Thursday, June 3, 2010
We've all come to know and love the nutrition labels required by the FDA for any consumed food item, right? Or, what about the stickers on all new vehicles that designate an EPA and fuel mileage rating. These federally-mandated disclosures provide valuable information for consumers. So, why not disclose broadband speeds in the same way?

That's just what the FCC is proposing. As a part of the Broadband Plan (or, what some consider an addition to the plan), the FCC has proposed some form of required disclosure that would affect all broadband providers. The data would be presented in a series of common metrics to allow for reasonable comparisons among vendors.

But, is this really what our nation needs, or is the FCC nuts? Well, let's first ask ourselves the desired result. The FDA required food labeling to encourage smarter eating and a healthier culture. The EPA required MPG labeling to encourage more fuel-efficient cars and a cleaner environment. What pandemic social problem will the FCC be able to thwart? What's the deep, scarring impact on our economy when a business buys a slower internet connection than they should have? After the FCC's recent announcement of their intentions for such a labeling requirement, many in the telecom industry were simply wondering: WHY?

The biggest threat to our nation's economy related to broadband is the utter lack of availability for rural areas. Where no options exist, the addition of labeling is of little value. The FCC may offer rural businesses the ability to compare zero to zero, but what we need most greatly is a plan to bring at least one broadband option to these areas.

If the nation were inundated with countless broadband options seemingly indistinguishable one from another, AND the impact of a poor buying decision had socio-economic impact on a grand scale, then I could see the need for such a labeling system. As it stands, however, I would encourage the FCC to put tighter regulation on hold while it implements a plan to bring broader service areas to unreached areas.

Labels: Broadband Plan, Broadband Speed, Economy, FCC

posted by Nick Carter at 9:50 AM Link to this Article  0 Comments

Tuesday, February 16, 2010
The blizzard conditions that have hammered over one third of the U.S. have most grade-schoolers thinking about days and weeks of no school and tons of sledding. But the execs of many retail outlets, convenience store chains, and even the representatives on Capitol Hill have a little bit more bleak outlook. While sales of bread, milk, and of course sledding gear are likely sky-rocketing, on the whole, snow days are not good for the economy.

First of all, travel is down for obvious reasons. So, of course fuel sales are down, but in fact c-stores don't make most of their money on fuel sales. It's the peripheral items that make their businesses float. And, while fewer people are driving, that means less Little Debby's, 36 oz. slushies, fountain sodas, and the like.

Other retail is feeling the same strain--especially in the midst of one of the year's biggest shopping holidays: Valentine's Day. When a blizzard struck Indianapolis on Valentine's Day two years ago, hospitals prepared for a baby boom in November. Do the math. And, while that may seem like a splendid way to spend Valentine's Day to the consumer, the retailers aren't so pleased. Most of the common Valentine stock is perishable--flowers, chocolates, cakes, etc.--cannot be stocked away for next season.

There are other economic indicators that dip during a blizzard, too. New home construction hits a stand-still. Home sales are postponed due to the inability to show, list, and even perform inspections for closings. Countless businesses lose days and weeks of valuable productivity. And, as Reuters reported, local and state municipalities are asking for federal aid to cover the cost of digging out.

But this is common to any snow storm. The phenomenon with this most recent onslaught of snow is how widespread it is. We're not talking about one mall, one city, or on region seeing a slow-down for a few days. This blizzard has affected over a third of the nation, and 8 of the 10 most populous states in the Union.

The snow may be melted by March, but it will be 3rd quarter before the full economic impact can be measured.

Labels: C-store, Convenience Stores, Economy, Retail, Snow Storm

posted by Nick Carter at 4:53 AM Link to this Article  1 Comments

Tuesday, November 24, 2009
First and foremost: bravo! Twice in one year we've reported on the federal government soliciting feedback from the business community on its plans for the future (the last time being when the NTIA requested feedback on rural broadband). There's something heart-warming to see government working in such a way.

