This Just In: Initial BTOP Awards Announced

It was only July, but it seems like eons ago that the National Telecommunications and Information Administration (NTIA) and the USDA’s Rural Utilities Service (RUS) issued a joint Notice of Funds Availability (NOFA) regarding the Broadband Technology Opportunities Program (BTOP). We learned that roughly $2 billion would be available under the first NOFA to “support the deployment of broadband infrastructure in unserved and underserved areas, to enhance broadband capacity at public computer centers, and to encourage sustainable adoption of broadband service.” We also heard that this funding would undergird the objectives of the American Recovery and Reinvestment Act to stimulate economic growth and create jobs.

From that point, the race was on with organizations and ventures nationwide to complete their funding applications by the August deadline. Since that time, some 2,200 applicants across the nation have anxiously awaited award decisions. For some applicants the wait ended on December 17, as Vice President Joe Biden announced $182.7 million in BTOP awards that will be matched by $46 million in private capital. The Impulse Manufacturing facility in rural Dawsonville, Georgia served as the backdrop for the announcement. The technologically-advanced company, which specializes in metal fabrication, has reportedly felt stymied by a lack of true broadband.

Biden’s announcement encompassed 18 projects in 17 states, and the White House.gov Web site shows a full list of awards that were given for the following project categories:

Middle Mile Awards – $121.6 million to build and improve connections to communities lacking sufficient broadband access.

Last Mile Awards – $51.4 million to connect end users like homes, hospitals and schools to their community’s broadband infrastructure (the middle mile).

Public Computing – $7.3 million to expand computer center capacity for public use in libraries, community colleges and other public venues.

Sustainable Adoption – $2.4 million to fund innovative projects that promote broadband demand with population groups where the technology has traditionally been underutilized.

Alaska was among the initial states to receive BTOP funding for a project that will bring the first broadband services to southwestern native Alaskan communities. Other states benefitting from Biden’s announcement include: Arizona, Colorado, Georgia, Hawaii, Nebraska, New Hampshire, New Mexico, New York, Maine, Massachusetts, Michigan, Minnesota, Ohio, Oklahoma, South Dakota, and Washington. Over the next 75 days, there will additional BTOP award announcements. So…as they say, stay tuned.

Knock knock, ARRA. Where will you invest?

The National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) announced recently that they received nearly $28 billion in grant requests for the first round broadband funding through the American Recovery and Reinvestment Act (ARRA). Approximately $4 billion has been allocated to be awarded in the first round of available funding – this is out of $7.2 billion total broadband grants available under ARRA.

NTIA and RUS reported that tallies indicate almost 1,500 applications for broadband infrastructure projects and over 300 applications for broadband adoption and public computer programs. Again – these requests have been made under just the first round of available funding, which gave potential grantees a mere five weeks from publication of the Notice of Funds Availability to the application’s due date.

So, it seems there are lots of ideas for how to invest in broadband infrastructure, and a lot of need to go with it. With a national broadband policy still under development, it will be interesting to see which applications are selected, how the use of these funds will shape the future of broadband policy and what changes will be realized in the telecommunications industry overall.

And while the broadband landscape changes, how will this impact other telecom industry infrastructure? According to The Economist, if landlines continue to decline at the current rate, they could be extinct by 2025. This scenario creates its own challenges – a cell phone can sometimes replace a home phone line, but could businesses easily replace landlines? And what about emergency services? Do businesses and individuals without cell phones end up paying more for a critical phone line which, while not as exciting as broadband, is nevertheless a lifeline utility? And with decreased demand, how many remaining customers are paying into the Universal Service Fund? A complementary opinion piece in The Economist calls for regulators to respond to these complex challenges.

Meanwhile, mobile networks continue to grow from investments in 3G and 4G networks. There is talk of possible scrambling to obtain or retain deals with Apple for rights to the iPhone, seen as a compelling enticement for getting customers to sign up with a particular wireless carrier.

All this is to say – you won’t have to look far to see folks waiting on the edge of their seats to see how ARRA broadband funds are invested. Not only will these investments impact broadband evolution, but they will also have a strong influence upon the changing tide telecommunications period – landlines, wireless, voice, data and video. Hopefully there are some exceptional ideas within the 2,200 applications submitted a few weeks ago and, with any luck, these ideas can be sifted through for the best investments to foster innovative broadband and telecom policies for the country.

