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Kerbango was too early for several reasons. Firstly, semiconductor technology simply couldn't yield such a product for $300 in 2000, despite the fact that the design was based on royalty-free Linux. Secondly, it required an Ethernet connection, and that factor defeated the portability angle. Despite a number of prototypes at trade shows, Kerbango never shipped the product to the public. But the concept lives on in products from Netgear, D-Link, Roku Labs, and others that range from less than $100 to approximately $500. Users can move today's offerings to the extent of their WiFi networks and can play radio and music from services such as Rhapsody and Musicmatch.
Battery-pack authentication is necessary because the lithium-ion cells that are the building blocks of all such packs are changing, and, although they still may have the same physical dimension, their input charging voltage and required charging rates are changing and fragmenting across markets. If the cells charge at the wrong voltage or too quickly, they may explode. Clearly, counterfeit battery packs pose a threat to user safety. To combat such problems, one cell-phone manufacturer, Nokia, places holograms on its approved battery packs. Customers can check the code on the hologram online to verify whether a part is genuine.
Most of the defectors switch either to satellite TV or to TiVo-type services that enable them, for the upfront cost of a $200 to $400 digital video recorder (DVR), not only to watch what they want when they want it but also to skip unwanted commercial interruptions. When one thinks of the lack of apparent advantages with digital cable, it is no wonder the penetration rate of digital cable has leveled off-its offer doesn't measure up to the competition. One area where Big Cable has redeemed some of its multibillion-dollar investment has been with video on demand (VOD). In regional tests, viewers have watched television more and deserted their cable companies less even willing to pay an extra $10 to $14 a month for the privilege.
Outsourcing Good or Bad?
What lies on the other side of the outsourcing boom? All the third-party providers that manage the routine operational activities other companies shed. This lucrative if unglamorous business is growing fast and creating opportunities for both start-up providers and established businesses seeking new growth services to enter. The question confronting would-be providers of operational services is what is the secret of success in a growth industry that presents many challenging issues? The answer may lie in making the right decisions from the start about where and how to achieve economies of scale and skill. Many providers overestimate the value that can be created by managing another company's operations. Others underestimate the pitfalls presented by infraservices. Thus the topic of outsourcing remains hotly contested.
Has Outsourcing Gone Too Far?
When it comes to the ownership of manufacturing assets, conventional thinking argues that less is more. However many companies, in the ensuing rush to outsource these assets, may be shortchanging themselves when it comes to greater opportunities to capture value and improve performance. Those making executive decisions in this matter have been more towards short-term savings rather than in the context of long-term investments. They must weigh the full costs, thus their potential for improvement of their current operations against the true and oftentimes underestimated costs and challenges of managing a supply chain. This is rarely a simple calculation. Needless to say, outsourcing can deliver game changing value, but it can also bring turmoil. It is best viewed not as an end in itself, undertaken through a leap of blind faith, but as a tool to boost performance through a rational assessment of the possibilities.
Several Linux features make it ideal. Designers are initially attracted to Linux because it offers free source code, no licensing fee, and no per-unit royalties. Compared with the price of in-house development or a commercial operating system, these costs are significant and can add up to thousands of dollars over the life of the project. Cost competition and budget restrictions have forced software-development teams to at least consider royalty-free software such as Linux for new projects.
Qualcomm has actually made the biggest news consistently. Back in October at the CTIA Wireless IT show, the company showed a live-as opposed to canned-demo of a real MediaFLO enabled handset receiving video and executing channel changes. Subsequently, Qualcomm and Verizon announced that the latter will begin rolling out MediaFLO service late this year.
On the other hand, Samsung and LG have both demonstrated phones for both MediaFLO and DVB-H networks. The Samsung models look particularly compelling, with screens that pivot 90 degrees so that viewers get the appropriate aspect ratio. And the Samsung demos were live, even though real deployment is essentially a year away.
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