Paper - Growth of mobile services, its global reach and its impact on GDPs of nation

Growth of Mobile services and its impact on GDP and the next billion consumers

Growth of Mobile services and its impact on GDPs and the next billion consumers

By
Kartik Mehta
Student,
Department of Telecommunication Management,
Stevens Institute of Technology, Hoboken
August 2010

Under guidance of
Dr. Audrey K.Curtis,
Department of Telecommunication Management,
Stevens Institute of Technology, Hoboken

It is not the strongest of the species that survives, nor the most intelligent that survives.
It is the one that is the most adaptable to change1.
Charles Darwin

Table of Contents

ABSTRACT...................................................................................................................................................................3

1
Charles Darwin quotes http://www.brainyquote.com/quotes/authors/c/charles_darwin.html

_____________________________________________________________________________________
-i-


1.INTRODUCTION: THE FOURTH WAVE, NEXT BIG THING IN IT: MOBILE INTERNET, ANYTIME, ANYWHERE.....................................3
1.1 Convergence of Networks, applications and technology ................................................................................4
1.2 Trends in convergence of networks..................................................................................................................6
2. SOCIAL NETWORKING AND MOBILE – TRANSFORMING PERSONAL, COMMUNITY AND SOCIETAL CULTURES..................................8
2.1 Internet: From Web 1.0 to Web 2.0. ...............................................................................................................8
2.2 Rise of social media.......................................................................................................................................10
2.3 Rise of event based Web Video streaming.....................................................................................................11
2.4 Decline of Broadcasting ...............................................................................................................................13
2.5 Growth of Social media adoption in Corporate America..............................................................................14
3. MERGING OF THREE SCREENS, TV, LAPTOP AND MOBILE...............................................................................................16
3.1 UnUP: Connecting devices on home networks..............................................................................................16
3.2 DLNA: Bringing the web to Television screen and merging of the 3 screens, TV, laptop and smartphone. 17
3.3 Age of connected internet TV, laptop and smartphone..................................................................................18
4. EDUCATION: FROM LECTURE IN BUILDINGS TO COLLABORATION ON YOUTUBE AND WIKIPEDIA, VIEWING ON I-PADS AND E-
READER........................................................................................................................................................................19

4.1 High cost of Education: Is it sustainable in future?......................................................................................19
4.2 Education as a service and use of social media to cater to this service........................................................20
4.3 Technology in Education: is it beneficial? Is Education 2.0 needed?...........................................................21
5. PRESIDENT BARACK “BLACKBERRY” OBAMA, US ELECTIONS 2.0 AND FEDERAL GOVERNMENT 2.0...............................22
5.1 President Obama and his love for social media............................................................................................23
5.2 Social media and Obama administration......................................................................................................24
5.3 Social media’s advantage over traditional media in political discourse and discussion?............................24
5.4 Government 2.0, political debate and social media......................................................................................26
6. CONCLUSION.............................................................................................................................................................28
7. BIBLIOGRAPHY..........................................................................................................................................................30

_____________________________________________________________________________________
- ii -


ABSTRACT
We like to speak to friends and family members in house, office. We like to read newspapers and
TV channels for news, watch movies, video, music albums for entertainment, books, periodicals,
journals for studying, conduction research. We travel to friends, relatives places in different
towns and cities to meet them and have a social circle, have fun and enjoyment with them. When
we go out, we spend money on buying gifts, grocery, clothes. We go to the bank for getting
money for day-to-day expenses, for long term investments like building house, opening a
business. We like participate in the political process of choosing the community leader, mayor,
senator, governor of a state.
Till five years ago, we would have required a telephone to talk to friends, office colleagues, a
newspaper to read daily news, a television set to watch news channel, buy a ticket and go to a
cinema hall to watch a movie. We would have to go to a library to get books to study, to do
research. We would have to take out our car and travel to distant town to meet our friends and
socialize with them. We would have to go nearest ATM of our Bank to get cash, set an
appointment with bank officer for getting loan for house or business approved. We would have to
prepare a list of problems in our community and then go to meet our community leader, city
mayor.
Today, with advent of smart phones, I – Pads, I – phone, Nintendo’s Wii, Sony’s Playstation,
Kindle readers, 3G and 4G networks, software and technologies like Google voice, Skype, e-
readers, e-books, mobile banking applications, streaming video, all these above mentioned
services can be performed to small or large extent from our smart phones anytime, anywhere . In
future, with advances in technology, hardware, software, these services could further get refined
and be available for consumer use. Though many would want to avail these services but currently
the cost of software, hardware, network, data plans make the cost to avail these services high and
thus beyond the means of a common man.
However, with explosive growth rate of internet connected devices, huge amount of investments
by small and big companies, by the governments around the world, consumers and growing use
of the services offered by these devices, expectations are that economy of scale would drive the
costs down. This could make the costs of availing these services cheaper for the common man
and lead to a further growth in demand for mobile services. This in turn could lead to more
efficient use of resources by the masses and in turn have a positive impact on the gross national
product of nations.

1. INTRODUCTION: THE FOURTH WAVE, NEXT BIG THING IN IT:
MOBILE INTERNET, ANYTIME, ANYWHERE

3


Is Mobile internet, mobile services and its
impact on gross domestic product, return on
investment the next big change for humans?
But, first, why we are going are doing this
search and then we examine how
technological innovations like Mobile
internet, are effecting and will continue to
have effect on lives of millions in future?
Forrester researcher Christopher Mines, in
his presentation, “The next big thing for IT”
in June 2005 professed about the “The
fourth wave of IT”2. Mines vision of
evolution of computing is classified as the
four eras of IT and consequently named
each era as four waves of Information
technology as per their respective eras. His Morgan Stanley in its 2009 Technology
classification of these eras are, first wave, report at Web Summit stated that “Mobile
from 1956 to 1976, the era of main frame internet would be bigger than what most
computers, the second wave , from 1976 to think”5.
1992, the era of personal computers, the
third wave, from 1992 to 2008, the era of 1.1 Convergence of Networks,
networked computing and fourth wave, the applications and technology
era of IT everywhere3. On examining the hypothesis that mobile
The Forrester report stated Mobile internet would have a greater than any other
would bring changes and have far reaching technological breakthrough in the past, we
implications on in global trade and find that. The answer lies in the penetration
commerce (Figure 1)4. of mobile in hands of the consumer.
However, it not just the number game that
has led to excitement around the globe for
mobile technologies in recent past.
Ramjee Prasad in his paper explains why we
are now seeing rise of Mobile as the new
client server frontier replacing the Laptop
2
Forrester’s, Christopher Mines, “The next big thing for
and desktop. He mentions that there is a
IT”
http://www.forrester.com/rb/analyst/christopher_mines chips that further lead to convergence of
3
Forrester report at WITSA, networks, applications and technology.
http://www.witsa.org/presentations/
4
WITSA, World Information Technology and Services
Alliance
5
http://www.witsa.org/hyderabad08/WITSA_PublicPoli http://www.slideshare.net/techdude/economy-internet-
cyReport08.pdf trends-2009-from-morgan-stanley

