Sony New Zealand was responsible for leaking one major tidbit of news about the upcoming functions of the Playstation 3, namely, that it will be able to be used as a digital recorder, ala Tivo and MySky. Recently I've also been looking at some of the great networking features of the PS3... since I wrote this I've been accessing my PS3 and laptop at home from wireless hotspots all over the country. I haven't tried it on an international basis yet but would be interested in hearing the experiences of anyone who has...
NETWORKING THE PS3by Peter Griffin | from the New Zealand Herald
The PlayStation 3 is back from the repair shop after inexplicably dying on me. Since its return I've been testing out Sony's claim that the PS3 can serve as the multimedia hub for the home.
You see, I want to have all my digital media - music, videos and photos, in one place that I can access, ideally from anywhere in the world. I want the networking side of it to be easy and the interface to be nice to look at. Does the PS3 deliver? Yes, mostly it does.
Sony and the PS3 are part of the Digital Living Network Alliance which has set standards to make it easy for various consumer electronics devices to network together. This is where computers and lounge-centric gadgets like games consoles and digital recorders finally shake hands.
By activating media sharing in Windows Media Player 11 on my laptop, the My Music, My Videos and My Pictures folders were recognised by the PS3. Two icons denoting the laptops now appear on the PS3's user interface on my TV screen and I can browse, play and copy the contents of those remote folders to the PS3's hard drive. All of this connectivity is done wirelessly. The laptops beam the files to the PS3 which gains its internet access via the wireless connection provided by my router. The only cables involved provide power.
Then I introduced my PSP to the mix. The PSP is Sony's underrated handheld gaming device. Released in New Zealand in September 2005, it had the potential for iPhone-like success, but has been hamstrung by its unpopular UMD disc format for movies. A couple of years on, it is still a slick-looking device. The Wi-fi connectivity makes it easy to network and the software updates have kept useful new features coming.
The PSP talks wirelessly to the PS3 so all of that media I've assembled on the network can be accessed from the PSP. I now use it for playing media around the house with great results. Even video trailers I've downloaded from the PS3 network stream smoothly over the wireless connection. It's changing the way I access digital media in the home. But using the internet, the PSP is capable of extending that multimedia network to wherever there is wireless network coverage.
So I set off walking in the driving rain down to Courtney Place in Wellington, where between Telecom and CafeNet there's very good wireless hotspot coverage. At a coffee shop I produced my PSP and logged onto Telecom's hotspot, then into my home media network. I was impressed and a bit surprised when the PS3's interface popped up, showing all the music, photos and videos stored on my two laptops and the PS3's hard drive back at the house.
I could have been doing this from any wireless hotspot in the world. .
But while the wireless networking between PS3 and computers and PSP in the home is fairly flawless, connecting back to your media network from public hotspots is a little problematic.
For starters, most public hotspots require you to log in using a web browser and surfing the web and punching in password details on the PSP can be pretty frustrating. Still, I was determined to make this work but my experience connecting to three different public hotspots around Wellington was that streaming music to the PSP is pretty patchy. Video is much worse. Its easier to load up the Memory Stick slotted into your PSP with music and video, iPod style - at least you'll get uninterrupted entertainment.
But the good experience on my home wireless network suggests that streaming over private networks delivers better results.
Upcoming PSP and PS3 software updates are likely to allow you to use the PSP to video conference with other PS3 and PSP owners.
Ideally, you'll be able to make a PSP video call over a wireless hotspot back to the PS3 at home, so you can conference with family members. That would be pretty useful.
For me, the multimedia networking aspect of the PS3 is far more exciting than the console's gaming capability, which isn't much different from that of the Xbox 360.
But it has to be cheaper. The console costs US$500 ($630) in the US. New Zealanders are paying $1200. That price needs to be slashed but Sony says there are no immediate plans to drop the price in New Zealand.
Whether the PS3 emerges as the leading multimedia hub for the home is up in the air, but at the moment it is perhaps the best example of a user-friendly consumer electronics device that serves that purpose.
Anyway, Morgo was a great event once again. I hope the feature below, which ran in The Business gives the impression of a tight-knit group of entrepreneurs getting together to discuss some of the issues their businesses are facing, because that's what Morgo is. Without any proper representation for the IT sector at an industry level it's sort of a defacto event for setting the agenda, examining the isues of importance. In addition to the feature, I also blogged from Morgo for the Herald:
MORGO: A tale of two tech listings
MORGO: Going global from NZ
MORGO 2007 - highlights from the tech talkfest
By Peter Griffin
Jenny Morel knows how to get a good crowd together. The venture capitalist’s invite-only retreats have, for five years straight, drawn the top ranks of the tech sector.
Last week’s Morgo summit in Waitangi was no different.
The seeds of business deals have been planted at Morgo, stock exchange listings quietly planned. A sense of kinship pervades the proceedings. The competitive spirit may have come out during the haphazard games of Segway polo held on the manicured lawn of the Copthorne Hotel, but Waitangi was full last week of innovative people united in the goal of growing their technology businesses quickly.
If anyone knows a thing or two about that, its Trademe founder Sam Morgan, who in the space of seven years built his tiny internet auction business into the country’s most popular website before selling it last year to Fairfax in an unprecedented $700 million deal.
Morgan also knows the value of Morgo – he met entrepreneur Craig Meek at last year’s conference and went on to invest in his data visualization company, iVistra. It was Morgo that put him in touch with DeviceWorks, which recently won worldwide attention with its Lomak light-operated mouse and keyboard, which is designed to help the disabled use computers. Morgan is now an investor in the business and is casting the net wide for new opportunities to plough his share of the Trademe sale proceeds into. Morgan’s investment adviser accompanied him to Morgo in the hope of finding some leads.
“I’ve made a few start-up investments and I’ve made a few social investments,” says Morgan.
“I don’t invest in stem cell research, just because I don’t get it,” he says.
He has underwritten the formation of a micro-finance scheme in
“I’m planning on being there in some capacity for quite a while yet,” he says.
But he recognizes succession planning is underway and that involves building a team he trusts – then leaving them to get on with their work. His “Don’t be a dick” mantra, the equivalent of Google’s “Don’t be evil”, became a bit of a catchphrase at Morgo.
“Moving out of the picture means making sure everyone has the ‘Don’t be a dick’ certificate,” says Morgan, who sits on the board of listed accounting software Xero, the creation of another Morgo regular, Rod Drury.
“I really hope it’s the Nokia of New Zealand,” Drury said of Xero towards the end of his speech at Morgo.
“This is a ten year play. I plan to work until I’m at least 50,” he added.
After last year selling his mail archiving company Aftermail to US software company Quest, Drury could have retired. That wasn’t an option. Drury says the aim was always to sell Aftermail so he could fund his next venture, which he always anticipated would be a public company, listed on the NXZ.
“I thought if we want to be here in the long term, we’ve got to do it as a public company,” he said.
For Drury, preparing Xero for going global has meant investing heavily in getting top talent onboard and designing a software platform that can easily be tweaked for bigger markets.
“The breadth of the wall chart was built from day one,” he said.
“We did a lot of R&D so... we could have one system across the world.”
Sysdoc founder and director Katherine Corich faced a different challenge trying to scale her document management company in
“It’s definitely a land of old boy networks,” she told Morgo. No more obvious was that than in the Government sector, where Korich says seven IT providers claim over two-thirds of the budgeted IT spend.
