Techdirt Wireless

If AT&T Mobile Broadband Banned TV Streaming, Why Does It Allow MLB Streaming?

Michael Masnick — Mon, 29 Jun 2009 07:09:00 PST

Earlier this year, we covered AT&T's back and forth over its terms of service, concerning whether or not services like SlingMedia's place shifting (streaming from your TV to a phone or laptop) was allowed. Some had noticed that AT&T's terms of service appeared to forbid it -- but then AT&T said it was a mistake and took it out, only to change its position a little later, and reinsert the language. Because of that, Sling had to disable its own player from working when an iPhone is connected via the 3G cellular network, rather than a WiFi connection.

Yet, recently, Major League Baseball's digital arm, MLB.com announced that it was going to start streaming video of games to its iPhone app, even on 3G connections -- and AT&T seemed fine with it. However, this differential treatment is leading to charges of favoritism and discrimination, even bringing out the dreaded charges that "net neutrality has been broken." The specific question is why AT&T gets to choose which streaming video apps are allowed, and which are not. If your regular ISP told you that you could watch Hulu, but not YouTube, there would be quite an outrage.

AT&T's response is disingenuous, at best, claiming:

AT&T said the MLB app streams video from MLB's website, while SlingPlayer streams from the TV set-top box Slingbox. AT&T also said the company is only trying to ensure all users on its network get the best possible service.

"We're certainly not crippling any apps," an AT&T spokesman said. "This is an issue of fairness.... While we would like to support all video services across our network, the reality is that wireless networks simply lack the capacity to support customers streaming hours of cable, satellite or IPTV video programming to individual users."

While this -- once again -- highlights the point that mobile cellular services are nowhere near legitimate competitors for real broadband services, note that the AT&T person never actually answers the question. The fact that Sling streams from a settop box and MLB streams from MLB's website is functionally meaningless to the iPhone. To the iPhone user it's the same thing. It doesn't care where the server is placed -- it's just receiving a video stream. So AT&T is not being honest or upfront about this at all. If the network is a problem, then it shouldn't allow video at all. Picking and choosing who gets to run video certainly smacks of discrimination and favoritism -- exactly the sort of thing the FCC claims is not allowed.

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Mythbusters' Adam Savage Discovers Insane Roaming Fees: $11,000 iPhone Bill For A Few Hours Surfing

Michael Masnick — Fri, 26 Jun 2009 12:48:25 PST

Every few months or so there's an article somewhere about an insane phone bill that someone gets because they took their phone out of the country without recognizing the insanity that is international roaming rates. This time, it appears to be Mythbusters co-host Adam Savage, who's been doing a bit of traveling lately. He was recently up in Canada, and used his iPhone to do a little web surfing. And now he got the bill. Apparently AT&T wants somewhere around $11,000 for Adam's surfing and have turned off his phone until he pays. Now there will be some who say that he should have read the fine print, but considering just how often these sorts of stories pop up, at some point it's worth noting that the fine print isn't working. And... even if you grant the "fine print" premise, it's hard for anyone to figure out how these international roaming rates make any sense whatsoever. They're so far off the charts as to be unbelievable.

Anyway... next week on Mythbusters... the insanity of mobile phone bills? Can we see Jamie and Adam try to decipher hidden fees, while Grant, Tory and Kari search for the elusive accurate mobile phone coverage map? Maybe Buster can figure out what the real limits are on unlimited data plans? Hmm... maybe not.

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Court Says Anti-Telemarketing Law Covers Unsolicited Text Messaging

Michael Masnick — Mon, 22 Jun 2009 15:18:01 PST

Via Michael Scott we learn that the 9th Circuit Court of Appeals has found that the Telephone Consumer Protection Act (TCPA) also applies to unsolicited text messages. The TCPA covers certain kinds of commercial marketing over telephones, and has a rule against the use of "automatic telephone dialing systems," but it wasn't clear if text messaging was an automatic telephone dialing system. The court has now said yes.