Google’s Chrome OS

So, let’s imagine that your company name has become a verb. Lucky dog! You’ve just reported revenues of $5.52 billion for the quarter ending June 30, 2009 – despite the global economic downturn. You’re a key player in the search engine market. You operate a Web browser. Your Gmail service gives users more than 7,300 MB of free storage and you’ve found a clever and popular way to map the Earth. How do you top that? Well, if you’re Google, you extend your reach just a little bit farther to see if you can shake things up in the operating system (OS) realm.

In early July, Google revealed that it is developing a free, open-source, Linux-based operating system that is using the Web as its primary development platform. The fast, lightweight OS will carry the same “Chrome” moniker as the company’s Web browser and when it debuts some time in 2010, it will join OS giants like Linux, Apple Leopard, and Microsoft Windows. Chrome will run on standard x86 chips and ARM chips, and Google is working with companies like Acer, Adobe, ASUS, Freescale, Hewlett-Packard, Lenovo, Qualcomm, Texas Instruments, and Toshiba to bring Chrome OS-compatible devices to market.

Chrome is not Google’s first foray into the OS arena. Android, the company’s mobile OS, runs on the G1 phone from T-Mobile. Though there will be some overlap, Google intends to keep both systems with an eye toward market segmentation. Android, as the company explained in a recent blog post, is designed “to work across a variety of devices from phones to set-top boxes to netbooks.” Chrome OS is “being created for people who spend most of their time on the Web, and [it] is being designed to power computers ranging from small netbooks to full-size desktop systems.” The company also reports that it is “going back to basics and completely redesigning the underlying security architecture of the OS so that users don’t have to deal with viruses, malware and security updates. It should just work.”

But will it?

Critics of Chrome say Google has brand power, but lacks driver ecosystem knowledge and the type of customer support staff that an OS requires. There are also privacy concerns. Undoubtedly, Google has given these and other criticisms a great deal of thought, so Chrome OS is not likely to end up as just another heap of code on the R&D scrap pile. Google knows that Chrome has promise, and the idea of using the Web as the primary development platform seems to build on the master plan of cloud computing. This, of course, raises an interesting question: Given the way people have embraced cloud-centric e-mail and social networking, is the Internet the future of the operating system? Stay tuned. Google may very well have the answer.

Broadband on Jones St. & National ARRA update

As we head into July, we are likely looking at the last few weeks of the N.C. General Assembly’s legislative session. So, what’s happened? As far as broadband legislation, several bills have made it into law, primarily those supported by the telecommunications service providers.

HB135/SL 2009-80 – Broadband Service Providers
This bill allows companies that already provide broadband to expand their service areas for voice service. This was signed into law on June 11.

SB889/SL 2009-202 – Utilities/Carrier of Last Resort
This bill allows for local exchange companies to, in some cases, be granted waivers of their carrier of last resort obligations for certain subdivisions and other defined areas. This was signed into law on June 26.

HB1180/SL2009-238 – Consumer Choice and Investment Act of 2009
This bill decreases regulation on local exchange companies in their provision of voice service. This was signed into law on June 30.
SB357– Utilities/Regulation of Pole Attachments
This bill requires municipalities and membership corporations to allow the use of their poles, ducts and conduits by communications service providers and authorizes the North Carolina Business Court to resolve disputes around use. This bill was ratified July 2 and is now waiting to be signed into law.

So with the final budget still in limbo – the session is not over, but these are some of the key broadband bills that have made it into law, or are at least headed in that general direction.

So what happens now? The state budget is expected to pass in the next couple of weeks. The e-NC Authority expects to retain much of its recurring operating funds so that we may continue to keep our doors open for the 2009-2010 fiscal year. Unfortunately though, the latest versions of the budget do not contain funding for broadband-related grant programs as requested by the e-NC Authority. We are still pushing for funds that could be used as match for grant applications on broadband projects forthcoming from the American Recovery and Reinvestment Act of 2009 (ARRA).

And in other big news…

The U.S. Department of Agriculture Rural Utilities Service (RUS) and the National Telecommunications and Information Administration (NTIA) of the U.S. Department of Commerce released the Notice of Funding Availability this week for the RUS Broadband Initiatives Program (BIP) and NTIA’s Broadband Technology Opportunities Program (BTOP).

In North Carolina, the Office of Economic Recovery and Investment has been holding meetings of its Broadband Task Force (although the state does not have direct input on funds distributed by RUS and NTIA). At the next meeting of the group in July, Connected Nation’s online maps of North Carolina are to be presented.

In other big happenings, CenturyTel and EMBARQ announced this week that they have completed their merger, impacting 33 states. And last month, Verizon Communications announced the sale of its landline service in 14 states, including in North Carolina. Meanwhile, AT&T continues to focus on build-out of its mobile 3G wireless network.

