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Communication Technology Update
9th Edition

The single best source for the latest developments,
trends, and issues in communication technology.

Recent Developments and Links

Cable Television
Direct Broadcast Satellite
Pay Television Services
Interactive Television
Digital Television
Streaming Media
Radio Broadcasting
Personal Computers
Mobile Computing
Video Games
Internet
Internet Commerce
Virtual Reality
Home Video
Digital Audio
Digital Photography
Local and Long Distance Telephony
Broadband Networks
Home Networks
Satellites
Distance Learning
Wireless Telephony
Teleconferencing

Cable Television

Cable MSOs continue to aggressively push advanced services such as VOD, SVOD, Broadband and VOIP. These services are being used as a means to differentiate cable from DBS.

Telecommunications companies are trying to move in on the MVPD market just as cable companies are moving into the telephony market with VOIP. SBC has their fiber to the node project, Lightspeed, which would offer bandwidth up to 20 Mbps. VOD is one of the primary services touted for Lightspeed.

Cable MSO Adelphia's founders were convicted of conspiracy and fraud in summer 2004.  The MSO is likely to go up for sale.  Both Time Warner and Comcast have expressed interest

Cable MSOs are aggressively pursuing telephony services with VO/IP.  Cablevision is offering unlimited phone, digital cable, and high speed Internet service for $90.00.  Comcast announced plans to offer phone service to 40 million households by 2006.  Comcast also announced in 2004 that it would use Microsoft software for its new digital set top boxes.

Cable programming networks continue to serve niche markets.  Comcast is developing a channel for toddlers.  Viacom announced that it is launching Logo, a network for the gay and lesbian audience.

The cable industry launched a new initiative "Cable Puts You in Control" to promote parental control over cable programming as well as other new services such as VOD. The initiative is a response to calls for cable content regulation. Senator Ted Stevens R-Alaska, suggested in March 2005 that cable and satellite be subject to the same indecency rules as broadcast media.

As of May 2005, cable penetration has dropped to 66.6% of television households.

Links

Broadcasting and Cable Magazine

Federal Communications Commission

Multichannel News

The National Cable and Telecommunications Association

Direct Broadcast Satellites

Cablevision's high definition DBS service Voom was sold to Echostar in late January 2005. The service was a big money loser for Cablevision.

DirecTV has been making some changes.  It sold its stake in Tivo, the company DirecTV has been using for DVR services.  DirecTV also ended its deal with Pegasus Satellite Television Services allowing Pegasus exclusive rights to distribute DirecTV in rural areas.  Pegasus Satellite Television Services has since filed for bankruptcy.  Finally DirecTV announced that it no longer plans to offer broadband Internet over satellite (the Spaceway service).  The company now plans to use Spaceway satellites for its television programming.

It is going to cost CableVision over $100 million to close down Voom. The company is selling its satellites to EchoStar for $200 million.

Links

Broadcasting and Cable Magazine

DirecTV

Dish

Federal Communications Commission

Multichannel News

Pay Television Services

Premium channel Starz! changed its name to Starz without the ! and has changed the programming on some of its multiplexed channels. The group experienced phenomenal growth in 2004.

A new pay television service has been launched in limited markets that uses broadcasters' unused digital television spectrum.  Called US Digital Television, the service costs $19.95 per month and offers between 26 and 30 channels of traditional cable programming.  Subscribers use the system with a television antenna and a USDTV set top box that retails for $99 at Wal*Mart.

Another new pay television service in limited markets is gambling.  In states that allow in hone gambling, networks such as GSN are offering interactive gambling such as blackjack.

Links

Broadcasting and Cable Magazine

Multichannel News

Interactive Television

Tivo has joined with Netflix to offer movies, which are downloaded over the Internet straight to the Tivo box. This has caused some problems with MVPD providers which work with Tivo because the service competes with their PPV service.

Tivo announced in January 2005 that they are working on a HD DVR with CableCard technology.

Akimbo Systems has received $12 million from investors for its new DVR-like service that uses the Internet to deliver video over broadband to a set top box.  The service doesn't use the Web, costs around $10 per month and allows users to sore up to 200 hours of video. 