“You have to align yourself with one of ten providers. I’ve focused on getting non-executive directors with extensive
If those who spoke at Morgo honed in on some specific examples of how they have refined their businesses for global expansion, it was left to Endace-founder Selwyn Pellet to issue a rallying cry for the tech sector in general.
“As New Zealanders, we don’t have to be second class citizens. We are good,” Pellett reminded his fellow entrepreneurs.
But reeling off a list of similarly small countries that have grown thriving technology sectors –
“If you stick with five – ten per cent growth a year, it’s not going to happen,” said Pellett.
“The business plan needs to be a hairy-arsed audacious goal.”
Endace, a maker of networking management technology with a global blue chip client base, was the first
“If you want to get out of the trenches and start charging, list your company,” Pellet advised. But for those considering a public listing, and there were several at Morgo, we told them to “look beyond the listing”, to have a long term goal for success.
“We listed Endace. The end goal was the listing. Suddenly we had to pump really hard to get going again.”
Endace had created seven New Zealand-based millionaires who have gone on to reinvest.
“Instead of us being bought, we’re going around the world buying companies.”
“The entrepreneurs in the room have to do more and more companies. They’re not allowed to retire,” he added.
Andy Lark, a Silicon Valley-based marketing guru, who heads NZTE’s technology beachhead in the
“The real model for me is
“It’s because they’ve differentiated between what’s a good business model and what allows them to succeed outside of their market.”
Later, in a small session devoted to using the internet to overcome the tyranny of distance, he explained how much
“People are breaking down the barriers between themselves and the customer using the web,” he said.
“Information is a commodity and it doesn’t cost too much to share it.”
The gPhone is in the works
by Peter Griffin | Tomorrow's World in the Herald on Sunday
If there was any doubt that internet search giant Google has its heart set on dominating the mobile phone industry the way it has the internet, it was well and truly snuffed out last week.
Not only was Google instrumental in winning concessions in the rules of an upcoming auction in the US of radio spectrum that will guarantee that any device or service can be used on that spectrum, but Google has poured hundreds of millions of dollars into developing mobile phone designs.
Whether Google will, in the next few years, go head to head with AT and T, Sprint, Verizon and T-Mobile to construct a mobile network in the
Last week I reviewed Apple's iPhone which, with its touch screen and intuitive user interface, is a game-changing device. By as early as next year, if rumours of Google's tie-ups with Taiwanese hardware makers are correct, the gPhone could be on the market, offering even more compelling functionality.
After all, applications like Google Search, Maps, Talk, Gmail and Documents have been adopted by millions of web users around the world. While many of those people are using Google on their mobile phones, a handset designed to deliver the best Google experience would be very powerful. (The image left is a leaked pic of what is reported to be a mobile phone user interface designed by Google engineers).
If the risk of over-extending itself in the mobile space is a real one for Google, the rewards for going mobile are also very real. The
I very rarely click on adverts displayed on the Google search engine or to the right of my messages in Gmail, Google's free email service. But I'd be much more likely to click on an advertising link on my mobile phone that throws up results based not only on what I punch into Google's search engine, but also on my physical location. Maybe I could type in "movie sessions" and a group of links to movies showing in the next few hours at inner-city
I use Gmail on my Harrier smartphone, but if I could use a phone to have Google Talk chat sessions and to access Google Documents in a nice way, I'd consider switching.
While Google has prototypes of its own phones in the works, it also appears that it is developing software and hardware standards that it will encourage mobile handset makers to adopt. If early reports are accurate, the standards have a heavy weighting towards mobile internet access, with recommendations that handset makers build Wi-fi and 3G high-speed data access into their phones. Google is also said to be working on an internet browser for mobile phones.
Google's business model has always rested on free services, but supporting them with advertising is a highly lucrative strategy. Would a "gPhone" allow free calling and internet access but require you to listen to or watch adverts? It's not out of the question and would turn the existing mobile billing model on its ear. Will Google and Apple steamroller the traditional mobile heavyweights Nokia, Motorola, Samsung and Sony Ericsson? Unlikely, but they'll certainly get a run for their money in the next couple of years if the gPhone comes to life.
APPLE IPHONE FIRST LOOK REVIEW - 8/10
by Peter Griffin | Tomorrow's World in the Herald on Sunday
I've finally had some decent hands-on time with the Apple iPhone, the music player cum phone released on June 29 in one of the most anticipated product debuts in history.
Much of the hype has turned out to be true. The iPhone is simply a fantastic little gadget. I probably wouldn't be inclined to buy one myself, having recently acquired a stand-alone iPod, but I'm excited about what the gadget, selling for NZ$653-$818 depending on storage allowance, means for the mobile phone design of other companies now clambering to catch up.
My reservations about the iPhone's touch-screen, the only form of interaction with the phone (there being very few buttons to push) began to evaporate as I started tapping icons and punching in web addresses on the iPhone's virtual keyboard. I've been a keen user of touch screens for years, from the Palm Pilot, to a range of Windows-based smart phones, to the likes of Sony Ericsson's P800.
All those phones required a little plastic pen to tap on the screen with precision. Not so the iPhone. The icons on the menu screen are big enough to be tapped with your finger and the keys on the virtual keyboard enlarge as your finger hovers over them allowing for surprisingly easy typing.
The iPhone is really an entertainment device first and foremost. It will appeal to people who want good messaging options, the ability to do some light web browsing, listen to music on the move and make phone calls.
You can't now use the iPhone with a Vodafone or Telecom mobile account as American network operator AT and T stitched up an exclusive deal for the iPhone's release in the
The iPhone uses the Safari browser Apple Mac owners will be familiar with and has a couple of great features that make surfing the web on the iPhone better than on any other phone I've used. You can navigate full-sized web pages simply by dragging your finger around the screen and by pinching your fingers together or spreading them out, zoom in and out. The iPhone senses when you tilt it on its side, so will change the layout of the screen to landscape, automatically giving you a better view of web pages and pictures.
The email suite is pretty smart, allowing you to set up inboxes for multiple email accounts. The fonts and icons look crisp on the large screen and the camera takes reasonable-quality digital photos as long as there is good light.
Then there's the music player function, which has been cleverly adapted for the phone. Again, your finger does the navigating. You can skip through your songs and albums quickly, just by tapping the screen.
The real test of the iPhone will be how it ages, how, after constant fingering over months or years, that touch screen holds up. I know people who are still happily using first and second generation iPods. Will the iPhone have that staying power and, therefore, the value for money?
What I'm looking forward to is the response from the traditional mobile heavyweights to the iPhone. Apple has proven that the touch screen can act effectively as the sole form of interaction with a phone. The mobile phone makers are sure to follow.I should point out my Herald blog posting on the iPhone which I wrote in the lead-up to the iPhone launch and suggested that people should forget about the iPhone and look at some of the other decent smartphones on the market. That piece, which sparked a pretty big mailbag of responses from readers (which is always good) was in response to the unbelievable hype that had built up around the phone and was meant to be slightly antagonistic. Still, my advice remains the same, given the iPhone's absence from our market.
Google muscles in on mobile
by Peter Griffin | from New Zealand Herald
We have a little Government radio spectrum auction coming up in December that will sell access to some highly sought-after radio frequencies so new services such as wireless broadband can be offered.
That will raise a reasonable sum for the Government, maybe tens of millions of dollars.
But just wait for the frenzy the auction of 700Mhz radio spectrum in the
Payments for that spectrum - seen as the "last beachfront property" in the
We haven't seen that sort of money on the table since the European 3G auctions, which sent more than one mobile player bankrupt.
And if there wasn't enough competition for the airwaves from traditional US mobile players such as Verizon and Sprint, internet giant Google has also given a strong indication that it will join the bidding.
