CONNECTIVITY

A gap narrows, a problem remains

As the US’s digital divide shrinks, the issue grows more complex. 

As of 2021, 77% of Americans have access to broadband internet, per a Pew Research report released in early June. That’s up from 73% in 2019, but still leaves almost a quarter of the population without any home internet. 

But in the Covid-19 era, home broadband access isn't a binary yes/no. Nowadays, people need high-quality internet capable of supporting things like video calls for work, school, or telehealth appointments.

“It’s been manageable [until now] because [people] had some kind of connectivity. They had DSL, they still used phone lines, they had low connectivity. But those speeds cannot deliver the services that are needed today. The problems we had before with the internet when it wasn't an essential service are different from the problems we have today,” Anthony Goonetilleke, group president of media, network & technology at Amdocs, told Emerging Tech Brew.

Go away, gap

There are potentially both public and private solutions to close the digital divide, but plenty of uncertainty surrounds both. A quick survey...

White House: President Biden’s American Jobs Plan aims to build high-speed broadband infrastructure, promote competition among providers, reduce the cost of internet connection, and ultimately achieve 100% broadband coverage for the entire country. Biden initially pledged $100 billion for the issue, but has lowered it to $65 billion after negotiations with Republicans.  

Congress: Lawmakers are considering two proposals to narrow the divide. 

• The Hotspots and Online Technology and Services Procurement for our Tribes and States (HOTSPOTS) Act, which would create a 2-year, $200 million pilot program to provide states with internet-connected devices at libraries in low-income and rural communities. 
• The Accessible, Affordable Internet for All Act, which would put $94 billion toward building high-speed broadband infrastructure in underserved areas.

The stars: Space satellites in low-earth orbit (LEO) operate without the ground-based infrastructure required by telcos and governments. As long as customers have clear sightlines to space and a satellite dish, they will be able to access high speed internet. 

• Companies such as Starlink by SpaceX, OneWeb, Lightspeed by Telesat, and Project Kuiper by Amazon are at the forefront, but are generally in beta and have limited coverage as a result.

“They [LEOs] are expected to pump a lot of satellite broadband capacity into a market that has been historically limited in terms of the throughput and much more expensive in terms of the pricing,” John Garrity, an international connectivity consultant, told us.

Bottom line: The rapid, immediate transition to a digital workplace and school environment has left behind many who don’t have access to the internet. 

“So much of the pandemic response has depended on digital technology and connectivity,” Ardnt Husar, senior public management specialist at the Asian Development Bank told us. “And so much of the post pandemic recovery phase will depend on who has good coverage and who has the right context of affordability levels of digital connectivity.”

Click here to read the full piece.—JM

VR

Facebook tightens its Oculus bearhug

Fresh off scooping up two gaming studios in two weeks, VR’s de facto leader is yet again shaking things up. Facebook said this week that it will run trial ads within Oculus Quest headsets. Tests will start on a small scale within select titles and won’t utilize local device data for targeting.

Why?

That’s what we’re all wondering. Well, Facebook says in-VR-land ads could give more monetization paths to developers. Facebook Reality Labs, which has 10,000+ employees, could also become a self-sustaining business division rather than a cost center, all while selling mixed-reality products at a much more affordable price point than Apple. 

• Dept. of Possibly Related: The Quest 2, a notable step-up from its predecessor, starts at $299. (We've speculated that it’s sold at or below cost.)
• Facebook’s non-advertising revenue—driven mostly by Oculus sales—grew 156% annually in Q4 2020. This “other” revenue grew from 1% to 3% of the business over the same stretch. It’s a sliver, but one that’s rapidly growing. 

Was the writing on the wall? 

To the chagrin of some VR enthusiasts and privacy-conscious users, FB is unifying its core family of services with Oculus gear. Earlier this year, Facebook said it would phase out Oculus logins, meaning users will need an active FB account to access their devices. 

Mixed reality, in FB’s eyes, is the computing platform of the future. The hardware is also how FB could reduce dependency on others’ distribution rails (like iOS). Now, FB could be laying the groundwork to wed an ad-based business model with a fledgling platform that it does control.