Internet television stations have been seeing their audience grow.  ABC News Live is an example

Links

Broadcasting and Cable Magazine

Gemstar-TV Guide

Interactive Television Alliance

Digital Television

Digital television set and monitor sales continue to grow. CableCard technology incorporated into digital sets now allow users to connect their set to cable without a set top box and still receive digital services including HDTV. This technology is mandated under the FCC's Plug and Play ruling.

The demand for flat panel televisions continues to increase.  Best Buy had a 50% increase in demand for digital flat panel and other digital sets in from 2003 to 2004.

Sony has developed black screen technology that lends increased image quality to regular digital projectors.

The FCC is modifying the tuner mandate. On June 9, 2005 the FCC proposed that mid-sized sets must be 100% compliant by March 1, 2006 and all sets over 13" must be compliant by December 31, 2006.

Senator John McCain introduced a bill in June 2005 to set a hard date for the DTV transition of January 1, 2009. The National Association of Broadcasters has accepted this date.

Links

Broadcasting and Cable Magazine

Consumer Electronics Association

Federal Communications Commission

The National Association of Broadcasters

TV Technology

Streaming Media

Starz Encore and RealNetworks have teamed up to offer an online streaming movie service.  The Starz Ticket service costs $12.95 a month and users can download and watch as many movies as they want from the Starz Encore library.

Links

Accustream Research

Apple

Microsoft

RealNetworks

Streaming Magazine

Streaming Media

Radio Broadcasting

Satellite radio continues to make the news. XM subscribers can now take their radio everywhere with the Delphi MiFi portable satellite radio. The radio is about the size of an iPod.

Howard Stern signed a 5 year contract with Sirius satellite radio and will begin January 1, 2006. Stern noted the service would free him of the FCC regulation. Nonetheless, he will make a whopping $500 million. Sirius hopes to gain loyal Stern listeners to their service. When FCC chair Michael Powell announced his retirement in late January 2005, Stern was quick to celebrate.

XM signed an 11 year deal with Major League Baseball to carry their games for $650 million.

There are been some significant policy changes since Spring 2004.  First, the U.S. appeals court tossed out the new FCC media ownership rules allowing for more media consolidation.  The judges questioned the FCC's diversity index. 

Indecency in broadcast media continues to be a concern.  The House passed the Broadcast Decency Act of 2004 to raise fines on broadcasters.  The country's largest station group, Clear Channel, reached a $1.7 million settlement for indecency complaints.

XM and Hyundai announced that starting in 2007, XM satellite radios will be standard in all Hyundai models.

Links

Broadcasting and Cable Magazine

Consumer Electronics Association

Federal Communication Commission

Ibiquity Digital Corporation

The National Association of Broadcasters

Sirius Satellite Radio

World DAB

XM Satellite Radio

Personal Computers

Apple introduced the Mac mini, an affordable computer that sells for $499 and up. The computer includes a G4 processor and Apple's iLife software. The computer doesn't include a keyboard, mouse, or monitor though.

The EU ruled that Microsoft had to remove Windows Media Player from Windows. Microsoft didn't appeal and will ship the stripped down version of Windows to Europe in 2005.

Microsoft continues to make news.  The U.S. appeals court finally approved Microsoft's 2001 anti-trust settlement with the Justice Department.  However, the company's anti-trust problems are far from over.  Microsoft as of Summer 2004 is challenging a European Union decision that it violated anti-trust rules, arguing that the rules were misapplied.  Finally the company is under serious pressure as nations are frequently turning to open source software, such as Linux.  In response, Microsoft has cut the price for its software in some poorer nations that are rapidly expanding computer use.  For example, a Thai language version of XP with MS Office sells for just $36.

Software piracy continues to be a problem.  The Business Software Alliance reported that $29 billion are lost each year.

Apple Computers released the newest version of its operating system OS X called ñTiger.î 

Apple announced in June 2005 that it will be switching to Intel processors. The chips will allow Mac computers to "run faster and cooler, and have longer battery life" according to Walter Mossberg of the Wall Street Journal. The first computers with the new chip are expected in Spring 2006.

Microsoft introduced the Windows XP Media Center Edition 2005, which works with Media Centers PCs. The operating system includes Windows Media Player 10, DVD and CD burning, improved gaming and Windows Movie Maker 2.1.