That has no doubt struck fear into the mobile industry, whose collective pockets are nowhere near as deep as Google's, with its US$160 billion market capitalisation.
The Federal Communications Commission yesterday bowed to the lobbying of Google, which was demanding that a good portion of the spectrum sold in the auction be used to support any device or service desired by the consumer.
Traditionally, the successful bidders in spectrum auctions have been able to tightly control what their customers can use.
This has largely determined over the past 15 years what mobile operator a customer chooses to sign up to.
Now Google, whose allegiances lie not with the network operators but with the consumers who use its search engine, wants mobile phone networks to be treated with the flexibility the internet offers.
Bring along any compatible mobile phone and, in theory, you'll be able to use any service on offer.
On the web, you can pretty much do this now.
Internet providers sell access to the pipe that connects you to the internet but unless you're illegally downloading thousands of movies or albums, making you what's known in the industry as a "bandwidth leech", you are generally left to your own devices.
Contrast this with the mobile operators, which do their best to keep you in a walled-garden of content offerings.
Vodafone Live is the best example of this approach.
While most mobile operators now sell straight internet access, they also package up services to make it more attractive to buy what they decide to offer - whether that be ringtone downloads, streaming TV feeds or news alerts.
Google is trying to offer better access to the services its business relies on, and in this area it sees the wireless providers and their walled gardens as the enemy.
The hostility between Google and the mobile industry was no more obvious than at the 3GSM mobile industry show in Barcelona this year, where several mobile operators said they'd rather work together to build their own alternative search engine for mobile phones than use Google's.
The tension springs from the fact that everyone knows that mobile search is the next major form of advertising revenue.
The location-sensing power of mobile phones mean search engine results can be tailored to your actual location, giving more targeted results than you would get from using the Google search engine on your home computer.
With those location-based services in mind, Google has been building a free city-wide Wi-Fi networks in
It also struck a deal with mobile operator Sprint to offer Google applications on Sprint's WiMAX wireless broadband service.
With its acquisition of the YouTube video-sharing website, and already the biggest search engine provider in the world, Google's success depends on its customers being able to gain access to enough bandwidth to use its services, and preferably from mobile devices.
For that reason, an increasingly realistic scenario would see Google buy radio spectrum and build its own mobile network.
On the other hand, it may be a bluff to extract better co-operation from the mobile industry.
KIWI BUSINESSMEN SUM UP THE IPHONE
by Peter Griffin | from the New Zealand Herald
Tech sector veterans and regular visitors to the US, Steve Simms and Derek and Geoffrey Handley, picked up iPhones after the combined phone and music player was launched last week.
While the three share an interest in gadgets, their iPhone purchases also fall into the category of market research - they may soon be tailoring services to meet the new gadget's requirements.
The three will not be able to use their phones on the local Telecom or Vodafone networks as they signed up to exclusive contacts with
Hackers are already working on ways to bypass the exclusivity deal so that the iPhone can be used on any GSM network.
Simms is the founder of Wi-Fi hotspot service provider Tomizone, which allows you to turn your wireless internet connection into a commercial service, selling access to others with Tomizone providing the back-end billing functions.
The iPhone has Wi-Fi connectivity built into it, allowing users to surf the web from wireless hotspots.
If his clients take an interest in the iPhone, Handley will have to adapt services to suit its format and the Safari web browser that is used by iPhone owners to access the internet.
Still in their honeymoon phase with the most desired of gadgets, Simms and Handley suggest the iPhone lives up to much of the hype.
"It has a really slick interface, beautifully silky," said Handley, who was also impressed with the iPhone's suite of applications."There's a nice Google Maps function, you can get directions to go places. There's a very cool YouTube widget for streaming YouTube videos.
"It's not some old stylus thing or one-touch wonder. I'm talking Minority Report styling. Touch the screen with one or more fingers, pinch or expand photos and websites. It's cool," said Simms, who was given his iPhone by Apple co-founder Steve Wozniak. The pair share a passion for the geeky sport of Segway Polo.
But it's not all praise from
Simms (pictured left) picked out Apple's "dumb exclusivity deal" with AT and T which limits use of the iPhone to one mobile network in the
"The keypad is crap, it will never replace the Blackberry," said Handley.
"The browsing experience is designed for Wi-Fi and Edge, not 3G."
Handley admits that Hyperfactory's philosophy for how the mobile internet should be presented to users differs from that of Apple boss Steve Jobs.
"He thinks that the [regular] internet 100 per cent on the go is the way forward, but no one goes from Wi-Fi spot to Wi-Fi spot. Things need to be designed for the mobile internet," said Handley.
"When you get to a mobile internet site on [the iPhone], it treats it like a web page, which is completely unworkable," he added.
With his business case resting on the availability of Wi-Fi internet hotspots and devices that can connect to them, Simms naturally has a different view.
"Wi-Fi is massive on this, a great call by Apple not to get painted into a corner with the 3G argument," he said.
"The ease of use for Wi-Fi in the iPhone is a dream and in the field its faster and cheaper than 3G any day."
Both Simms and Handley saw plenty of opportunity to develop their offerings for the iPhone.
"Our opportunity is to take advantage of their stubbornness and their view of the mobile world and render content in a much smarter way, recognising the Safari operating system," said Handley.
"We are looking for a widget for the iPhone that will auto-detect and log in to a Tomizone hotspot or any other hotspot you are registered with,"said Simms. "My guys will be figuring that out shortly."
- Apple's iPhone cannot be used on the Vodafone or Telecom networks, but can be used outside the
- iPhone owners have to sign up to mobile plans starting at US$60 ($76) a month, locking them into a service contract for two years or more.
- Hackers are working to crack the lock-in technology that prevents the phones from working with sim cards from other mobile network operators.
- No date has been given for the iPhone's arrival on the market here, however Apple is rumoured to be in discussions with Vodafone for a worldwide partnership to launch the iPhone where Vodafone has subsidiaries.
Digital satellite TV operator Freeview admits a "stuff-up" with its flagship brand of set-top boxes marred the service's launch, but says the technical glitches are now behind it.
Freeview general manager Steve Browning said it was too early to give accurate Freeview sales figures and that a clear picture of usage patterns would not emerge until ratings company ACNielsen began collecting viewer-trend information for the platform.
Technical problems with one of the two Freeview-approved set-top boxes led to many having to be returned by customers, while other glitches were able to be fixed with an over-the-air software update from the Optus D1 satellite.
Browning said new channels, such as the family and 24-hour news channels in the works at TVNZ, would make the Freeview proposition more attractive. He had also been talking with radio-station operators who were struggling to find sufficient FM radio frequencies to expand their services and were considering Freeview as an alternative platform.
Despite issues with the Zinwell set-top box, Browning said it was the more popular of the two currently selling in stores. He put that down to the presence of an RF (radio frequency) connector on the back of the Zinwell box, which gives users the option of plugging it directly into the aerial socket on their TV sets.
However, most users are connecting their set-top boxes via AV (audio-visual) cables as they offer a better signal. AV connections are standard on all but the oldest of TV sets.
The Business Herald took a look at the two official digital set-top boxes on the market.
Hills Satellite Receiver
Herald rating: 7/10 What strikes you about the Hills set-top box is how small it is compared to its Zinwell rival.
The Hills receiver has a profile similar to that of the slim-line PlayStation 2 console and like the PS2 can be positioned vertically to save space. Hills uses a European Scart connection to link the receiver to the TV's AV (audio-visual) inputs.
