August 2009 Archives

Over 2,200 Applications
Over 25 B Requested (4 B has been Allocated)

WASHINGTON- The Commerce Department's National Telecommunications
and Information Administration (NTIA) and the Department of Agriculture's
Rural Utilities Service (RUS) announced today that they received almost 2,200
applications requesting nearly $28 billion in funding for proposed broadband
projects reaching all 50 U.S. states and territories and the District of Columbia.
This is the first round of American Recovery and Reinvestment Act funding
aimed at expanding broadband access and adoption to help bridge the
technological divide and create jobs building Internet infrastructure, with $4
billion available through loans, grants, and loan/grant combinations. 
 
The Recovery Act provided a total of $7.2 billion to NTIA and RUS to expand
access to and adoption of broadband services. Of that funding, NTIA will utilize
$4.7 billion to deploy broadband infrastructure in unserved and underserved areas
in the United States, expand public computer center capacity, and encourage
sustainable adoption of broadband service. RUS will invest $2.5 billion to
facilitate broadband deployment in primarily rural communities. Approximately
$2.4 billion from RUS and up to $1.6 billion from NTIA is available in this first
grant round.
 
Applications came in from a diverse range of parties including  state,  local, and
tribal governments; nonprofits; industry; anchor institutions, such as libraries,
universities, community colleges, and hospitals; public safety organizations; and
other entities in rural, suburban, and urban areas. 
 
"Applicants requested nearly seven times the amount of funding available, which
demonstrates the substantial interest in expanding broadband across the Nation,"
said Lawrence E. Strickling, Assistant Secretary for Communications and
Information and Administrator of NTIA. "We will move quickly but carefully to
fund the best projects to bring broadband and jobs to more Americans."  
 
"The overwhelming response we received underscores the extensive interest in
expanding broadband across the country. Rural communities clearly recognize
that broadband can expand their economic opportunities and create jobs," said
Jonathan Adelstein, Administrator, Rural Utilities Service, USDA.  "The Obama
Administration's goal is to target funds to serve areas of greatest need.  The big
demand for loans as well as grants demonstrates that we can leverage private
investment with USDA's $2.5 billion to deliver the greatest bang for the
taxpayers' buck."
 
A preliminary analysis of applicant-reported data shows that NTIA and RUS
received requests for grants and loans totaling nearly $28 billion. When including
about $10.5 billion in matching funds committed by the applicants, there are over
$38 billion in proposed broadband projects. 
 
The applications break down as follows:
 
Infrastructure
 
• More than 260 applications were filed solely with NTIA's Broadband
Technology Opportunities Program (BTOP), requesting over $5.4 billion
in grants to fund broadband infrastructure projects in unserved and
underserved areas. 
 
• More than 400 applications were filed solely with RUS's Broadband
Initiatives Program (BIP), requesting nearly $5 billion in grants and loans
for broadband infrastructure projects in rural areas.
 
• More than 830 applications were filed with both NTIA's BTOP and
RUS's BIP, requesting nearly $12.8 billion in infrastructure funding.
(Applicants for infrastructure projects in rural areas must apply to BIP but
were given the opportunity to jointly apply to BTOP in case RUS declines
to fund their application.)
 
Sustainable Broadband Adoption 
 
• More than 320 applications were filed with NTIA requesting nearly $2.5
billion in grants from BTOP for projects that promote sustainable demand
for broadband services, including projects to provide broadband education,
awareness, training, access, equipment or support, particularly among
vulnerable population groups where broadband technology has
traditionally been underutilized. (The Recovery Act directs NTIA to make
at least $250 million available for programs that encourage sustainable
adoption of broadband services, of which up to $150 million is allocated
in this first round of grants.)

Public Computer Centers
 
• More than 360 applications were filed with NTIA requesting more than
$1.9 billion in grants from BTOP for public computer center projects,
which will expand access to broadband service and enhance broadband
capacity at public libraries, community colleges, and other institutions that
provide the benefits of broadband to the general public or specific
vulnerable populations. (The Recovery Act directs NTIA to make at least
$200 million available for expanding public computer center capacity, of
which up to $50 million is allocated in this first round of grants.)
 
In the coming weeks, NTIA and RUS will post online a searchable database
containing summaries of all applications received.  The dollar figures cited today
represent applicants' self-reported totals from proposals submitted before the
August 20, 2009, deadline at 5 p.m. ET. These results are preliminary estimates,
however, and may change as the applications are reviewed for errors, omissions,
and duplications.