4


by the consumer. The high data rates
provided by the networks saw proliferation
of devices like the smart phones such as i-
phone, Android devices, blackberry devices,
netbooks, GPS, e-reader and mobile internet
device (MID). These devices operated on
newer and better operating systems like
Apple’s mobile operating system, Windows
mobile system and recently the Android
operating system. The availability of
multiple operating systems has led to more
competition among the mobile hardware
manufacturers and this further led to better
mobile systems. These advancements in the
mobile and wireless technology have made
the emergence and huge success of mobile
applications market possible.
The networks architecture has matured from High throughput rates on Mobile due to
days of using ATM, to all IP, making advent of 2.5G and 3G technologies, smaller
communications simpler. From days of best form factor of mobile has made mobile,
effort service, networking has moved to smart phones an indispensable part of one
Diffserve and MPLS, providing control over lifestyle. Consumers need for applications
data and preference in data flow. This is ranging from instant information to emails
required for efficient handling of data traffic to mobile maps to mobile banking to VoIP
in today’s age of network traffic congestion. calls, checking weather in morning to train
With advent of Wimax specially the Wimax schedules, to meeting alerts, checking
16e, a technology which is compatible with balance bank statement. All these variety of
both fixed and mobile Wimax and the functionalities are provided by smartphone
technologies like LTE, convergence is and off late, watching favorite video
taking place amongst the network providers streamed on smartphones has also become
like the wireless, fixed and broadcast service possible. This has made mobile central part
providers. of consumer’s lifestyle.
Along with the above mentioned Better browsers for mobile like Opera, better
advancements, companies like Intel, mobile operating systems like Apple,
Qualcomm developed small and better Android, Symbian by Nokia, RIM,
Better processors for mobile, better chips, Windows Mobile system have made
better networking technology like GSM, consumer’s mobile experience more easier,
GPRS, WiFi were being used by networks faster for the mobile user. The opening of
mobile applications market from the above
6
http://www.cloudfour.com/blog/ mentioned companies have further enhanced
the value of mobile, smartphone to

5


consumer. This has resulted in sudden spurt delivered from the days of cable, when the
in demand of smartphones and also data was delivered over the copper wires to
Netbooks, smart books7. a stage today when voice is being delivered
over the data using technologies like UMTS,
GPRS, CDMA, lately Wimax. 10

1.2 Trends in convergence of
networks
IDC latest report brings good news for
Telecommunications and particularly
portable PC (Mobile, Netbook industry).
Key IDC findings from this market outlook
include:
“1. Worldwide cellular chipsets will grow at
a 9.3% compound annual growth rate
(CAGR) on a unit basis from 2009 to 2014.
2. While cellular broadband applications
made up less than 7% of this unit volume in
2009, this market will grow at a 35% CAGR
to account for over 16% of total chipsets by
2013, far outpacing the growth in the mobile
phone market.
8

3. While most cellular broadband chipsets
This movement of applications from desktop have been consumed by industrial/M2M
platforms to wireless and mobile handsets applications prior to 2008, portable PCs and
could have a significant impact on our daily mini-notebooks (also known as netbooks)
activities lives in near future.9 will drive a majority of the segment growth
These developments have led to going forward, followed by a variety of
fundamental change in the way internet is other consumer, health/medical, and
being delivered to the consumer. Times have automotive applications.
changed the way internet was being 4. Strong growth in cellular broadband,
primarily driven by portable PCs, mini-
7
Dr. W. M. Lim, Mobile Technology, Applications and notebooks, and mobile Internet devices
Systems, 2005 2nd International Conference on
(MIDs)/smartbooks will help accelerate the
8 Papadopoulos Homer, Personal, Indoor and Mobile Radio
Communications, 2008. PIMRC 2008. IEEE 19th migration of this segment from 2G and 2.5G
International Symposium technologies to 3.5G and 4G technologies
8
Morgan Stanley Economy + Internet report October over the next several years. The rollout of
2009 at Web 2.0 Summit – San Francisco
www.morganstanley.com/techresearch 10
Morgan Stanley Economy + Internet report October
9 2009 at Web 2.0 Summit – San Francisco
www.morganstanley.com/techresearch

6


LTE will greatly encourage this migration
starting in 2011.”11
Given the above mentioned trends it is safe
to say that portable Personal Computer
(Smartphone, Netbooks, I-Slate, I-Pad)
would soon become the new client server for
masses, a position once enjoyed by fixed
laptops, desktops. The above mentioned
trends also point out to the fact that we are
entering the era of “always connected with
the world via Internet anywhere, anytime” is
arriving and arriving soon.

11
Portable PC rise http://www.idc.com/getdoc.jsp?
sessionId=&containerId=prUS22154210&sessionId=A
KSDRCJNSHOXYCQJAFDCFEYKBEAVAIWD

7


2. SOCIAL NETWORKING AND MOBILE – TRANSFORMING PERSONAL,
COMMUNITY AND SOCIETAL CULTURES

This is the front cover of Time magazine reader content based sites Wikipedia,
issue of December 2006. Slideshare, YouTube, Facebook”13.