Separately, the case looked at whether or not agreeing to a basic terms of service also represented "express consent" which is needed under the TCPA. In this case, the woman had purchased a ringtone, but did not believe she had consented to commercial text messages. In buying the ringtone, the woman agreed to an extremely broadly worded terms of service that was probably purposely designed by lawyers to cover a wide swath of potential other things -- such as allowing the company to let others market things to the user. The question was whether or not other companies, who purchased the phone number from the ringtone company, could then market to the woman. The court here finds that dubious as well, noting that "express consent" is "[c]onsent that is clearly and unmistakably stated," which the court feels was not the case here, since the consent was only for the ringtone company to market messages, not anyone else (even though the marketing company -- in this case Simon & Schuster -- noted that the text message was "powered by" the ringtone company): "Thus, Satterfield's consent to receive promotional material by Nextones and its affilliates and brands cannot be read as consenting to the receipt of Simon & Schuster's promotional material."

This ruling isn't the final say on the matter -- as the appeals court was just reversing a lower court's summary judgment, and telling the lower court that it needs to actually go further in paying attention to the case. However, the points raised above are certainly important ones that I imagine will start showing up in other cases as well. Finally, it's also worth pointing out that the defendant in this case is Simon & Schuster, rather than Nextones. This does raise some interesting questions. Simon & Schuster believed that it was purchasing the right to contact these phone numbers legitimately via a marketing company partnered with Nextones. It had no idea that the "agreement" may be faulty, but it may now be liable for breaking the law. If that moves forward, you would have to think that Simon & Schuster has an argument to sue either Nextones or the marketing company it worked with for misrepresenting the "explicit consent" on those numbers.

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Less Well Known Artists Make Use Of Mobile Platforms To Interact With Fans

Blaise Alleyne — Thu, 18 Jun 2009 20:52:25 PST

When talking about the success of musicians adopting business models around the economics we discuss here, people often complain that it "only works for big artists" or "only works for the little guys," so much so that someone dubbed the exceptionalism as "Masnick's Law." I admit that it was easy to feel this way when Trent Reznor launched the Nine Inch Nails iPhone app. How many less well known artists would benefit from (or be able to develop) their own mobile app? Well, a company called Gigdoggy recently launched a mobile "Fanteraction" platform that lets bands easily create mobile websites for their gigs. In a blog post chronicling a show in which the platform was used and promoted, the first artist to play didn't really push it, but the second artist, Greg (one of the creators), made a point of explaining it to people. Basically, by queueing up each song on the site, an artist is able to provide lyrics and additional information that the audience can access via a mobile device while enjoying the performance. It's web-based, so it's accessible from different platforms without the need for downloads (or the risk of getting banned by Apple). Greg was able to get some people interested and following along. One audience member even prompted him when he forgot the lyrics to a verse! The platform is in its early stages, but it'll be interesting to see how it develops and what people do with it. At the very least, it's a good illustration that you don't need to be playing in stadiums to find a use for this sort of thing.

Blaise Alleyne is an expert at the Insight Community. To get insight and analysis from Blaise Alleyne and other experts on challenges your company faces, click here.

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Apple Warns Palm Pre Users: We're Going To Break Your iTunes Syncing

Michael Masnick — Wed, 17 Jun 2009 15:35:00 PST

I have to admit that I've never really understood Apple's ongoing efforts to block any sort of compatibility with both iPod devices and iTunes. You may recall a few years back the big fight between Apple and RealNetworks when Real tried to let its software connect to iPods, which Apple treated as a gross injustice. Now Palm is doing the opposite, by letting the Pre connect and sync with iTunes software by making the device pretend it's an iPod when connected to a computer. Apple, however, has responded with a neat little message that never actually mentions Palm, even if it's entirely transparent who it's about, warning people that Apple can easily break syncing when it updates its software. Of course, Apple did it in a way that it can claim wasn't meant nefariously at all. All the company really meant was to make people understand that it has no control over how the Pre syncs with iTunes, and it's possible that an update could break that syncing. Sure. Right. Except most people assume this means Apple intends to break it.

But I don't understand why. For people who bought the Palm Pre, that's only going to piss them off and drive them to use other software, taking them away from Apple's products. Why does that help Apple? Having Palm Pre syncing with iTunes increases the value of iTunes. What's wrong with that, other than being the latest example of Apple's dislike of anyone doing anything not invented in Cupertino?

