by Alex Goldman
The topic of the year is likely to be usage-based pricing. Usage-based pricing will change not only the ISP business but also the internet. Software developers are worried, but I suspect that most ISPs welcome the possiblity of charging for heavy internet use.
WISPs, however, are likely to charge less for bandwidth and have higher caps than cellcos. The prices on devices that create personal Wi-Fi hotspots from a cellular network connection are quite high, deliver slow 3G speeds, and come with caps as low as 250 MB. Prepaid rather than monthly plans would make more sense for customers — but not for the cell companies.
Wired magazine wants subscribers to be able to save unused data for rollover bytes, month to month.
On the other side of the argument, David Pogue points out that for many users, new capped plans from AT&T will save them money. “Maybe I’m just dazzled by the $360 a year AT&T just saved me. But as I see it, AT&T has just pulled off a very delicate balancing act indeed: it came up with a new pricing scheme that benefits almost everyone, customers and AT&T alike.”
Yet, many cellular users are still experiencing bill shock, according to a recent FCC study, and paying for services from comapnies that don’t contact them when their bill spirals into four figures or more. Wireless ISPs can point out that there are no ETFs (or low, pro-rated ETFs) and many call users who seem to be using a lot of data — often because of a virus or bot rather than because of something the user actually wanted to do. The raw data from this FCC report and a previous one is available online.
Business
An interesting note from the CEO of Zappos (which became famous for customer service, profit sharing, and for its innovative use of twitter) on why he sold the company. If you’re working with investors or with a board, you will want to read this.
Workers in China are gaining rights and better salaries through strikes — potentially raising the cost of electronics, at a price I suspect we’re all willing to pay. Meanwhile, creepy social network service Foursquare was blocked in China shortly after a wave of users checked into Tienanmen Square.
Technology
ARIN will change the Whois service on June 26, and publish details about the changes on June 11.
The latest blimpband project is powered by algae.
An interesting story on how social networking skills are important in some military jobs. Here’s an interesting article on microblogging tools to help businesses collaborate in the same way.
Atheros has a new 802.11n router designed for video.
Government
The EPA has a new Energy Star program for data centers (h/t Pedro Hernandez).
The stimulus standards for the creation of electronic medical records are so strict that it’s possible that no U.S. institution will qualify for funds and therefore none will be spent.
According to one blogger, advocacy group the Fixed Wireless Communications Coalition, working for microwave broadband providers and manufacturers, has won impressive victories at the FCC.
I have not seen much press on this here, but there’s a potential billion dollar corruption scandal at Canada’s FCC, the CRTC (h/t Karl Bode).
Also relatively unnoticed in the U.S.: Africa is about to get fiber, which could completely transform the continent’s telecommunications systems. Although Africa’s phone lines are generally poor, the continent as a whole has relatively healthy competition among cellular providers (although that could change if competition-killing mega-mergers happen).
I cannot currently access the NTIA website, but this speech by Strickland was of interest. He said that getting spectrum allocated was difficult and would take time. In this WSJ interview, FCC Chair Genachowski went even further and seemed to say that his only concern with regard to spectrum is that AT&T be allowed to obtain unlimited amounts of spectrum in order to serve iPhone users, even though AT&T is preventing Apple from offering some key services, such as video conferencing, on its network. The FCC’s job is to reward innovation, but the institution all too often tries to harm innovators instead. Spectrum should be free and carefully managed, as WISPA has argued and continues to argue.
The NTIA has decided that the nation’s public safety network will be based on LTE and use 700 MHz spectrum. The first 21 awards were made for the building of the network.
If you’re in Oregon
On a sad note, this missing child is the son of an Intel employee. If you’re in or near Multnomah County, Oregon, please keep an eye out.