Planning Broadband for the “New Normal”

In his recent conversation-starter essay, The New Normal, Ian Davis poses the question of “What comes next?” in terms of our current economic turbulence. Davis’ basic premise is that the current downturn is fundamentally different from recessions of the past, and that we are about to face a restructuring of known economic order. He states that the “new normal” will be shaped by a confluence of powerful forces – some arising directly from the financial crisis and some that were at work long before this all began. One-time factors such as the entry of women into the labor force and loads of new college graduates conveniently coincided with peak spending years of the baby boom generation – all helping to boost consumption-driven growth since the 1980s. It is clear that these forces will not predominate in whatever emerges. Rather, Davis says that the factors shaping the world economy of the near future are less leverage and more government.

We already see evidence of the effect these factors are having on efforts to stabilize the financial crisis and revitalize growth in the banking and financial services sector. In the arena where the e-NC Authority is most directly concerned (broadband deployment), decreased leverage is sparking a new wave of mergers and acquisitions, delays in equipment upgrades and new deployments and reduced investment in product R&D. Countering these negative trends is another that makes us cautiously optimistic: increased interest in broadband at the highest levels of federal government through targeted investment of the American Recovery and Reinvestment Act (ARRA).

On Feb. 17, 2010, at long last, a national broadband plan will be delivered to Congress by the Federal Communications Commission (FCC). As its primary goal, this plan will espouse ubiquitous and affordable broadband access. On May 22, 2009, acting FCC chairman Michael, J. Copps made an important down-payment toward the national plan with the release of the report Bringing Broadband to Rural America. This report fulfills a requirement of the June 2008 Farm Bill that the USDA and the FCC submit a rural broadband strategy to Congress. Other critical federal broadband legislation includes the ARRA that will provide funds to map the current broadband footprint and help fund network deployment to unserved and under-served communities, and the October 2008 Broadband Data Improvement Act that requires the FCC to deliver an annual status report to Congress that benchmarks progress toward ubiquitous broadband access.

Highlighted recommendations contained in the Rural Broadband Plan include:

• Improve coordination among federal agencies and with stakeholders to better harmonize broadband agendas and working definitions – leverage broadband dollars across federal agencies and improve communication via an improved Web site
  
• Assess and address broadband needs thorough accurate mapping, education and training to stimulate demand – and provide subsidies to increase penetration while decreasing the cost of deployment
  
• Overcome challenges through consideration of universal services reform, network openness, spectrum access, middle mile and speed access reforms, inter-carrier compensation, access to poles and rights-of-way and tower studies
  
• Monitor and adjust the plan through annual status reports to Congress

In support of a national vision for broadband, acting FCC Chairman Copps harkens back to other instances where leadership and vision were successfully employed in the face of considerable opposition – and those adventures ended up delivering critical infrastructure that catalyzed and sustained economic growth. Think about it – he’s right. U.S. Postal Service. Transcontinental Railroad. Interstate Highway System. Rural Electrification and its spin-of, the Rural Telephone Cooperatives. All then of course, the Internet itself. All of these initiatives represent transformative public investments whose development depended on a strong and coordinated national vision. We agree with Copps’ statement that it is time for the United States to meet the challenges of the 21st century with universal broadband deployment. Whatever our collective “New Normal” turns out to be, we will be better prepared to meet it if we are all connected.

The (Free) Classroom of Life

These days, a lot of community colleges and universities offer Web-based education for individuals pursing degrees or certifications. But folks that pursue online education aren’t always looking for a degree. Some of us just want to increase our knowledge for professional, civic, or personal development. To address this need, an increasing number of institutions are providing open access to lectures and courses through their Web sites or via iTunes U. These non-credit offerings allow self-learners to audit classes and listen to renowned lecturers free of charge – without commuting to a campus or dealing with tests and admissions hurdles. Access to an Internet-connected computer and a love of learning is all that is required.

So, let’s say you’re interested in micro-financing and poverty elimination. One of the world’s leading experts on these subjects is Nobel Peace Prize-winning economist Dr. Muhammad Yunus. You can hear Yunus’ perspective on these topics in a 44-minute segment featured with UNC Chapel Hill's Kenan Flagler School. If you’d rather focus on mathematics, listen to MIT Professor Denis Auroux conduct a lecture series called "Multivariable Calculus." More interested in literature? Consider Yale University Professor Amy Hungerford’s “The American Novel Since 1945." Or, perhaps you’d like to hear D.C.’s Public School Chancellor Michelle Rhee talk about education reform. Duke’s Terry Sanford Institute of Public Policy has a video of Rhee’s November 2008 speech titled, "Public Education Reform: The Case Study of Washington, D.C." And that’s just a sampling of the thousands of archived courses and lectures that abound on the Web.

