz spectrum that would be free of educational obligations…”
Whether Sprint would be open to CBIT’s idea remains to be seen — Engebretson’s story doesn’t make it seem very likely — but it’s encouraging that innovative ideas are being floated to fund ConnectED. Bringing high-speed Internet access to every student is too important, so policymakers should weigh the costs and benefits of every creative proposal that offers the hope of bringing the tools of the 21st century digital economy one step closer to America’s students.
Wednesday, March 19
Mobile broadband has already revolutionized the cellphone, and now the dash is on for so-called “wearable devices.” Enter Google, which has announced software for “smart watches” powered by the company’s Android operating system. As Alexei Oreskovic of Reuters reports:
Google on Tuesday unveiled plans to help develop the watches and other wearable computers based on its Android mobile operating system, which already runs more than three out of four smartphones sold worldwide.
The news comes as speculation swirls around iPhone-maker Apple Inc’s plans for wearable computers, including a smartwatch of its own. Apple Chief Executive Tim Cook has promised new “product categories” later this year.
Google also released a concept video:
With this year’s Consumer Electronics Show (also known as CES) now in the rearview mirror, Dan Rowinski of Read Write Web explores a major takeaway from this year’s show:
The first phase of mobile was about turning our cellphones into what are essentially powerful pockets PCs. This posed unique challenges because of the size of the device and data connectivity issues. Over the past seven years (dating from the launch of the first iPhone), engineers worked to make everything smaller and faster while software developers created apps and systems to turn a cellphone into an “everything” device. The second phase will be to take that concept of everything and spread it everywhere. The connected home, the smart car, the television and commerce are all being informed by the advances that have been made in mobile.
“We are in the middle of the inflection point from developing the technology to deploying it,” said CEO of Ericsson Hans Vestberg when describing what he called the second phase of mobile at the Consumer Electronics Show in Las Vegas this week.
With mobility increasingly dominating our lives, Rowinski’s takeaway from CES dovetails nicely with two major policy topics at this year’s show: spectrum allocation and the transition to all-IP networks, both of which will be critical for the always-connected future on display at CES to work.
Monday, December 09
In more FCC news, late last week the Commission announced it was delaying its incentive spectrum auction. As Alina Selyukh of Reuters reports:
The U.S. Federal Communications Commission, as long predicted, now plans to hold the so-called incentive auction of broadcast airwaves in mid-2015, a year later than originally intended, the agency chairman said on Friday.
The FCC is now drafting rules for the auction that would reshuffle the ownership of valuable frequencies among TV stations, as well as wireless carriers, which are clamoring for faster speeds and better services for their devices.
Recently, the FCC made waves when it announced it was easing restrictions on the use of electronics onboard flights. Over at the Commission’s blog, two members of the FCC explain what they’re after:
Today, technology has evolved to allow the provision of mobile wireless service onboard aircraft without causing harmful interference to terrestrial networks. This has been done internationally for years, and we are confident it can be done here at home – we will develop a full technical record on the proposal to make sure that’s the case.
To be absolutely clear, the FCC is not proposing to mandate that cell phone use be permitted aboard aircraft. Many are concerned that adoption of this proposal will result in a less-enjoyable travel experience caused by other passengers engaging in unreasonably loud phone conversations during flight. As frequent flyers ourselves, we understand and empathize with these concerns, but it is important to keep in mind that it is not within the FCC’s jurisdiction to set rules governing concerns about passenger behavior aboard aircraft. That role is properly left to the FAA and the airlines after consultation with their customers.
Sounds reasonable, as does this line from the same blog post:
The FCC’s proposal reflects its obligation to review and eliminate or modify rules that are no longer justified. As the expert agency charged with overseeing technology policy and interference issues, we believe it is appropriate for the Commission to consider this matter fully.
Here’s hoping the FCC continues to “review and eliminate or modify rules that are no longer justified” as network providers fully upgrade to all-Internet networks.