There are two Scart connections, one for the TV and one to feed the signal to a VCR or digital recorder. I'm not a big fan of Scart cables, but they seem to work fine here. Set-up was a breeze - I simply plugged the satellite lead coming from the wall into the Hills box, connected the Scart cable to my TV, plugged in the power cable and was away.
The Hills logo pops up on your TV screen when you first boot up the receiver and set the TV to an AV channel. An online menu then appears and asks you to set your geographical region.
Tuning of the channels is automatic. A screen showed me the signal strength of the satellite feed - virtually 100 per cent on the Hills bar graph. I exited the menu and was greeted by a crystal-clear TV One. The channels were listed in order, one through five, the latter being Maori TV and channel 20 reserved for V8 Supercar coverage.
A basic four-digit display on the front of the Hills box tells you what channel you are on. Button functionality on the receiver itself is minimal, with the remote control and electronic menu system favoured for adjusting settings.
The menu and eight-day electronic programming guide are simply laid out and straightforward to use.
While the Hills box does everything advertised well, it's slightly lacking in the aesthetics department. The box is made of standard silver and white plastic, and the remote control has a gaudy, plastic feel to it.
Again, the comparison with the PS2 comes in handy. That is a device that with a DVD drive and computer processor, is much more sophisticated than the Hills receiver. Yet it looks much better and sells for $220.
At least you can tuck the Hills receiver away out of sight.
Zinwell Satellite Receiver
Herald rating: 5/10
The most obvious differences between the two are discovered when you look at the rear of the Zinwell box - it has more options when it comes to connectivity, notably the RF connector mentioned above. The presence of standard composite video and component connectors give you better options when it comes to cabling.
Again, set-up was simple. The menu screen asked me to set my region and then automatically found the channels for me.
That is where things started to go wrong: the Zinwell box failed to pick up channels 3 and 4. After repeating the process several times I gave up and rang Zinwell service agent Next Electronics. I was sent an email with instructions on how to manually tune the channels. However, following those instructions failed to produce anything.
"If you still cannot receive the missing channels, after manual tuning, then your antenna dish and LNB most likely needs professional alignment by an accredited installer," an email from Next stated.
That was despite the Hills receiver and my Sky receiver, which connect to the same Optus D1 satellite, picking up all channels. It seems my Zinwell receiver hadn't picked up the over-the-air software upgrade that was issued to fix the initial glitches with the box.
The Zinwell receiver does have the additional options of programmable timers and favourite channel lists.
But again, the box seems pricey for its basic functionality and the average quality of the hardware and remote. Hardware this common around the world should be cheaper and glitch-free right from the start.
I didn't get a chance to post these last week as I was tied up posting on another blog. Webstock Mini was a great event and credit to Natasha Hall and the others on the team who continue to put on some worthwhile internet events in Wellington.
The new Internet: All fizz and no substance?
by Peter Griffin | from New Zealand Herald
It was with great anticipation that I settled into a seat at the Paramount Theatre in Wellington this week to listen to a bunch of internet experts debate a very live topic - whether the new wave of websites gathered under the Web 2.0 banner is "all fizz and no substance".
The debate could have gone anywhere and indeed it ranged widely.
"Second Life? It's that versus House on a Tuesday night. Yeah, Second Life just doesn't have the dialogue. We're talking about stuff that is real and you can't tell me Web 2.0 is real," he concluded.
Cubey's opponent, Philip Fierlinger, a former dotcom entrepreneur and now developer at accounting software maker Xero, said the money paid for Web 2.0 ventures such as MySpace and YouTube, spoke for itself - essentially, there was substance where there was money.
"Is US$500 million [$658 million] substantial? Is US$1.5 billion substantial?" he asked.
Austrian database architect Sandy Mamoli cleverly worked away at Web 2.0's biggest weakness - its ability to create online worlds for its users that are detached from reality.
"We don't share our tacky tastes or our boring personalities," she said.
"Web 2.0 creates a huge gap between the online persona and who we really are. Web 2.0 makes it much easier to be fake."
Brenda Leeuwenberg, online producer at NZ On Air, saw it differently.
"Sometimes there are moments of pure joy in what people put out there on the web," she said. They are both, of course, quite right.
Web developer Mike Brown sees the rise of Web 2.0 as a giant conspiracy to advance the cause of the letter "R", which indeed defines a fair number of Web 2.0 website names - Twitter and Flickr being just two on Brown's list. "You might think it's just a case of letter jealousy, but R wants to be an A-lister," said Brown.
The anti-Web 2.0 arguments have perhaps been best articulated by the British web entrepreneur and author Andrew Keen who in his new book The Cult of the Amateur suggests that the proliferation of user-generated content that's central to the Web 2.0 way of doing things is killing culture.
Others are saying similar things. Take US technology commentator John C. Dvorak's dismissive take on the newest of the Web 2.0 players Twitter, a "micro-blogging" service that allows you to post short updates during a day to keep everyone abreast of your activities - no matter how mundane. Dvorak sees no substance in that, other than to provide a record for the sociologists of the future.
"All of these sorts of networks should provide a trove of insights into society - if the entire system is archived and turned over to the sociology departments of some major universities," he wrote recently in a PC Magazine column about Twitter.
"I'm afraid that the people who implement stuff like this never think in these terms."
Dvorak admits he was also dismissive of podcasting and blogging when they were introduced yet he himself has since become a podcaster and a blogger.
Which just goes to show how hard it is to pick where the Web 2.0 movement will lead us.
For the record, the team pushing the argument that there really is substance in Web 2.0 won the Webstock debate by a slim majority. That wasn't surprising given Webstock's audience, which text messaged in votes for the teams and was filled with web developers.
There are 140 web development companies in Wellington alone. The industry has rapidly geared up for the local impact of this new phase of internet development. There's plenty of fizz on the local scene in everything from online retailing to insurance, but there's also a fair bit of money floating around.
I think the debate came out how it should have, despite the "fizzers" presenting a more compelling and humorous argument than those with substance.
Above all the inane chatter on Twitter, the annoying music blaring at you from MySpace pages and the flying penises in Second Life, there's something powerful going on in these new web communities.
Whether they will all live on remains a moot point, but one thing is for sure, the new makeup of the internet is seriously changing our approach to information use and social interaction. Whatever price you put on that, such transformation in a few short years has been nothing but substantial.Virtual beers with Darth Vader
by Peter Griffin | from New Zealand Herald
It's the place where virtual friendships are made and digital real estate is bought and sold, but educators say the fast-growing Second Life community is also a powerful tool for collaborative learning.
On first appearances it doesn't seem very productive: a group of digital avatars - the online creations of real people - sit around a campfire in a pleasant park, chatting away.
"This experience can be a lot of fun," says Leigh Blackall, an education development manager for Otago Polytechnic.
Blackall conducted a Second Life meeting of education professionals from around the world during his speech to the Webstock internet conference in Wellington on Tuesday, and says that such virtual meetings could be the future of long-distance learning.
"It wasn't until I had my first encounter with a purpose in Second Life, like a meeting, that I realised what it's all about. There are a lot of people in education trying to get into this."build their own world is seen by networked learning experts like Blackall as an ideal forum for students to collaborate and share ideas.
Its potential has already been recognised by Second Life's creators, Linden Lab, who have set up Campus: Second Life, which allows a free grant of land in the virtual Second Life world to an educational organisation for the duration of a semester.
Discounted land plots are also on offer for schools and universities - something of tangible value in a world where an island will set you back US$1600 and US$100 a month in upkeep.
