Issues

There’s Something Crazy in the Air

Bananas.

That’s the best way to describe the current state of the wireless industry. Absolutely bananas.

Smartphones, tablets, LTE-enabled laptops, wirelessly connected cars… each day brings some new gadget, some new device tapping into the power of wireless networks. There are north of 300 hundred million people in the U.S., and according to Pew some 85% of them now own a cellphone. Of that group, 58% have upgraded to a smartphone. Do a little scribbling on the back of an envelope and you get something around 135 million people walking around with a wireless connection to the Internet in their pocket.

That’s a lot of people pushing out a lot of data. Billions of bytes, 24 hours a day. And all that traffic, all those bits and bytes and gigs, they all require spectrum to travel from points A to B, which is why wireless providers are currently on major shopping sprees. Investing billions to acquire more airwaves. Swapping frequencies in different markets. Working with the government to free up more spectrum in order to keep up with demand.

Earlier this month, T-Mobile merged with smaller provider MetroPCS. Early last week, satellite TV provider DISH Network pitched north of $25 billion to acquire wireless provider Sprint — a bid above what Japanese company SoftBank had also offered for the company. And those are just the two most recent moves. As mobile broadband continues to explode in popularity, there are going to be many more deals to come.

Call it a free market frenzy. A wireless lollapalooza, even. As the Federal Communications Commission continues to creep toward its proposed spectrum incentive auctions — which will, hopefully, free up a ton more spectrum for wireless use — providers aren’t waiting around. They can’t afford to. The wireless industry is one of our most vibrant sectors, and a big reason for that is competition. Even the biggest players are constantly forced to invest billions in order to meet the demands of their customers.

In such a highly competitive environment, the best thing the government can do is keep things from slowing down. That starts with ensuring the FCC auctions are open to every player willing to make the investment in — and quickly put to use — newly freed up airwaves. Hitting that mark will bring the government the most bang for its spectrum buck. It will also provide customers and the tech community with more robust networks. Ones that are able to keep up with innovations just around the corner.

The government can also help by encouraging wireless providers to work together in order to meet the challenge of ever increasing demand. As DISH’s flirting with Sprint shows, there’s no shortage of players hoping to get into the provider game. But even with the FCC’s auctions, it will take providers striking deals with each other to keep connections strong and the industry growing.

By focusing on smart oversight, regulators can protect consumers and maintain a vibrant wireless industry at the same time. That way, when it comes to the future of the industry,bananas will be just the beginning.

Follow Mike Montgomery on Twitter: www.twitter.com/@calinnovates

Utopia Parkway in LA | Ride-Sharing Revolution

I’m obsessed with the ride-share revolution sweeping the nation.

My interest was piqued last year during a phone call with Nick Allen, a member of my CALinnovates Advisory Board.  Nick told me that he was in the process of winding down his fund at Spring Ventures, which would allow him to focus his energy on a new business he founded with Sunil Paul.  The new venture, called SideCar, launched in San Francisco last June.  Four months later Allen and Paul raised a Series A round of $10 million from Lightspeed Venture Partners, Google Ventures, SV Angel, Mark Pincus, Lerer Ventures and a convoy of other prominent angels and VCs.  The A round allowed SideCar to expand well beyond their launch city of San Francisco.  SideCar now serves passengers in Seattle, Austin, DC, Philly and, now, thankfully, the City of Angels.  Competition abounds, mostly in the form of Lyft, another Bay Area-based purveyor of ride-shares.  You simply can’t miss Lyft’s cars driving around the city due to its clever marketing ploy of placing big, pink “carstaches” on the grill of each car in their fleet.

Read Mike Montgomery’s Full Article on TechZulu

Mike Montgomery: President Obama’s State of the Union Address Should Offer Hope for the New Economy

Today, speechwriters in the West Wing will put the finishing touches on President Obama’s State of the Union address. The State of the Union provides every President an unparalleled opportunity to showcase his policy priorities. And the opportunity is never more valuable than in an inaugural year, when it can set the tone for the next four. This year I hope the President speaks to the digital economy and, specifically, California’s burgeoning tech sector.

In my dream scenario, the President’s speech will sketch a blueprint for building a stronger future for America. To me that means focusing some policies on Silicon Valley and San Francisco, still the headquarters of the new economy, a fact that Washington seems to forget from time-to-time. Tech-friendly policy initiatives will directly benefit the new economy, California, and the U.S. Take these, for example:

Give the app economy a boost. As consumers and businesses use more and more data, California’s burgeoning app economy could use a digital infrastructure upgrade, which could be accomplished by moving to all-IP networks across the country. A new Brookings Institution book by Robert Litan and Hal Singer, The Need for Speed: A New Framework for Telecommunications Policy for the 21st Century, offers a potential roadmap for a regulatory re-think that could help expedite the delivery of broadband to consumers and keep the new economy humming. Meanwhile, the federal government, under President Obama’s leadership, needs to speed the reallocation of underutilized spectrum, the invisible radio waves over which our connected devices communicate. If our telecommunications infrastructure clogs up like our freeways at rush hour, either because of inadequate spectrum or insufficient private investment, then our app economy will suffer.