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Senators Sniff Around Exclusive Handset Deals

Carlo Longino — Tue, 16 Jun 2009 16:42:00 PST

A group of senators has announced they'll hold a hearing in Washington on Wednesday to examine exclusive deals between mobile handset vendors and operators, and has asked the FCC to look into the practice. The senators want to know if the deals (such as those that make the iPhone exclusive to AT&T and the Palm Pre to Sprint) "unfairly restrict consumer choice or adversely impact competition". Exclusive deals are becoming a big part of the operators' strategies as they look to grab users from their rivals. As prices, coverage and other competitive factors reach a degree of parity, exclusivity on certain devices is a major way the operators seek to differentiate themselves. Smaller and rural carriers argue this puts them at a disadvantage, because of their small size, which makes it impossible to compete for hot devices if a bigger operator wants an exclusive deal. The senators seem to be capitalizing on the recent outcry from some iPhone owners regarding AT&T's upgrade policy, as well as its lack of support for new features in the latest version of the iPhone software. It's unclear just how far the senators want to take this. For instance, if exclusives are banned, would manufacturers be forced to build variants of a handset for any operator's network? Say the exclusive deal for the iPhone was abolished. Would Apple be forced to build a CDMA version for Verizon and Sprint? Would it have to make a model that supported the frequencies used by T-Mobile's 3G network? Hopefully the attempt to gain some publicity by seizing on a hot topic won't lead to rushed legislation that brings unintended consequences.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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IRS Wants To Tax Your Work-Provided Mobile Phone As A Fringe Benefit?

Michael Masnick — Mon, 15 Jun 2009 17:43:31 PST

It appears that the Federal Treasury really is searching for cash under the cushions these days. Its latest idea? Claiming that mobile phones provided by employers are actually a "fringe benefit" that should be taxed. So even if your company pays for your mobile phone, you may owe the IRS taxes on it. The mobile operators are fighting this, but given the state of the economy, it shouldn't be much of a surprise if the IRS moves forward with this.

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In Defense Of Mobile E-Mail 'Addiction'

Derek Kerton — Mon, 15 Jun 2009 09:48:00 PST

There is an interesting Reuters article about how former NY state Democratic Majority Leader Malcolm Smith had a meeting scheduled with billionaire Tom Golisano, a major political fund contributor. (Eschewing the issue of how political contributions are accepted without question, as paid access to our elected officials,) the article describes how Mr. Smith spent enough time on his Blackberry to offend Golisano. The billionaire has clout, and subsequently engineered the ouster of Smith. The article's true focus, then, is how dangerous it is for people to use their mobile email devices during meetings, during social engagements, in the car with family, etc. It points out how rude it can be, and also point out how it can actually be less efficient, because a person's attention is split.

That is all true, but whenever one of these opinion pieces comes out, it ignores the other case: that oftentimes at meetings, our attention simply isn't necessary or productive. In any given multi-person meeting, for what % of the time is each person's participation and attention truly productive? Is every topic related to you? Could a quick check of email be more productive? I would argue that optimal participation is usually less than 100%. Same goes for conferences: Sometimes the conference agenda will include a speaker that is just not very relevant to your individual interests. Yes, you could learn something by listening, but perhaps you could be more productive by responding to your clients, staff, or boss on your mobile device. I've met a few people who take offense at every sighting of a Blackberry, but that's usually attached to a big ego that takes offense too easily. Not every word you say is golden, or even directed at me. In a one on one meeting, obviously one should be focused on the person in front, and one should not feign listening while actually reading. But in multi-party meetings, there are good opportunities to mentally duck out. A blanket Blackberry backlash isn't well-reasoned. As in most debates, a balance needs to be struck.

Derek Kerton is an expert at the Insight Community. To get insight and analysis from Derek Kerton and other experts on challenges your company faces, click here.

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iPhone Owners Discover, Lo and Behold, It's Just Another Cell Phone

Carlo Longino — Wed, 10 Jun 2009 17:26:00 PST

You probably noticed that Apple announced the latest incarnation of the iPhone, the 3GS, earlier this week. It features mostly incremental upgrades over the existing model's features, alongside software enhancements that will work on earlier models, but it's still creating a lot of demand from existing iPhone 3G owners who want to upgrade. One speed bump, though: like any other handset it subsidizes, AT&T is only offering the lowest price for the new device to new customers, or people who are in the last six months of their contract. Since the iPhone 3G came out less than a year ago, that means users of the latest iPhone that want to upgrade will have to pay an extra $200. Which, of course, is making some of them unhappy. The iPhone's upfront price benefits from a hefty subsidy, like other devices AT&T sells, so the operator's going to treat its subsidy, and how it recovers it, pretty much like any other device. It may come as a shock to some iPhone users, but the device really is just another phone in the eyes of operators, and won't get them any special treatment. Another piece of evidence: the fact that some of the new features in the iPhone 3.0 software that Apple touted -- such as support for faster HSDPA data networks, MMS, and data tethering -- aren't yet available on AT&T, because the operator isn't supporting them (or hasn't figured out how to bill for them). That's more like the mobile world we're used to: innovation and new features from handset vendors making it to customers only with the approval of operators.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Ticketmaster Takes Another Stab At Shutting Down Scalpers With Paperless Tickets