Yes, indeed, the Federal Communications Commission (FCC) is asking for comments from for-profit businesses, non-profit organizations, and economic development programs around the nation. As congress prepares to hear a bill next February on the FCC's famed Broadband Plan, the commission is going to dig deep for some hard numbers to back up their proposed needs for the nation.

Specifically, the FCC is asking about what does exist and what would be required. Can people access broadband at libraries and community colleges? If so, are they. And if not, what level of broadband is needed in a rural community in order to actually attract new business--and thereby jobs--to that community? What bitrates are required? Redundancy? And, on the docket we also find the question: is wireless broadband a viable solution?

As we consider how to get broadband access to the rural areas of the United States, there's an obvious economic incentive to go wireless--no, not just the stimulus money. It's less expensive to implement, faster to get live, and easier to build redundancy. But, I dare say that the FCC already knows all of that. What they want to know is, after it's implemented, live, and redundant--will it meet the demand? With ever-increasing speeds, network coverage, and security, it's safe to say "yes." What many fail to realize is that this is not your average air card anymore.

To let your voice be heard, download the FCC's public notice and follow the instructions found there.

Labels: Economy, FCC, Federal Communications Commission, Fixed Wireless Broadband, NTIA, Rural Broadband, Stimulus

posted by Nick Carter at 6:55 AM Link to this Article  0 Comments

Tuesday, November 10, 2009
There's been plenty of talk on Capital Hill and all throughout the blogosphere about the economy, the stimulus, and broadband. But a recent survey coming from the UK revealed a totally different side to this debate than I had ever seen before. Could you imagine real estate sales being affected by broadband infrastructure? I can.

According to a survey from ISPreview.co.uk, broadband speeds could help or hinder home sales. According to the article, "from 721 respondents to our latest monthly survey reveal that 75% of readers would not buy a house, even a lovely one, if the best broadband ISP speed it could achieve was just 1Mbps." This presents a not-so-obvious connection among seemingly unrelated economic trends.

Now, although these are largely UK respondents, a sampling of US buyers would likely show similar trends. Working from that assumption, there are a few alarming insights to be gained. First, the simple fact that this trait of a home is not something the seller can fix. Thanks to HGTV and the like, we're all becoming familiar with concepts like home-staging, flipping, fix-ups, etc. But if you're in a rural area with no broadband access, or even an urban area with poor access, your options for making your house more marketable are slim in this area.

Second, and perhaps more alarming, is the standards which we in the U.S. hold. Note that 75% of readers in the UK would NOT buy the house with 1 Mbps. That's nearly 250 Kbps faster than our current "standard" for broadband in the U.S. But, to the UK consumer, that is an unacceptable downstream speed. Now, there are a lot of factors to consider in setting the bar for what constitutes broadband speed, but the fact remains, other nations have set the bar considerably higher than the U.S. How far away are we from catching up?

As we consider the future of broadband infrastructure in the U.S., we have to think of the ripple effects that a lack of broadband can have on a community. Businesses cannot compete. Education is hindered. And, homes can't sell. And, without question the technology that can most quickly deliver broadband to rural communities is fixed wireless.

Labels: "Internet infrastructure", Broadband Speed, Economy, Fixed Wireless Broadband, Rural Broadband, Stimulus

posted by Nick Carter at 7:27 AM Link to this Article  1 Comments

Monday, September 21, 2009
In a recent article from Telephony Online: Fixed wireless broadband solutions: Five quick wins for the downturn, writer Rich Karpinski built on a strong point that what we all need in a down economy is quick sales. Look for opportunities with short sales cycles, he advises, to shore up the short term numbers.

Not bad advice. Not bad at all. But Rich then goes on to cite five areas where he believes that fixed wireless broadband providers can find surprisingly short wins. Here's where the content gets shaky. First, three of the five suggestions entail video streaming over wireless broadband. Not to knock our own product, but the bandwidth demands of video streaming, particularly to meet the real-time requirements of the security applications he suggests, may leave prospective buyers uncertain about wireless. Can it do it? Sure can! Can it be a quick sale? With doubts and preconceived notions looming, not sure.