Some good friends and I keep a dialogue going about the industry.  We don't make public our views, so as to protect the people from being exposed with their views versus their consulting / job opportunities.

A thread that I thought was intriguing was about the reason SMS / txting has not been successfully bypassed by IM.  It may be that the price is right to avoid the cross elastics.

But I think there is a simpler answer.  Signalling on IM on a mobile phone requires a learning curve and a redirection, while texting is via SMS is an embedded application.  So the cost to do the IM is in the time, and the cost to do the SMS is nominal.

I bring this up, because of the discussion about Apple's iPhone coming to China. In the article IDC states that about 7% of the iPhone market share is in Asia.  Previously, I have pointed out that Telefonica has not gotten the boost ATT has from the iPhone.  

I think China Unicom will have a big enough market that the opportunity itself will change the marketshare.  While Touchscreens are hot according to the article and my expectation is that will point to more gaming being done and less phone calls.

The reality is that Kanji characters are very easily navigated by the Asian market with alphabetic keyboards.  Spelling phonetically on the alpha the kanji characters appear on the screen until the option of four or five appears and bingo they mouse over to it.

It will be interesting to see if the that kind of a mix on a touch screen can be duplicated.  On my gPhone, this feature is less that spectacular for english, so the touch screens may be need to go through a few generations of optimization for this to work properly.

But the iPhone is to fun not to be bought and with China's software development capability, I have high expectations for the App Store, although it may be jointly owned with China Unicom in the end due to China's restrictions.

When WiMAX providers talk about the technology's attributes, cellular-like mobility is usually near the top of the list. But for many business users WiMAX's simple portability -- the ability to pick up and move your broadband connection -- may prove to be a more powerful economic and operational lure, the kind of money-saving, hassle-free attribute that gets CIOs interested and gets POs signed.

The power and potential attractiveness of WiMAX's simple portability was one of the surprising themes we picked up on during the reporting and writing of our latest Sidecut Report, titled the Sidecut Reports WiMAX Business Deployment Guide. Available now as a free download, the report also includes a basic primer on what WiMAX is, and where and how businesses can connect to WiMAX services, and some broadband pricing comparisons.

And while there are potentially many customers who might eventually take advantage of WiMAX's ability to support real broadband connectivity while in motion -- we are thinking here of commuters in Chicago and New York, markets that are already on the Clearwire launch schedule -- for right now it's easy to say that most business computing is done by bodies at rest; by people sitting at a desk, a cubicle, a coffeehouse table or somewhere else well lighted and generally stable. Right now those workers' broadband needs are either met by a wired network, or by a Wi-Fi access point tied into a backbone via either DSL or cable modem.

The twist WiMAX adds into this work equation is the ability to unplug that beefy backhaul and move it across the cube, across the hall, across campus or across town -- delivering workspace flexibility not just for individuals, but for entire workgroups who could theoretically be supported by WiMAX services' rather robust plans. Throw in one of the new portable hotspot routers being offered by both Clearwire and Sprint (Andy calls 'em PocketSpots) and all of a sudden business broadband decisions are no longer tethered to a wire coming out of a wall -- or to any wall at all.

Our report provides other details on why businesses might want to take a look at WiMAX, if it is available in their markets -- but it is our guess that simple portability, instead of way-cool mobility, may be a more powerful business-user lure right now, at least until those promised next-generation mobile devices appear in the wild.

 

In this time of need for so many Americans, thank you so much for taking a moment to consider how you might help President Obama and your Federal Government deliver on the promise of economic recovery through the Recovery Act's Broadband Technology Opportunities Program and Broadband Initiatives Program.

We need the help of experienced professionals like you to ensure the success of the BTOP grant program by lending some of your valuable hours to helping review the many applications we expect to receive over the coming months for broadband grant funding. To be considered as a reviewer you must have significant expertise and experience in at least one of the following areas:

1) the design, funding, construction, and operation of broadband networks or public computer centers;

2) broadband-related outreach, training, or education;

3) innovative programs to increase the demand for broadband services.

We are committed to ensuring that reviewers come from diverse backgrounds and areas of the United States. Please feel free to circulate this "Call for Reviewers" to other individuals or organizations that may be sources of qualified reviewers.

