Digital Divide 2.0

Connectivity Needed to Build Stronger Merced, Region

As featured in The Sacramento Bee
By: Mike Montgomery

Can Merced be the next Silicon Valley?

According to a recent study from the Pew Research Center, 70 percent of Americans now subscribe to broadband Internet service at home, and an additional 10 percent of Americans have broadband access at home via a smartphone.

While that’s the good news, there are still some communities in America that lack some kind of broadband or Internet access at home. About 7 percent of Americans say they lack Internet access altogether.

Read the full article here.

 

Strange Bedfellows

By: Mike Montgomery
As featured on The Huffington Post 

There have been many-storied rivalries in American history. In the 1800s, the bitter political rivalry between Aaron Burr and Alexander Hamilton was settled with a famous duel. Later that century, the Hatfields started warring with the McCoys, leaving behind epic tales still told today. Two-hundred years later, Magic Johnson and Larry Bird staged heated battles on the basketball court, and actors Jennifer Aniston and Angelina Jolie remain bitter rivals in the battle over Brad Pitt’s heart. Despite the intensity, the rivalries were all ultimately settled. Burr shot Hamilton dead, the Hatfields and McCoys hugged it out, Magic and Larry became friends, and Brangelina became the “it” couple while Aniston is engaged to be married, hopefully putting an end to the tabloid-style coverage of the matter.

Rivalries exist everywhere in life, even in the exciting world of communications policy. Communications and technology company AT&T and public interest group Public Knowledge are widely known to lock horns on matters of public policy, often bitterly. But it seems this rivalry may have a little more Magic-and-Bird vibe to it than Hamilton-and-Burr. Of late, the communications company and the advocacy group seem to have put aside their differences and locked arms in solidarity over the vision for the future of next generation communications infrastructure. Perhaps this doesn’t have the drama of some of the other famous feuds, but in the communications policy world, when something like this happens, it’s worth paying attention to because it must be important.

Specifically, AT&T found common ground with a white paper Public Knowledge released about the transition from antiquated telephone networks to the advanced high-speed broadband networks of the future. In this paper, Public Knowledge articulated five principles to govern the transition:

1) Service to all Americans
2) Interconnection and Competition
3) Consumer Protection
4) Network Reliability
5) Public Safety

For those not regularly knee deep in matters of communications policy, these five principles are basically a distillation of the ideas that have always guided communications in America, which is undoubtedly why AT&T agrees with them. As a recent post on the company’s Public Policy Blog states:

There were several points in Public Knowledge’s white paper that we could have written ourselves at AT&T. First, the transition has to occur. Our old reliable TDM technology is obsolete and defined by two words: “Manufacturer discontinued.” Second, the fundamental principles of universal connectivity, consumer protection, reliability and public safety — all hallmarks of our Nation’s centuries old commitment to communications — should not be lost in this transition.

Indeed, it appears maintaining this central principle — that everyone should remain connected — was the goal of AT&T’s petition with the Federal Communications Commission to conduct regulatory “beta trials” in select markets as the outdated copper networks are upgraded and modernized. The idea behind these trials is that by ironing out potential issues in its micro stages, the transition will go much more smoothly when taken macro.

AT&T notes that some 70 percent of households in the company’s wireline footprint have already ditched their traditional landline. It is precisely the inevitability of this transition to next generation high-speed broadband networks that makes the AT&T and Public Knowledge accord less surprising. It is obvious technology is evolving and it is equally as obvious that people are choosing to communicate in new, innovative ways. The five principles represent the shared universal goals to pursue as policy and regulation try to modernize to keep up with the speed of technological innovation.

The idea of modernizing our infrastructure with next generation broadband networks isn’t at all new or controversial; consumers, consumer groups, and corporate America have spoken, and they’re all saying the same thing. The only question is whether government agencies can work with the various stakeholders to make such a monumental upgrade to our nation’s communications infrastructure quickly enough, while ensuring sufficient consumer protection. If the AT&T/Public Knowledge cease-fire teaches us anything, feuds and rivalries come and go. When common sense prevails, progress is a certainty.

Racy App Highlights Broadband Issue

By Mike Montgomery
As seen in SF Examiner 

At this very moment, somewhere in San Francisco, an innovative new product is being tested and refined. This product harnesses the power of smartphones, mobile broadband and mobile apps to … well … offer women around the world and their partners a new way to (ahem) connect.

The product is a smartphone app called Vibease (no, really), and it’s being billed as the world’s first “smart vibrator” (no, really). Rather than fumble through my own explanation of how Vibease works, I’ll just crib liberally from the company’s CrunchBase profile: Vibease is a private social network for couples with massager integration. Couples can use Vibease for chatting and share their moments. The best part is the woman’s partner can control her massager using an iPhone or Android phone even though they are separated by distance.

So there’s that.

But here’s the thing: Even if an app-driven vibrator doesn’t tickle your fancy, there does appear to be a market for it. Or at the very least, there are investors who believe there’s a market. Vibease is already $40,000 above its crowdsourced fundraising target on Indiegogo. It has also received seed funding from angel investors and $25,000 in venture funds. With that kind of startup capital, Vibease has to be taken seriously even if its product tends to incite giggles.