Carlo Longino — Wed, 10 Jun 2009 14:19:00 PST

When it's not been busy trying to get into the scalping business itself, Ticketmaster has been trying to push scalpers aside. It claims it does this for altruistic reasons, but those claims generally fall on deaf ears, with many people believing it's simply trying to capture the scalpers' revenues. It's escalating the battle now by expanding its use of paperless tickets for concerts, and will use them for the upcoming Miley Cyrus tour, after an earlier series of shows sparked a flurry of complaints about scalpers. Ticketmaster has been testing the program for a little while, and trying to sell it as a convenient solution: instead of getting a paper ticket for a show, buyers don't receive one before the show, and instead must present the credit card they used to purchase their seats to get in. On its surface, this seems like a fairly effective way of cutting out scalpers by making their transactions with their customers much more difficult. But it's still not clear why Ticketmaster sees such a need to interfere with the market -- beyond its own self-interest, of course. It's hard to imagine that Ticketmaster really cares that scalping goes on, except for the fact that it's not making any money from it.

One inevitable (and legitimate) complaint about this system is that it not only takes out scalpers, but other secondary transactions, too. Want to buy tickets as a gift, or for your kid? You'll have to take the recipient to the show and go up to the gate with them. Buy tickets for yourself, but then can't go to the show and want to give them to a friend? You're out of luck, unless you and your credit card can get there (and, of course, there are no refunds). It seems likely that Ticketmaster will have to do something to rectify this, particularly given the political scrutiny they've attracted lately, and the solution seems obvious: Ticketmaster sets up a secondary market that lets people resell their tickets and reassigns them to a new credit-card holder (taking a cut for all the hard work, of course). The company has been growing its reseller business, in particular making efforts to become the "official fan resale" partner of various sports leagues and teams, and it's hard to see it not using paperless tickets as a way to expand this business. Ticketmaster hates scalping -- unless it's the one doing the reselling. But if it wants to benefit from the free market, the market should really be free, and not one established and controlled by Ticketmaster.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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The Jitterbug Phone...Turns Out It's For Seniors

Derek Kerton — Mon, 8 Jun 2009 17:03:00 PST

Mobile Health is a growing trend in the mobile application industry. There is a lot of interest around the potential to use mobile devices as medication reminders, and as local hubs of a Personal Area Network (PAN or BAN for 'Body') which can relay body sensor data to a central system, or medical personnel. Imagine a glucose sensor affixed to a diabetic tracking real-time blood sugar levels and relaying those to a doctor or a parent. With that, the MobileHealthNews blog has sprung up to cover the sector, and I read a good interview there with Jitterbug CEO David Inns. Jitterbug makes a phone that is pictured at the preceding link, which is designed to be easy to use for seniors, and provides associated services which older subscribers may find useful. Good. I have a lot of respect for a good segment strategy.

But when I saw them at trade shows, Jitterbug managers would say: "No, we're not just for older people, we're really for anybody who wants a simple experience." I reply "No, you're not. You boast bigger keys, a wizard interface, simple Yes No buttons, an audible dialtone, a three button model, hearing aid compatibility, operator assist, one touch 911 calling, and large fonts. Ergo, you're targeting seniors." They would deny it, so I'd pursue, "OK, so where's your marketing spend. I've seen you in AAA magazine, but haven't come across your ads on MTV yet. Where else do you advertise?" Knowing full well they advertise in the AARP magazine and launch products at AARP conferences [pdf]. But no soup for me. For years, I couldn't get the Jitterbug reps to admit that it was a phone for old people. I'll give them points for rigorous PR training, and keeping on message, but I don't agree with the strategy.

I get it. Great Call (Jitterbug) has decided that they don't want to look "uncool" by identifying their segment. But I'm not sure that is good business. If you're embarrassed about your customer base, are you likely to be serving it as well as you could? Is it that you are worried about scaring off young potential customers because your product "smells like old people"? Get over it. Most young people don't want a Jitterbug, just as most seniors wouldn't want a Nokia N95. If you completely believed in market segmentation, you'd get over yourselves, and get real.