If you would like to serve your country by becoming a BTOP reviewer, please send a resume and the below conflict of interest form in an email to btopreviewers@ntia.doc.gov or FAX to BTOP Reviewers at 202-501-8009.  Please send a signed paper copy as well by U.S. Mail to

BTOP Reviewers
Broadband Technology Opportunities Program
National Telecommunications and Information Administration
U.S. Department of Commerce
HCHB, Room 4812
1401 Constitution Avenue, NW
Washington, DC 20230

Please click here to download the BTOP Reviewer Conflict of Interest and Confidentiality Certification for Non-Governmental Peer Reviewers

Of course, I would like to talk about Apple's FCC letter regarding GoogleVoice, but Steve Jobs is in the news with the iTablet.  So the distraction has worked. 

The iTablet is probably not a netbook strategy, but a MAC that supporting streaming Video via Verizon's LTE network and attacks the Kindle's ebook functionality.

You may recall that Lowell McAdam, Verizon Wireless CEO.  was talking about the ability to stream an HD Video channel on their network.

As for the Kindle functionality, Jobs can undo the Bezos fiasco about audio via iTunes bundling. 

Speculating without corraboration, Apple can probably find a way to sync text to audiobooks as well, but that is probably a futuristic function.

The WSJ seems to indicate that Steve, back on the job, is causing a stir amongst his employees and pushing back on the assumptions used on the ITablet.

From Verizon's perspective, allowing Steve to be Steve, masks the frantic buildout they are doing to provide the network for the iTablet.  So its a win-win even if it does nothing but freeze the market for a while.

The Sidecut Reports WiMAX Business Deployment Guide answers the questions businesses small and large may have about the newest wireless broadband technology to hit the U.S. market: What is WiMAX, how can we use it, and how might its features, prices and attributes save us money, enable new business opportunities, or bring more flexibility and connectivity options to our existing workforce?

Prepared in an easy-to-read style with deep background material for those who may not have understood WiMAX before, the report provides a thorough explanation of the technology, the newest devices that connect to it, and how both small businesses and branch or remote offices of larger enterprises might benefit from WiMAX's ability to deliver "bandwidth on demand" without impacting existing network infrastructures.

 In the new report you will learn:

-- How WiMAX compares to existing business broadband Internet access options on a price/benefit comparison

- Why WiMAX's portability, and not necessarily its cellular-like mobility, may be the key selling point for business customers

- Where WiMAX services will be launched in the U.S. this year and next

- What devices are available for businesses to connect to WiMAX now, and in the near-term future

- How flexible pricing and "try before you buy" options may make WiMAX a low-cost, low-risk option

The report also provides a brief historical background on the origins of WiMAX, as well as a cost-comparison matrix for WiMAX and competing broadband services in the Portland, Ore. market. Download your free copy today!

Lately, I am feeling right at home.  Regulatory is rearing its head and as some one no longer trying to navigate it, I can just sit back and watch the events.

Nothing is more fun to look at then the tenor of the three letters from Apple, ATT and Google,

ATT, long acquainted with their role and the concerns about them, write humbly even though they have done nothing wrong.  In their document, they make clear that they have accepted the concept of third party VoWiFi services.  As we head towards LTE, we might be saying "Its all WiFi eventually).  More about this later in the week.

Then comes Google's Letter.  A thing of beauty.  The writer, a friend has been in the advocacy area for carriers for years, has the high ground with  open standards and knows he does not have to defend Google here. Mind you they did keep confidential their contacts with other third parties, but on this specific case and on the Google app store they were clean.

Google has been very involved with this administration and it maybe to Apple's regret that they severed the relation at the board level.

Apple's letter has some interesting statements in it.  That if I were worried about monopolistic powers (RIAA are you listening) I would question.

"We provide every developer with the same software that we use to create our own iPhone".

Does anyone else want to challenge that statement.  Particularly after the answer to question number 1. 

"The application has not been approved because, as submitted for review, it appears to alter the iPhone's distinctive user experience by replacing the iPhone's core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail.  Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone. "

In other words, we enable compliance not openness.

There are other places in the document where Apple is placing their controls in the most favorable light. If I were Palm, now would be a good time to file a friendly reminder of their disruption by Apple.

So sometimes the old school learns something new, they were looking for ATT's monopolistic tendencies and they found the monopolist.  Now lets see if they change focus, or if they continue the fights of the past.

Andy Abramson sent me a note about the Truphone announcement regarding an iPhone bug.  It is not that Apple targeted Truphone its just a bug.  Here is the post,

Apple iPhone Bug Isn't Truphone's Problem

I'm posting is a Public Service Announcement but also since Truphone is my agency's client we felt the important thing to do is get the right information out as far and wide as possible.

This afternoon this afternoon Truphone sent an emailout to its customers explaining that Truphone knows of a bug issue with the Apple iPhone that has existed since the launch of the 3.0 OS in June 2009.

