Telecom: FCC Approves Dish Network Plan to Convert Spectrum

Many hedge fund and telecom execs have bought up various bands of spectrum in hopes of converting it for wireless networks. The FCC has denied several requests, keeping its strident allotment for airwaves, but the commission recently gave the rare green light to Dish Network.

“Late Tuesday, the FCC unanimously approved [Dish Chairman Charlie] Ergen’s plan,” the Wall Street Journal reports. “Under the order, Dish would be required to not use a portion of its spectrum to avoid interference with neighboring airwaves, according to FCC officials. The company would also be required to cover at least 70 percent of the new network in each of its geographic license areas within seven years.”

Ergen started assembling the spectrum five years ago through government auctions and investments in flailing satellite companies, spending roughly $3 billion. “At a stroke, the FCC has now raised its value to as much as $12 billion, according to some analysts’ estimates. Mr. Ergen has to do the hard work of putting that spectrum to use or getting FCC approval to sell it,” the article states.

“Wireless service could give Dish an important new line of business in a mature U.S. pay TV market, where its cable TV rivals are able to sell popular ‘bundles’ of telephone, television, and high-speed Internet service.” Rather than building its own network, Dish could partner with a carrier like Sprint Nextel, or potentially even an outside company like Google, to offer wireless service with the spectrum.

“Consumers, meanwhile, could benefit whatever Dish decides, as the FCC’s decision frees up more bandwidth for data-hungry devices like smartphones and tablets,” explains WSJ. “The drawn-out process of converting that spectrum also highlighted how slowly regulators have moved to put much-needed airwaves to more valuable uses.”

Wireless Game-Changer: FCC Proposes Airwave-Sharing Scheme

A new spectrum sharing rule proposed by the Federal Communications Commission would be the biggest wireless regulatory change in decades and could prove a pivotal move in addressing ever-increasing data traffic. “Under the proposed rule, wireless carriers, corporate offices, or researchers could reserve pieces of that spectrum in different regions and at different times — a system managed by a central database,” Technology Review explains.

“The approach guarantees that the spectrum will be available and not subject to interference in certain areas by a crush of new users, as might happen if the new chunk of spectrum were made available with no regulation at all.”

The step “is a critical milestone,” says David Tennenhouse, Microsoft’s VP of technology policy. In addition to releasing more spectrum, the rule will enable “dynamic spectrum sharing that is particularly well suited for absorbing growing wireless data traffic,” he says.

“Cisco Systems estimates that mobile data traffic will grow by a factor of 18 by 2016, and Bell Labs predicts it will increase by a factor of 25,” notes the article. “Many more airwaves could eventually be shared with the help of cognitive radios, which sense available frequencies and shift between them.”

The rule applies to spectrum in the 3.550 to 3.650 gigahertz band, which is currently used by radar systems. At first, the “checked-out” spectrum might be free, but a pricing system may eventually be implemented to allow a wireless carrier to pay for priority access in times of extreme high demand.

“Whatever the details, the move spells the beginning of the end of a system in which spectrum is either exclusively owned by a private company, walled off for government and military use, or unlicensed and crowded,” suggests the article.

TV of Tomorrow: Will the iPad Prove to Be the Future of Television?

During the TV of Tomorrow conference in New York, industry executives discussed how tablets, particularly the iPad, could be the future of television. Tablets and iPads have turned into the second screen for television viewing, and served as the focus of many of the talks at the conference. The second screen trend is both promising and troubling for television execs, as it presents new opportunities while also taking eyes away from advertisements.

People spend 22 minutes on second screens during a traditional 30-minute show, and 38 minutes during a 60-minute show, according to TVPlus co-founder Randy Shiozaki.

Dijit CEO Jeremy Toeman points out that second screen viewing works best for reality shows and other light entertainment. The technology does not work as well for more engaging dramas. Some challenges with second screen viewing involve the different technologies on the market, and the assorted apps for the various tablets.

Some executives maintain that while second screen viewing is exciting, television content is still the most important aspect of the television experience. “What’s been left out of the multiscreen conversation is the first screen, and that will come full circle,” said Lawrence Brickman, VP of smart TV app developer Accedo.

“But if Apple can leverage the incredible amount of energy the TV industry has already invested in the iPad, it may not matter if anyone else can do it better — Apple’s platform will hit scale across multiple screens before the industry even knows it’s happening,” suggests The Verge.

Gollum Actor Andy Serkis on Changes in Motion-Capture Technology

In a video interview with Wired, actor Andy Serkis (who plays the computer-generated character of Gollum in the popular “Lord of the Rings” trilogy and the upcoming “The Hobbit”) speaks about his recurring role and about advances in motion-capture technology.

Since the 2001 release of “Lord of the Rings,” motion capture has changed significantly, “bridging some of the ‘disconnect’ [Serkis] felt while filming on separate live-action and motion-capture stages for the original trilogy,” according to Wired.