That's why the recent interview with the CEO was such fun. The potential revenue of the Mobile Health sector is a powerful lure, but it's hard to play a central role when you are in denial of your attractive customer base of aging baby boomers. As a result, Jitterbug is scrambling to finally admit -- nay, boast of -- who their customer base is. CEO Inns says, "So many examples of wireless health services are being shown running on iPhones,... [is opportunity] really with the 30-year-olds? ...If you want to get serious about tackling the healthcare problems in this country where they actually exist, which is in the 60+ age group, then you should be working with us to develop services that are easy to use so they get compliance."

Jitterbug has built a community that has value, but has distanced itself from that community. That's not the way to open up opportunities in the 21st century, and that notion just clicked back at the Jitterbug Boardroom. Thank you, Jitterbug. It's taken about four years, but you've finally admitted who your customers are. Was that so bad?

Derek Kerton is an expert at the Insight Community. To get insight and analysis from Derek Kerton and other experts on challenges your company faces, click here.

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If Everyone Likes The Palm Pre, Why So Much Hedging?

Derek Kerton — Fri, 5 Jun 2009 08:33:35 PST

The Palm Pre launches at Sprint this Saturday, and you've probably been seeing an increasing amount of buzz on the subject [that is a Google search link, and today will show buzz, but if you're reading this later, will be meaningless]. I wrote about the Pre on Techdirt after being very impressed with the phone at CES and MWC Barcelona. I wrote, "I'm not sure when the bandwagon is going to hit the trail for this device, but I'm saddling up right now." And in the intervening months, I've noted that more and more reviewers were, like me, heaping praise on the device. But there was something else: many reviewers couched the endorsement of the Pre with caveats. At the end of every glowing article was a conclusion that seemed out of sync with the review. Here were mine, "I can't predict whether the developer community will rally around the Pre, or whether Sprint and Palm will be successful in selling big volumes, but I want to call this one early: the Pre is a great smartphone." Walt Mossberg at the WSJ wraps up his glowing review with, "All in all, I believe the Pre is a smart, sophisticated product that will have particular appeal for those who want a physical keyboard. It is thoughtfully designed, works well and could give the iPhone and BlackBerry strong competition -- but only if it fixes its app store and can attract third-party developers."

The caveats were reasonable. Developers have limited resources, and collective uncertainty in Palm and Sprint performance has us hedging our bets. Sure, we could assert that the device is great, but we could not be sure if the ecosystem would grow around it. But I think I'm in a better position to do that now. When 98 out of every 100 reviews say the device is great, isn't that one hell of a consensus? I haven't seen that kind of agreement in this industry since AFTER the launch of the iPhone. That's exactly the kind of community consensus that seeds an ecosystem. I officially retract my hedge. What content developer wouldn't be at least attracted to a device that gains such consistently high grades? Is it just hype? No. A landslide of positive reviews from people who actually tested isn't hype - it's straight As. That's good news for Palm, good news for consumers in that we get another competitive device to run alongside the iPhone, but only marginally good news for Sprint. Verizon took the wind out of Sprint's sales [sic] by announcing they, too would carry the Pre by year end, and AT&T is rumored to want a GSM version.

Derek Kerton is an expert at the Insight Community. To get insight and analysis from Derek Kerton and other experts on challenges your company faces, click here.

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Verizon: US Broadband Is Really Competitive, If You Just Redefine The Market The Way We Want...

Michael Masnick — Thu, 4 Jun 2009 23:33:28 PST

Almost all of the issues facing broadband in this country (our slow speeds and high prices relative to other countries, questions about "neutrality" and things like customers being forced into broadband tiers) are really symptoms of a lack of significant competition in many markets. Many customers really only have one or two options, neither of which they like (I'm in that camp myself). Yet, the broadband providers want to make everyone believe it's a really competitive market. That's why they've done everything possible to block the FCC from getting accurate data about actual broadband deployments and competition over the years. Their most recent plan has been about pitching the idea of an organization called "Connected Nation" to "map" broadband penetration. However, as has been discussed previously, Connected Nation seems more like a front for the big telcos to try to pretend there's significant competition... and an increasing number of doubts are being raised about Connected Nation's efforts -- even as it seems to remain a darling of DC politicians. However its "mapping" still won't look at house-by-house penetration and competition (by demand from the broadband providers) and the collected data will remain proprietary, rather than open.