2.1 Internet: From Web 1.0 to Web 2.0.
Is social web going to bring a big change
real or just author’s imagination? One
change is certain, that is, the change in
which internet is used. Internet has evolved
from the dot.com era of 1990s to the current
phase where mobile wireless based internet
has made it possible to use internet anytime,
anywhere. The popularity of mobile wireless
based internet got a further boost with
advent of smart phones, I-pads, netbooks
that have enabled delivery of internet
anytime, anywhere a popular choice of the
masses rather than an isolated case. But,
12 what does internet 24 x 7 and anywhere
mean for the consumer? Has this led do
“YOU are the person of the year” (2006), change in web from what some authors have
says David Carlson, the author of the cover called a change from Web 1.0 to web 2.0.
story. The author says though the year, The distinguishing feature of today’s web is
2006, the war in Iraq, Aghanistan, Sudan that the consumers are today the creators,
made headlines. However, if we look from a the distributors as well as the consumers of
different lens, one will see a different story. the content. Thanks to Web moving from
“The story about community and desktops, laptops on to the mobile and the
collaboration on a scale never seen before. advent of social media, the rate of growth of
The new web, called 2.0, will change the two way communications between the
world forever”, writes Carlson. creator of content and the consumers has
increased drastically. In 1990’s,
The author goes on to say that the social
communication and content was centralized
web would be a big success story. “The
and hence there was one lane traffic from
social made a major break-through with
the content creators, TV channels,
newspapers, renowned authors, publishing
12
Front cover of Time magazine Dec 2006 13
Author David Carlson
http://davidreport.com/blog/wp- http://davidreport.com/blog/wp-
content/uploads/2006/12/time.jpg content/uploads/2006/12/time.jpg

8


houses, to the consumers. However, web users has decreased due to availability of
and more specifically rise of social web in massive wealth of content. Point to be noted
last few years has meant that consumers here is that websites enabled for Mobile,
have become the creators of information, netbooks, mobile applications have further
entertainment, media and there is scope of contributed to growing importance of real
feedback from fellow consumers and time content as more and more consumers
community. Thus, a content creation and are accessing information on their
feedback for content has arrived, making the smartphones rather than waiting to reach
social communication a two way process. their laptops or desktops to access the
content.
Also, the consumers are not only accessing
their favorite content, the improvements in
software, websites has made possible for the
consumers to share the content between
families, friends and communities. Sharing
of content has become lot easier, making
communities more closely connected with
one another and this has given rise to
collective community intelligence. In a
nutshell, unlike the past, where individuals,
communities relied on institutions,
centralized media, today, the consumers are
relying more and more on their respective
With the consumers donning the role of
social network, social media and
authors, there has been an explosion of user
communities. Hence, we can conclude from
created content available for consumers to
the above that social media has come of age
consume. Consumers can today post instant
and social media networking has changed
views, opinions, news on sites like
the way we interact with rest of the world.
www.twitter.com, debates, discussions on
www.facebook.com, consumer generated Such has been the story of media
videos on www.youtube.com, transformation in last few years that
www.dailymotion.com, user created images consumer feedback has become the “King”,
on www.flickr.com, www.picassa.com, the growth rate of sites like Twitter,
feedback about products, services by Facebook has overtaken the growth rate of
consumers on sites like www.amazon.com, internet search provided by likes of Google,
www.yelp.com or a job seeker use of on Microsoft. Studies show that consumers are
sites like www.linkedin.com for spending more time on sites like Facebook,
networking, contacts, jobs postings or YouTube rather than reading newspapers or
seeking latest political or financial news watching TV fed by the TV channels.14 The
digg.com/ or www.google.com/reader/. The result is more and more companies,
availability of information, content has gone enterprises are rushing to social media to
real time and life span of content in mind of
14

9


encash on this new channel of distribution production by publishing houses, the cost of
and sharing of content. marketing as well as made the high cost of
content distribution virtually become zero.
This means that the not only the overall cost
of producing the content has gone down
tremendously but the distribution of content
is more spread far and wide. Reduced cost
of media means that the section of
consumers who earlier could not afford to
consume content like TV, newspapers, video
are now able to view the content.

2.2 Rise of social media
The result is that web in general and social
15 networking sites in particular have been
seeing phenomenal growth in last three-four
However, user generated content, consumers years.
donning the lead role as source of content, is
Neilson, the marketing and media rating
just one of the change brought by the above
agency, in its April 2009 report stated that
mentioned transformation of the web.
“Time spend on sites like Twitter has
Studies conducted by Neilson, the marketing
grown by 3700%, while Facebook by
and media rating agency, suggest that web
700% on a April 08 to April 09, year-over-
as a platform and more specifically mobile
year basis. While in terms of unique visitors,
web has grown bigger and bigger and the
Twitter saw increase of 1,382 % year-
combined has eclipsed the power of
over-year”, between 2008-09, making
newspapers and is on verge of giving TV
Twitter the fastest growing site in the
channels a run for their money.
Member Communities category for the
Today, one can share content with friends, month”.
community, society, in general, without
having big budget spending on
advertisement in newspapers or on cable or
national television. One can share content on
sites like making announcements on
www.twitter.com, posting advertisements on
www.facebook.com, www.myspace.com or
sharing video or advertisements on
www.youtube.com. If we look in to reason
for the rise of web as a platform, we
discover that web has reduced the cost of

15
David Amano, Harvard Business publishing http://
darmano.typepad.com/logic_emotion/2008/10/hav
e-we-come-fu.html

10


youtube.com, www.dailymotion.com ,
www.hulu.com.