Second, four of the five suggestions entail selling into some form of state, federal, or local government. I don't know about you, but I've never thought of government sales and quick sales in the same sentence before. Government procurement is one of the slowest known to man.

So, where should the wireless industry turn for the quick sell?

1. Stick with commercial. Non-profit and government sales are rarely quick. And, the resources that often go into a government sale might mean lower profit margins in the end.
2. So, where do we find profitable commercial customers with money to spend? C-Stores. Convenience Stores have flourished in the down economy.
3. Not only that, but c-stores also have another key attribute: the need for quick-launch solutions. So, where else do we find that demand? Construction sites. Incubator Office Space. Just to name a few.

Labels: Convenience Stores, Economy, Fixed Wireless Broadband

posted by Nick Carter at 10:13 AM Link to this Article  0 Comments

Tuesday, July 28, 2009
What would you do if a state's economy was continuing to fall, retailers across the state were moving out, closing doors, shutting down, and giving up? Well, you'd step right into the voids they leave behind, right?

That's precisely what 7-Eleven plans to do according to the LA Times. They have reportedly hired a commercial real estate broker to sniff out 600 new locations for them. Why here? Why now? The vacancies left behind as other retailers move out make this the most affordable time to launch such an expansion.

What's more, it might even work, too! Believe it or not, while other retail business is tanking, c-stores sales continue strong. "When you're thirsty, you don't check your 401(k), you just go in and buy a drink." Commented Jeff Lenard, spokesman for the National Association of Convenience Stores.

Labels: 7-Eleven, Convenience Stores, Economy

posted by Nick Carter at 8:59 AM Link to this Article  0 Comments

Tuesday, July 7, 2009
"Broadband is no longer a luxury, it's a necessity; and it's no longer a privilege, it's a right," said Michael Lai, CEO of Packet One, speaking during a panel discussion at the CommunicAsia exhibition in Singapore. Packet One Networks is a provider of fixed wireless broadband throughout Malaysia. Their WiMAX services were introduced just last year, and though coverage is still limited, the company is aggressively growing their network.

In an interview with IDG News Service, Lai commented his belief is to invest when the economy is down. Though only 20 percent of Malaysia currently has broadband access, considerable less than nearby Asian countries like Singapore, the Malaysian government is hopeful they can reach 50% coverage by next year. That's an extremely aggressive growth plan. How will they do it?

Lai, of course, sees fixed wireless broadband as the solution... and so do we. First, the cost to roll out GSM network infrastructure across the rural landscape of Malaysia is far less than creating a terrestrial network from scratch. What's more, the speed of a roll-out is also critical for Packet One Networks' aggressive subscriber growth goals. They hope to turn their 10,000 subscribers today into over 200,000 broadband subscribers by 2010.

There are, of course, obstacles in the way. Not the least of which are the existing cellular providers with 3G broadband capability. Oh yeah, and let's not forget the economy. But it seems in this case, wireless is driving the economy, not the other way around. Malaysia's aggressive push toward rural broadband access coupled with Lai's aggressive growth goals all while capital is tighter than ever means one thing: under these economic conditions, wireless is the only way to drive such growth.

Labels: Broadband, Economy, Fixed Wireless Broadband, Rural Broadband, Rural Broadband Access

posted by Nick Carter at 4:38 AM Link to this Article  0 Comments

Tuesday, June 23, 2009
With gas getting more and more expensive these days, it's no wonder people drive less. But, don't c-store's make oodles and gobs off that pricey petrol? Well, if the cost breakdown that I've seen on stickers at the pump is correct, the retailer's share is slim-to-none. In fact, their are bigger problems for a c-store's bottom line than just their small share of fuel sales. When people buy less gas, they buy less inside, as well.