A potential barrier is trust. In a recent nationally representative survey we ran with The Harris Poll, 35% of US adults said Apple would be their first-choice brand for an AR or VR headset. Only 5% picked FB as their first choice. 

But Apple has shipped a grand total of zero headsets. Quests, on the other hand, are flying off the shelves. While digital ad inventory could scare users away, Facebook—and Oculus customers—may already be convinced the tradeoffs are worth it.

+ While we’re here: Yesterday, Mark Zuckerberg said he could see potential for VR remote conferencing and fitness subscription products.—RD 

SPONSORED BY LEDGER

Be Captain of Your Cryptocurrency Ship

If you’re curious about Bitcoin, you probably enjoy a little thing called freedom. Which is what crypto is all about—controlling your financial fate. 

But once you set sail and decide to buy some Bitcoin, it can feel daunting to navigate the countless seas of cryptocurrency platforms. Where do you start? Which platform do you trust to buy your first crypto? Store them? Manage them? What’s for lunch? Nevermind that last question. 

The answer is simply this: Ledger. 

Ledger is the one trusty vessel for all your crypto needs. It’s the safest way to securely store your digital assets and protect them against hacking or malware, so you can buy, store, and grow your crypto securely—all in one place. 

EmTech readers get an exclusive 20% off the Ledger Nano S with code MORNINGBREW20. There’s only 200 codes, and it’s first come, first serve (read: you better hurry). 

Start sailing the crypto seas with Ledger today. 

FROM THE CREW

The cloud. We’ve all heard of the cloud. But did you know the following tidbits about cloud computing? 

• It helps enable everything from the creation of this newsletter to aspects of wildlife conservation. 
• The term “cloud computing” was coined nearly 25 years ago. 
• Computing centers are responsible for about 2% of all US energy use.

If you didn't know any of those fun facts, or if you just want to brush up on your knowledge of cloud computing, click here to read our comprehensive guide on the topic. 

+1: And once you’re done reading through, click here to take our quiz and test your knowledge for real. 

BITS & BYTES

Stat: Ericsson forecasts 580 million 5G subscriptions by the end of 2021, and 3.5 billion by 2026. 

Quote: “She brings to the job what I would call the boldest vision for the agency in its history. So in that respect, she is a potentially transformative figure.”—William Kovacic, former FTC chairman, on Lina Khan’s approach to competition law

Read: How Airbnb failed its own anti-discrimination team. 

Protect: Ransomware attacks are on the rise against companies of all sizes—even small & medium sized companies aren’t safe from being targeted by cybercriminals. Learn how to protect your biz in CrowdStrike’s ransomware report.*

SPONSORED BY BARRON'S

Teen trading titans? It’s happening, say the financial futurists at Barron’s. Even though some of these budding bulls can’t even vote, they can influence the market in ways well beyond their years. Barron’s is tracking this latest stock market story—as they’ve done for 100 years—and what it can mean for your own portfolio right here.

WEIB

• IBM’s first non-US quantum computer is officially live.
• Waymo announced a fresh $2.5 billion investment round, earmarked for growing its team and advancing AV systems.
• Facebook’s latest AI not only detects deepfakes but also guesses where they came from.
• Microsoft named Satya Nadella chairman—making him the only person to ever hold both chairman and CEO roles besides Bill Gates.
• Flytrex and El Pollo Loco will test backyard drone delivery in Southern California this summer. 

GOING PHISHING

Three of the following news stories are true, and one...we made up. Can you spot the odd one out?

1. Snapchat got rid of a filter that shows how fast people are driving due to safety concerns.
2. Bethesda announced Starfield, its first new IP in 25 years, as a timed exclusive on PlayStation 5.
3. Tencent’s robot can perform a backflip by flicking its “tail.”
4. Facebook AI aims to spot fights as soon as they start.

ICYMI

Catch up on the top Emerging Tech Brew stories from the past few editions: 

• How Airbnb failed its own anti-discrimination team 
• Facebook’s smart watch opens up potential “gold mine”
• The Senate and White House plan to supercharge US technology

GOING PHISHING ANSWER

Starfield won’t be a timed exclusive—and it’s loyal to Xbox/PC.