2.3 Rise of event based Web Video
streaming
However, the advent of technologies like
3G, 4G based networks, rise of smart
phones, netbooks, the bigger picture
emerging from these changes in technology
is that consumer is able to view, share,
create content anytime, anywhere on their
mobile, netbooks, I-pads. Video streaming
using sites like YouTube.com are today not
just limited to desktop, laptops but can also
16
be seen anywhere, anytime using
smartphones like I-phone, HTC Android,
CEO of Nielsen Online, John Burbank, Blackberry etc. And, that explains the
stated that “Social networking has become a sudden rush in the last couple of years by
fundamental part of the global online the TV Networks like NBC, CNN, ABC,
experience. While two-thirds of the global ESPN to the web. More and more
online population already accesses member entertainment companies are getting the
community sites, their vigorous adoption company’s sites built specifically to cater to
and the migration to (social media) time the growing demand of content for the
show no signs of slowing.”17 mobile, netbooks. No one wants to loose
However, it is not just the text based or business and hence TV networks are
image based content that has seen explosive adapting to new platform called web. A
growth rate in last few years. Consumption recent example of influence of web and
of online video and sharing of online video more specifically mobile web was seen in
is also growing at a fast rate. According to the recently held FIFA World Cup. Sites
Nielsen, “Time spent viewing video on like sports channel ESPN’s
social networking sites increased 98 http://espn.go.com/espn3/ prepared months
percent year-over-year”18. In the past, TV in advance for making their sites mobile
networks had variety of TV channels, friendly so that content can be delivered
catering to genres like News and Politics, from their sites to user mobiles and
Sports, Entertainment, Children, Comedy. streaming using adobe flash software.
Today, similar number and variety of Recently held Olympics in China was
channels are coming to Video portals like another event that proved that mobile web
has a tremendous potential to grow in future
16
Twitter, the fastest growing site with like of ABC, NBC, ESPN streaming
http://blog.nielsen.com/nielsenwire/online_mobile/t
witters-tweet-smell-of-success/
video content of the Olympic games events
17
Social network, the new global footprint. from their respective sites.
http://blog.nielsen.com/nielsenwire/global/social-
18
networking-new-global-footprint/ http://blog.nielsen.com/nielsenwire/

11


According to Akamai, the provider of Earlier, during the inauguration ceremony of
servers for companies for delivery of President Barack Obama, Akamai reported
internet content and applications, its servers that it had its largest single day on record of
reported a Net Usage Index for News concurrent live viewership, with 7 million
peaked at more than 20 million visitors per active simultaneous streams22.
minute on June 24th during the World Cup Newteevee.com reports the following
football match between Italy vs. Slovenia19. statistics about the video streams during
Similarly, Akamai delivered more than 1.6 President Obama’s inauguration23:
million concurrent streams across its
• For the inauguration, the rate of traffic
network at peak; majority of the customers,
on Akamai’s network hit more than 2
according to Akamai, used HD Network.
terabits per second traffic at 12:15 p.m;
Similarly, sports websites like On
it delivered more than 12 million
ESPN3.com reported that matches were
requests per second at the same time.
viewed by 7.4 million unique viewers, while
ESPN.com's front page, which prominently • MSNBC reported 18.2 million video
featured World Cup news, video and scores, streams on the day.
saw 304 million visits and 663 million page • USA Today and C-SPAN, said it broke
views20. a network record with 105,000
Zachary Sniderman, writer with website concurrent viewers and more than 1
mashable.com writes that Kaka, one of the million streams.
world’s premiere football players, is using
• Ustream says it powered more than 3.8
his Twitter account to connect with fans and
million streams, with 400,000
do things like share a pair of songs that were
concurrent visitors watching during the
written for him. He says “During the last
oath and speech.
World Cup in 2006 Kaka or any other
player, for that matter couldn’t have • CNN delivered more than 25 million
connected with fans in that way because, live streams between 6 a.m. and 6 p.m.,
well, Twitter didn’t really exist”. He adds with more than 1.3 million concurrent
that “This year’s World Cup has an live streams just before Obama’s
unprecedented volume of social media address.
outlets and initiatives from Twitter feeds to • ABC News had an all-time high of 8.3
Facebook fan pages, viral videos to mobile million video views on ABCNEWS.com
apps and more21”. and its partner sites, including Yahoo!
19
and Verizon VCast, on Jan. 20. That’s
http://www.prnewswire.com/news-
releases/akamai-delivers-2010-world-cup-internet- up more than 96 percent from the
coverage-for-two-dozen-broadcasters-into-65-
network’s previous video views high on
countries-worldwide-98590049.html
20
http://www.prnewswire.com/news- Election Day in November
releases/akamai-delivers-2010-world-cup-internet-
coverage-for-two-dozen-broadcasters-into-65-
22
countries-worldwide-98590049.html http://newteevee.com/2009/01/20/the-obama-
21
inauguration-live-stream-stats/
http://mashable.com/2010/06/11/world-cup-
23
evolution/? http://newteevee.com/2009/01/20/the-obama-
utm_source=TweetMeme&utm_medium=widget&u inauguration-live-stream-stats/
tm_campaign=retweetbutton

12


Such has been the power of social media and
more so after the availability of social media
apps like applications of twitter.com,
facebook.com, youtube.com on smartphones
that traffic generated by social media is
challenging the traffic generated by Google
search24.

And, one of the biggest gainers, from this
phenomenon called social media and their
availability on smart phones, is the
consumers.

2.4 Decline of Broadcasting NBC’s takeover by a Cable operator and
internet provider, Comcast, illustrates
It is said no revolution is bloodless. While
broadcast television's decline writes David
video streams are touching record numbers,
Bauder in Business Week”.25 David writes
websites, mobile streaming are on rise after
that “Broadcast people, the folks who
the advent of smartphones, players like
remember when television was ABC, CBS,
Nintendo Wii, Microsoft X Box, Sony Play
NBC and little else, used to look down upon
station, TiVo are making money out of the
cable”.
market, it is the traditional media, TV,
Newspapers, radio that are making big “This is highly symbolic," said Tim Brooks,
losses But, why is this this decline in age old who had worked at NBC for 20 years and
Broadcasting model of media sudden or was now writes books on television history in the
it coming? article. David writes that a Comcast
takeover is largely symbolic now, though
Eight decades after pioneering the concept
practical reality ultimately may overshadow
of broadcasting and after having influenced
that as NBC and other broadcasters face
the lives of millions of people in US and
declining audiences26. But, is this something
round the globe,, NBC, the leader in the
new unseen event or was it coming for
broadcasting industry made a startling
years?
move.
In an article way back in July 2004 edition
of Business week, the magazine ran front
cover story about “The Vanishing Mass
Market”27. This itself gave clear of things to
come in future, that is, the decline in

25
Broadcast pioneer NBC prepares for cable
takeoverhttp://www.businessweek.com/ap/financialnew
s/D9BVPUKO0.htm
26
24
http://searchengineland.com/by-the-numbers- Broadcast pioneer NBC prepares for cable
twitter-vs-facebook-vs-google-buzz-36709 takeoverhttp://www.businessweek.com/ap/financialnew
s/D9BVPUKO0.htm