Wednesday, November 20
Earlier today, we held a Twitterview with innovative mobile video sharing service Ferris. You can check out the condensed version of our interview via our respective Twitter handles (@iiabroadband, @seeferris). Here’s the extended interview. — IIA
What is Ferris and how does it work?
Ferris is a mobile video sharing service which aggregates content based on a number of metrics in order to provide a continuous relevant viewing experience. Videos are organized and searched via tag, location, channel, user, etc. allowing users of the Ferris service to explore the ecosystem quickly and efficiently. Ferris allows users to capture, organize, and view content in a simple manor, with stunning results. Users may organize their videos into collections of their own, or add to a larger pool of content by contributing to a particular tag, or by filming at a location where other Ferris users are filming. Once the content is captured and tagged by the user, the Ferris service uses all available metrics to aggregate the content automatically. This aggregated content is available as an interactive, seamlessly stream-able collection of videos requiring little to no user interaction.
Who uses Ferris?
Ferris is meant for anyone who needs a platform for sharing mobile video. There are hundreds of use cases. Beyond the obvious personal and family related uses (birthdays, graduations, weddings etc.), the chronological arrangement of videos in the Ferris ecosystem is favored among journalists trying to keep the hottest breaking news “above the fold,” while the automatic aggregation of individual videos into a continuous streaming experience is a major selling point for business owners and Realtors who use Ferris as a conduit for advertising and showcasing their products and properties. Ferris is simply the canvas, the user creates the masterpiece.
While Ferris is fairly efficient, it of course uses networks to complete its tasks, making HS broadband very relevant. Whether uploading/consuming content at home over a cable network, or at your favorite pub using the newest LTE technologies, HS broadband is increasingly important for a positive user experience. The faster the network, the faster content is delivered to the user, which improves the overall experience greatly.
Will Ferris be dependent on mobile broadband for helping to build, develop, transform and/or grow? Explain.
While using Ferris on the best and fastest networks is advantageous, Ferris is comfortable even on the slowest networks. As networks become more robust and as speeds increase, Ferris will leverage this technology to provide the absolute best user experience. However, Ferris scales well with available resources by allowing users to upload content at a time and place where solid broadband service is available, even if the content was captured in an area without any mobile broadband at all. Ferris does not “rely” per se on mobile broadband networks to grow, but will scale to take full advantage of mobile broadband offerings going forward. Existing mobile broadband networks already provide a solid user experience and should continue to do so for the foreseeable future.
Does Ferris rely on high-speed wireless networks being reliable and widely-available for consumers? If so, in what capacity?
As stated in the previous paragraph, Ferris does rely on wireless networks, and of course high availability and reliability is beneficial. It would be great if every user could always experience Ferris on a true high-speed network, but that is simply not a reality in this country. Whether “3G,” “4G,” LTE, or WiFi, Ferris provides a great user experience.
Do you foresee more spectrum, the invisible airwaves that carry voice and data signals to and from electronic devices, being needed to support the app economy?
The question should not only be total spectrum, but how efficiently that spectrum is utilized by the government and the private sector. The move away from analog television is a perfect case in point. DTV utilizes less spectrum while delivering better content, faster. As technology progresses, spectrum will be used more efficiently through advanced compression algorithms etc., which should help mitigate the need for an ever expanding spectrum requirement. More spectrum is great and could prove necessary in the long term, but efficient use of allocated spectrum is absolutely paramount.
How would a ‘spectrum crunch’ impact Ferris?
Obviously a spectrum crunch would impact the average mobile device user in a number of ways. Users of Ferris are no exception. If mobile broadband networks fail, the user experience of most any app relying on communication with the cloud will decrease significantly. Mobile devices do have WiFi, and because of this the Ferris platform could still be utilized in its entirety, however the accessibility of the service would certainly decrease as fewer devices would encounter a robust data connection.