But what if you don’t have the time or patience to hunt for institutions that offer free, open access to their course catalogs and lecture series? The OpenCourse Ware Consortium is a global network of more than 200 universities, providing what the group describes as “free and open digital publication of high-quality education materials, organized as courses.” So, from your desk or armchair, you can tap into the University of Tokyo or the University of Nottingham, to name a few. Then there's Academic Earth, a new site compiling listings of free online course and lecture offerings. Founder Richard Ludlow is hoping his clearinghouse site will eventually offer free electronic textbooks and opportunities for learners to interact with one another. In the meantime, if you’re searching for a particular book or article being discussed in a class you’re auditing, start with a visit to your local library, and be sure to check out NC LIVE and the Library of Congress as well. Along the way – whether for education or leisure, always remember these budget-conscious sites that allow you to trade, borrow, or buy books: bookmooch.com, paperbackswap.com, bookswim.com and betterworld.com. Happy learning!

The Twittersphere

“As of December 2008, 11 percent of online American adults said they used a site like Twitter or another similar vehicle that allowed them to share updates about themselves or to see the updates of others.” (Twitter and Status Updating, Pew Internet & American Life Project)

For the uninitiated, Twitter is a free micro-blogging/social networking site that imposes a 140-character limit on each individual post or “tweet,” as such bite-sized status updates are called. The phenomenon allows you to give “followers” a real-time update, via computer or a mobile device, about what you’re doing at that very moment. So, let’s say you’re at the gym and you just bench-pressed 300 pounds. Now, who wouldn’t want to hear about that? Or, maybe you find it comforting to tweet when you’re having a bad day. You’re certainly not alone. Twitter is staying mum about the number of Twitterers it has snared, but estimates put the figure at between 4 and 5 million – not bad for a site that launched in 2006. And naysayers swore would never make it.

But what if minutia’s not your thing? Well, if you can get past the frivolity, Twitter has potential beyond its stated purpose. Consider fundraising and emergency notification, for instance.

If you blink, you might miss the fact that Twitter is about community-building, and Twestivals really capitalize on this notion. The 100 percent volunteer-run Twestival concept came about in September 2008 after a group of London Twitterers connected and organized a food drive/fundraising event to help a local homeless charity. Word spread quickly, and Twitterers had a hunch that the micro-fundraising concept could be elevated to affect change on a global level. That hunch was recently tested.

On Feb. 12, 2009, 202 international cities hosted a Twestival to unite the Twitter community in support of charity: water, a nonprofit bringing clean, safe drinking water to people in developing nations. From Asheville, N.C. to Johannesburg, South Africa and beyond, people gathered for an evening of fun and fundraising. Some sold tickets for entry, while others collected $1 or $2 per participant. In the end, the event raised $250,000, which will be used to fund 55 sustainable water projects and provide clean water for over 17,000 people in Ethiopia, Uganda, and India. The first Twestival-funded well will be drilled in Ethiopia at the beginning of April. Imagine how this concept could be used to support causes and projects in North Carolina’s communities.

On the subject of emergency notification, think missing children. @MissingChildren is a Twitter account that was created by web developer Nate Ritter. The account uses data from the National Center for Missing and Exploited Children to tweet about missing, endangered, and recovered children. Twitter is also being used by some cities and colleges as one part of an overall system to make people aware of crisis situations. It’s quick. It’s to the point. And perhaps most importantly in these economic times, there’s little to no impact on the bottom line.

Do People Even Care about Privacy Anymore?

The September 2008 issue of Scientific American led with the banner question “Will Technology Kill Privacy?” Behind this question are a series of articles that address a growing undercurrent of anxiety felt by many people about their ability to control the amount and type of personal information that is available about them online.

In the provocative opening editorial, John Rennie crystallizes what underpins the uneasiness that many people feel with the information fishbowl we all swim in – the connection between privacy and freedom. He cites an idea posited by English philosopher and ethicist Jeremy Bentham for a new form of prison, the panopticon, an all-seeing place where “inside its walls, convicted prisoners would be exposed to perpetual view from a central tower by an unseen jailer who would supervise their behavior, health and menial labor.” Bentham said that this would be effective because inmates would never know when they were being observed, so that out of uncertainty and fear – they would end up standing watch over themselves.