13


traditional media ad spend while rise of 2.5 Growth of Social media adoption
Online media. in Corporate America
What Business week reported in 2004 about On searching about recent trends about
decline of the mass media has now further Corporate America presence in Social media
glorified this year by the fact that mass channels, one discovers that more and more
media advertising revenue declined as per companies are adopting social media to
Morgan Stanley report. connect to their customers and build a
customer centric community.
A web blogger writes that “In years to come,
broadcasting won't be broad and it won't be Starbucks Corporation in 2008 announced
casting. The dominance of one way, passive “It's closing 600 underperforming stores in
media consumption is over”. the United States. As many as 12,000
Starbucks workers will lose their jobs”28.
TV channels, newspaper’s the role of a
Starbucks was reportedly losing edge and
connector between companies, their
was facing increased competition from
products, services offered and masses that
McDonald’s and Dunkin’ Donuts. The
was once played by the centralized media
company decided to retrain employees and
like newspapers or TV channels is no longer
self innovate. Starbucks took steps to
the same. Not only the supremacy enjoyed
engage its customer and discuss suggestions
by the centralized media is gone but also the
to improve the coffee store. The same year,
growth rate is on a decline, while online
2008, Starbucks launched a new website to
media has become the central hub of all
engage its customer community online to
conversation for the masses.
get, share and discuss suggestions from the
customers to improve Starbucks. Called the
My Starbucks Idea, it has already generated
70,000 ideas by its first birthday in March
200929.
“Your Ideas. Your Starbucks.

27
The Vanishing Mass Market
28
http://seattletimes.nwsource.com/html/businesstec
http://www.businessweek.com/magazine/content/04_28
hnology/2008028854_starbucks02.html
/b3891001_mz001.htm

29
http://www.socialmedia.org/blog/my-starbucks-
idea-generates-70000-ideas-in-its-first-year/

14


medium. Given that young audience is likely
to be more social media savvy, Pepsi, Coke,
car makers like Ford, Toyota, have all
jumped in to encash the virtues of social
media in their attempt to catch the attention
of their customers.
These development show that social media
for business has matured and has gone main
stream for the business and enterprise.

What would make your Starbucks
experience perfect? We know you've got
ideas - big ideas, little ideas, maybe even
totally revolutionary ideas - and we want to
hear them all. Together, we will shape the
future of Starbucks”31.
Based on customer feedback, Starbucks
deployed free WiFi and started frequent
buyers bonus beverage program amongst
others ideas. And, the difference was felt
within a year. What Starbucks started was
soon followed by rival like McDonalds and
Dunkin’ Donuts. However, the concept of
having WiFi in the stores was not the only
idea rival stores started after Starbucks took
the initiative. Use of social media is another
concept that Starbucks and followed by
McDonald, started to gain direct relationship
with their respective customers. All these
companies found social media route as
another channel and increasingly as a
communication hub to build community, get
customer engagement and participation in
improving company’s performance.
Even big time players like the beverage
maker, Pepsi, Coke have joined this new
30
http://mystarbucksidea.force.com/apex/ideaList?
lsi=0
31
http://mystarbucksidea.force.com/apex/ideaList?
lsi=0

15


3. MERGING OF THREE SCREENS, TV, LAPTOP AND MOBILE
changer for consumers watching content at
home. Software companies like have
Watching one see one’s favorite video
developed content players and hardware for
albums on youtube.com, favorite movies
viewing content on television without
from movie stores like Netflix, amazon
connecting any wires between the laptop and
video on demand, on our television sets, is it
the television. Instead, set top box like the
possible? Is it possible to watch video
Roku Box, or a Western Digital’s TV live
streaming on Television instead of just the
box acts as a connector between the home
small laptop screen or mobile screen?? Till
network and the television.
now, we could not. But, the emergence of
new protocols like Digital Living Network
Alliance (DLNA), the Universal Plug and
Play (UPnP) have made it possible to view
the content which until now was available
only on laptops, smart phones on the
television screen.
Technologies like DLNA, UnUP are
changing the way home entertainment is The software provider named TVersity
delivered to the consumer. DLNA is a non- allows the laptop to act as a media server
profit collaborative of more than 250 and using the home network and a box like
companies in the mobile, personal computer, the Nintendo’s Wii or Sony’s Play Station or
television and service provider industries Microsoft’s Xbox, is able to play the digital
that have stated a common goal of using content on the television screens. TVersity
common standards based technology to has tied with number of content providers
make it easier for consumers to use, share like Hulu, BBC iPlayer, Joost, CBS, NBC,
their digital photos, music and videos. The WB, TV.com, ESPN, NFL, Comedy
Central, South Park, Marvel, The Discovery
3.1 UnUP: Connecting devices on and is supplying Premium Web content via
home networks video streaming to the television screens.
UnUP is a set of networking protocols for Soon, to be launched Google TV goes a step
primarily residential networks that permits ahead by making it possible for the TV
networked devices like personal computers, viewer to search the content, that is, allow
printers, Internet gateways, Wi-Fi access the television viewer to browse the web,
points, mobile device, to seamlessly view the digital photo albums, watch famous
discover each other’s presence on the YouTube, Hulu.com or amazon-on-demand
network and establish functional network video streaming right onto the television
services for data sharing, communications, screen. Apart from the box Google is
and entertainment. UnUP could be a game building with Logitech, consumers can also
get a wireless keyboard, wireless mouse and
thus are free to type text as they type on
their laptop or desktop, thus enabling them