Meanwhile, Verizon has put up a video claiming to explain why there's plenty of competition in broadband in the US, but it does so by pulling a neat little trick: rather than defining the market as DSL and cable providers, it dumps wireless providers into the mix... So when you add mobile data providers, yes, there are more players in the space, but that ignores the fact that (1) many of the mobile players and broadband players are actually connected (i.e., AT&T has both, as does Verizon) and (2) that the cellular wireless broadband providers are all greatly limited, and use terms of service that tend to forbid using the data account as a primary connection. In other words, they're not really part of the same market at all.

But, most importantly, the video fails to back up its thesis that the US is "one of the most successful broadband markets in the world." It says there's lots of competition, investment in new technologies and consumers are getting more as prices go down. That suggests there is, in fact, some competition in the market -- a point pretty much everyone agrees on. But it does nothing to compare the US to other markets around the world that have much more competition, much more investment and much greater consumer value per dollar spent. Just saying that because there's some competition, the US is one of the most successful in the world, doesn't back up the thesis at all. It's like saying that you won a baseball game because you fielded nine guys. You forgot about the actual game.

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Do Morons In A Hurry Play Games On Their iPhones?

Michael Masnick — Mon, 1 Jun 2009 14:08:00 PST

A whole bunch of people have been sending in the story of a guy named Tim Langdell, who claims to own the trademark to the word "edge" when its used in the name of any video game, and has used that to force a popular iPhone game, called EDGE, out of the app store. As the article points out, Langdell's last game was released in 1994, which makes you wonder if the name is still being used in commerce (a requirement for a trademark claim). And, of course, there's the question of confusion. Considering how few people have heard of Langdell's company, was there really any chance that "a moron in a hurry" would confuse a fun block game with Langdell's title's like "Snoopy: The Case of the Missing Blanket." Kotaku points out that Langdell appears to spend a lot more time these days talking to people about how he owns the word "edge" in any video game than producing or selling video games...

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Study Says Listening To Sports While Driving Is Dangerous, So Let's Ban That, Too

Carlo Longino — Fri, 29 May 2009 03:25:04 PST

A new study from the UK says that people who listen to soccer matches on the radio while driving behave more erratically and dangerously than non-listeners. Indeed, says one of the researchers, "It is widely accepted that the distraction of talking on a hand-held mobile phone may lead to accidents but other activities may have a similar impact – such as listening to sport on the radio." Since the UK's already banned talking on the phone while driving, will it now push for a ban on listening to sports while driving? After all, if "other activities may have a similar impact", they're all worthy of their own bans, aren't they? Here's a novel idea: instead of creating bans on one single activity after another, just crack down on unsafe driving with existing laws, regardless of the cause.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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AT&T CEO Says Wireless Networks Aren't Prepared For Data Traffic -- Frankly, He Should Know

Carlo Longino — Thu, 28 May 2009 22:22:00 PST

AT&T CEO Randall Stephenson said this week that US mobile networks can't keep up with all the data traffic being spawned by smartphone users. This is something Stephenson's got a lot of first-hand knowledge about. Earlier this month, AT&T blocked the SlingPlayer app for the iPhone, saying it didn't have the capacity to support it, while the company annoyed lots of geeks with blogs when its network in Austin couldn't keep up with the influx of iPhone users during the SXSW conference in March. Stephenson says the company is taking steps to address the problem by upgrading its 3G network to HSPA+ technology that will double its throughput. The logic here isn't completely clear, though: the new technology will require new device hardware, and furthermore, the real issue is capacity not speed. And capacity doesn't just apply to the mobile network -- each individual cell site's backhaul connection needs to be beefed up, too. But the real solution AT&T and other operators employ to fix this issue may not be a technological one. Stephenson hints that flat-rate data plans could be on their way out, with variable-use pricing on its way back in. By bringing back per-unit pricing, operators will hope to increase their revenues from data-hungry users, but all they'll really do is end up stifling mobile data use -- just like they did before they went to flat-rate plans.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Today, It's Good Manners Being Killed By Texting

Carlo Longino — Thu, 28 May 2009 17:47:39 PST

Some grumpy old editor at the New York Times must really be upset about all these damn kids and their cell phones. First, earlier in the week, it ran a story in its health section talking about how texting is destroying teenagers' thumbs and ruining their minds; now, it's got a piece on how texting at the dinner table is the latest epidemic of bad manners. There's the obligatory quote from a mental-health professional, as a therapist weighs in to say that texting while eating has become "a major issue" among couples in counseling. It also has etiquette writers keen to push their latest book by touting the need for proper gadget etiquette, as if being rude or inconsiderate has somehow changed since we got cell phones. It seems like for years, people have been saying how American families never eat dinner together anymore, but apparently that problem's been solved. Now if it weren't for those damn texts...

