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The Future of Wireless Internet

June 15th, 2009 Stephen 1 comment

Today in Atlanta, http://clearwire.com launched their marketing campaign for their WiMax, Microwave transmitted wireless technology to basically blanket the metropolitan area with Wireless Internet. About two weeks ago, my friend Brian and I had a debate about what the future of wireless is between Wifi and 3g and 4g networks.

3g Logo

3g Logo

3g is probably the technology that you’ve heard about the most as Verizon and AT&T have networks that offer services on this version of mobile standard. Typically 3g networks can achieve about 1mbps down and 300kbps upstream bandwidth, but that’s before we consider the internet applications – typically when you buy a data card from AT&T they will sell you a dual band card now that bridges two connections (and 3 has been mentioned) meaning that you can achieve 1.5mbps down and 500kbps up as long as you’re near a 3g network (most major cities at this point and available 30 miles outside Tuscaloosa, Al where I did a streaming video link to North Carolina using one of these cards.)

logo

Clearwire Wimax Provider

Clearwire is one of the newer Macro technologies that was actually looked at about 5 years ago, long before 3g came out and was having some major success in “last mile” service for people outside DSL and Cable installation coverage areas. Today, clearwire is selling this as a mobile connection similar to 3g, but with greater speed. It’s true, as a technology, WiMax (over microwave networks) has greater speed and line of sight range, at approximately a 3mbps limitation. I’ve never used this service, but in research when I was looking at the technology, it seemed like a great idea for places without services, but less so when there are alternatives. Mobile computing (aka driving) should be really interesting as Microwave receivers tend to have longer switchover timings than say a cellular network — and microwaves technically require some sort of line of sight, more so than RF.

Wandering Wifi

Wandering Wifi

As I mentioned, a good friend and I had a discussion about the future or wireless, especially wifi as we know it today in the future when much more Macro/Mobile technologies will be rampant. As you know, wifi networks are a more local network designed for your business or house use. Wandering wifi sets up wireless networks at commercial stations (like the Chick-Fil-A I visit) so that customers can use wireless as they eat or sit around a restaurant. Wifi (802.11 is a much more micro technology with a range typically considered in < 1000ft but in fact with antennas can go several miles (directionally.)) Economically speaking, I believe that wireless has a long future ahead because every household simply can’t afford to pay $55 a month per computer for internet, and it makes little economic, or branched security sense. In fact, wimax, 3g cards, and your local cable/dsl provider all encourage local area networks for sharing your connection at home. The limitation here will come as 4g comes out, unless magic happens with the limited 2.4ghz spectrum.

My questions on twitter today though involve how WiMax possibly feels like it can compete with 3g networks that have the huge advantage of cellular telephone subscribers to maintain market share and profits as they develop and role out new technologies. And what’s the point of a mobile 3mbps network inside the area where land and 3g connections are numerous and high quality. Of course, maybe in deadlock traffic you could use your laptop,  but typically if you’re driving most people are going to use their awesome new data phones. Then if I go out to eat, get coffee, whatever, I think I can live with either local wifi or succumb to the slower speeds of tethering my phone to my laptop (as soon as AT&T allows it.) And in the end of things, I’d much rather have a slow edge backup as I leave to the mountains or country than nothing at all.

Why Speed Does not Matter

Like the power grid, the internet needs some updating badly.  All of these companies, ATT, Comcast, Clearwire are supporting connections with increasing speeds, Comcast is up to 16mbps.  With this 16mbps connection, which I know is true because if I download Linux from the nearby Georgia Tech or Virtual Box from Sun I get over 10mbps (3MB/S) but with most things that I download (the Linux Kernel even) I see only about 600KB/s on my download… or 1.8mbps. Sure that is definitely over the capabilities of a single 3g stream, but barely significantly. Besides, for streaming video, networks only need about 800kbps if they use a respectable codec like H264, Xvid, or the new HTML/5 OGG. When was the last time that you complained about downloading something at 100KB/S?

By the way Clearwire plans on pricing their metropolitan based network above comcast prices right near AT&T dual band 3g prices They do have a bundling option for home based phone service. I guess if you hate AT&T / Comcast because of their political issues (Net Neutrality / Warrant-less wiretapping) this gives you a good way to fight back.

By the way, as you’ve heard Dan Hesse say on the T.V. commercials, Sprint is working on 4g in America which as a possible potential of 1gbps stationary, and 100mbps mobile… Blowing all of these current technologies out of the water.

Now I’m hungry for that microwaved chicken sandwich.