16


to search the content and the play content as • Addition of mobile devices and
easy as viewing the content on the laptops. printers
Other industry player have been using this
• An increase from two to 12 device
technology like the players developed by
classes supported
Roku, Tversity, Playon who have been
streaming YouTube videos, Netflix movies • Addition of Real-time Transport
for some time. Protocol (RTP) for streaming audio
and video
• Support for the AVC (MPEG-4)
video coding standard
• Support for Bluetooth® technology
• Quality of Service (QoS) extended
across the entire DLNA network
• Addition of new media format
profiles
Using DLNA, one can use DLNA certified
laptop or smart phone and connect it to
DLNA certified Television. This means that
content on device can be stream on another
3.2 DLNA: Bringing the web to
device. This has led to growing interest of
Television screen and merging of
the TV manufacturers in developing
the 3 screens, TV, laptop and
Television apps much like the smart phone
smartphone
applications that has turned out to be a huge
The other protocol that has made digital success story for companies in the smart
boxes like Western Digital TV Live or the phone industry.
forthcoming Google TV box is the DLNA.
According to consumer research conducted
Using this technology, the consumer can
by iSuppli, 27.5 percent of the TVs
play the video, music, photos on their
purchased by U.S. households in January
laptops or on their mobile, smartphones,
2010 were connected to the Internet by one
PDAs directly on to their Television using
means or another. Of those, nearly 42
the consumer home network.
percent were Internet-enabled TVs
But, why is DLNA important to the connected directly to the Internet, up from
consumers watching TV? DLNA allows the 27.7 percent of the connections among TVs
users to connect devices on their home purchased in December33.
network with each other using wireless at
consumer’s home. DLNA website states the
following features this protocol can
provide32:

32 33
http://www.dlna.org/about_us/roadmap/ http://pro.gigaom.com/

17


In another study the Convergence
Consulting Group estimated that “800,000
U.S. households had “cut the cord” as of the
end of 2009 and relied solely on online
video, Netflix, over-the-air, etc. It expects
that number to grow to 1.6 million by the
end of 2011, though this would still
represent less than 3 percent of consumers
watching TV online at all”34.

3.3 Age of connected internet TV,
laptop and smartphone
If broadcasting companies like NBC, CBS,
ABC in US; BBC in UK, Channel 9 in
Australia, were the big movers and shakers
of the 1970’s and 1980’s decade it is the
Youtube, Hulu, Facebook, Qualcomm,
which are the drivers of change in the 2010
era, making convergence between smart
phones, laptops and television possible.
Consumers just in press a button on their
mobile and they can surf channels on
laptops, televisions as they today do for
documents on the laptops.

34
http://pro.gigaom.com/

18


4. EDUCATION: FROM LECTURE IN BUILDINGS TO COLLABORATION ON
YOUTUBE AND WIKIPEDIA, VIEWING ON I-PADS AND E-READER.

4.1 High cost of Education: Is it borrowing has more than doubled in the last
sustainable in future? decade. “If we go on this way for another
25 years, we won’t have an affordable
“College May Become Unaffordable for system of higher education”, Patrick M.
Most in U.S.”, according to New York Callan, NCPPHE President in NYT article.
Times report published in December 200835.
The gravity of the problem can be gauzed
from the fact that US is one the highest
spends round the world on education and
innovation.

According to the biennial report from the
National Center for Public Policy and
Higher Education, “the rising cost of college
even before the recession threatens to put
Hence, some social scientists are of the view
higher education out of reach for most
that apart from the Healthcare sector, the
Americans”. The report found college
education sector is also needs urgent reform.
tuition and fees increased 439 percent from
Their view is that the lives of the young
1982 to 2007 while median family income
generation are dependent on education and
rose 147 percent. Report said the student
the current system is not able to cater to the
35
New York Times report
http://www.nytimes.com/2008/12/03/education/03colle 36
http://www.oecd.org/dataoecd/22/51/39317423.pd
ge.html f

19


changing needs of young technology savvy More so, the use of technology in education
generation. will in long run help in reducing the cost of
education. Today, lectures from Harvard
4.2 Education as a service and use of University, Stanford University, MIT, Duke
social media to cater to this school, Caltech on youtube.com. A separate
service channel is dedicated on www.youtube.com
Today, means to get educated is not limited for education. These lectures are
to brick-and-mortar buildings. Education is downloadable on smartphones, i-pods, I-
a service and like many services, today pads, thereby making educational resources
education is being offered as a service and available anytime, anywhere and not just
hosted on web. Abundance of information one time centralized from the teacher to the
available on the web is helping both the student but rather a two way communication
students and the teachers. Due to the web, between the teacher and the student.
both the teachers and students are able to
have better conversation, better feedback,
have collective intelligence about the area of
study and classrooms are not limited to use
of books. Books are dated, teacher’s
knowledge becomes dated while sites like
www.wikipedia.com, www.webopedia.com,
www.answers.com are constantly updating
information while sites like
www.slideshare.com,
www.authorstream.com offer latest power
point presentations and by people round the
world, not just limited to a class or a
university in a city. Live google search
during the class is slowly becoming are
norm rather than just one isolated case.
Education like TV Broadcasting has come of
age where a teacher broadcasts lecture to
student and student is a silent listener.
Rather it has become a two way exchange of Distance is no longer a hindrance in getting
ideas. service of education as lectures both video
and real time classes can happen on web.
Hence, students get a global perspective of This has resulted in growth of distance
developments in their respective field by the education and online learning.
constantly changing information, knowledge
from the above mentioned sources. Thus, the
time and process it takes to reinvent the
wheel is considerably reduced and student
can build upon the knowledge provided in
these sites.

