06 July 2008

Action by Allies

 

The Future of the Internet

Tuesday, April 22nd, 2008

The cable industry has consistently demonstrated its commitment to policies that ensure all Americans have access to affordable broadband. This includes:

  • Proposals to create a fund tailored to expanding broadband into unserved areas.
  • The Broadband Data Improvement Act which would improve federal data collection regarding where broadband services have been deployed in the United States to achieve the goal of ubiquitous broadband availability for all Americans.
  • Tax credits or other tax incentives to providers that build out in rural areas that are unserved by an existing broadband provider.
  • Reform of the RUS broadband loan program so that funding is targeted specifically to unserved areas.
  • Expansion of the FCC’s Lifeline and Link-Up Programs to help ensure that broadband access is extended to low-income households.
  • Public-private partnerships to provide broadband in unserved areas.

We recognize that the government can play an important role in making certain that the economic and social benefits of broadband connectivity are extended to all areas of this country. While broadband deployment to every community in America merits the full attention of policymakers, legislation calling for “network neutrality” or government intervention into the operation of networks would undermine the goals of broadband deployment and adoption.

The government’s consistent light regulatory touch since the introduction of broadband has worked. Only that continued regulatory freedom is likely to spur the investment and innovation that consumers have come to expect.

The cable industry is on the verge of making the leap — from “broadband” to “wideband” — with a technology which can enable dramatically higher download and upload speeds. Several weeks ago, for example, Comcast launched a “wideband” service in Minneapolis-St. Paul that offers speeds of 50 Megabits per second. Comcast expects to have wideband available to 20% of its systems by year-end 2008 and to all homes passed by mid 2010.

The efforts of broadband network providers to build larger and faster networks have helped ensure the success of countless numbers of new Internet businesses and applications. Despite concerns about alleged limited access to broadband, use of Internet video on demand has grown at the most dramatic rate. In February 2008, nearly 135 million U.S. Internet users spent an average of 204 minutes viewing 10.1 billion online videos. YouTube represented 34% of those online videos, or nearly 3.5 billion.

For years, net neutrality proponents have argued that without government intervention, broadband providers would stifle competing services and content providers; Internet development and usage would stagnate; and consumers would be unable to use their broadband connections to download video or access other emerging applications. In fact, cable’s investment in broadband has driven innovation and investment in new content and applications at the edge — the exact opposite of what was predicted by advocates of net regulation.

(more…)

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More DTV News

Tuesday, February 19th, 2008

You’ve heard about those DTV converter boxes that you can get a coupon for. News today that the Consumer Electronics Association (CEA) has partnered with the National Association of Broadcasters (NAB) on an upgrade of the nine-year-old site AntennaWeb.org, “an online antenna mapping program designed to help users determine the proper outdoor antenna to use in order to receive free local broadcast channels.”

In other news, the DTV Transition Coalition, of which NCTA is a founding member, put out a media release on Friday pointing out their tremendous growth in membership. It’s a long and varied list that includes “consumer groups, broadcast, cable and consumer electronics companies, retailers, civil rights and grassroots organizations, trade associations, and state and local government organizations.”

Popularity: 28% [?]

Who chooses cable?

Friday, February 8th, 2008

CTAM, the marketing association for the cable industry, released a study this week that looked at different consumer segments (particularly ones that are influential in the spread of hi-tech), their technology adoption, the decision-making process, and content viewing behavior.

The study drilled in on two influential groups – future shapers and future makers, who collectively represent 30% of consumers. Most people these days have heard of early adopters, a term created by Geoffrey A. Moore in his book Crossing the Chasm, which discussed the gap that exists between those consumers who will adopt new tech products and services early in their lifecycle and the “early majority” users, who are pragmatists and will wait longer.