Bentham’s idea is brought forward and connected to the Internet by David Brin in his book The Transparent Society, in which he argues that “the modern conception of privacy is historically transient and made obsolete by new technology.” In the opening editorial, Rennie notes Brin’s central point, in that the only way to prevent abuses is to require that everyone, including governments, must be equally transparent.

Transparency? The Internet has the corner market on that, especially now with the booming vehicle of social networking. It is startling really, the frank disclosures that populate worlds like Facebook and MySpace. This seems to indicate that that millions of people are on some level, consciously or not, accepting a reduced valuation of privacy. Unchecked, the Internet allows for the reduction of ability to protect our reputations. But one could also argue that the thick and well-established lines between our personal lives, our family lives and our professional lives have quickly eroded – by choice.

Rural entrepreneur finds success with New Ventures Business Development, Inc.

Sheri Bowers, owner of Bowers Family Studios in Wadesboro, N.C. (Anson County), talks about how her small business got started and why the community must continue to support New Ventures Business Development, Inc. as a key strategy for local economic development.

InternetforEveryone.org Town Hall Series Coming to North Carolina

InternetforEveryone.org - a national initiative of groups that are working to bring the benefits of a fast, affordable and open Internet connection to everyone in America - will hold its second town hall meeting on March 7 in Durham. This event is part of a nationwide series designed to give local citizens a seat at the table as new leadership shapes America ʼs broadband future.

WHAT: InternetforEveryone.org Town Hall Meeting
WHEN: Saturday, March 7, 11 a.m. - 4 p.m.
WHERE: Durham Marriott Convention Center, 201 Foster St., Durham

High-speed Internet, or "broadband," is becoming a crucial public necessity - but more than 40 percent of all U.S. homes are not connected or use slow "dial-up" technology. To address this digital divide, President Barack Obama has vowed to "expand broadband lines across America," and Congress is poised to spend billions on broadband as part of its economic stimulus bill. InternetforEveryone.org will deliver feedback from the Durham town hall meeting to the Obama administration and Congress as a national guide to building a better Internet.

"Leadership in Washington has made Internet for everyone a national priority," said Timothy Karr, campaign director of Free Press, the organizer of InternetforEveryone.org." But getting everyone connected wonʼt happen overnight. In North Carolina alone, more than 3.5 million citizens are without high-speed access. Building an open, fast, affordable Internet is a process that requires true public participation. Washington must listen to the people of Durham , and others across the country, in order to build an Internet that works for all Americans."

For more information, visit www.InternetforEveryone.org/Events/Durham.

Lacking broadband infrastructure in western N.C.

Andrea R., a telecommunications business consultant in Jackson County, shares her perspective on the need for connectivity in western North Carolina and industry's lack of willingness to provide it. These comments were shared at a public meeting about poor Internet access in North Carolina.

Lacking broadband infrastructure in N.C. - Piedmont Comm. College, Caswell County

Lionell Parker, librarian at Piedmont Community College in Yanceyville, Caswell County, shares his story about the challenges of life without broadband at a public meeting about poor Internet access in North Carolina.

Now Boarding: In-flight Wi-Fi

This week, USA Today reported that Delta Airlines is now offering in-flight Wi-Fi on flights between Regan National, LaGuardia, and Logan airports. The service, called Gogo, is provided by Aircell. Gogo works by connecting a plane’s Wi-Fi hot spot to the ground over a 3 MHz signal that links to Aircell’s network of 92 cell towers across the United States. Passengers traveling with Wi-Fi enabled devices can have access to the service for a nominal fee ($9.95 for flights lasting three hours or less, and $12.95 for trips exceeding three hours). And speed? Well, Aircell’s Web site doesn’t mention specific download/upload figures, but users say the service performs well.

Delta’s decision to upgrade its in-flight service menu follows that of competitors. American Airlines launched its Gogo service a few months ago—with power outlets at every seat in business and first class. Coach passengers get one outlet for every two rows. No privacy filters to shield your laptop screen from prying eyes though. You’re on your own there.

In-flight connectivity is, of course, not new. Boeing actually came to market with its Connexion service in 2004, when the product was offered on international carriers like Lufthansa and Singapore Airlines. Unfortunately, the company’s bulky 400-pound system didn’t find wide appeal among domestic airlines, so Connexion was discontinued in 2006. But that was two years ago…

Aircell’s system is light-weight at just 125 pounds, and the company cites easy installation and expert client support as selling points. And then there’s the potential revenue boost. These days, many passengers travel with an electronic device, and airlines are guessing that while those folks are munching on their honey-roasted peanuts, they’ll also want to e-mail, surf, chat, and shop. If their hunch is right, demands for VoIP won’t be far off.