Links

Apple

C/Net News

IDC

Microsoft

ZDNet News

Mobile Computing

The Bluetooth SIG introduced a new standard in 2004. Bluetooth Core Specification 2.0 + EDR (enhanced data rate) has speeds up to 3 Mbps. It also requires less power.

A new wireless Internet service is being developed by Craig McCaw.  Clearwire uses OFDM technology and should offer speeds up to 2 Mbps.  McCaw has been acquiring spectrum for several years and hopes to have the service in 20 markets by 2005.

The electronic book continues to show up.  Sony and Panasonic have both introduced electronic readers in Japan.  Sony's Librie and Panasonic's SigmaBook both retail for $370.  There are no plans to sell the readers in the U.S.

Links

ABI Research

MobileIN

Video Games

Sony introduced a slimmed down version of the PS2 in November 2004. The new PS2 also has an Ethernet connection port.

Sony also announced that they would be using Blu-Ray discs for the PS3.

Microsoft's next version of the Xbox will come out in three stages. First, is the Xbox Next, which will not have a hard drive. Second, is the Xbox Next HD, which will have a hard drive and possibly a video recorder. Finally there is the Xbox Next PC that will combine the Xbox Next with a low level PC.

Nintendo released the handheld Nintendo DS in November 2004. The game system has dual screens and a bundle with a game sells for around $180.

Sony has yet to release their new handheld game system the PSP in the US. It was released in Japan in December 2004 and has already sold over 800,000. It is expected that the PSP won't arrive in the US and UK until March 2005.

California passed a watered down version of Assembly Bill 1793 in 2004. The bill originally set out to regulate the sale of M rated video games to minors. The final bill requires retailers to post information about game ratings and to provide a brochure on the subject.

Video gaming appears to be moving in two directions.  In one direction are more powerful consoles with more ñrealisticî games such as the Army's training game Full Spectrum Warrior, now a popular game for the X-box.   

In the other direction, low tech, casual, and retro games are increasingly popular.  Low-tech, casual on-line games are very popular with women.  Yahoo has 10 million players per month with one third of the players are women.  EA's Pogo.com has 14 million players per month, 55% of them women.

Radica Games and Jakks Pacific are offering retro games with the Sega Genesis and the Atari System.  Jakks Pacific has a system that retails for $20 with 4-10 games built in such as Asteroids, Centipede, and Ms. Pac Man. 

Nintendo has released some information on its new handheld, the DS, and its new console, code name ñRevolution.î  The company says it will focus on casual users and new ways to play games rather than faster, more powerful, and ñmore realisticî games and systems Ü the strategy of rivals Sony and Microsoft.

Finally, who says you can't make money playing video games.  Korean cable television now has 3 channels devoted to live video game matches between professional video game players.

Nintendo released the DS on November 21, 2004. The handheld device sells for $149.99 and includes dual screens, a touch pad and voice recognition. It also allows wireless communication and PictoChat software. The DS is also backwards compatible with Game Boy Advance games.

The Sony PSP was released on March 24, 2005. This device sells for $249.99. The PSP has 802.11b wireless connectivity and USB 2.0 and Memory Stick inputs. The device plays games and movies on UMDs. The PSP is also an MP3 player. Hackers have already created new functions for the PSP including an e-book reader, instant messaging, and the ability to download programming from TiVo.

Microsoft introduced the X-Box 360 on MTV May 12, 2005. The next generation X-Box indeed has a hard drive – 20 GBs – that is upgradeable and detachable. It uses an IBM PowerPC processor. It is Wi-Fi ready and has built in Ethernet support. The console also has built in HD game support and it has Òout of the box access to Xbox Live featuresÓ The rumor is that the console will be released before Thanksgiving (November 24, 2005).

Due out in Spring 2006, the PS3 will be backwards compatible with the Playstation 2 and 1. It will use a PowerPC based chip called the "Cell" and will also support High Definition. Like the Xbox 360, the PS3 is Wi-Fi ready and has built in Ethernet. Games will use Blue-ray discs.