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Technology Again Causes American Idol Controversy, Fingers Pointed At AT&T

Carlo Longino — Thu, 28 May 2009 04:33:53 PST

Apparently the outcome of the latest season of American Idol caused some controversy when the contestant generally regarded as the underdog of the two finalists was crowned the winner, provoking an angry backlash from his rival's fans. Now, they're pointing the finger at AT&T, alleging it helped skew the vote. This isn't the first time telecommunications have caught this sort of flak, as it's been a regular occurrence during the show's run that people have faced jammed phone lines when they've tried to vote. But this time, it's a little different. Apparently AT&T reps were at a couple of viewing parties organized by fans of the winning contestant, Kris Allen, and brought along a bunch of phones with them -- since, of course, only people on AT&T's wireless network can vote for the show's winner via text message. Then, the reps supposedly showed people at the parties how to "power text", or send in several votes at once. It seems unlikely that the votes spawned from the two parties were enough to tip the balance in Allen's favor, but the appearance of impropriety on the part of one of the show's major sponsors may be a bit more damaging.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Texting Is Wrecking Your Teenager's Mind, Destroying Their Thumbs, Killing Puppies, Etc.

Carlo Longino — Tue, 26 May 2009 16:44:00 PST

The New York Times says the growing use of texting among teenagers "is beginning to worry physicians and psychologists". Apparently all the texting kids do creates anxiety, keeps them from getting enough sleep, and causes repetitive stress injuries. Sure, texting could have some some negative impact on some kids, but like with so many things, for every citation of some horror texting causes, you can find studies touting texting's benefits, too. And finding one girl who texted so much it made her thumbs hurt really isn't a sign of an epidemic, either. It certainly makes for some good headlines, but is the rise of texting among teens really any different than the growth of any other technology, none of which seem to have killed us off yet?

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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E911 Tax Money - When It's Not Going To Boots, It Just Goes

Derek Kerton — Tue, 26 May 2009 15:40:00 PST

Your U.S.A. cellular phone bill, since the early 1990s, has had a fee levied on it by governments for E911 services. The fee differed from state to state, and was ostensibly to fund the upgrade of 911 call centers. The public safety call centers were to be readied to receive location information from cell phones, and to use that information to instruct emergency crews. The cellular carriers were required to collect this tax for the government, but were also separately required to design, create, and deploy the (much more expensive) systems that can determine where the caller is. The government basically required the carriers to fund a public safety system (which you may or may not agree with). One thing with which none of us could agree was that the E911 taxes on our phone bills were promptly squandered by governments, for years, on just about everything except 911 call center upgrades. Money was mis-spent on ballpoint pens, conference attendance, dry cleaning, and boots.

Most of that is history; much of the US is now ugraded. (Please don't rely on E911, as it only works when you have a good cell signal, battery power, and a few other things. Don't use it as a crutch or as a "safety device"!) So what do you think will happen to those monthly taxes that were collected for so many years? Time to cancel them, right? Not so fast, says the State of Hawaii, which gets 66 cents of E911 fees from every monthly bill. This article in the Honolulu Advertiser shows how various government agencies are trying to get their hands on the "windfall." A few examples of this include: the Honolulu PD wants a new dispatch system for $20m, the Board that manages the fund wants their mandate extended to spend on other tech like VoIP location, the State hired a new Executive Director of the E911 fund for $294,421/yr, the legislature is taking $16M from the fund to help balance the budget, and some are trying to build new cell towers with the money. The article predicts future raids on the funds, and given what we've seen nationwide, we would agree.

What is it about this country that we can't just call a tax a tax. We seem to have an addiction to tucking and hiding fees into a wide range of services, where over time the fees have little to do with the services. Dear government: If you're going to tax me, please just do it up front, talk to me honestly, and say it's a tax. I want to feel you reaching into my pocket, instead of having you just skim the till behind my back.

Derek Kerton is an expert at the Insight Community. To get insight and analysis from Derek Kerton and other experts on challenges your company faces, click here.

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