The issue has been widely reported on sites including Mobile Crunch and theiphoneblog. The problem, as was outlined in the email, impacts all applications on a the iPhone, not just the Truphone application. With that said, the bug seems to have affected very few people that Truphone is aware of.

The bug is manifested by applications either disappearing entirely or by attaching themselves to others, so for example you may open a game and a different app opens.

To date there is no official fix for this from Apple, but many people find that a reboot or synch with their PC will often solve the issue.

Unfortunately a publication ran a story today shortly after the email was sent out to customers because the reporter is also a customer who had received the email. The story stated that the Apple iPhone bug had 'taken Truphone users off air' - this was not, and is not, true -and the publication has since rephrased the headline to something more appropriate, but not before various websites re-printed the story with the original headline and many people Twittered about it.

We would like to reassure all customers that Truphone is working as usual and is most definitely not 'off air'.

Anyone wishing to take advantage of the Truphone service on the iPhone can continue to do so. It is still available for download in the App Store and is still offering great cost savings on international calling and Instant Messaging across multiple communities including Skype, Google Talk, MSN Messenger, Yahoo! Messenger and AIM.

The early reports about Truphone being broken is more case where a smoking gone is being looked for, the opinion piece in the Wall Street Journal that seems to start with a presumption of guilt on ATT's part. 

Given Skype works well on the iPhone I am not sure why the path takes us to ATT, but I think Andy may have more insight.  Regardless, Andy referenced  the policy views.

Washington is about to heat up with a lot of issues, Stimulus proposals will be contested, Special Access is a battle looming over the entire industry and the states are all looking to have jurisdiction on VoIP again.

Today's Wall Street Journal has knews that Sony Ericsson is going to have a new CEO.  In the land where 4G is closer than anywhere else (Japan), SONY Ericsson has been a contender, but in other places not so strong.

With the Ericsson the parent now having a bigger footprint in the US with the acquistion of Nortel, the outsourcing by Sprint and the overall positive response to them from cable and wireless carriers, Ericsson has made the right moves.

And for Sony Ericsson with the game-focused mobile phones one that features an accelerometer for gesture-based controls and one that is linked to the Sony PlayStation 3 game consoles to swap content.

Gaming is certainly an important market, but my big issue is can the company get an advantage (again) in music.

On July 9, 2009, RUS and NTIA published a Notice of Funds Availability (NOFA) and Solicitation of Applications in the Federal Register announcing general policy and application procedures for the BIP and BTOP.  74 Fed. Reg. 33104 (2009).  In the NOFA, RUS and NTIA encouraged all applicants to submit their applications electronically and required that certain applications be filed electronically through an online application system at http://www.broadbandusa.gov.  74 Fed. Reg. at 33118.  RUS and NTIA established an application window for these grant programs from July 14, 2009, at 8 a.m. ET through August 14, 2009, at 5 p.m. ET (application closing deadline).

 

Over the last several days, the online application system (Easygrants® System) has experienced service delays due to the volume of activity from potential applicants.  The agencies have added additional servers to address these capacity issues.  Nevertheless, in an effort to give applicants that have already started the electronic application submission process prior to the application closing deadline an opportunity to complete the submission of those applications, RUS and NTIA announce that an applicant with an application pending in the Easygrants® System as of 5 p.m. ET on August 14, 2009, will be given until 5 p.m. ET on August 20, 2009, to complete the electronic submission of its application.  Please note that an applicant must have completed the following steps, at a minimum, to be recognized as having a pending application in the Easygrants® System:

 

1. Log into the Easygrants® System at www.broadbandusa.gov;
2. Select "Start a new application" under "Apply for a new grant/loan;"
3. Select one of the two choices for available funding opportunities;
4. Select "Continue;" and
5. Select "ok" when prompted "Are you sure you want to apply for the program."

 

All other requirements for electronic submissions set forth in the NOFA remain unchanged.  There are no changes to the filing instructions, requirements, or application deadline for paper submissions.

As a bell head the concept of state was indoctrinated into me.  I am not sure if this was through Osmosis, the continue using of the Bell System Practice as a head rest, or the "My Network" mentality.

Today the peers run rampant on my machine.  I get a .vcf file or an AIM message and you would think I was dealing with the bankers of the old lending tree add.  (I would use the old WaMu ad but the bankers were all clustered in those ads).

Particularly annoying right now is Plaxo.  Which seems to have lost its state awareness on the fact that I downloaded the integrated app to my address book and yet everytime i get a .vcf pops up again.

