[Published by Brad Bowman and the 3.65GHz WiMAX Publishing Consortium (3.65WiMAX.com)]
Reference Articles
"The president is talking about broadband and newspapers "all the time," says Obama administration member Susan Crawford [Obama's National Economic Council]. But the answers to how to boost both remains to be determined." http://www.broadcastingcable.com/article/232506-President_Obama_Focused_On_Broadband.php
"But well into what Crawford described as a "watershed year for the journalism industry," the
economics of the proposition remain an unanswered question. With the explosion of content online, information is no longer a scare resource that can command a high price tag. Advertisers have an exponentially larger menu of less expensive options than display ads in printed media, and online ad revenue is proving incapable of sustaining a large newsroom.
"It's not immediately apparent what that plan B is," Crawford said. "It's not ... apparent that a business model on purveying information will be sustainable." http://www.internetnews.com/government/article.php/3820421/Obama+Aide+Broadband+May+Save+the+News.htm
Summary
Stop the presses...literally.
As the United States gears up for what could turn out to be major changes in deployment of new broadband infrastructures and wireless technology the publishing industry needs to latch on and seize the opportunities available to re-tool their traditional operating and revenue models.
It seems that everyday we hear of another newspaper that is laying off employees and closing their doors on their print divisions while trying to figure out how to make money with their static on-line websites. So far, none of this is working. Advertising revenue has fallen dramatically and without a major re-vamp of how publishers can maintain their brand and their presence within their communities the American people and businesses will not realize how important these newspapers are until it is too late.
For decades, and in some markets centuries, newspapers have played a pivotal role in how we disseminate and receive information. We take for granted the invaluable services this industry provides for our communities. And it is these same communities that will benefit even more if their local newspapers can take the blinders off and develop a business model that will keep them in business while using the same assets to provide the core broadband services needed for their communities.
The newly created 3.65GHz WiMAX band can become the new delivery facility for publishing of e-newspapers. This newer touted 4G, or WiMAX technology, is being examined by publishing industry experts as the new delivery method for their medium.
So get ready for new state-of-the-art wireless viewing components that will replace traditional delivery of your newspaper to your home or office. These devices will incorporate all the visual
cues associated with current print editions of your local newspaper or nationally published magazines but instead of wetting your fingers to turn pages, you will simply slide your finger left or right on a screen to turn the page and tap to read an article, view a video, etc.. It will also cost nothing for subscribers to receive their own personalized mobile access and viewing station in exchange for the subscription.
Traditional operating models required that publishers own and operate their own printing presses that were only in operation after final copy had been delivered. With the introduction of WiMAX, newspapers can eliminate costs involved in operation and maintenance of their printing presses and use wireless to deliver their content, 365/24/7.
The newspaper industry can also take this model a step further. The new operating model also presents an abundance of new revenue streams for newspaper publishers by leasing
bandwidth on their WiMAX networks. This will provide the communities they serve with low-cost, high-speed ubiquitous internet access and communications (e.g. VoIP) benefiting their residents, businesses, local governments, public safety/first responder, health care, school systems, colleges, libraries, low-income households or other public or departmental agencies. So, if modeled correctly, newspapers could maintain a level of traditional printed medium while transitioning to digital delivery.
In essence, our local newspapers will become an internet service provider (ISP). They have the option of owning and operating their own networks or partnering with local service providers already offering the WiMAX services.
And the budget is there too. Average production costs for circulation of 100,000 newspapers runs about $30 million per year. This money could be reallocated to invest in the wireless infrastructure needed to deliver their digital medium and advertising to state-of-the-art viewing stations, kiosks, tablets or handheld devices. This money would also allow local and national publishing companies to anchor themselves as a substantial stakeholder in broadband network services providing them with significant ROI.
As part of this new model newspapers can also offer bundled wireless internet access and communications packages to residents and businesses within their markets. CaPEX for these types of networks are low (compared to traditional large scale Telecom or Cable wired networks). This would greatly increase bottom line profits. And the best part of all of this is that this revenue stays within the community to improve upon the existing aforementioned services or develop new community outreach or re-development programs.
Jobs are created, not eliminated. Borne from this model are greatly enhanced distance learning and employer outreach programs, educational tools and even the ability to partner with power companies to provide money saving "green" energy management programs, load control and rebate programs through the two-way high speed wireless communication available through the network. The benefits are endless.
Existing internet service providers and wireless operators should also welcome this new business model. By partnering with local and national publishers their potential subscriber base would increase exponentially by being able to market their extended services to the publishers existing circulation (subscribers to their print, e-paper, e-magazine).
Based upon input and comments from the National Educational Broadband Service Association (NEBSA) and newspaper publishing companies, the availability of NTIA BTOP and RUS broadband stimulus programs and sovereign support of a national broadband plan it is evident that the United States is positioned to develop it's existing wireless assets (2.5GHz EBS, 3.65GHz band) most effectively through partnerships of qualified national and local GSA (W)ISP's and newspaper publishers with alliances to municipalities, cities and counties and their associated public systems and facilities currently desiring their own broadband wireless infrastructures.
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