20


4.3 Technology in Education: is it in appropriate method technology can help
beneficial? Is Education 2.0 transform classroom environment. A recent
needed? study points out about the experiment of use
of Twitter by the Professor Dr. Monica
However, despite the benefits technology
Rankin of the University of Texas at Dallas.
can bring in classroom, in providing
Dr. Rankin points out that she was
education, not everyone is open to idea of
pleasantly surprised when her experiment
use of technology. A recent survey about use
with Twitter began pulling more students
of technology in classroom brought out that
into discussion39. Megan Malone, Teaching
some teachers see use of technology in
Assistant to Dr. Monica Rankin’s United
classroom as a distraction. In the National
States history course points out that during
School Board Association (NSBA) survey,
the lecture, students tweet comments or
“52% of schools said they prohibit any use
questions via laptop or cell phone, while the
of social networking sites on campus37”.
TA and Dr. Rankin respond to a real-time
Parents at times are not technologically
feed displayed prominently in front of the
savvy as their young kids at times have a
room. Ms. Malone says “It’s been really
hard time in disciplining kids who tend to
exciting because, in classes like this, you’ll
have an overdose of technology. Some
have three people who talk about the
others feel that social media cannot be
discussion material, and so to actually have
dismissed as a distraction or time waster.
30 or 40 people at the same time talking
Their view is that social networks that the
about it is really interesting”.
kids use improves the communication skills
of kids and become tools for higher learning Similarly, students at Purdue University
and increasing kids later in their career. experimented with a new application
Melissa Rayworth, a freelance writer who developed at the school called “Hotseat” that
tackles parenting and digital issues for the integrates Facebook, Twitter, and text
Associated Press says, “Parents need to messaging to help students “backchannel”
learn about the sites and devices their kids during class40. Blogger Barb Dybwad writes
want to use, and then set strong boundaries. in the site www.mashable.com that Hotseat
If you don’t know what something is or is used to allow students to comment on the
what it’s about, dive in and start using it38”. class as it proceeds, with everyone in the
She says parents need to first themselves class including the professor able to see the
engage in social media tools, get savvy with messaging as it happens. Professor Sugato
smartphones, digital devices and then share Chakravarty, whose personal finance course
their own experiences with children adding is one of the pilot tests, said, “I’m seeing
that this way they would be able to students interact more with the course and
understand issues faced by the teenagers. ask relevant questions41.” Professor
Chakravarty cites Twitter is a “valuable tool
Recent trends of use of technology like
for enhancing learning. The students are
social media in classroom reveal that if used
39
37 http://mashable.com/2010/03/01/twitter-
http://mashable.com/2010/05/11/social-media-
classroom/
school/
40
38 http://mashable.com/2009/11/03/hotseat/
http://mashable.com/2010/05/13/parenting-social-
41
media/ http://mashable.com/2009/11/03/hotseat/

21


engaged in the discussions and, for the most media awareness and adoption among the
part, they are asking relevant questions.” parents, teachers need to increase and digital
Blogger Dybwad writes that although it’s devices like smart phones, net books, I-pads
been optional for students to participate, so need to be experimented with by teachers
far 73% of the 600 or so in the pilot classes and parents.
have used the software.
These web tools hardware, software,
network infrastructure; internet speeds have
improved over the years and have made life
easier for both students and teachers.
Question is not if we adopt or not, but
rather, how quickly technology is adopted in
education system.

But, for benefits to occur in long run, some
fundamental changes in education structure,
governance and delivery of education would
need change. Areas like Library resources
management need to be improved by
making resources available online, social

5. PRESIDENT BARACK “BLACKBERRY” OBAMA, US ELECTIONS 2.0 AND
FEDERAL GOVERNMENT 2.0

“Were it not for the Internet, Barack Obama “The Web and Politics” panel at the Web
would not be president. Were it not for the 2.0 Summit 2008 in San Francisco.
Internet, Barack Obama would not have
However, the Huffington Post editor was not
been the nominee”,42 Arianna Huffington,
alone in her assessment. Then Senator,
editor in chief of The Huffington Post, at
Barack Obama, was named “Advertising
Age's marketer of the year for 2008”,43
42
Web summit 2.0 in 2008, SFO
43
http://www.web2summit.com/web2008/public/sche Advertising Age magazine
dule/detail/5066 http://adage.com/moy2008/

22


indicating that well before President Obama On Myspace.com President Barack Obama
entered the White House, he's already won has 1889889 friends & 130449 comments48
over the nation's brand builders. implying a President Obama’s MySpace
profile generates a good amount of
5.1 President Obama and his love for interaction between the President’s
social media followers and target audience. However, if
On Facebook, if we look at Facebook profile we look at Senator John McCain profile
of President Barack Obama, we find the page on Myspace.com had no details of
President has a supports base of 6,943,604 friends or comments by followers49.
supporters44, while Senator John Mc Cain The extent of popularity of President Barack
has supporter base of 512,774 supporters 45. Obama could be seen on The
On Twitter, if we see President’s Twitter Twitterholic.com, the site that tracks top 100
profile we find, people whom President is Twitterholics based on number of followers.
following, people following the President’s This site says President Obama is the
tweet message and his listed friends on Twitter fifth most popular user with CNN
Twitter they are 747,742following, above him fourth position and Britney
2,791,076followers, 27,256listed 46 as Spears on number two, Orpah Winfrey, on
compared to Senator John McCain profile number six, New York Times on number
page that shows 66following, eighteen, to give the big picture of
1,622,312followers and 3,768listed 47 President’s popularity on Twitter while
respectively. Senator John McCain not figuring in the
list50.
The methods of online presence then
Senator Barack Obama used for creating
history and winning the Presidency, the use
of online tools like Twitter, Facebook,
youtube as medium of information
dissemination continues. Not, only is
information updated on White House
website, but information is also available
Twitter, Facebook, youtube, something that
not be done in the past.
Many news organizations reported about his
determination to hold on to his blackberry
and have a similar device with him in White
44
President of USA, Barack Obama, on Facebook
http://www.facebook.com/barackobama?
q=barackobama&ref=ts 48
President of USA, Barack Obama, on
45
Senator John McCain on Facebook Myspace.com
http://www.facebook.com/johnmccain http://www.myspace.com/barackobama
46 49
President of USA, Barack Obama, on Twitter Senator John McCain on Myspace.com
http://twitter.com/BARACKOBAMA http://www.myspace.com/johnmccain
47 50
Senator John McCain on Twitter http://twitter.com/ President of USA, Barack Obama, ranking Twitter
SENJohnMcCain http://twitterholic.com/