The popular game "Grand Theft Auto 3: San Andreas" had it's rating changed from M to AO (Adult-Only) after adult sexual content was discovered within the game. Users could unlock the content with secret codes. The game was pulled from the shelves of major retailers including Wal*Mart and Target.

Links

The Entertainment Software Association

The Entertainment Software Ratings Board

Game Market Watch

Games Industry

Gamespot

Geek Comix

Nintendo

Playstation

Sega

Xbox

The Internet

Google continues to make news.  First the children's website Googles is suing Google saying that Google is infringing on its trademark.  Microsoft is planning to emulate Google's look for it's new search engine page.

Links

Electronic Frontier Foundation

Hobbes' Internet Timeline

ICANN

National Telecommunication and Information Administration

Nielsen Netratings

Internet Commerce

Fraud and Spam continue to hamper Internet and E-commerce use.  Spammers are now using E-mail spoofing.  You receive an e-mail that appears to be from a real person but it is really spam.  ISPs are now developing technology to authenticate senders to cut down of this spoofing. 

In spring 2004, an AOL employee was caught selling subscriber lists to spammers.

Spam isn't the only problem, the increasing use of spyware and phishing continues.  Phishing is the use of email designed to resemble actual messages from companies in order to steal personal data.  The Trusted Electronic Communication Forum was formed to ñresearch and promote technical standards to combat phishing.î  The Gartner Group estimates that 57 million US Internet users have received phishing email and 1.8 million may have been duped.

Mobile-commerce is expanding. Japan's NTTDoCoMo introduced the iMode FeliCa service and handset. Subscribers can use their phone to pay for items or services by just waiving the handset over a reader. They can then monitor their account on the handset.

Links

Ecommerce News

The Wall Street Journal

Virtual Reality

Links

Electronic Visualization Library

Georgia Tech Virtual Environments Group

Virtual Reality Eye Tracking Laboratory

Augmented Reality Homepage

Virtual Realities

Ergonomics in Teleoperation and Control Laboratory

Media Interface and Network Design Lab

Home Video

There is a standards war heating up between two high capacity DVD formats; Blu-Ray and HD DVD. Companies such as Panasonic and Dell back Sony's Blu-Ray. It has greater capacity than HD DVD but also costs more. HD DVD is back by Toshiba, Microsoft, and NEC. HD DVD is described as more consumer friendlier with easier conversion from DVD. Several movie studios came out in support of HD DVD including Paramount and Warner Brothers. Disney, on the other hand, came out in support of Blu-Ray.

With HDTV comes the need for the ability to record programming in HD.  Matsushisita released a DVD recorder for HDTV in Spring 2004 that uses Blu-Ray technology.

There may be a compromise between Toshiba and Sony to unify the Blu-ray and 8/3/05HD DVD formats. However work is beginning on a newer format that will have greater capacity than both formats using holographic data storage.

DVRs continue to dominate new developments in home video. TiVo has introduced the TiVoToGo service that allows subscribers to download recorded programs to their computers. TiVo may have lost some support from DirecTV, but it has gained support from Comcast. Comcast and Tivo have a deal to provide the service to Comcast subscribers.

Studies have found that (not too surprisingly) DVR owners fast-forward through 70% of commercials. New techniques are being developed to still get the advertising message out. With Tivo Video to Video service, an icon appears when the user is fast-forwarding through a commercial. Clicking on the icon will take the viewer to a short video commercial for the product. Tivo is also working with Comcast to develop a service that will insert new commercials into older recorded programming. For example a user may watch a program recorded a week earlier. A commercial for a new movie could replace a commercial for an older one.

DVRs are being introduced with DVD burners so consumers can create copies of recorded programming on DVD instead of having to record programming on VHS. In related news, Wal*mart announced in June 2005 that it will stop selling VHS tapes.

Links

The Consumer Electronics Association

The Digital Bits

HDDVD.org

Netflix

Tivo

Video Software Dealers Association

Digital Audio

Apple decided to begin competing in the lower cost digital audio player market when it introduced the iPod Shuffle in January 2005. The iPod Shuffle, which starts at $99, uses flash memory instead of a hard drive and doesn't have the iPod's screen and user interface. The device is about the size of a pack of gum and can be plugged right into a computer's USB drive to synch with iTunes.

