You might remember when the $1200 "radar range" first made its appearance
in homes. It did not take long for businesses and users to see the many advantages
of microwave cooking. Interest sparked. Cookbooks soon proliferated, along with
cooking schools. Users doubled, tripled, quadrupled until today no home or office
building would exist without at least one microwave oven. The price of a microwave
oven is significantly lower now and cooking instructions are on every box.
And so it will be with broadband in the 21st Century. Similar to the microwave,
the desire for convenience and speed, along with the instructional information
provided, will help propel us into a nation of broadband users. However, a larger
population than the 15% of residential homes, who will have broadband access
by the end of 2002, is needed to create this upward spiral. Broadband will need
to deliver more than music and games and needs to develop and market new applications
such as video conferencing and high-definition TV (HDTV).
Today, fast Internet access is just not a good enough reason for many people
to spend $40 a month. But it is only a matter of time when applications accessible
only through broadband begin to drive the market. "The 15% of our population
who will have broadband access by the end of 2002 will probably grow to 30%
by the end of 2004," according to Nazmin Alani, Vice President, Gartner
Consulting. And with it will come more companies providing more products, more
games, more sophisticated video conferencing equipment and HDTV. The current
$40 per month charge to deliver high-speed access to the Internet and e-mail
will drop as the value of products and services increase.
If Napster alone is responsible for a significant number of DSL and cable modem
sales, as a recent Wall Street Journal article surmised, can we not expect more
entrepreneurial upstarts to follow suite? And it is the promise of future returns
that will motivate residential and building owners to buy broadband access.
HDTV
First, residential and commercial building owners must understand the value
of broadband to see why they should differentiate their buildings as those most
desired in the 21st Century. As HDTV and games are being developed, the music
loving Napster crowd will become apartment dwellers, homeowners and business
people with demanding expectations. The Monday night football devotees will
join them as HDTV develops. Broadband will explode.
In Ft. Lauderdale, on April 1, 1998, ECI Telecom, Inc announced their Hi-TV
system would carry the opening day game between the Texas Rangers and the Chicago
White Sox. Using MCI's broadband ATM network, the signal was carried from the
ballpark to a high-definition test station in Washington D.C. At the time, the
FCC had an aggressive schedule to convert analog TV signals to digital. But
on November 8, 2001, the FCC released new deadline dates for digital signaling.
By April 1, 2003, a HDTV station must provide digital signals during 50% of
the scheduled day. By April 1, 2004 they must broadcast 75% in digital format,
and by April 1, 2005, they must be 100% digital.
In preparation for digital signaling, TV retailers are promoting digital TV's.
A Sony 34 inch, flat screen TV goes for just less then $3,500.00. RCA has a
61-inch screen for just under $7,500. Both TV's are able to receive DIRECTV's
digital signal distributed by satellite. However the TV industry is challenged
on how best to deploy high-definition TV. Today there are approximately 600
million television sets in the world and only approximately 70% are in color.
Much like the challenges presented when black and white TV converted to color,
the FCC sought a simple standard. They requested proposals and received 23 in
1988. By February of 1993, the FCC decided on the technology and formed the
"Grand Alliance", composed of numerous TV and technology manufacturers,
to decide upon the standards.
Analog transmission of "terrestrial TV" uses a 6 MHz channel. Digital
high-definition TV requires approximately 18 MHz channel capacity. Kids want
interactive games and interactive TV participation. Broadband capacity is capable
of interacting with TV transmission. Nintendo, among other game developers,
is ready. Already new games bought can be used with a broadband access line
to accommodate multiple players (for greater detail see: Internet Gaming: Understanding
the Attraction, on page XX of this issue).
Residential Video Conferencing
Broadband access is not just for fun and games. Videophone calls, accomplished using broadband access, appeal to college students away from friends, families who desire a visual interaction with each other and the disabled.
By using a videophone and voice and video over IP, there is no per call usage
expense. Videophones vary in price from $1,000 to $1,500 each. A less expensive
solution is to buy a PC camera with a price of $30 to $100 and pay phone charges
for the audio portion of the call. Like with early microwaves, no "how
to" books exist for home video conferencing and instructions don't come
with a broadband line.
Yahoo Messenger and Microsoft NetMeeting are two software programs that enable
video conferencing using a PC camera. Innomedia (www.innomedia.com) produces
and distributes IP videophones. A videophone makes home video conferencing simple.
No PC or call facilitation software is needed. The caller enters known numbers
into the on-screen phonebook included for speed dialing. If using a gateway,
the caller dials an extension phone number. The videophone may also be used
for non-video IP calls. Several locations may be linked using a bridging device
like CUSeeMe's Conference Server, Accord's MCU or Radvision's MCU. Any of the
end locations may have continuous presence or voice-activated presence modes.
The growth of broadband access lines may have slowed some. Technology improvements,
government intervention and market needs will impact the speed of market acceptance.
The maturing desires of future buyers will impact demand. While it took the
microwave fifteen to twenty years to become fully integrated into almost every
property, time marches more quickly today than in the 1970s and the promise
and payoff of Broadband is far more evident than were the benefits of the microwave.
Before we know it, a dwelling without broadband access will be considered outmoded,
soon to be obsolete.