Paging the Economy! Can We Get Some Stimulation Please?

It is impossible to watch the news these days without hearing stories on the economic recession and how it is impacting the country. As the recession continues, national and state leaders are examining a variety of ingredients in some far-off economic stimulus packages – all wondering if any of them will help to stir the economy. Early on, there was talk of a possible focus on physical infrastructure – investing in improved roads, airports and schools for the country – creating jobs through the implementation of these projects, simultaneously improving the backbone of the country. But FINALLY, the idea of increasing broadband infrastructure became part of the discussion.
Last weekend, in a radio address, Pres.-elect Obama pledged rollout of a massive public works program as part of his economic stimulus plan, including a renewal of the country’s information superhighway. While some have said that physical infrastructure projects take too much time to show results, others say the recession is deep enough that we have plenty of reason to invest for the long term. If we are moving toward an infrastructure-focused plan, it seems that broadband, our gateway to 21st century competitiveness, should be the key component.

Edward Glaeser’s recent column in the New York Times talks about the challenge of not losing focus on human capital in the mix of all the public infrastructure projects, especially when considering the unskilled workers. And really, broadband is A LOT more than just physical infrastructure. It is more so a tool that allows citizens and communities to reach their full capacity by enabling them to be connected to each other. A global conversation, if you will. But reaching those left behind will require not only infrastructure, but also training and education that will help unskilled workers reap the benefits of this tool.

This plan holds lots of potential promise for those interested in a national broadband strategy, but there is much left to be defined. It will be interesting to see how a massive broadband deployment program would be rolled out. From the FCC? From individual states? From some yet-unnamed entity? Broadband is not currently considered a public utility. Traditional public works programs are defined by the government investing in government-owned infrastructure. So if that’s the case moving forward, who will own this valuable infrastructure? If the funding goes to private service providers, what will be the criteria for deployment? How do we ensure competition between the providers, and what areas will be targeted? These questions are just some of the complicated issues to be sorted out in the country’s economic stimulus plan. At the e-NC Authority, we will be watching with great interest to see how it unfolds.

Broadband Policy and Obama: What to Expect

The votes are in; now the work begins. What can we expect in terms of how broadband Internet will infuse and define the platforms, programs, policies of President-elect Obama’s first administration? How can we get involved? Fortunately, the answers to these questions can be found online where Obama is already on the record as supporting universal broadband access and its use in support of education, health care, business development and civic engagement in government at all levels. The following excerpts from various sources capture and highlight what we might expect from his administration related to broadband.

Some of Obama’s sector-specific goals for broadband include…

Business Development:
Obama recognizes the role that technology and broadband Internet needs play in business development.

Health Care:
A key feature of Obama’s plan to lower health care costs is the proposal to invest $10 billion each year over the next five years to move the U.S. health care system to broad adoption of standards-based electronic information technology systems. This includes use of electronic health records to better coordinate care, measure quality and reduce medical errors.

Public Safety:
Obama is committed to improving the use of ICT to support public safety and improve response to emergencies and natural disasters. Critical to this is investment in the development and deployment of new technologies to promote interoperability, broadband access and more effective communications between public safety responders and their network systems.

Education:
Obama will push for funding to bring broadband access into all K-12 schools as a minimum technology operating platform.

Civic Engagement:
Building on the most technology-intensive campaign ever, the Obama administration envisions continued and expanded use of the Internet to encourage civic engagement.

Is the Internet Immune to an Economic Downturn?

Our economy has been on a real rollercoaster ride this year. Most every day brings new stories of bank failures. Stock market troubles. Mortgages gone wild. Fluctuating oil prices. The National Debt that even the famous Times Square “counter” can’t keep up with. And then there’s the $700 billion bailout (ahem…rescue plan). Add to this volatile mix, pundits consulting their crystal balls, comparing our current economic crisis to the Great Depression, and telling us the obvious – that the institutions we’ve traditionally trusted have failed us. Our domestic woes are now impacting the world and, oh by the way, we might be in a recession. Bad news withstanding, the Internet seems to be thriving. And no wonder…

According to a May 2008 survey by Pew, 73 percent of American adults are Internet users. And in this age of Google, iTunes, eBay and cars.com, users are spending money, and lots of it. Forrester Research shows online sales, excluding travel, reached $175 billion in 2007. And Forrester expects the figure to hit $204 billion this year, despite the economic slump.