Two senate measures passed in Spring 2004 that attempt to fight piracy.  The Protecting Intellectual Rights Against Theft and Expropriation Act (Pirate Act) allows the Department of Justice to bring civil copyright infringement cases against people who download unauthorized copies of media over file sharing networks.  The other bill addresses pre-release copies of media and using camcorders in movie theatres.  The unauthorized distribution of pre-release copyrighted works is prohibited as is using camcorders in theatres.  In addition, the Inducing Infringement of Copyright Act has been introduced.  This act ñallows entertainment companies to bring lawsuits against any company that intentionally induces individuals to violate copyrights by making unauthorized copies of songs, movies and other works.î

Sony is taking on the iPod with the Sony Network Walkman.  The 20 Gig, $400 device is smaller and has a longer lasting battery than the iPod.  It uses ATRAC compression.

College students with access to the Internet2 now have file-sharing software called 12hub.

The iPod continues its success and an array of new accessories are available for it, including the ultimate accessory, a BMW.

The Supreme Court ruled that Morpheus and Grokster can be held liable if their users share pirated music. The ruling overturned a previous case that found that the file sharing software companies were not liable because it was the users not the software that was participating in the illegal activity. The software can be used for sharing any file. The Supreme Court said the companies were liable because the "clearly voiced the objective that recipients use the software to download the copyrighted works and took active steps to encourage infringement.." The technology industry has voiced concerns that the rules could stifle the development of new technologies.

Links

Apple

Consumer Electronics Association

Disctronics

Dolby Labs

DTS

High Fidelity Review

Home Recording Rights Coalition

MiniDisc.org

Recording Industry Association of America

Digital Photography

Apple introduced the iPod Photo, a combination iPod and digital photo storage device. Digital photos can be viewed on a color screen and the device can hold up to 25,000 photos.

The ability to print digital photos is expanding with new devices that allow users to print photos at home without a computer. The Epson Picturemate prints 4 x 6 photos from a connected digital camera. The printer retails for $199.

Many people with digital cameras want to be able to edit their photos without having to use digital imaging software such as Photoshop.  The HP Photosmart R707 allows users to edit photos, such as eliminating red-eye, without a computer.

Traditional film sales continue to drop.  Fuji film sales were down 40% and Kodak down 22% from Spring 2003 to 2004.

Links

Digital Photography Now

Eastman Kodak

National Press Photographers Association

Photo Marketing Association International

Local and Long Distance Telephony

Changes are coming for local and long distance telephony.  In 2004 a US appeals court tossed out the regulation that mandated that the RBOCs had to let rivals lease access to the local network for a reduced rate.  The Justice Department did not ask the Supreme Court to overturn the ruling and the FCC won't appeal the decision.  The fallout may be significant.  Already a number of long distance companies have indicated that they plan to pull out of the consumer long distance market including MCI.  AT&T has said that it will stop marketing local and long distance service in certain states.  The long distance companies are concerned that the RBOCS will raise the rates to such a level that they can no longer be competitive. 

VO/IP continues to be a big presence in telecommunications.  AT&T is testing the service in Europe and Asia.  Vonage has cut prices to $29.99 per month while AT&T's CallVantage is $39.99 a month with a $19.99 rate for the first 6 month.  One interesting fact about Vonage:  Subscribers can pick their own area codes from a list of 179 in 30 states and Canada.  This has caused concerns for law enforcement as well as the establishment of a fake U.S. presence.

There was a major development in VoIP and 911. The FCC ruled on May 19, 2005 that

"Interconnected VoIP providers must deliver all 911 calls to the customer's local emergency operator. This must be a standard, rather than optional, feature of the service.

Interconnected VoIP providers must provide emergency operators with the call back number and location information of their customers (i.e., E911) where the emergency operator is capable of receiving it. Although the customer must provide the location information, the VoIP provider must provide the customer a means of updating this information, whether he or she is at home or away from home.

By the effective date, interconnected VoIP providers must inform their customers, both new and existing, of the E911 capabilities and limitations of their service.

