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Newsletter e-business Center PwC&IESE
ICT Impact Analysis on Organizations and Their Surrounding Environment  

http://www.ebcenter.org
15-31 May, 2006
ZOOMING IN
US Ratifies the Principle of Net Neutrality
Commentary by Sebastián Muriel, PwC Senior Manager, Telecommunications Sector
REPORTS
Affordable Devices a Determining Factor for Success of Mobile TV in Europe
Over Half of American Teens Are Web Content Creators
TREND HUNTER
Equipment Versus the Digital Divide
Entertainment, Technology and Natural Disasters Dominate the Blogosphere
CONOCIMIENTO EBCENTER
Crece la demanda del software como servicio
 
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ZOOMING IN
US Ratifies the Principle of Net Neutrality
On May 25, the US House Judiciary Committee approved a bill in an effort to stop telecommunications operators from breaching the concept of Net Neutrality. Under this principle, Internet operators are required to offer the same service at the same price to all content providers, regardless of the type of data they offer. Operators argue that they need to bear major investments in order to meet the growing demands of the Internet (where content is based increasingly on video and music), while most of the profits are generated by content providers.
Others with an Internet presence, such as Google, Microsoft and Yahoo!, are pushing for the creation of a framework for respecting Net Neutrality, claiming that the establishment of new pay formats would inhibit the chances of newcomers and be detrimental to innovation on the Internet. The debate is now reaching Europe, where some operators have already expressed their opposition to the principle of  Net Neutrality.
Commentary by Sebastián Muriel, PwC Senior Manager, Telecommunications Sector

Should all Internet content and service providers pay the same rate, regardless of the bandwidth they use to transmit their information? The debate on what is known as Net Neutrality has become a hot topic in American politics.

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REPORTS
Affordable Devices a Determining Factor for Success of Mobile TV in Europe
Title: Understanding Europe’s Market for Mobile TV
Source: The McKinsey Quarterly
Date: April 2006
Abstract: In order to achieve market penetration in Europe for mobile phone television, there would need to be a wide selection of open-access programs with no geographical limitations and phones that are affordable to the majority of potential users. According to estimates by McKinsey, the market could reach 190 million users and generate profits of €24 billion in 2015. The survey, which included more than 1,000 subscribers, shows that users prefer the type of television programs they view on their mobile phones to be similar to what they choose to watch on their traditional TV sets, with news and children’s programs being the most watched among users. According to McKinsey, when mobile television becomes widespread, programs will have to be offered in the clear without geographical restrictions. If not, market penetration of mobile television in Europe could be affected.
In terms of the business model, the study shows that 62% of European consumers prefer to pay a flat monthly rate instead of paying for content à la carte. The report also suggests that the battle for the definitive standard in mobile TV should not be prolonged too much, as this could delay the takeoff of the service. The study also reveals the need for manufacturers to offer affordable devices, since 40% of those surveyed said that they would not pay more than €100 to have one.

Full Story (free registration required)
Over Half of American Teens Are Web Content Creators
Title: Teen Content Creators and Consumers
Source: Pew Internet & American Life Project
Date: November 2, 2005
Abstract: Creating blogs (personal web pages), sharing files and reworking content found on other sites are just some of the online activities that 57% of Americans between the ages 12 and 17 are involved in. According to a study by Pew Internet & American Life Project, 19% of these youngsters create blogs and 38% of them use these sites as information sources. More than half update their blogs weekly and three out of ten do so at least three times a week. In terms of reading habits, just 2% of young Internet users in the US read the blogs of people they don’t know, whereas the majority get their information through their network of acquaintances. As content consumers, 30% download music through P2P networks, the same percentage as those acquiring music through legal sites, such as iTunes or BuyMusic.com. This behavior by American youth differs from that of adults, of whom 7% have their own blogs and 27% just read them.

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TREND HUNTER
Equipment Versus the Digital Divide

Several manufacturers are starting to look beyond their traditional customers and markets in order to reach the more underprivileged sectors of the population in developing nations such as Brazil, India and China.
Microsoft has launched the FlexGo project, aimed at those who cannot afford a personal computer. The proposal consists of providing computers by way of an initial payment of part of the equipment while defraying the rest of the cost in the form of pay-per-use, so that the user gradually pays for the PC in small installments, based on usage. Intel, meanwhile, has announced its plans to invest $1 billion in the next five years in order to reduce the digital gap in developing countries.
Nicholas Negroponte is also contributing to the improvement of ICT access in underdeveloped countries. A year ago the famous MIT professor launched One Laptop per Child, a non-profit organization dedicated to the development and distribution of laptop computers for $100 to schoolchildren in disadvantaged areas. Also joining in on the project are companies such as Google and Red Hat. Nevertheless, despite the good intentions of companies and institutions the digital divide remains.

One Laptop per Child website
Article in News.com
Pictures in Flickr

Entertainment, Technology and Natural Disasters Dominate the Blogosphere

According to BlogPulse, the entertainment sector, technology and natural disasters were the hottest topics in 2005 on the blogosphere. The top ten most cited blogs are led by Boing Boing, covering technology, futurism, science fiction and gadgets, and Endgaget, devoted to the world of technology, and the blog written by journalist Michelle Malkin. Although their influence does not equal that of traditional media, blogs carry increasing weight as a marketing tool. This is backed up by a study by Jupiter Research, which states that although the percentage of European users who post blog entries is relatively low (just above 20%) its influence is constantly growing.

News in Computing
Mentioned in Blogpulse

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CONOCIMIENTO EBCENTER
Crece la demanda del software como servicio
Por Carles Cabré, colaborador del e-business Center
El mercado de las aplicaciones bajo demanda aporta importantes ventajas sobre el tradicional modelo de compra de licencias. No obstante, también presenta puntos débiles, como la seguridad, ya que la información se almacena en servidores no controlados por el cliente.

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