Online content consumption is also on the rise. In June 2008, Cisco reported global Internet traffic will grow at a compound annual rate of 46 percent from 2007 to 2012. And the company believes Internet videos will account for 50 percent of consumer traffic in 2012.

But, back to the question of whether the Internet is immune to an economic downturn. The Internet is certainly well-insulated because of high demand for its offerings and affordable delivery. Likewise, its worldwide audience, innovation-friendly environment, and seemingly unlimited expansion potential offer some additional warm-and-fuzzy buffers. On the other hand, though, Internet content and usage is influenced by our needs and wants, and our relationship to the prevailing economy shapes those needs and wants. So, can there really be a definitive yes or no answer to the question? What do you think?

Fight Night: The Internet vs. Newspapers

If the Internet were a boxer, it would be the heavyweight champion of the world; taking its rightful place alongside boxing legends like Muhammad Ali and Joe Louis. In this same context, newspapers would represent an aging, near-retirement opponent, lying dazed on the mat with a cut over its left eye, hoping for a second wind.

So, what happened to newspapers, a once-formidable contender? Well, it’s complicated. But for starters, while newspapers were training 10 hours a day and mixing together pulpy, old-school protein powders, promoters for the Internet were out scouting for new talent and taking notice of a shift in journalism. The Internet honed in on this weak spot and came out swinging. And newspapers are still reeling…

The Numbers Tell the Story
Newspapers just aren’t packing them in like they used to. A survey by Scarborough Research for Journalism.com shows that in 2005, 38 percent of 18-24 year olds were reading newspapers in an average week. By 2007, that figure dropped to 33 percent.

In contrast, the Internet is attracting fans. Princeton Survey Research Associates International conducted a survey for The Pew Internet & American Life Project that illustrates this point. Survey participants age 18 and older were asked “Did you happen to use the Internet yesterday?” In January 2005, 58 percent said yes. By October-December 2007, 72 were in the affirmative. That’s a big jump.

The Blog Jab
Citizen journalism has gained in popularity and is challenging the way we define “news.” Search engine Technorati currently tracks around 112 million blogs and estimates another 175,000 are created every day. From notable blogs like the Daily Yonder to voyeuristic TMZ and Perez Hilton, bloggers deliver timely content, often beating traditional news outlets to the punch.

The Ad Hook
In March 2008, the New York Times reported that newspaper advertising fell 7.9 percent last year. Advertising used to be a mainstay of the industry, but ad dollars follow eyeballs and these days, millions of those eyeballs are glued to the Internet – therefore making Yahoo!, Google and Craig's List the new go-to companies for advertisers.

The Broadband Uppercut
The speed and agility of broadband has changed expectations about information delivery, and given people power to shape their news experience by quickly gleaning stories from multiple sources. Broadband also makes it easier to collaborate online, building on the concept of creating communities through shared experiences, which is one of the Internet’s greatest strengths.

The Final Punch
The Internet seems poised to deliver the deciding blow, but newspapers aren’t going to disappear tomorrow. Having survived radio and television, they can withstand the Internet. Many papers already boast a respectable online presence, and some of the best writers still call the newsroom home. The medium’s success rests with its ability to use what it has. And in this competitive Web 2.0 climate, it also must become a stronger advocate for universal broadband and net neutrality. Beyond that, time is on the industry’s side, so there’s still a chance to mend whatever may be broken.

Thinking differently (externally) about innovation

The N.C. Rural Economic Development Center’s annual Rural Partners Forum is coming up in early October and the topic this year is INNOVATION. And we’re sure that they’ll present a slew of different ways in which innovation touches our state’s rural economies, but is there a vehicle for innovation more radical than the Internet?

While most companies still cling to the invention model that centers on internally-generated ideas and intellectual property, other companies are beginning to adopt a fundamentally different way of thinking about how to develop new products and processes. They understand that the Internet is fueling the transition to an open model of innovation that is driven by greater access to talent, risk-taking entrepreneurship and capital – wherever in the world it is found.

In 2000, Proctor and Gamble (P&G) realized that their return on increasingly expensive research and development (R&D) investments was inadequate. Studying their process for innovation, they estimated that each of their internally-employed researchers had at least 200 talented peers worldwide with skill sets that that P&G could potentially use. So P&G decided to fundamentally change their view of R&D to now include not only the 7,500 people inside the firm, but also 1.5 million scientists and engineers outside the company. The Internet made this possible by providing those new connections. The results more than support the wisdom of that decision – to adopt an open innovation policy. The company reported in 2006 that R&D productivity is up almost 60 percent, and 45 percent of products in development having key elements from external sources. Their innovation success rate has doubled, the cost of innovation has decreased, and perhaps the most telling of all – the price of a share of P&G stock has doubled.