The incumbent LECs are required to provide access to their E911 networks to any requesting telecommunications carrier. They must continue to provide access to trunks, selective routers, and E911 databases to competing carriers. The Commission will closely monitor this obligation"

Links

Federal Communications Commission

The Wall Street Journal

Broadband Networks

Both SBC and Verizon are rolling out fiber optic networks to offer high speed Internet service.  SBC is investing $6 billion in their network.  Verizon is testing their service in Keller, TX with 15Mbps for home users and 30Mbps for business users.

22.2 million customers have cable modem service as of the first quarter of 2005. Speeds continue to grow. Cox cable customers in Northern Virginia can have service up to 15 Mbps!

The Supreme Court ruled in the Brand X case that cable operators do not have to share their networks with independent ISPs. This was in agreement with the FCC that classified cable modem service as an information service. The telephone companies now also have an argument that DSL should be treated the same and FCC Chairman Martin has indicated that he feels the same way.

Links

C/Net News

Federal Communications Commission

Infoworld

Internetnews.com

Pew Internet and American Life Project

Home Networks

As the use of Wi-Fi increases, so do the problems associated with it.  In particular, interference is fast becoming a problem when neighbors are using the same channel.  Software is being developed to deal with this problem.

Links

Bluetooth

HomePlug Powerline Alliance

HomePNA

Red Herring

Wi-Fi Alliance

Satellites

The U.S. and the E.U. signed a satellite pact allowing Europe to develop an independent presence in space called the Galileo Project.

Links

Globalstar

International Telecommunication Union

Iridium

National Telecommunication and Information Administration

Distance Learning

Corporate training is including the use of avatars to ñcombine the best parts of both face to face training and computer based learning.î

Links

California Virtual Campus

Educause Review

IMS Global Learning Consortium

Open University

US Department of Education

US Distance Learning Association

Wireless Telephony

The merger between Cingular and AT&T wireless was approved by the Justice Department and the FCC in October, 2004. The FCC required that the new company divest assets in some markets to ensure competition.

Spectrum remains scarce and Nextel beat out Verizon for a large slice of spectrum released by the FCC. In exchange Nextel agreed not to challenge Verizon's PTT service.

Sprint launched two television over wireless phone service: MobiTV and Sprint TV.

As wireless phones become more like Internet connected PCs, they also are subject to problems such as SPAM and viruses.

The U.S. is planning a spectrum auction in January 2005 for 2,400 MHz of spectrum including those from Nextwave Telecom, Inc. 

The U.S. was also looking at the ITFS spectrum but decided to keep things the same.  Colleges and universities keep the spectrum, which they can lease, to wireless carriers.

AT&T plans to get back into wireless telephony.  The company is working with Sprint to provide pre-paid wireless cards.

Cingular has started a trial of its 3G network in Atlanta in Summer 2004.  The network will use UMTS.

New phones have come out with television tuners.  As if people driving and talking wasn't bad enough!  For additional security, there are now phones with fingerprint recognition.

There is renewed concern over hands free cellphones.  New Jersey and Washington DC passed laws prohibiting driving and holding a phone.  Safety advocates are concerned because research shows that hands free phones are not safer than hand held phones. 

According to the CTIA, wireless subscribership grew by 13.7% in 2004 with 180 million subscribers and a 60% penetration rate.

Sprint is buying US Unwired to ease approval for its merger with Nextel. Nextel Partners has filed a lawsuit against Sprint and Nextel Communications that may hold up the merger. Nextel Partners wants "Nextel Communications to not make any changes to its brand identity unless Nextel Partners can make the change at the same time." The FCC approved the merger in August 2005.

Sprint also rolled out its 3G EV-DO network in July 2005. While a 3G handset is not yet available, subscribers can use laptop cards to connect their PCs to the high-speed network. Sprint expects the service to be available to 50 million people in 60 metropolitan areas by 2006.

Links

3G Newsroom

Cellular Telecommunication and Internet Association

Federal Communications Association

National Telecommunication and Information Administration

Teleconferencing

A new standard H.350 has been introduced. It is backwards compatible with H.320 and H.323. It is also compatible with SIP.

Links

Business Communication Review

International Telecommunication Union

Polycom

WebEx

Please send questions, comments, and submissions/links to Jennifer Meadows at jmeadows@csuchico.edu

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