23


House. “Obama is recognized as the most that involve White House, President Obama,
tech-savvy President to date. Using the important events, and press briefings as they
internet as a fundraising and organizing tool, happen. Thus, information is made available
Obama’s presidential campaign was the for masses which helps in political
most digitally sophisticated organizing discussion forums, creating communities
apparatus of any presidential campaign in and platform for political debates for the
history51”. John Podesta, Co-Chairman of the common man and thus enables greater
Obama-Biden Transition Project, wrote in participation of masses than in any other
LA Times that “An off-line Obama isn't just previous Presidential term.
bad for Barack. It's bad for all of us. The
Popular commentator at O’Reilly radar,
president's ability to reach outside his inner
Joshua-Michéle Ross, says that “FDR was
circle gives him access to fresh ideas and
our radio president, JFK was our television
constructive critics”52.
President and Barack Obama will be our
Internet President”54.
5.2 Social media and Obama
administration
5.3 Social media’s advantage over
Publications, postings from the White House traditional media in political
publication are posted on YouTube, on discourse and discussion?
Twitter, on Facebook. These posts by the
Let us examine the role Internet and more
White House provide feeds of events
specifically Mobile internet might have
played in boosting the chances of then
Senator Barack Obama. For the above
mentioned comparison, we do a comparison
of the traditional mode of political
discourse, political campaign based
information dissemination versus Internet
and more specifically Mobile internet based
political debates and campaign information
dissemination.
1. The service providing information about a
candidate to the masses as done by
traditional media like Broadcast TV, Radio,
and newspaper is also provided by the
Internet and mobile internet, mobile
51
President Obama determination for having
Blackberry in White House
applications on smart phone. The only
http://www.wired.com/gadgetlab/2009/01/obama-my- difference being, on mobile applications are
blackb/
more instant in communicating information
52
President Obama determination for having
Blackberry in White House
and are more personal rather than mass
http://www.latimes.com/news/opinion/commentary/ communication of TV, Newspapers.
la-oe-podesta20-2009jan20,0,2226079.story
53 54
White House on youtube.com What does it mean to be Internet President
http://www.youtube.com/user/whitehouse? http://radar.oreilly.com/2009/01/what-does-it-
blend=1&ob=4&rclk=cti mean-to-be-an-internet-president.html

24


2. Unlike Broadcast TV, Radio, newspaper better understanding of the problems faced
advertisement that costs huge amount of and hence better chances of good debates
money for each ad, the internet video or and resolution of problems through two way
video using mobile application can be discussions, debates.
distributed at virtually free or at a very low
4. Internet and more specifically mobile
cost of distribution. Hence, use of the
internet audience is personal, more instant as
Twitter account of candidates in recent
opposed to mass message of TV and hence
election in Massachutes election for making
Mobile campaigns are growing in number as
election related announcement for the
well have stronger relationship between the
masses was a big hit. Such was an impact of
candidates and the masses.
Twitter in political discourse that after
election in MA, more and more local and 5. In political campaigns, traditional media
federal senators, candidates planning for like the Television, Newspaper often filtered
contesting elections have started having the information provided by the candidate’s
Twitter account. Some of the more tech views and presented a particular TV channel
savvy candidates like President Obama have or newspaper’s version of candidate views
text as well video messages posted on which at times is far from the realistic
Facebook, Twitter, YouTube, Linkedin, position presented by the candidate. Thus,
Yahoo and Flickr and host of other social with traditional media at times discrepancies
networking sites. between the realistic version and the
channel’s interpreted version arose and that
3. Broadcast TV, Radio, newspaper
made political discussions murkier. But,
advertisement which is a one way
with internet video based political
communication from the candidate to the
campaigns, discussions chances of
target voter. There is no medium for the
interpreted version of information is quite
candidate or the members of the candidates
less as there is no middle layer which is
target audience to give feedback to the
responsible for distribution of information.
candidate. Here, the Internet based and more
Information is passed in direct manner
specifically Mobile internet based campaign
without any third party in between the
excels because Mobile based campaigns
candidate and their audience. Thus, internet
provide a two way communication from the
based political discourse have an added
candidate to the target voters and from
value of the authenticity that was missing in
voters to the candidate via blogs, postings,
traditional means like TV, radio.
short messages, photos on web like
Facebook, Twitter, YouTube and host of 6. Life of a political campaign message is
other social sites and mobile applications longer in Internet. Video messages posted
available on Smart phones. on YouTube or text messages posted on
sites Twitter, Facebook remain on the
Hence, internet provides room for
respective sites. Thus, a viewer who might
interaction and collaboration between the
have missed the message in real time can
candidate and the voter, other public figures
view the message later and so shelf life of
which enables collective intelligence for the
message is longer. However, in traditional
individual as well as constituency to have
media like TV, Newspapers, messages once

25


broadcasted on TV or once published by a in openness and disseminating government
newspaper, cannot be easily accessed and so related information to the masses and
the shelf life of message is only valid for thereby have made masses more involved in
that particular day when the message is the decision making for policy matters of the
published. government. And, it is not just White House
that has adopted Government 2.0, other
The message on web or on mobile
Federal governmental agencies, State
application is seen as more effective because
government agencies are catching up too,
if the campaign message is available
making Government 2.0 a trend rather than
anytime, anywhere then the chances of
an isolated case of existence.55
volunteer, target audience viewing the
message is greater as compared to one time In the past, the government agencies, both
message delivery. state and federal, used to make
announcements in the monthly, weekly
7. Internet allows campaign message to
gazettes that were released in newspapers as
respond to opponents in an agile manner and
press release. These were the source for the
a candidate can publish a quick response to
government(s) to disseminate information to
the opposition’s candidate or media’s charge
the masses. Today, sites like Facebook,
against a candidate. This is not possible in
Twitter have made the information
traditional media because message in TV,
dissemination process has gone much faster,
Radio and newspaper is published only at
much efficient and allows a greater degree
specific times unlike Internet based
of public participation by enabling two way
campaign which is available 24x7. An event
communication unlike the past, community
occurs, an candidate to write a reply or
building, at a lower cost and less amount of
record a video and post on video portal or
effort on part of government agencies.
website in no time, while in TV, Radio,
newspaper advertisement candidate might On searching popular social media sites
have to look to raise money for buying a Facebook, youtube.com, Twitter one finds
spot and then look for space, if available, in that apart from White House presence there
next morning or evening TV broadcast or other federal and state agencies are catching
newspaper publication. up with ideas, choice of communication
medium favorite to President Obama. And,
5.4 Government 2.0, political debate presence on social media space is not just
and social media being present for sake of presence.
President Barack Obama and his team have President Obama led White House has
been publishing events, messages related to 1,691,994 Followers and his team has sent
the US government on internet and on 175 Tweets on Twitter56, White House
various sites. A mobile application is also 445,844 fans on Facebook57 and a separate
developed for the smart phones users
enabling the smart phone users to have 55
Various state government, state Governors now on
access to information published anytime, Twitter http://twitter.com/GOVsites/state-government
anywhere on their mobile handsets. The 56
White House on Twitter http://twitter.com/whitehouse
Obama administration has set new standards 57
White House on Facebook http://www.facebook.com/
WhiteHouse?ref=ts

26

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