Eli Lilly, a pharmaceutical giant headquartered in Indiana, has also used the Internet to dramatically change their innovation model. Eli Lilly created and spun-off Innocentive, a Web-based service firm that posts client’s scientific problems and offers cash for accepted solutions, maintaining the anonymity of all involved. This approach allows firms of all sizes to efficiently use the Internet to leverage their access to a critical and scarce R&D resource – talented human capital. It was found that for the 166 problems solved through Innocentive, the further the problem was from the solver’s expertise, the more likely he or she was to solve it. Non-experts in one field solved problems in another field by thinking differently. The results reinforce the value of the Internet as a boundary-eliminating connection that can serve to enrich blockbuster innovations.

The application of the Internet to spurring innovation is not limited to R&D enterprises. Netflix, a mail-order and Web-based entertainment service recently offered a $1 million award for an algorithm that would improve efficiency of one of its existing internal systems by at least 10 percent. They drew over 15,000 entrants from 126 countries, and the leading solution came from Budapest University of Technology and Economics.

Hurricane season is here - do you have a communications plan?

Tropical Storm Fay is the first storm of the season to even flirt with the idea of dumping some weather on North Carolina. With everything that Florida and the Gulf have suffered through for the last few years, you have to wonder if in the give-and-take of Atlantic Hurricane Seasons, it is the Carolinas' "turn" to get it.

So - since we've had a relatively long stretch of hurricane-free years - the forthcoming (potential) arrival of Fay makes us think about emergency communication plans. Stocking up. Boarding up. Heading out of dodge, if need be.

The Home Safety Council recently reported that only 30 percent of households have discussed and created an emergency communications plan - specifically outlining how families would stay connected in the case of a major weather or disaster event. And this topic is so intimately tied to technology these days because of our collective dependence on linkage with each other though mediums like Internet access and cell/mobile coverage. It may sound like a stretch, but this is a truly great example of how Internet connectivity has infiltrated every portion of modern society.

Who Understands All This Technical Stuff Anyway?

Well, the quick answer may be – not many people. It seems somewhat scary for local, state and national leaders to be making policy decisions on technologies that they may not fully understand. If we want to deploy more broadband (and deploy it in areas that may not have the normal market-driven forces at work), it seems that it would be helpful to have more technical resources available to decision-makers who are trying to understand broadband issues.

Last month, Geoff Daly of App-Rising.com spoke at the annual conference for the National Association of Regulatory Commissioners on wireless broadband. In his speech, he points out some of the pros and cons of wireless broadband – in a way that is easy to understand. What areas will it be most useful in (ex. mobility-driven applications)? What are the drawbacks (lack of standardized technologies)?

Daly’s goal was to educate the regulatory commissioners gathered together there from all around the country. We won’t try to spell out his entire speech here, but we recommend reading it. He even points out what he sees as a technical problem in a wireless plan around libraries, suggested one of the FCC commissioners. And that makes us wonder – where do these national leaders go for technical advice? Of course, the FCC commissioners have dedicated staff but what about all the utilities commissioners and state-level leaders? There are a multitude of technical issues surrounding broadband deployment, and you don’t have to look far to also see the volume of complex regulatory and legislative requirements around varying technologies.

At the e-NC Authority, we get lots of calls from local leaders and state leaders who are trying to sort out these questions. They most often ask about deploying wireless service and/or developing fiber networks. We do provide technical advice to local and state leaders in North Carolina, but only as much as is possible with our small staff and limited financial resources. And there are some other groups which do this as well, such as the Center for Public Technology at UNC-Chapel Hill, which offers training for government IT professionals.

But there still seems to be a lack of technical assistance available to those who need it most – those who may be trying to decide where to invest millions of dollars allocated for a community network, or those state legislators who are trying to decide how to write a particular piece of legislation. There are always industry professionals and vendors to provide consulting but can you get objective advice from a vendor?

In any case, until we have enough public entities willing to invest in technical staff members that really understand broadband technologies, or in policy staffers that really understand the policy side, we just have to hope that leaders and interested citizens are taking the time to read Daly’s columns and the thousands of other blogs, presentations and in-depth papers that examine these issues.