Serkis recently co-founded a London-based digital-effects house called The Imaginarium, which specializes in motion capture. In the 2-minute interview, he talks about how developments have changed his acting experience and what it was like to return to the role of Gollum.

“It’s still in its infancy in terms of where it’s going to go and the ability that it gives an actor to transform, while retaining a real emotional sort of truth” says Serkis of motion-capture technology. “No matter how big, or wacky, or abstract the design of a character, it still is always rooted in this emotional, truthful actor’s performance.”

MPA Unveils New Mobile App Designed to Combat Piracy in Theaters

Movie theater personnel in the Asia-Pacific region can now quickly report illegal video recording to the Motion Picture Association with a new app available for tablets and smartphones.

“Using the mobile app, called MAD4 — abbreviated from ‘Make A Difference’ — theater managers and their teams will be able to type in information about camcording incidents through an online reporting platform,” explains The Hollywood Reporter. “The data will then be available to MPA officials for follow-up action or investigation.”

The MPA announced the new app this week at the CineAsia trade fair in Hong Kong. Also included in the app are training videos and resources to express the impact of piracy on the film industry and inform employees what to do when they witness illegal recording.

“We have been given to understand that more than 90 percent of newly released movies that appear illegally on the Internet and on the streets around the world originate from illegal copies being made in cinemas,” Ashish Saksena, CEO of Indian exhibitor Big Cinemas. “The MAD4 application is a great new tool ensuring that all staff will know what needs to be done to prevent illegal recordings being made in cinemas.”

Xiaomi Takes a Slice of the Smartphone Pie

  • Just three years into its existence, Chinese smartphone manufacturer Xiaomi Technology has a $4 billion valuation and has garnered “Apple-like adoration” from loyal fans, reports Reuters.
  • Founder Lei Jun, 42, helped shape China’s Internet revolution when he co-founded and sold Joyo.cn to Amazon before moving on to Xiaomi Technology. At Xiaomi, Lei has become a Steve Jobs-like figure, as he has marketed his product simply, but in a way that generates “an aura of exclusivity around its products,” notes the article.
  • When addressing comparisons to Jobs, Lei says, “I will take this as a compliment but such kind of comparison brings us huge pressure.”
  • “Xiaomi and Apple are two totally different companies,” he continues. “Xiaomi’s based on the Internet. We are not doing the same thing as Apple.”
  • The company released its second phone in October and has sold 300,000 units. The phone is comparable to Samsung’s Galaxy S3 and Apple’s iPhone 5, but sells for only $370.
  • “Unlike the big domestic smartphone players, such as Lenovo Group, ZTE Corp and Huawei Technologies, which work with telecom carriers to sell a large volume of smartphones, Xiaomi sells most of its phones online and in small batches,” writes Reuters. By limiting quantity and selling in small batches, Xiaomi creates buzz. This demand led to Xiaomi selling its entire batch of 50,000 smartphones in less than two minutes in October.
  • China is expected to pass the United States as the number one smartphone market within the year, but some people still believe the market will be controlled by market leaders ZTE and Huawei, and that Xiaomi’s small scale strategy will hurt its long term outlook.

TIME Lists Top 10 Gadgets of the Year: iPhone 5 Takes Top Spot

  • Although Apple may have to cede the top spot on smartphone sales, its iPhone 5 still sits at No. 1 in terms of overall device and operation system quality, earning the coveted TIME Magazine ‘gadget of the year’ award.
  • TIME’s Harry McCracken calls the iPhone 5 ‘one of the most artfully polished gadgets anyone’s ever built,’ adding that ‘when it comes to melding hardware, software and services so tightly that the seams fade away, Apple still has no peer,'” VentureBeat reports.
  • “Despite 5 million units sold in its opening weekend, and stellar sales results that catapulted iOS back into the mobile operating system lead in November, the iPhone 5 probably can’t catch the Samsung Galaxy S III, which launched in the summer and reached 18 million units by early November,” the article continues.
  • Apple did not, however, gain recognition from TIME for its iPads, even though the new iPad mini earned a warm welcome by many in October.
  • TIME‘s top 10 gadgets are as follows: 1) iPhone 5, 2) Nintendo Wii U, 3) Sony Cyber-shot RX100, 4) Raspberry Pi Model B, 5) Lytro, 6) Apple 15-inch MacBook Pro with Retina Display, 7) Microsoft Surface with Windows RT, 8) Samsung Galaxy Note II, 9) Nest, and 10) Simple.TV.

Mobile Trends: Should Laptop Makers Shift Their Focus to Tablets?