It also … and you better hang on to something, because I might lose you with my upcoming segue … it also highlights the need for smart spectrum policies from the Federal Communications Commission.

You see, while masturbazione (as the Italians call it) has been around since we were scribbling in caves, the widespread consumer adoption of mobile broadband is a relatively recent development. But much like the act of shôuyín (as it’s called in China), relying on our mobile devices to get online anytime and anywhere has become a major part of our daily lives. Some of us do it several times a day.

But the unprecedented popularity of mobile broadband faces, well, some obstruction. As Vibease has made clear, there seems to be no limit to what app developers will imagine, nor to what wireless customers will find helpful. This incredible demand for more mobile devices and more applications is where the problem emerges. It’s one thing when consumers have the power to check email and visit their favorite websites wirelessly. It rises to another level when consumers need to also power more data-intensive apps like streaming video (and … well, anything else you might want to stream) that require higher-spectrum resources.

The point of all this (and thank you for staying with me this far) is that when it comes to products and services powered by mobile broadband, we’re only beginning to scratch the surface. Ten years ago, smartphones did not yet exist as we know them, and the idea of a smart vibrator probably had never come up. The fact that smartphones are now everywhere and apps like Vibease are drawing serious interest from investors should be enough to tell us that truly anything is possible with mobile broadband. Whatever innovative ideas arise next, our wireless networks must be equipped with ample spectrum in order to be ready.

This means we cannot afford to impose artificial constraints on the opportunity for providers to obtain more spectrum. When designing its upcoming 2014 spectrum auction, the FCC needs to keep in mind that every wireless provider, both big and small, needs more spectrum capacity on their networks. If the spectrum auctions are encumbered with restrictions on eligible bidders, and all providers are not allowed to bid equally, then the FCC risks leaving millions of consumers … well, unsatisfied.

Mike Montgomery is the executive director of CALinnovates, which works as a bridge between technology communities in California and the public policy communities in Sacramento and Washington, D.C.

 

 

 

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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$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

Time to invest in much-needed mobile infrastructure

By Mike Montgomery

Isn’t life quite a bit easier with apps on your phone and fast Internet connections? Broadband-high-speed Internet-has become a crucial tool for rural and urban residents alike.

Turlock is no stranger to the benefits of increased access to high-speed Internet. In Stanislaus County, broadband lets people join meetings in Los Angeles, take online calculus classes through the University of California, and enables veterans to consult with specialists through telemedicine at the VA’s Modesto Clinic. Want to renew your library book at the Stanislaus County Library? No problem. There’s an app for that, too.

Seventy percent of Central Valley residents now report that they have broadband at home, compared to 53 percent in 2008, according to Public Policy Institute of California. While this percentage trails the rates of other metropolitan regions of the state such as San Francisco and San Diego, the Central Valley has made significant strides in broadband adoption.

Read the Full Article.

Towards Universal Broadband: Flexible Broadband Pricing and the Digital Divide

Reaching Universal Access through Affordability at All Income Levels1

Driven by the conviction that the widespread use of broadband can support economic recovery and help the United States achieve other important national goals, President Obama has proposed that every American should have the opportunity to connect to broadband service. On his campaign web site, the President declared: “America should lead the world in broadband penetration and Internet access” and he promised to bring “true broadband to every community in America.”2 In enacting the American Recovery and Reinvestment Act of 2009, the Congress signaled its agreement by providing $7.2 billion in dedicated funding to advance broadband’s spread and by directing the Federal Communications Commission to develop a national strategy to achieve universal broadband.

Continue reading “Towards Universal Broadband: Flexible Broadband Pricing and the Digital Divide”

Wireless Overview

More than 95 percent of the U.S. population – those living in urban, suburban and rural America – are served by at least three competing carriers, and more than half live in areas served by at least five.  Eight years ago there were 100 million U.S. wireless customers. Today, there are more than 270 million, and in 2008 they used more than 2.2 trillion minutes – a tenfold increase since 2000.  At the same time, prices have declined precipitously.  Revenue per minute has fallen 89 percent since 1994, and U.S. wireless prices are much lower than in any other industrialized county.  And, while at&t and Verizon are currently the two largest wireless providers, the next two largest, Sprint and T-Mobile, have a combined 82 million customers, and the carriers that round out the top 10 have another nearly 20 million customers among them.

As wireless technology and services have grown exponentially in the last 25 years, California has been one of the prime engines of that growth.  Strategic partnerships between carriers and handset manufacturers, application developers and content providers, the private and public sector give consumers access to unparalleled innovation in the wireless space.

Today, more than 160 wireless service providers in the U.S. directly employ more than 257,000 workers who earn salaries totaling more than $12 billion each year.  This is in addition to the numerous early-stage companies, high-tech start-ups and small businesses in the wireless space that are also key contributors to the U.S. economy. California is home to one of the few areas where wireless start-ups cluster, Silicon Valley, where competition thrives, partnerships form and innovation flourishes.

According to the Federal Communications Commission, California serves the largest number of wireless users, 32,247,015, at the end of 2007.

The number of wireless users has more than doubled in California over the past 7 years.