Whole islands can be bought by educational institutions where entry is restricted to their real-life students.
Educational professionals collaborate on a Second Life wiki - a type of online database - to standardise virtual education tools.
Blackall says the potential for development of educational resources in Second Life is huge, but that the tightly funded education sector is hesitant to invest in the online community, which has 7.2 million members and can turn over the equivalent of US$1 million a day in virtual currency.
"So far, no takers," he says ofprojects he has suggested. "It's quite difficult to get things going in education."
Blackall says the real-time aspect of Second Life makes it "bandwidth hungry" and suitable only for high-speed internet connections. But Second Life is becoming increasingly sophisticated - he is particularly looking forward to Second Life users being able to display websites within the online environment.
Students could, for example, sit in a virtual meeting collectively editing a wiki document.COMMENTS:
Wanted to thank you for your article on Leigh Blackall's Second Life presentation and also to let you know that there is already a small but thriving NZ education community in Second Life.
Here at Nelson Marlborough Institute of Technology (NMIT) in Nelson, we are investing in an island in Second Life to explore its potential for enhancing our students learning.
In fact NMIT already has a presence in Second Life - we have been renting space on EduIsland alongside places such as the University of Cincinatti and Universtiy of Hawaii! Our space is called the NMIT Garden of Learning, and apart from being a space for some of my students to explore Second Life, it is also the venue for the informal meeting of the Kiwi Educators group at 2pm (NZ time) every Sunday afternoon.
If you are interested there is more information on our Second Life Interest Group website (www.nmit.ac.nz/research
We are now planning several projects which will be undertaken once the island is operational and have received some funding from the government's e-Capability Fund to help us get going! The exploration of NZ education in a virtual world is very definitely underway.
Dr Clare Atkins
School of Business and Computer Technology
The Kiwi Firefox connection
Aucklander Robert O'Callahan, who as a contractor to the Mozilla Corporation has been working on some of the new features that will be built into the upcoming Firefox 3.0 web browser, gave an interesting Webstock presentation on where browser development is going.
O'Callahan demoed some new Firefox features, such as the updated Gecko rendering engine and offline web browsing functionality that will be available in Firefox 3.0, but he used the bulk of his presentation to explain the philosophy around open source web development.
O'Callahan seems wary of the growing focus in web content development on Adobe's Flash player. That's because Flash and its new rival, Microsoft-developed Silverlight, operate on a different model to the web tools the open source community comes up with. They're essentially privately owned and controlled.
"We want to avoid people getting a monopoly on web clients. If you can control who can render web content, you control the platform," says O'Callahan, who has contributed to Mozilla since 1999.
He believes there's plenty of life left in HTML, the standard language of the web and that focus should be put on fixing the bugs in existing web pages and doing smarter things with HTML than trying to "supercede the web with shiny new design".
"You can add things to HTML that are harder to do if you don't control the platform," he added.
O'Callahan believes the dominant browser vendor, Microsoft "isn't so interested in the web at the moment ".
"We have to unseat their dominance and gain market share with browsers interested in pursuing our mission," says O'Callahan.
The mission of course is to keep development of the web open so that no one company or technology can control its evolution. O'Callahan seems pretty ambivalent about Apple's move to release its Safari web browser for Windows computers.
"We'd like Safari to take all of Internet Explorer's market share and none of ours," he says.
"I wouldn't trust Apple any more than Microsoft necessarily if they got the monopoly."
O'Callahan said developing open source alternatives to more sophisticated web tools was essential to keep browsers like Firefox competitive. One set of functionality that's viewed as being particularly important is offline browser capability.
The idea is that when you type a URL into the web address bar when you're not connected to the internet, the browser will search local storage for a cached copy of the page and allow a certain amount of functionality and data back-up. When you go back online, the local version of the application syncs with the version stored on the web and updates it.
"It's similar to cookies, but with more grunt and more storage," says O'Callahan. Google has developed similar technology to allow its applications to be used offline with the open source development tools, Google Gears.
New Zealand's association with the Firefox browser, which has rapidly gained market share at the expense of Microsoft's dominant internet Explore browser, is very strong. Ben Goodger, a lead Firefox developer who also works for Google is a kiwi and O'Callahan said there are three paid Firefox developers based in Auckland, with scope for the team to be expanded if people with the right skills can be found.
O'Callahan's blog can be found here.COMMENTS
You might want to check out Robert's presentation at the Auckland Web Meetup. He covers the offline stuff, new video formats and font rendering in FF 3. It can be found here - http://www.meetup.co.nz/2007/06/21/video-june-meetup-robert-ocallahan-
Photos courtesy of my friend Ellie who visited Nasa in 2003 and got up close and personal with the Mars Rover!
It has to be one of the more unusual job descriptions ever advertised: spend 18 months locked in a metal tank with five other people, eating vacuum-packed food, with only radio contact with the outside world.
But that's exactly what the European Space Agency is looking for people to do, and it's all in the name of space exploration.
The agency and the Russian Institute for Biomedical Problems want to simulate a manned mission to Mars, including the 520-day trip to and from the Red Planet, the landing of a space craft and the scientific testing such a trip would involve.
Why undertake such a time-consuming experiment? Because space agencies have their hearts set on landing people on Mars. As the ESA explains: "To go to Mars is still a dream and one of the last gigantic challenges. But one day, some of us will be on precisely that journey to the Red Planet."
To give any such mission a chance of succeeding, it needs to be simulated first, in part to determine whether astronauts would be able to psychologically cope with being cooped up together for such an extended time.
The agency admits the whole thing has the feel of a reality TV show. I could imagine it turning into one massive episode of Big Brother, with bed-hopping astronauts, territorial arguments and emotional meltdowns.
But the agency says the volunteers on the simulated mission will be kept busy carrying out the activities Mars-bound astronauts would be given. So it wants candidates with scientific, engineering and medical backgrounds.
The six participants will live in a series of metal compartments about 200sq m in size - roughly the space of four studio apartments stuck together. There will be living quarters, a kitchen, a research area and medical room. They'll be able to talk to the equivalent of ground control and presumably their families, but once the hatch is closed and the astronauts start their journey, they will be on their own, having to fend for themselves if anything goes wrong.
The experiment could produce a treasure trove of information for psychologists and the agency is working out what scientific tests it will carry out on the participants.
Key will be exploring the group dynamic that develops, the effects of the confinement on things like sleep, mood and the ability to perform complicated tasks. The agency also plans to look at medical procedures that could be performed.
As the months pass, scientists will no doubt be peering into the tanks via closed-circuit TV cameras, to scrutinise everything that goes on.Mars is about 1 1/2 times as far from the Sun as the Earth is, though the distance between the two planets fluctuates wildly from around 56 million kilometres in 2003, when they were at their closest in tens of thousands of years to 380 million kilometres at their farthest apart.
As epic as any manned trip to Mars will be, many countries - the US, China, and the members of the European Space Agency included - are investigating the potential.
There have been several unmanned trips and another will begin in early August when the US$414 million ($542 million) Phoenix Mars Lander will be launched. Phoenix will land on the northern Martian plains, on top of ancient fields of ice which lie below the planet's surface. The plan is for Phoenix to scoop up some ice and analyse it, beaming the results back to Earth.As much as the Mars Rover's exploits on the Red Planet caught the world's attention, that will be nothing compared with the buzz a manned mission would generate. So who wants to be the first Kiwi to pretend to go to Mars? The hyperactive and claustrophobic need not apply.