Other nonsense includes the ability to take from Google but not push to Google.  (Not sure why Google has not taken this problem on themselves).

The continual facebook loss of my password (and my mistrust of anything that claims to be facebook).

And of course my Apple Time Machine, that has decided I have to reinput all my license keys after the fiasco of the stolen machine.

I want control of my identity and I want control of the identity systems independent of software packages.

I thought the data portability group was going to bring me something to this end, but they seem to have other issues that motivate them.  OpenID in theory should be this, but so far the services seem to have more control than the users.

I think this should all be linked to a presence enginge managing presentity with a key chain to my devices.  I have not seen anything like this as independent service, but maybe I am wrong. 

Highlights (or lowlights) from the Clearwire Aug. 11 earnings call (the press release is here):

-- Clearwire reports 12,000 net subscription adds for Q2, down from 25,000 for Q1. Ouch. Execs on the call say this number is good and signups are strong, but no getting around the fact that 12,000 is not a big number. Remember this is all mainly Portland, since Vegas/Atlanta didn't launch until end of quarter. The net adds includes losses from pre-WiMAX subscribers, which may be significant. But since Clearwire won't break out numbers, hard to tell what Portland growth really is.

-- Clearwire adds San Antonio, Austin to launch markets list for 2009. We'll publish the full list but they are saying 25 markets live by year end. (ed. note: here is the list of markets that will go live in 2009 from the press release:)

Atlanta; Baltimore; Boise; Chicago; Las Vegas; Philadelphia; Charlotte, Raleigh, and Greensboro, NC; Honolulu and Maui, HI; Seattle and Bellingham, WA; Portland and Salem, OR; and Dallas/Ft. Worth, San Antonio, Austin, Abilene, Amarillo, Corpus Christi, Killeen/Temple, Lubbock, Midland/Odessa, Waco and Wichita Falls, Texas.

-- CEO Bill Morrow says that Q4 subscriber adds will surpass all other 2009 quarters combined -- there's a target to hit!

-- Loss for Q2 is $73.37 million, on revenue of $63.59 million.

-- Clearwire spent $251 million on capex in Q2, up from $112 million in Q1. That's just $363 million in a year where they have planned to spend $1.9 billion. So, lots of towers to pay for in other markets during the second half.

-- They will add 800 employees over the next six months... ready your resume!

-- Mike Sievert, chief communications officer, is on the call. No Scott Richardson. Marketing over engineering?

-- More on the subscriber numbers... Clearwire CFO David Sach had to audibly stop himself from saying something bad about Q2 numbers, weakly promising that subscriber count "is going to accelerate" for Q3 vs. Q2.

-- CEO Morrow says Clearwire probably won't break out specific 4G subscription numbers (something some of us have asked for before) probably until 2010 at the earliest. Until then apparently it is supposed to be up to us to guess exactly how many "old" pre-WiMAX subscribers are muddying the Clearwire financial reporting waters.

In a separate announcement before its earnings call Aug. 11, WiMAX provider Clearwire announced that China's Huawei has joined its list of infrastructure vendors, specifically to provide radio access network (aka RAN) equipment. According to the press release:

Specifically, Huawei will provide several key infrastructure pieces, including base stations, element management system (EMS) components, and related network hardware and software.

Clearwire said former suppliers Motorola and Samsung remain on the WiMAX provider's preferred list, along with Cisco, Ciena and microwave backhaul specialist Dragonwave.

According to Clearwire chief technology officer John Saw, Huawei will be providing base station technology that offers "a significant improvement in coverage and quality," thereby leading to lower costs for Clearwire network deployment. The Chinese supplier's aggressive pursuit of matters WiMAX includes 2,000 engineers working on WiMAX, according to Charlie Chen, senior VP of marketing for Huawei USA.

Clearwire said Huawei gear will first be used in Hawaii and Seattle, two markets where Clearwire has scheduled live rollouts for 2009.

XG Technology has been driving the next generation of wireless services and is now on the brink of a roll out that will enable the service provider to be both Internet and voice friendly. While other companies are now ignoring the voice to develop data services on their voice network. xG has developed their voice strategies based on the wireless network they run IP over. WIth layer 2 optimization xG is designed to support the end points.  The commercial release of their products are sold under the brand xMAX.

Recently they announced they were participating with the Stimulus with services they are building for  Townes Tele-communications
XGTechnologyFrankPeake.mp3.

Frank Peake and Shaski G joins us in a discussion about xG's latest advances and the opportunities in the market today.