At a technology conference in London this month, a BMW official gave a remarkable account of the speed at which his company is adopting wireless technologies to improve its cars’ performance.
Last year, according to Vice President of IT Infrastructure Mario Mueller, there were about one million BMWs wirelessly connecting to the web. This year, that number has grown to 2.5 million vehicles, and by 2018 he expects 10 million vehicles wirelessly feeding and receiving data.
Here’s another way of quantifying this remarkable growth: In 2012, BMW had about the same number of wirelessly connected vehicles as are registered in Suffolk County, a leafy suburb of New York City. By 2018, the company expects to have a million more wirelessly connected vehicles than are registered in the entire state of New York.
In terms of mobile data, BMW’s vehicles currently use 40 gigabytes per day. By 2018, the company expects this will grow to a terabyte per day, which is enough data to stream 366 hours of high-definition video, according to Netflix.
BMW’s mobile transformation is one more example of the increasingly urgent need for officials at the Federal Communications Commission (FCC) to hold its upcoming spectrum incentive auction, tentatively planned for late next year. This will be the first major auction of airwaves necessary to handle Americans’ growing mobile data demands since early 2008, when Apple didn’t even have a public App Store.
With more than 20% of all adult cell phone owners doing most of their web browsing on their mobile phones and more than 750,000 jobs that depend on the mobile app economy, there’s immense pressure on the FCC to move quickly.
This is why it is vital that the FCC structure this spectrum auction in a way that promotes the best possible use of this spectrum and generates the most revenue. Above all, the Commission should soundly reject the concept of favoring some bidders over others. An attempt to artificially favor or hinder bidders would be terribly unfair to tens of millions of wireless users who might see degraded service as a result of wireless providers not getting the spectrum they need to serve their customers.
Beyond that, artificial restrictions could cost U.S. taxpayers as much as $12 billion in lost revenue, according to a Georgetown study, much of which would go to fund a nationwide public safety system for first responders. This network will help police and other emergency response personnel to coordinate rescue efforts during emergencies.
The FCC has every reason — sustaining jobs, protecting taxpayers, fostering economic growth — to hold fair and unrestricted auctions. Such an auction is the best way to promote economic vibrancy and the benefits of our wireless marketplace.
For the FCC to do anything less would put our mobile economy on a road to nowhere.
9 million, which is the number of new iPhones — both the 5S and 5C versions — that Apple sold in just three days. From the company’s press release announcing their windfall:
“This is our best iPhone launch yet―more than nine million new iPhones sold―a new record for first weekend sales,” said Tim Cook, Apple’s CEO. “The demand for the new iPhones has been incredible, and while we’ve sold out of our initial supply of iPhone 5s, stores continue to receive new iPhone shipments regularly. We appreciate everyone’s patience and are working hard to build enough new iPhones for everyone.”
Call me crazy, but this whole smartphone thing might be taking off.
The latest study from Pew examines the current state of mobile Internet usage. As you’d expect, it’s growing at a good clip:
63% of adult cell owners now use their phones to go online, a figure that has doubled since we first started tracking internet usage on cell phones in 2009. In addition, 34% of these cell internet users say that they mostly go online using their cell phone. That means that 21% of all adult cell owners now do most of their online browsing using their mobile phone—and not some other device such as a desktop or laptop computer.
Other findings from the report, which you can read here:
• Young adults: Cell owners ages 18-29 are the most likely of any demographic group to use their phone to go online: 85% of them do so, compared with 73% of cell owners ages 30-49, and 51% of those ages 50-64. Just 22% of cell owners ages 65 and older go online from their phones, making seniors the least likely demographic group to go online from a cell phone.
• Non-whites: Three-quarters (74%) of African-American cell phone owners are cell internet users, as are 68% of Hispanic cell owners.
• The college-educated: Three-quarters (74%) of cell owners with a college degree or higher are cell internet users, along with two-thirds (67%) of those who have attended (but not graduated) college.