A few robotic Mars discovery vehicles from the Nasa colection. Remember when Rover's wheel got stuck on a rock? Easy to dislodge on the floor at Nasa, not so easy when you're using a joystick to control a robot that's tens of millions of kilometres away...
Charlotte likes to deal to her favour customers from the rear pew of St. Patrick's and when leaving church one Sunday she is knocked unconscious and kidnapped by Thomas Schumacher and his colleague Keith. The two are middle aged bankers whose children's lives have been ruined by the P Charlotte sells. Frustrated at the pace of the police investigation into Charlotte's activities, Schumacher decides to take matters into his own hands leading to the following scene...
INT. SCHUMACKER’S GARAGE -- MORNING
The garage door closes behind Thomas’ car. He and Keith climb out and slide Charlotte across the backseat. She is limp within their arms but begins to revive and fight.
Get the chain and lock!
He holds Charlotte while Keith grabs a chain off a workbench that runs the length of one side of the garage. Thomas slaps Charlotte across the face twice and she stops struggling. He drags her to a steel chair that sits with its back hard against a boat trailer which holds a large red speed boat. Taking her arms he holds them together behind the chair while Keith wraps the chain tightly around them and loops the chain through the safety latch of the trailer.
Charlotte looks up at Thomas groggily. He leans against the workbench tired form the exertion. He points at her.
There she is. Doesn’t look like a drug baron
does she? With a broken nose, chained up. It’s
not like the movies. No henchmen, no weapons?
He flicks a look at Keith who pants away wearing a Balaclava.
You did check her for weapons?
I checked, just a mobile phone and
A shot of the phone and keys sitting on the workbench.
The three of them regard each other. Charlotte spits onto the garage floor. The spit is red, laced with blood.
Be my guest. And scream away if you want.
We’re pretty private here.
(clears her throat)
What is this, you want me to cook for you?
Thomas bursts out with forced laughter. Keith joins him from behind his mask. The laughter carries on, echoing in the garage. Charlotte studies the two men and looks around the garage. A series of shots with the men’s laughter over the top: Tubs of paint on a shelf, a ride-on lawn mower parked in the corner, fishing rods hung from the rafters of the garage.
I think you’ve done enough of that for one
career, madam. Think of this as the Spanish
Inquisition but it doesn’t matter if you truly
do believe in God, which you obviously do
because you deal drugs in church!
Schumacher breaks out laughing again. Charlotte scans the room, looking for an out. A shot of her hands exploring the chain and the safety latch of the boat trailer.
No, this is a confessional in which you are
going to tell us every detail of your operation,
who supplies you with the cold pills, where
you make it and how your dealer network
You’re wasting your time, I’m just a dealer, I
get given the stuff and sell it on the streets, I
don’t know whose above or below me.
Bullshit! We’ve been watching you for weeks.
You’re not some curb-crawling drug pusher.
You’re a major player in Auckland, below the
radar. Till now.
Thomas walks up to Charlotte and looks down at her.
Now the game is over. It’s confession time
and you better not leave out any details.
Or what? Or what?
Thomas goes back to the workbench and opens a drawer full of tools. He begins taking them out and placing them on the table during the next piece of his dialogue.
Well it’s your industry Miss White, you
know what the thugs running it are capable of.
What was that I read in the paper the other
He slams down a hammer on the workbench.
About that guy working for the Head Hunters?
He was stealing from the gang apparently,
skimming off his own cut of the merchandise
and selling it. Under the table, so to speak. They
cut his head off. A farmer found it in his sewage
pond. They never found the rest of him! Identified
him by his crowns!
He takes a long MACHETE out of the drawer and holds it up for Charlotte to see.
I can’t claim to be an expert in the use of this thing,
but I’ll give it a go.
He throws the machete on the workbench and nods to Keith. They walk towards Charlotte who retracts against the boat trailer. Schumacher produces a tape recorder, presses the record button and balances it on the speed boat.
Who supplies you with the pills?
Silence from Charlotte. Thomas produces a smaller knife from his pocket and points it at Charlotte.
I’m serious, you mess around and I’ll cut
flesh, I swear I will. Where are the pills
Silence from Charlotte who sits defiantly. Thomas looks at her annoyed, trying to look staunch. Then he nods to Keith and they walk into the corridor leading to the garage, out of view of Charlotte.
The bitch is going to be difficult.
He paces around the plush corridor - designer lights, expensive tiles and artwork on the walls.
I was serious when I said I was prepared to
hurt her, to make her talk.
Hurt her? How much?
It depends how difficult she is. I can’t say
she’s got off to a great start. I’m going to ask
her about the source again and if she doesn’t
talk I’m going to cut her?
Cut her? You could kill her?
I’m not going to kill her, just a flesh wound. I’m
not going to stab her!
Keith is sweating profusely. He wipes his face with a handkerchief.
You could hit an artery or something. What then?
We turn up at the hospital with some girl bleeding to
death? How do we explain that?
I’ll cut her on the ear, cut a piece out of her ear. See
how she handles that.
Are you serious?
INT. SCHUMACHER’S GARAGE -- MORNING
Charlotte is sitting on the steel chair, the blood drying on her face. She strains to hear the conversation in the hallway and can make out the gist of it. She runs her fingers over a NUT on the trailer’s safety latch, worrying it.
INT. SCHUMACHER’S HALLWAY -- MORNING
I’m dead serious. What the hell are we doing here? I’m completely serious. I’m not going to cut her ear off I’m going to stick the end of this knife into her eye ball!
He goes to go back into the garage, worked up. Keith grabs him and pulls him back.
Wait, wait. Calm down. Okay? Cut her
on the face, away from her neck. If she
They look gravely at each other. Thomas nods resolutely and looks at the knife. Keith puts his Balaclava back on. They walk out of screen and we hold on a thermometer on the wall of the garage. The temperature is 32 degrees.
A pasty looking child was the centre of attention in
When CB2 stands up, he needs the support of an adult and his legs shake just as those of a child who is learning to walk would.
CB2’s creators hope the robot can be used to improve understanding of how children develop human relation skills – learn language, recognize objects, interact with other people.
The Japanese have been fascinated by robots for decades, but biomimesis, the imitation of biological functions, is seen by many scientists worldwide as the key to building robots that can operate in unstructured environments. That science is in its early days, but
think of the Terminator or the hordes of sleek androids in I Robot as the ultimate biomimetric robots.
Robots already man the assembly lines of car and electronics factories the world over. It’s a different story when it comes to consumer uses for robots. We’ve been told for years that robots will be infiltrating the household, but the only one to successfully do so has been the Roomba vacuum cleaner, which motors around your floors sucking up dust, mapping out your home in its memory so it knows where it has already cleaned.
Sony last year ditched its much loved Aibo robotic dog and the Qrio humanoid robot because the robots, while impressive, simply didn’t have commercial appeal.
But while the home may remain robot free for a good few years yet while models that can cope in non-structured environments are developed, there is plenty of robotic progress being made in other fields.
The Battlefield Extraction Assist Robot (BEAR) from
The six-foot tall BEAR can cross unstable ground and stay upright thanks to the use of gyroscopes and motors controlled by computer. It can carry over 200kg in its arms and kneel down to gently scoop up a wounded soldier. It even has a teddy bear face to put wounded soldiers at ease. It’s expected to be ready for testing within five years.
Built on a much smaller scale, but potentially as useful in the war zone, are LANdroids, tiny robots that can be dispersed to form a wireless radio network to maintain communications.