  • Tablets are set to outsell laptops by 2015, according to a new report from IDC, underscoring the necessity for PC makers to focus on designing attractive slates.
  • “This forecast further emphasizes the massive shift toward mobile, which has been underway for several years: Smartphones began outselling PCs last year and will easily continue to do so as consumers and enterprises do more computing on the go,” reports GigaOM.
  • “Many PC makers were either late to the mobile device game, or not part of it at all, and have watched sales dollars filter to those making smartphones at first, and now tablets,” the article continues.
  • While the IDC report suggests that laptops won’t entirely go away — just as desktop PCs have remained — GigaOM suggests the model of computing that relied heavily on these PCs is changing, and IDC’s predictions could be “too conservative.”
  • The report also notes the decline in unit revenue for mobile devices, compared with the revenue of desktops or laptops. “That means computer makers will have to make up the difference in volume and the best chance to do that is by seizing momentum early, much as Apple did with its iPad,” the article states.
  • “Additionally, tablet hardware is improving quickly, and perhaps more importantly, so are the applications that run on tablets,” GigaOM continues. “Activities that once sounded absurd on a tablet just two or three years ago are now possible on an iPad, Android slate or Windows RT device. Instead of looking back at ‘old-school computing,’ laptop makers should be looking ahead at potential software and cloud services that tablets will benefit from.”

Digital Downloads: Kaleidescape Plans to Offer Time Warner Movies

  • Kaleidescape Inc. originally looked to reduce the hassle of physical DVDs and Blu-ray discs by enabling consumers to copy the movies and save them to a hard drive. After being sued by the DVD Copy Control Association, the company has since revamped its business model to keep up in the digital age of downloads.
  • “The closely held company plans to let users of its hardware buy and download digital movies, while still being able to make and store copies of DVD and Blu-ray discs they own,” the Wall Street Journal writes. “Kaleidescape is initially stocking its first online store with movies licensed under a multiyear deal with Time Warner Inc.’s Warner Bros. movie studio.”
  • With numerous services that offer movies for rental, purchase or streaming, Kaleidescape is notably pricey.
  • “Kaleidescape’s systems, designed for people installing fancy home theaters, start at $14,490,” the article states. “But Kaleidescape hopes to build its audience among affluent customers who are willing to pay extra for the highest quality content, a sophisticated program guide and other features. Unlike most online video stores, the company says, its downloads will include all extra scenes and additional content found on DVD or Blu-ray discs.”
  • The deal with Time Warner provides the service with 3,000 feature films and more than 8,000 TV episodes, which will be priced between $6 to $20. Kaleidescape plans to enter licensing deals with other studios as well.
  • The company also supports the UltraViolet format. But downloading titles can take a while — up to five hours for a Blu-ray over a standard Internet connection.

Larry Page Talks Future of Search and Company Projects

  • Google CEO Larry Page, who rarely agrees to interviews, sat down with Fortune to discuss the future of search, clashes with Apple, the company’s numerous Google X projects, and more.
  • Page acknowledges the change in advertising models, but views disruption as a good thing. Google still devotes 70 percent of its effort into search and ads.
  • “The perfect search engine would really understand whatever your need is,” he says. “So one of my favorite examples I like to give is if you’re vacation planning. It would be really nice to have a system that could basically vacation plan for you. It would know your preferences, it would know the weather, it would know the prices of airline tickets, the hotel prices, understand logistics, combine all those things into one experience. And that’s kind of how we think about search.”
  • On Google’s competition with Apple, Amazon and others: “I’d like to see more cooperation on the user side. The Internet was made in universities and it was designed to interoperate. And as we’ve commercialized it, we’ve added more of an island-like approach to it, which I think is a somewhat a shame for users,” Page says.
  • “I think it would be nice if everybody would get along better and the users didn’t suffer as a result of other people’s activities. I try to model that. We try pretty hard to make our products be available as widely as we can. That’s our philosophy,” he notes.
  • The remaining effort at Google is split between apps (20 percent) and new projects (10). “I think investors always worry about this. You know, ‘Oh my God, they’re going to spend all their money on self-driving cars.’ I feel like no matter how hard I try, I can never make the 10 bigger, because it’s actually hard to get people to work on stuff that’s really ambitious. It’s easier to get people working on incremental things.”

Streaming: Is Netflix Popularity with Kids a Double-Edged Sword?