Read the Full Article on the Daily Kos

CALinnovates and California-Based Tech Groups Ask FCC to Speed Modernization of Nation’s Communications Networks

CALinnovates and California-Based Tech Groups Ask FCC to Speed Modernization of Nation’s Communications NetworksComment supports petition seeking national conversation on speeding up transition to all-IP based networks with beta trials to measure consumer benefits
SAN FRANCISCO – CALinnovates, a tech advocacy organization, along with eight other California-based tech groups-Alphabird, Appallicious,At The Pool, Avetta, ,iSideWith, Lex Machina, MySocialCloud, and the Silicon Valley Italian Executive Council–have jointly filed comments with the Federal Communications Commission (FCC) expressing support for a petition currently pending at the Commission.The petition, submitted last year by AT&T, asks the FCC to work with the private sector to begin geographically-limited beta tests to examine the complex technical and policy issues associated with the transition away from existing legacy voice networks to modern IP-based networks. The guidelines provided in the petition propose a framework that will allow the private sector and the government to address the operational, technical and policy issues related to the transition to new IP-based networks in an open and transparent process.“Startups in-and-around Silicon Valley need reliable, forward-looking high-speed networks to deliver for our customers,” said Chase Norlin, CEO of Alphabird. “Supporting the rapid development of communications infrastructure will allow us to maintain a free and open Internet, encourage private investment, and support innovation and free flowing ideas.”“Existing regulations mandate continued investment in outdated, 20th century networks that consumers are using less and less,” said CALinnovates Executive Director Mike Montgomery. “Old school networks can’t offer the infrastructure needed for seamless communication of voice, data, video, and Internet applications among various devices.”Montgomery continued, “This petition is a first step in determining how the FCC and the private sector can work together to upgrade the country’s communications infrastructure beyond the limited capabilities of networks designed for voice-only communication. The new communications ecosystem no longer operates solely through telephone companies. This filing is about updating a regulatory environment that promotes access to new technologies, protects consumers, and enhances our economic productivity.”“The beta trials deploying IP-enabled networks will help accelerate the evolution of technology and drive increased connectivity and innovation, while fostering immense capital investment,” said Montgomery. “Investing in stronger and faster IP networks will provide substantial benefits to consumers and businesses nationwide ranging from job creation to greater access to education, healthcare, training, and public safety.”

For Immediate Release
Wednesday, January 30, 2013
Contact: Mike Montgomery
mike@calinnovates.org
415-494-8626

 

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Mike Montgomery: Two Internets may be reality after United Nations treaty

Back in 2000, George W. Bush was lambasted for butchering the English language by making up the word “Internets.” He may have unintentionally predicted the future of the Web, which, under its current governance structure, has played a vital role in creating this amazing and interconnected online world in which we live.

Unfortunately for everyone who enjoys the Internet as a free and open platform for innovation, communications and commerce, the rug may have been pulled out from underneath us. When the United Nations’ World Conference on International Telecommunications ended last week, the idea of two “Internets” became plausible.

Regardless of how well the current multi-stakeholder approach is working for most of us, conference participants charged forward with new regulations that should alarm every tech company, aspiring entrepreneur, Skype lover, blogger or Etsy shop owner in the world. In an 89-54 vote, the United States, Canada, most Western European countries and Japan came up short against the likes of China, Iran and Russia, countries not necessarily known for eagerness to enact sensible regulations on behalf of their citizenry. The vote approved the text of a treaty that would put the Internet on the road to reckless regulation in two short years.

Read the Full Article on the Silicon Valley Mercury News

2012 is the Year of the Internet, Again, But Could it be its Last?

If you can believe it, the end of 2012 is fast approaching.  Some of us filled with glee; some of us filled with anxiety that the holidays and New Year are just around the corner.  But the end of 2012 is also bringing a critical issue to the forefront of the U.S. and global agenda: the future of the Internet.

Several events in Washington, D.C. over the past few weeks have caught our attention regarding the innovation economy, Internet regulatory policy, and the upcoming World Conference on International Telecommunications (WCIT) that all have tremendous economic and social implications globally, nationally, and in Silicon Valley.

With the elections (finally) over, tech and policy experts assembled at the Brookings Institution for “A First 100 Days Innovation Agenda for the Next Administration” focusing on how policymakers can encourage growth through innovation and entrepreneurship, ensure robust communications infrastructure, and protect our digital products and services.  The American Enterprise Institute’s and Mercatus Center’s star-studded tech panels discussed key issues, expectations and the U.S. position on the upcoming WCIT (pronounced “wicket”) conference.