Stephen.

Stephen Reid has a minor in Computer Science from the Georgia Institute of Technology and has worked with both wired and wireless network broadcasts (single cast and multi-cast) for applications involving streaming media and high throughput data, including on the University Internet 2.0 network. Stephen has also considered commercial applications for neighborhood wireless access points including using directional antennas to increase gain in the wireless reception.

Oracle / Sun Merger Price and Open Source Question

June 15th, 2009 Stephen No comments

Earlier last week, an alumnus from the Georgia Tech Student Foundation asked what my thought were on the Oracle proposed deal to buy Sun, the company. Earlier we had seen IBM being looked at as the possible acquirer, but similar to the Microsoft and Yahoo deal, IBM decided not to go for the acquisition. . Oracle offered to pay $9.50/share from trading $6.69, the previous business day. Here are a few things to consider.

The Merger

The Merger

The Effect on Open Source

Sun currently owns numberous open source projects:

  • MySQL (a database software that is a low cost, less implementation of Oracle Databases)
  • Virtualbox (Virtual Machine engine for Linux)
  • Java (was to be open sourced, now we will see)
  • Open Office and Sun Office

Oracle has traditionally been more commercial in their interests (part of the reason they can acquire a company) so the question is how will Oracle treat these open projects, will they let them branch off, close them and cut support, or will they continue to open the software like IBM tends to do and offer services in line with them? Will oracle move toward a more open model with consulting as their business model?

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Pricing

The 42% premium that Oracle Offered Sun seems like a great pricing that will limit opposition to the takeover that could hurt both companies. Apparently,  Sun seemed appropriately valued and has some growth opportunities for Oracle. Their horizontal players in the software market don’t hurt competitive advantage against the likes of Microsoft SQL either.

Of course, now that the general stock market is going up (particularly the Nasdaq), perhaps Oracle is getting a steal!

My Love Hate Relationship with Leveraged ETFs

April 22nd, 2009 Stephen No comments

Leveraged ETFs have been the rage, the the talk of the town since late 2007 and early 2008. They seem to be the primarily tool of want to be day traders, and they can work for you too! But they have a darker side, a side that makes me feel bad about putting money in them, a side that may not be safe for anybody.

What am I talking about?

ETFs (Exchange Traded Funds) are financial instruments that were designed by the SEC and various fund managers to provide low cost index following opportunities for investors. This means that management fees are below what a mutual fund would charge with no load and always a present value during market hours (unlike mutual funds that only close you out at the end of the day. ETFs by themselves can provide some layer of diversification in types of investments (but do not guarantee diversification.)

Then, invesco made the short and powershares family of funds that attempt to mimic a short position in the market, or 2x bull or bear the market. Naturally, other fund managers decided to offer similar opportunities and last fall the 3x bull and bear funds by Direxion came out.

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To list a few of these that I’m active in:

  • FAS/FAZ 3x Bull/Bear of Russel 2k Financials
  • BGU/BGZ 3x Bull/Bear Large Cap Russel 2k
  • SSO/SDS 2x Bull/Bear S&P 500
  • DOG – Short DOW (GT Student Foundation held this for a while)

The Great

If you want to try market trend trading, what I would venture to suggest as a small form of short term trading very close to day trading, new and old users can get in these funds and track the trends. The market is headed up, great! Headed down, I can follow that too.

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But the Ugly

First of all, these are dangerous because they’re mad volatile. They are even more dangerous to the novice because, they are not priced exactly, and have intraday prices marked the same way a stock does (bid and ask) only to be reconciled at the end of the day. So a 1% market gain could mean a range of 1.8-2.2% action in your ETF.  Then there’s that volatility, you know, that index that rose through the roof as the market hit bottom last November, the 2% swings at the end of the day!

The Thing I Hate though is that these are effectively driving away the actual idea of investment. Options tracking an index have such a little positive effect on an underlying company that we are now just trading financial instruments that have an effect on the market… meaning companies like GM could be going out of business because they don’t need capital because all of our investments are in “financial instruments” of options so disconnected from actual success. A bank could lose all form of market value because nobody is willing to invest in them instead of just trade their options.

I encourage you to look at your portfolio and consider that you put some of it in actual companies and not just financial instruments. Have a positive effect on capitalism, and hopefully through that, the world as leaders are altruistic with their gains. Or, by all means, consider some regular ETFs that invest in actual companies.

Learn more about these

  • here http://www.direxionshares.com/
  • http://www.invescopowershares.com/