A Light Reading article on the study explains their significance:

…future shapers (10 percent) are the early adopters of technology who readily spread the word and whose opinions are sought out. Future makers (20 percent) are second stage adopters who will tout the benefits of new technologies. The largest group of consumers is classified as today consumers (40 percent) who wait until technologies are proven before adopting them.

(For more on the significance of influencers, see Malcolm Gladwell’s classic The Tipping Point.)

The CTAM study, Future Shapers and Makers: An Examination of Consumer Segments, conducted by TNS Media & Entertainment, found:

Almost half of today’s technology influencers are choosing television service provided by their cable company over a satellite or telephone company provider. Forty-six percent of technology’s earliest adopters choose cable, while 26 percent chose satellite and 2 percent chose to receive video services from their telephone service provider.

From the article in Multichannel News:

Doing their homework is what sets the future shapers and future makers apart. According to the survey, 67% of future shapers and 59% of future makers are likely to get information about TV services from the Internet, compared to 45% of today’s consumers. The two influencer groups are also more likely than others to obtain information from TV, newspapers, and magazines.

According to the survey, 89% of consumers are concerned primarily with the reliability of the provider, over price

In addition, the study examined the trend in watching video on alternative platforms, such as laptops, portable DVD players or devices like iPods or iPhones. The study found that 37% choose a desktop computer or laptop as their preferred method. You won’t be surprised to learn that younger consumers are most likely to watch programming online, coming in over 50% greater in their tendency to watch video on desktop computers or laptops.

UPDATE: Along these lines, it’s probably worth pointing out another study that came out this week.

In a study conducted by Canadian research firm Solutions Research Group, nearly 80 million Americans, or 43% of the online population, watched a TV show on the Internet, as of November, up from 25% a year ago.

You can read the press release on the Digital Life America study here.

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(drumroll, please…) Here’s tru2way

Monday, January 7th, 2008

It’s official as of this morning. CableLabs announced that the “tru2way™” brand will replace use of the term “OpenCable Platform.” You may recall that the initiative, which began back in ‘97 with the goal of helping the cable industry deploy interactive services, was previous known as OCAP.

Why the name change?

The tru2way brand was developed by the global brand consulting firm Siegel + Gale, in consultation with the Cable & Telecommunications Association for Marketing (CTAM), the National Cable & Telecommunications Association (NCTA), and marketing and technology representatives of a variety of major cable providers.

Which basically means that, based on talking with consumers, it was felt that a new name would help with branding. Manufacturers can then make products under that name.

For example: Panasonic and Comcast Announce Products With Tru2way(TM) Technology. Specifically, this means that you’ll be able to soon be able to get a portable DVR which you can take on the road, watching those TV shows you recorded.

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The Basics of The Government’s DTV Coupon Program

Monday, January 7th, 2008

With the DTV transition just over a year away, a lot of talk here at CES is focused on the impact of that change. Analog broadcasting ends on February 17, 2009. Estimates are 13-20 million US households rely entirely on over-the-air broadcast (OTA households). 60-70 million analog TVs exist alongside televisions that are either digital or attached to a set-top box.

In an effort to ensure those analog TVs will work after the transition, the government created a coupon program that will allow consumers to purchase low-cost converter boxes that will convert the digital signal to analog for older TVs.

33.5 million coupons will be made available and each is good for $40 towards the purchase of a coupon-eligible converter box. These converter boxes are expected to cost between $40 and $70. Two-thirds are available to every household. One-third will be reserved solely for OTA households. Each household may request up to two coupons.

The application process to request a coupon began last week with coupon distribution beginning February 17. So far the response has been strong with 1.1 million requests for 2 million coupons having been received so far.

Last day to request is 3/31/09 (that date is correct and assumes some people will wake up next February with TVs that don’t receive a signal. Coupons can be requested through March of next year and will be accepted through July 9, 2009.

For a list of eligible converter boxes and participating retailers, visit www.ntiadtv.gov or www.dtv2009.gov.

For more information about the digital transition, you can visit www.dtvtransition.org.

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