Read the Full Post on Daily Kos

$14 Billion Additional Investment in Broadband Networks Means Big Things for Consumers and Innovators

For Immediate Release
Tuesday, November 13, 2012
Contact: Mike Montgomery
mike@calinnovates.org
415-494-8626

 

$14 Billion Additional Investment in Broadband Networks Means Big Things for Consumers and Innovators

CALinnovates’ new infographic says evolving consumer behavior demands private sector investment to expand communications infrastructure and support tech innovation

 

SAN FRANCISCO – California’s economic recovery will be bolstered by a recent announcement that AT&T plans to invest an additional $14 billion to expand and enhance its wired and wireless Internet Protocol (IP) broadband networks.  For Californians looking for expanded access to the benefits of the Internet, this development signals great optimism for the future of communications, according to CALinnovates, a San Francisco-based high-tech advocacy group.

According to their 3-year investment plan, 300 million people will be covered by AT&T 4G LTE by the end of 2014, and millions more will have access to next-generation wireline IP broadband networks.  CALinnovates Executive Director Mike Montgomery stated, “Connecting virtually everyone in the U.S. with high-speed Internet is a long stride in the right direction toward meeting the goal of President Obama’s National Broadband Plan.  And we know that high-speed Internet connections, both wired and wireless, create the kind of jobs we urgently need right now.”

“Consumers, entrepreneurs and people everywhere are clamoring for more connectivity and faster speeds.  It takes this kind of multi-billion dollar private sector investment to give people the high-speed connections they want and need,” said Montgomery.  “Investment is the linchpin to staying ahead of the massive growth in consumer demand for speed, data capacity and devices and apps that are now central to our lives.”

A new CALinnovates infographic on its website documents how consumers are driving the market that is revolutionizing communications and creating skyrocketing demand for new technology that can handle more data than ever before.  In describing the infographic, Montgomery said, “Consumers today want to be connected everywhere in every way possible.  But, we can’t take for granted the robust high-speed networks that are necessary to carry the innovations that are driving the economy and improving our lives.  Those networks require mega investments to keep them growing and improving.”

“Continued investment to build the communications infrastructure of the future is what will keep the U.S. and Silicon Valley ahead of the innovation curve,” he said.

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Why Public Policy is Critical to the Communications Revolution

In Silicon Valley local issues and global issues are often closely linked. It’s inevitable in a region where home grown high-tech is creating groundbreaking changes across the globe and supporting an entire region’s economic growth and job market.

With the introduction of the iPhone right here in the Valley and advent of mobile apps, the so-called “App Economy” is a huge local issue for Silicon Valley and the rest of California.  It contributes $8.2 billion a year and supports 152,000 jobs in California, according to CTIA and the Application Developers Alliance.

But, the most forceful demonstration of the global impact is the communications revolution taking place today.  “Smart networks,” such as wireless and wireline IP (Internet Protocol)-based networks, allow consumers to tap into super-fast Internet speeds so that they can better access video, voice and data services over the Internet.  With communications technology playing a leading role in daily life, it’s no surprise high-tech honchos are holding the Silicon Valley Wireless Symposium on November 2nd at Marvell headquarters in Santa Clara to discuss public policy that ensures a sound path forward for 21st Century communications infrastructure.

Read the Full post at The Daily Kos

Transformational Transportation – The Rideshare Revolution

Yesterday, I joined the rideshare revolution. Today I’m writing about it. I downloaded this app on my iPhone and took three short car trips yesterday courtesy of SideCar, a San Francisco-based ridesharing company that connects people who need a ride with drivers already on the road. Simply put, it’s a reinvention of carpooling through smartphone technology.

SideCar, founded by visionary cleanweb venture capitalist Sunil Paul, is only available in San Francisco at this time.

Read the Full Article

Transformational Transportation — The Rise of Uber

On my penultimate trip to D.C., it took far longer to find a cab to Dulles than I anticipated. Once I flagged one down, I thought the stress of the mad dash was essentially over. I was wrong. About a mile away from the airport, I asked my driver if he accepted credit cards, as I couldn’t cover the fee in cash. Much to the surprise of few in Washington, the gruff cabbie said “no,” that he did not take credit cards. He did, however, offer me one option, which felt more like an ultimatum. I could get out of the taxi, shuffle down a flight of stairs, bank left and use an inconveniently-placed ATM. After withdrawing my cash, I could sprint back to the car and exchange my money for my luggage. What a deal.

On my last trip to Washington, I had learned my lesson. Two lessons, actually. The first was to carve out time for an anticipatory trip to the ATM. The second lesson was to download the Uber app on my smartphone.

Read the Full Article on Huffington Post