It should come as no surprise to many in the retail industry that fuel pumps aren't the business, they're just the bait. If you have a captive audience for even 60-seconds during a fill-up while kids in the back scream for a pop and the slushy poster is right outside their window... you can guess who typically wins this battle. The lifeblood of a convenience store is in food sales, not gas.

So what happens when people buy less gas? According to the Research and Markets Convenience Stores US 2009 report, sales have been trailing off since 2006. Why? Some possible causes include not only reduced gas consumption, but also shorter trips, less cross-country drives, which ultimately lead to fewer pit stops with a van-load of cabin-fever kids.

Stores today have to find more ways to make food service a strategic differentiator. Successful stores in our area have begun to create an atmosphere and experience that defies the typical gas-n-go we're all used to. Free wi-fi, higher-quality food, eat-in areas... all this amounts to one thing: changing the bait. When gas no longer brings them in, something has to. Convenience stores today have to become convenient for more than just drivers.

Labels: Convenience Stores, Economy, Wi-Fi

posted by Nick Carter at 6:08 AM Link to this Article  1 Comments

Tuesday, June 16, 2009
As Britain unveiled its plans this week to stay competitive with the rest of the world in regards to broadband speed and availability across the islands (sorry, Ireland, it is plural), Gordon Brown reported that "The internet is as vital as water and gas." Brown compares the infrastructure of roads and bridges built in the 19th century Industrial Revolution with the infrastructure of cable and towers being built today.

I'm not sure how the leap is made from bridges and roads to water and gas, but I do agree with Brown's assessment of broadband's importance to growth in the 21st century. Here on our side of the pond, we're realizing the same about our own future. Much attention has been given to the role of Fixed Wireless Broadband infrastructuree for rural internet access, both on this blog and elsewhere.

So how do we compare with Britain's stance in the broadband race? Well, first, I'd like to point out one interesting observation made by Brown: "The private sector is rightly leading the way and investing significant sums." Not to engage in political debate, but I would hardly say that the stimulus funds channeled from the government through our private companies qualifies as private investment.

However, Brown goes on to cite several needed advancements in Britain that the U.S. has already stepped out on. First, the FCC's release of a large spectrum for wireless use. Brown also emphasizes copper and fiber optic networks over fixed wireless broadband. I believe that the U.S. will be far better suited competitively as we invest in untethered networks with more scalability.

Whoever is in the lead, one thing is clear, it is a race. The nation that emerges in the 21st century as having the best and most reliable broadband access will--just as with railways at the turn of the last century--gain a distinct advantage in the world economy.

Labels: Economy, FCC, Fixed Wireless Broadband, Rural Broadband, Stimulus

posted by Nick Carter at 7:12 AM Link to this Article  0 Comments

Tuesday, May 26, 2009
According to a survey conducted by Convenience Store News, first quarter numbers were surprisingly positive for c-stores around the nation. The Economic Pulse Survey asked stores to provide information regarding their sales over the same period in the previous year. A similar survey was conducted in December of 2008 to collect data from Q3, and yielded some depressing statistics. Nonetheless, the past two quarters (Q4-2008 and Q1-2009) were markedly positive.

CS News attributed the swing in gas prices to the successes and disappointments in c-store business. As prices plummeted in Q4-2008, stores recouped most of their expected profits for the year. Q1 of this year, then, started off on a very positive note. As the recession seems to be affecting nearly ever other industry, convenience stores are so far proving immune to the symptoms.

Stores remain optimistic for Q2, as well, but there's is no doubt that there is much trepidation surrounding the imminent rise of gas prices over the summer travel season. Still, an economist from Purdue predicts that gas won't come close to $4.00/gal. that we saw last summer. If this holds true, we may see an overall strong year in store for c-stores.

Labels: Convenience Stores, Economy

posted by Nick Carter at 5:21 AM Link to this Article

Tuesday, March 24, 2009
Yesterday, as the Obama Administration's economic stimulus plans were unveiled in Washington, the Dow got a boost on Wall Street. Among the most successful jumps on the markets were Telecom leaders AT&T, Verizon, and Motorola. Investors and Analysts appear to be optimistic about the effect that the $7.2 billion in broadband stimulus will bring on the telecom giants.