The US Defense Advanced Research Projects Agency (DARPA) is developing LANdroids to overcome the problem of patchy radio communications in the field. The idea is that the robots are light enough to be carried by soldiers so they can be dropped at regular intervals to collectively form a wireless network for voice and data communications. Mounted on wheels, The LANdroids will also be self-adjusting, so that they can change position to ensure the best signal strength of the network. DARPA wants to get the average cost of a LANdroid down to around US$100 which will be a tall order given the sophisticated work they will be expected to perform.
The robots are coming in all shapes and sizes, but are unlikely to appear any more humanlike for some time to come.
On the web:
NEW WALKMAN PHONES
Ahead of the iPhone’s arrival Sony Ericsson has announced two new music phones with similar memory storage to Apple’s music phone. The Sony Ericsson W960 has 8GB (gigabytes) of internal storage, Wi-fi networking, a first for a Sony Ericsson phone and high-speed data access. There’s a 3.2 megapixel camera and the W960 has smartphone capability syncing Windows email and documents. The slimmer W910 also has the digital camera but not the hefty onboard flash memory allowance. It’s unique feature is “Shake Control” which lets the user shake the handset to turn the playlist to random. You can see the Nintendo Wii’s influence there. The new phones will debut before Christmas.
SW: Yeah, it’s the end of an era but the beginning of the next phase.
PG: Any sadness losing ownership?
SW: A little bit. Anyone gets attached to things, whether its spouses, companies or dogs. I’m the sort of person that believes in branding. That’s why I chose Kordia, they have absolutely no intention of re-branding the business and they want to keep it running largely as a separate entity. Hopefully I’ll be able to look back in a few years and say, wow, now it’s
PG: You said at the press conference you had something like 50 offers for Orcon over the last couple of years.
SW: It was more like 50 offers since people started getting more interested, which is more like over six or seven years. Once every couple of months, someone would come along.
PG: Did Vodafone have a sniff around Orcon?
SW: It was more that Ihug was for sale. There was a bidding war for Ihug. They got it and probably wanted to bed it down. I was aware they were potentially interested in additional acquisitions but I felt if we were going to be acquired by them, they probably wouldn’t want multiple brands. The company would have been rolled into Ihug and that wasn’t something I wanted.
PG: Why was it so important to you that Orcon maintained its identity and structure?
SW: It’s basically my baby. It would be a different story if someone was to buy it and suddenly Orcon no longer existed. I’ll still have involvement in the business for a couple of years as consulting director. I’m able to take my money off the table now, relax a little bit, but still have the upside of the business, the challenge and the things that I enjoy.
PG: Is that a fulltime position?
SW: No, it’s a consulting directorship. The time is variable.
PG: What will you do next?
SW: I don’t want to make any hasty moves. If I did that, I could potentially get drawn into something I don’t understand as well. There’s a temptation when you’re cashed up to invest in silly things and fritter it away. The thing about Orcon, since I was 15 I’ve been passionate about business and it was the business opportunity I was initially excited about. Telecommunications came second. I had a burning passion in the early days of Orcon for a good five years, working 16 hours a day solid. If I do anything in the future, I want something that’s going to get me that excited.
PG: I looked back at the TV3 interview you did in 2004 which was very interesting. You weren’t a networking guy, but you were trained as an electrical engineer?
SW: That doesn’t teach you much about computers. I didn’t really use any of my degree. I was also pretty computer illiterate when I started the company so I had to learn fast. These days I’m tech savvy, I didn’t even have a computer when I started the company.
PG: You’ve made some moves at Orcon in the area of content, the deal with Digirama, plans for IPTV, as this Web 2.0 thing takes off, do you want to get into the content side of the internet?
SW: Yeah, in some ways content is easier than access, because you don’t have to have a load of boxes that physically exist. The advantage Sam [Morgan] had with Trademe, was that if something grows really fast, you just stick in more servers. With Orcon, if you want to grow something fast you need infrastructure. Telecom’s got a worse problem with that than we do. I’m probably going to sit tight for six months to a year, take some long holidays, do some travel and not worry about things. If I have any interest at all, it’s in things like sustainability and biofuels. Global warming is a big concern of mine. Maybe there’s an opportunity to make some money but do some good at the same time. Maybe introduce something like solar energy to
PG: You’re 30 now right?
SW: YES, 30.
PG: It’s interesting how goal orientated you’ve been throughout your life from when you got your first bank book as a kid through to wanting to take Orcon to $100 million in revenue by the age of 30. Did you get there?
SW: No, the turnover is a bit lower than that, but I think it will only be a year or two off target. I’ll still be involved with the company by the time it hits $100 million. But the real issue has been our margins being squeezed having to resell Telecom’s broadband and LLU happening a lot slower than was thought. There have been some unexpected difficulties. Our revenue is still growing pretty fast.
PG: Looking back to 2003 – 2004, it seemed that Orcon was more willing to embrace the Telecom wholesale regime than some of the other ISPs who were a lot more vocal in their criticism of Telecom. Do you think that gave you an advantage, that you were more willing to play ball with Telecom than your competitors?
SW: I don’t think it gave us a huge advantage, but we weren’t so distracted by regulatory arguments. My attitude is you should make the best of the situation you have. At that time it didn’t look like we’d end up with local loop unbundling. Theresa didn’t expect it was going to happen, let alone myself. I don’t think we got any concessions from them, but the working relationship was the most amicable and productive of any of the ISPs. That assisted us a bit, even on small things like fault resolution. The Telecom guys were happy to work with our guys. We weren’t going to report faults that weren’t true, we weren’t going to bitch and moan.
PG: You talk about margins being squeezed. Have the economics of reselling Telecom’s wholesale products deteriorated?
SW: They’ve always been bad. The issue is that there are less and less dial-up customers sustaining the ISPs. It’s a global problem. Telecom has issues with making money out of broadband as well. I’m sure dial-up is more profitable for telcos than broadband. Someone like Telecom with toll calling and fixed line rentals, those things are declining. Broadband revenue is going up to replace those, but Telecom has one set of revenues going down and another set going up. ISPs have internet revenue that is profitable being replaced by internet revenue that isn’t profitable. With LLU telcos like Orcon will get access to the physical phone lines as well as additional services like IPTV. That will be fine in the future. The issue at the moment for ISPs is if a consumer spends $40 a month on a phone line, $20 on tolls and $40 on broadband, traditional ISPs don’t get to attack much of that and even if they do, most of the money goes to Telecom in the form of a wholesale arrangement. Under LLU you might buy the line for $15 and whack on as many services as you can. Then it sorts to become more profitable.
PG: You’re getting out at a time which for
SW: The uncertainty was one reason that I chose to exit, but I’d been doing the same thing for ten years, I need to slow my life down a bit and have a bit of a change. Also I’ve started to become more interested in things like global warming. With the uncertainty there’s also huge opportunity, around unbundling. I’m sure Kordia will do extremely well out of their purchase. I may not have done so well by not selling because without sufficient funding you can fall flat on your face. I was concerned that if the capital started drying up, because Orcon was always self funding, my wealth forms the company. If the company was going to do anything it would have to make a profit so we could reinvest it. That’s been the strategy all along.
PG: So everything was funded out of revenue at Orcon throughout?
SW: Everything at Orcon from day one was funded out of cash flow. It was started with $100
PG: During the first dotcom boom, did you feel a sense of urgency that you had to get capital to take advantage of it?