  • In August 2011, Netflix launched its “Just for Kids” page, which features commercial-free age-appropriate content organized by “superheroes” and “princesses.” Recently, the streaming service signed a content deal with Disney for an estimated $300 million a year.
  • “But Netflix’s popularity with children could be a double-edged sword,” the Wall Street Journal suggests. “Analysts say the streaming service could be undermining the very companies that supply it with most of its children’s television content, namely Disney and Viacom.”
  • Sanford C. Bernstein analyzed TiVo data, finding that kids’ cable ratings were up 8.5 percent in the first quarter among viewers who didn’t stream content compared to the relatively small 0.4 percent uptick among those who did. “Disney ratings grew 11 percent for nonstreaming users and 6 percent for streaming users, while Viacom ratings grew 6 percent for nonstreaming users and only 2 percent for streaming users,” WSJ reports.
  • “Bernstein says those trends have persisted through the year. And looking at an individual network tells the same story. From the end of 2011 through August 2012, ratings at Nickelodeon were up 11 percent among nonstreamers, compared with only 3 percent among streamers,” the article continues.
  • Unlike Nickelodeon, Disney Junior and Disney XD ratings are rising. “But both channels are relatively new and are coming off a small base. And even there, Netflix appears to be having an effect,” the article states.
  • “For Netflix, the risk is that Disney and Viacom demand significantly more for children’s content to make selling it worthwhile. In extremis, they could even decide to stop selling it to the streaming company.”

FTC Mobile Apps for Kids Report Finds Little Progress in Privacy

  • The Federal Trade Commission’s staff report, “Mobile Apps for Kids: Disclosures Still Not Making the Grade,” analyzes mobile applications aimed at children, and finds that little progress has been made since last year in terms of warning, or even informing, parents about the data collection in applications.
  • The report notes that the applications have interactive features and social media sharing that can send information on the children to advertising companies or analytics companies without seeking parental consent. Some applications do not even disclose the actions to parents, according to the report.
  • “While we think most companies have the best intentions when it comes to protecting kids’ privacy, we haven’t seen any progress when it comes to making sure parents have the information they need to make informed choices about apps for their kids,” said FTC Chairman Jon Leibowitz. “In fact, our study shows that kids’ apps siphon an alarming amount of information from mobile devices without disclosing this fact to parents.”
  • “All of the companies in the mobile app space, especially the gatekeepers of the app stores, need to do a better job,” he added. “We’ll do another survey in the future and we will expect to see improvement.”
  • The report, which examined disclosures within the app, disclosures on the promotion page in the app store, and at the app developer’s website, found “most apps failed to provide any information about the data collected through the app, let alone the type of data collected, the purpose of the collection, and who would obtain access to the data.”
  • “Even more troubling, the results showed that many of the apps shared certain information with third parties — such as device ID, geolocation, or phone number — without disclosing that fact to parents,” according to the report.

After Years of Offshore Production, U.S. Generates Insourcing Boom

General Electric’s Appliance Park, a place where manufacturing jobs once boomed in America in the from the 1950’s to the 70’s, saw most of its business shipped overseas in the 2000’s. It wasn’t just there. Throughout the country, factory jobs were lost seven times faster between 2000 and 2010 than between 1980 and 2000. Continue reading After Years of Offshore Production, U.S. Generates Insourcing Boom

The State of Worldwide Intellectual Property: Innovation on the Rise

  • Innovation is on the rise all across the globe, according to the World Intellectual Property Organization.
  • The IP division of the United Nations released a report full of statistics that show IP trends around the world. It found, among other things, that China’s patent office has surpassed the U.S. as the largest, and 2011 set the record for the highest number of patent applications filed worldwide.
  • “Sustained growth in IP filings indicates that companies continue to innovate despite weak economic conditions,” WIPO Director General Francis Gurry stated at a press conference. “This is good news, as it lays the foundation for the world economy to generate growth and prosperity in the future.”
  • The Atlantic highlights numerous interesting findings including:
  • The total number of patent applications filed worldwide in 2011 was 2.14 million, while the estimated number of patents granted reached nearly 1 million. The increase in the total number of patent filings worldwide between 2009 and 2011 was 293,900.
  • China’s patent office received 526,412 applications in 2011, marking a 34.6 percent growth in patent filings.
  • The total number of applications received by the U.S. patent office in 2011 was 503,582 (with 224,505 patents granted). This represents a 9.7 percent growth for the U.S.

Auto Manufacturers Consider Computer for Your Car Windshield

  • General Motors, Daimler AG and other automakers are working on specially designed windshields that they hope will one day provide drivers with important information about their surroundings while on the road — and make driving safer.
  • “Using a technology known as augmented reality, which overlays real world images with digital ones, these windshields could display driving directions, text messages or impending hazards, all without requiring drivers to take their eyes off the road,” explains the Wall Street Journal.
  • “The goal is to reduce head-down time and maybe make driving a more interactive experience,” says Tom Seder, GM’s chief technologist for human machine interface.
  • The technology would fuse together sensors working outside the vehicle with ones working inside, tracking the driver’s eyes.
  • This could improve safety, writes WSJ, “…for instance, an augmented reality windshield could sense that a driver hasn’t seen a car merging into his or her lane or a sudden traffic slowdown ahead. The windshield might light up red or highlight the potential hazard to cause the driver to hit the brakes.”
  • But these windshields are likely at least five years away from actually appearing in vehicles and pricing remains unknown.