As we've come to know well, spending is the key to our U.S. economy. Earlier we reported on AT&T's plans to devote $11 billion to wireless broadband. We've also learned that Verizon will have to decide what to do with it's $1.6 billion from the senate stimulus plan. Countless other funds of untold billions are no doubt becoming available to smaller telecom and broadband providers, all of which seem to carry a common theme: bring fast Internet connections to rural and low-income areas.

So, how does all this affect you? Well, first of all, leading the world in fixed wireless broadband technology will certainly be beneficial for keeping the U.S. on the leading edge of global markets. But, more immediate effects will be felt by the businesses in and around rural areas. Businesses serving rural areas will see increased e-commerce opportunity. Businesses in rural areas will see lower costs and higher availability for broadband access via wireless GSM infrastructure. The bottom line: it's encouraging to know that the telecom industry leaders are planning and positioning for growth.

Labels: Broadband, Economy, Fixed Wireless Broadband, Stimulus

posted by Nick Carter at 6:26 AM Link to this Article  0 Comments

Monday, March 16, 2009
The $7.2 Billion that the NTIA and FCC now have on their hands created a flood of over 2000 individual requests for meetings and follow-ups from advocacy groups, local and state government agencies, and private companies all across the U.S. Following the first of several public meetings on the topic, we now have a systematic means for follow-up. The agencies have released an RFI form requesting information relevant to the proper handling of these funds.

You can download the form at http://www.ntia.doc.gov/frnotices/2009/FR_BTOP_RFI_090312.pdf. Don't be shocked to find a lengthy form. No doubt, in part, to weed out those deeply interested in the process from the casual squalkers. But, if you (like us) desire to see the funds used appropriately in the rollout of broadband access for the U.S., we encourage you to take the time.

Labels: Broadband, Economy, FCC, NTIA, Rural Broadband Access, Stimulus

posted by Nick Carter at 11:06 AM Link to this Article  0 Comments

Friday, March 13, 2009
We have talked a lot recently about the recent stimulus package and it's impact on wireless broadband investments in the U.S. There's no word on whether AT&T's recently announced plans were motivated (or even funded) by the stimulus, but whatever the source, the results are obvious: 3,000 jobs alone will be created in AT&T's next initiative to ramp-up 3G networks across America.

According to Network World, AT&T CEO Randall Stephenson says that despite the current recession, AT&T needs to invest heavily in wireless capacity to keep up with consumer demand for bandwidth. Their plans include nearly doubling their 3G presence in the U.S., which entails nearly 2100 new GSM-based cell sites.

So, with AT&T upping the ante, what will the other major providers do with their broadband stimulus funds? What we expect (and hope) to see is the race begin to lead the U.S. in wireless broadband connectivity among Sprint, Verizon, and AT&T. It appears AT&T has jumped out to a lead, at least in what they've promised. But if there is one thing Capitalism assures, it's that where one company ventures, more will follow. Competition drove us to where we are in technology today, and it is driving us to the future as we speak.

See the full article in Yahoo Finance: AT&T to Add 3000 Jobs...

Labels: Broadband, Economy, Fixed Wireless Broadband, Rural Broadband Access, Stimulus

posted by Nick Carter at 6:16 AM Link to this Article  0 Comments

Thursday, March 5, 2009
With over $7.2 billion at stake, there has been no shortage of banter over where the money should be spent. A simple google search for "broadband stimulus" yields hundreds of thousands of recent news entries and blogger buzz about the topic. So, what do we know as of now?

First, the U.S. Department of Agriculture’s Rural Utilities Service (RUS) will handle a portion of the funds. I originally was led to believe (probably through one of the numerous sources chattering about the topic on the internet these days) that the National Telecommunications and Information Administration (NTIA) would be the exclusive administrator of Obama's stimulus, but it appears I was incorrect.