SW: At that stage I didn’t understand how a venture capital relationship might work and the issue is they may only ask for 20 per cent of the company but not be prepared to pay what you want. They always want a good chunk of the business and then there are usually effective control clauses, so even if they only own 30 per cent, effectively they can remove you as a director. I’ve always been opinionated about what I wanted to do. I didn’t want to have the risk of bowing down to someone else and be depressed about it. Whenever a proposal was presented to me, I was reluctant. I said to myself, I’ll just try and grow the business as fast as I can, if it grows a bit slower, I don’t care.
PG: Orcon always had a reputation for very good service. How did you instill that culture?
SW: It comes from all those cheesy sayings, the customer being king, that type of thing. But it was important for Orcon to differentiate and the piece of copper you’re selling is largely the same thing, like petrol stations all sell the same gasoline but they all charge different prices. They differentiate through branding. I always thought we had to differentiate in as many different areas as we could and a lot of the time, ISPs were doing a pretty poor job on service. We made it one of the things we were going to differentiate on. One technique I employed early on was that we hired non-technical people like myself for the call centre rather than geeks. You can’t teach a geek customer service. There are only a hundred questions that will ever be asked at a help desk and you can teach someone the answers to those. We got happy, bouncy customer services people and taught them what they needed to know.
PG: Did you have any mentors?
SW: people come and go. There are people who will say, I helped Seeby out. But not really, I’ve always had a strong vision about where things should go. Most of the mentors’ advice I’ve had over the years, I’ve ended up disregarding.
PG: Was there anyone in the telecoms industry you admired as a young businessman?
SW: The Wood brothers were an early inspiration, because they were in game a year ahead of me. It was always a case of me having to catch up to Tim and Nick. They did really well exiting a few years ago and got more money than Ihug sold for (to Vodafone).
PG: And the successful exit at the peak is the real sign you’ve made it, isn’t it?
SW: It was certainly planned, choosing Kordia was planned as well. It was important to be Kiwi owned, there’s no risk of Kordia being taken over by an Australian outfit. I’m proud of the Kiwi heritage. Obviously, getting what I thought was a fair price was important. Ultimately I didn’t necessarily expect, even a year ago, to sell. But I started thinking, what does this business need? All internet companies are becoming phone companies and all phone companies are becoming internet companies. Then they’re all becoming converged media network companies. Looking at the regulatory environment after the Government’s announcement after LLU, we did the Siemens deal so we had vendor finance, but what we were lacking was media expertise and a network. We were going to have to build the network and invest in media technologies. Kordia as a network and broadcast type company, had the two pieces of the puzzle that we lacked.
I thought either I’m going to have to get a venture capitalist onboard or load the company up with heaps of debt. Take on a whole lot more risk where potentially it could fall flat on its face or sell it to someone who can extract the value. There was the risk that I could try and do all the stuff Kordia is trying to do, by myself.
PG: CallPlus has secured US$450 million for its WiMax plans. Maybe there’d have been an appetite for investment if you’d wanted to go that route.
SW: I was surprised by the CallPlus thing. I think it’s a real figure, but it’s probably a line of credit, so it will have to be drawn down over time and they’ll have to build the network. And its debt funding. If you borrow $450 million, you’re paying 40 – 50 million a year in interest. Just because they have $450 million, doesn’t mean they’re won’t be saddled with debt and crippled by it, in much the same way Woosh is. They’ve spent $100 million plus building a network and don’t yet have the customers to sustain it. If CallPlus goes and spends the US$450 million and only gets 100,000 customers, it will be a bit of a disaster.
PG: What’s your view on wireless technologies. Are you optimistic that some of these alternative models may work?
SW: There are a lot of variables. There’s a lot of uncertainty around the Government’s spectrum auctions. CallPlus has the same concerns. Wireless technology rests on having the right spectrum available at the right price. If it goes for a horrendous price and Vodafone and Telecom pay to block out competitors, it could be a moot point. One technology doesn’t tend to replace another. When email came along it didn’t replace the fax machine, when the fax came along it didn’t replace postal mail. Now we’ve got postal mail and couriers and FedEx, faxes, email and instant messaging.
The biggest success will be the company that can offer a seamless solution, wireless and wired technology, TV and phone calling together. I’m not just talking about multiple things on one bill, but being able to use your internet service wherever you are and pay in a consistent manner. We’re a long way away from that.
PG: Where you nervous when Vodafone bought Ihug, seeing as Vodafone @ Home is aiming for one converged device that acts as fixed line and mobile with seamless switch over?
SW: I saw it as an advantage but I wasn’t threatened by it. Orcon’s got an MVNO agreement with Vodafone anyway. We’ll be doing the same type of services, just in a different way. It just depends what pieces of the puzzle you have control over and which pieces you don’t.
PG: Did you benchmark the sale of Orcon against the $41 million sale of Ihug in terms of what you were looking for?
SW: It’s difficult to compare the two. Certainly, in terms of customer numbers, we’re 80 per cent the size of Ihug. It would have been nice to get more but I’m not unhappy with the sale price. We have different ebitda figures and more customers have multiple services with Ihug. They’ve a more established voice base. I got a fair deal and Kordia paid a good price.
PG: How do you feel about the fact that your staff is effectively now public servants?
SW: They’re not really. The Government has very little input into how Kordia is run apart from maybe appointing the board of directors. It’s certainly not the case that the Government wanted to do this to create a competitor to Telecom. They’ve some great products they want to sell like DVB-H (mobile TV). They haven’t had a lot of interest from the ISPs in terms of taking some of these services up.
PG: What’s been the reaction to the sale from staff.
SW: It’s been good, there’s been no tears. People have said it’s the end of an area, but once they realized there’s no change in job descriptions, they’re not suddenly Kordia employees, they’ll still be managed by the same people, there’s no redundancies, they’re okay with it. I’ll still be popping into the office, I’ll still be around for at least two years in an advisory capacity.
PG: And Scott Bartlett, your lieutenant, will be the CEO?
SW: Yeah, essentially I’d already stepped back a bit anyway. With a company the size of Orcon it’s important to spend a lot of time thinking about what’s next. You can’t get too caught up in the day to day issues or you can wake up and find you’ve been going in the wrong direction for two years.
PG: So the future, alternative energy technologies, are there good opportunities to invest here?
SW: I’m passionate about business, that’s number one,
The only country that will do well is
We should be working on complete energy independence.
PG: You’re moving out of a field that’s complicated enough and into one even more so. Are you going to go on a fact-finding mission to some of these places using alternative fuel sources.
SW: I’ve been doing a lot of reading. I’ll try and work my contacts, ask government officials. If a light bulb switches on in my head and I decide the best thing to do is buy a heap of land in the
Solar generation or green homes.
If I can start a company that provides green technology to homes, it’s a way to start.
PG: How’s Orcon Racing going?
SW: It hasn’t been in operation this season.
PG: What happened?
SW: We didn’t sponsor the car this reason for two reasons – Orcon is focusing on call to action marketing rather than branding. Potentially motor racing is going to become a bit un-PC. Because I have environmental concerns I started thinking gasoline is in short supply, there’s all this concern about global warming, we don’t necessarily want to be involved in a sport that in two years time everyone is up in arms about.
PG: You did a sabbatical a while back right?
SW: Yeah I’ve seen a good portion of the planet. I’ll do some more.
PG: That’s the plan, take some time and explore?
SW: Yeah, I just came back from
I get the feeling we need to keep our nuclear material for use in the future. I don’t think it’s a smart idea to go burning it all up. We may need it for exploring the stars or powering space ships. It would be really sad if we saved the planet but in 500 years time we’ve got these ambitious plans to colonise the stars but were 20 pounds short of uranium or something.