Opening of Wi-Fi hot spots is being described as gold rush by its promoters, and starting tomorrow (Tues.) prospectors will be gathering in Santa Clara, Cal., for trade conference focusing on their hopes. However, growth of hot spots comes as their operators seek wider coverage for customers and as cellular carriers looking for greater returns on their 3G investments eye ways to collaborate rather than compete.
Broadband in Europe is “only at the end of the early- adopter phase,” Alcatel Dir.-Carrier Service Market Development Scott Robinson said Thurs. at 4-day EURESCOM Summit in Heidelberg, Germany. He said there were 6.4 million DSL lines installed in Europe, and in some European countries DSL availability had reached 90%. He said several requirements needed to be met to make broadband success in mass market: (1) Price level shouldn’t be more than 30% higher than narrowband Internet access. (2) “Compelling content drives end-user adoption.” Robinson said music and games were primary drivers of broadband in consumer market. Some speakers said “advanced but simple interfaces” also were crucial for successful deployment of broadband services. Joachim Claus, head of innovation management of Deutsche Telekom, said: “We need easy communication. The ease-of-use is the key to success.”
Measure that would allow copyright owners to use self- help to stop unlawful peer-to-peer (P2P) file sharing is likely to undergo extensive revisions before being refloated in next Congress, House staffer said Wed. HR-5211, introduced by House Judiciary Subcommittee on Courts, Internet & Intellectual Property ranking Democrat Berman (Cal.), would give content owners immunity from liability under antihacking laws for interfering with transmission of copyrighted material over P2P networks. Measure has generated more than its share of controversy, Subcommittee Minority Counsel Alec French told Heritage Foundation panel discussion on digital copyright. However, he said, despite complaints to contrary, bill envisions only very limited “safe harbor” protection. Any content owner who goes beyond thwarting illegal file transfer -- such as interfering with e-mail or somehow damaging computer -- would face liability, he said.
NDS accused DirecTV of stealing trade secrets in countersuit filed in U.S. Dist. Court, L.A., that mirrored lawsuit filed last month against NDS. EchoStar also moved to join suit with DirecTV. NDS alleged DirecTV had been working secretly with unnamed chip manufacturer to develop copy of NDS’s latest access card technology. It also accused DirecTV of leaking confidential information to pirate Web sites to give it excuse to break agreements and launch competing smart card. “NDS allegations are a desperate attempt to shift blame for its own misconduct and shortcomings onto its customer, DirecTV,” DirecTV spokesman said: “We stand by our complaint that NDS breached its obligations and defrauded DirecTV.”
Senate Commerce Committee Chmn. Hollings (D-S.C.) remains interested in moving legislation that would consider subsidies to aid broadband rollout, but time ran out this session to float bill on which everyone could agree, said Kevin Kayes, panel’s Democratic staff dir. Kayes spoke Mon. on regulatory panel at Yankee Group Telecom Industry Forum in D.C. “It’s not such a far-fetched idea,” he said of subsidization possibilities. “It shouldn’t be dismissed out of hand.” While Senate drafters went through 4-5 versions of bill that would include subsidies, he told reporters after panel that in discussions with equipment-makers, incumbents and competitors: “Nobody was really ready to subsidize. There was sort of a feeling that this was interesting but nobody was really ready to do this.”
Motorola Wed. reduced its outlook for 4th quarter and 2003, blaming lowered revenue and earnings on slowing industry demand in wireless infrastructure, broadband and semiconductor businesses. Company said it now expected 4th- quarter sales to be $7.1 billion, down from its earlier expectation of $7.5 billion. Motorola cut its 4th quarter earnings prediction to 10 cents per share from 14 cents, excluding special items. Including special items, it expected earnings of 4 cents per share. For 2003, company said it expected sales of $27.5 billion, down from predicted $29 billion. Motorola said it expected to achieve 2003 earnings of 40 cents per share at that sales level, down from 45 cents per share it had seen as achievable.
FCC on Thurs. unanimously approved new technology that will for first time allow radio broadcasters to transmit same program in both analog and digital modes, as well as other services, -- all within their existing spectrum. In decision, FCC approved iBiquity Digital’s in-band, on-channel (IBOC) technology for digital broadcasts in AM and FM bands. IBiquity executives hailed development as removing last important hurdle to commercial introduction of first IBOC receivers at Jan. CES in Las Vegas and were ecstatic at lavish praise heaped upon system by individual commissioners.
Leading advocacy group for wireless LANs renamed itself Wi-Fi Alliance. Founded in 1999 as Wireless Ethernet Compatibility Alliance (WECA), Chmn. Dennis Eaton said name was changed because “Wi-Fi has become such a globally recognized brand.” Group has more than 170 members, including manufacturers of Wi-Fi connectivity devices such as Apple, Avaya, Cisco Systems, Linksys and 3Com; chip makers such as Broadcom and Intel; and PC manufacturers such as Dell, Gateway, Hewlett-Packard and IBM. Known for its multiple interoperability certifications, Wi-Fi Alliance has become active in Washington, having retained Wiley Rein & Fielding in its lobbying efforts on unlicensed spectrum issues.
Bush Administration should encourage deployment of secure Wi-Fi networks “rather than discouraging the use of wireless technology as the industry continues to evolve,” White House advisory panel recommended Mon. Report provided stark contrast to White House Cybersecurity Czar Richard Clarke, who in speeches and his draft report National Strategy to Secure Cyberspace has argued that consumers and federal agencies should be wary about adopting Wi-Fi technology. President’s Council on Science & Technology (PCAST) Mon. unanimously approved its own report to President Bush titled Building Out Broadband at meeting at State Dept. on one-year anniversary of Bush’s signing of Executive Order creating PCAST.
Despite hype, wireless LAN (Wi-Fi) industry still is in its infancy, and that has been reflected in lack of defined presence in Washington. However, as FCC examines use of unlicensed spectrum such as 2.4 GHz band used by Wi-Fi’s 802.11b standard and 5 MHz band used by 802.11a, several organizations are emerging to represent Wi-Fi’s interests at agency. Wi-Fi has multiple industry sectors participating in its growth, and separate paths appear to have been chosen by Wi-Fi hardware manufacturers and commercial access point, or hot spot, operators. Some believe uncertainty shown in those nascent lobbying efforts reflects disparity in predictions on how fast Wi-Fi is to grow and to what extent industry will become profitable.