However, I'm glad to have been found mistaken. Ron Schott, an Arizona news man, points out in his recent article on the broadband stimulus package, that with the RUS in charge, it could mean 80-95% of the largely rural state of Arizona receives coverage. Some people expressed disappointment over the historic allocation of funds that the RUS approved, stating that the money doesn't always end up at the most rural of areas. In either regard, I say that I'm pleased t see this development because I believe it will mean more money invested in rural infrastructure rather than floating the major carriers with loans and grants to "improve" existing networks.

As per my previous article over the allocation of these funds to wireless broadband technology, no definitive answer has been given. But, rest assured the industry is lobbying hard to make sure we get our cut. Fred Campbell, president of The Wireless Communication Association International (WCAI) stated, “WCAI applauds the inclusion in the American Recovery and Reinvestment Bill of funding for the delivery of wireless broadband to underserved areas.” He also commented, "As the only broadband platform that is capable of providing access everywhere, all the time, wireless broadband is essential to achieving universal broadband connectivity."

Where will the dollars fall, we aren't certain yet. I will be keeping my ear to the rail, hopefully the train's-a-comin'.

Labels: Broadband, Economy, NTIA, Rural Broadband Access, Stimulus, WCAI

posted by Nick Carter at 3:49 PM Link to this Article  0 Comments

Tuesday, March 3, 2009
Everyone seems to be talking about the stimulus package these days, and the telecom industry is no different. The National Telecommunication and Information Administration (NTIA) got a $4.7 Billion chunk of Obama's stimulus bucket-o-money, and they're looking for ways to spend it. Where would be the most economical (yes, even I have to drop the buzz word) place to spend that money?

Consider the costs of laying thousands of miles of copper cable across the deserts, mountains, and tundras where broadband access is still unattainable. Now, consider this: depending on terrain and other circumstances, a GSM tower can substutute for anywhere from 4 to 50 miles of hard wiring. Not only that, but when considering manpower for installation and the ongoing maintenance, the total cost of ownership (in this case, our own taxpayer ownership) is dramatically lower.

But doesn't that defeat the purpose? I thought we wanted more work, more jobs, and more product purchased so as to stimulate the economy. That's true, but the simple fact is that if the $4.7 Billion doesn't all get eaten up in broadband, rest assured, they'll find other places to spend it.

If you'd like to get involved, learn more about the NTIA and the Broadband Grant Program Meetings.

Labels: Broadband, Economy, NTIA, Rural Broadband Access

posted by Nick Carter at 5:38 AM Link to this Article  0 Comments

Monday, February 16, 2009
My cousin and her husband have been teaching their seven-year-old about money. With all the news and panic about the economy swirling throughout every channel of media, they decided it would be good to help her understand what money was all about. Right now, money is far from the most valuable thing in her mind, so they needed to establish another more relevant currency: horse riding lessons.

"Now, Catherine," they told her, "if you leave the lights on in this room all month, that could cost as much as ten minutes of your horse riding." She may not comprehend the hourly rate of their trainer, but this correlation gives Catherine a clear frame of reference and a desire to reduce mommy and daddy's costs so she can keep riding.

It still amazes me how child-like an employee's understanding of business might be. Overhead, taxes, insurance, and profit margin might be terms they know, but are they pains that your employees feel? Do they fully understand how these matters weigh on your mind? Not likely.

While nobody wants to have open discussions about salary and compensation, what if the cost of materials in the supply room were clearly marked? What if the tally of each salesperson's monthly expenses were published... right next to their sales. Could your workers learn to see the wastefulness of a co-worker as a threat to his or her own income?

There are lots of expenses that add up quickly as a direct result of the lack of frugality on the part of employees. Electric bills, heating bills, travel and entertainment, and even regular repair and maintenance can all be reduced if people would but see the monetary value in something as simple as flipping a light switch or re-using scrap paper.

Labels: Cost Reduction, Economy

posted by Nick Carter at 7:13 AM Link to this Article  0 Comments