Travelogue USA – September 2008.
While in Washington during September 2008, I arrived at the midst of the financial crisis. The key reason for my visit was Gridweek, where I was invited to present a paper on Smart Grid Australia.
I arrived during the weekend Paulson announced his rescue packages and the news was discussed continuously on TV and in the street. The crisis will have a major effect on future infrastructure developments.
I spent some time discussing this with some of the local experts during my visit, and discovered that another headache for the new administration will be the switch-off of Analogue TV in February 2009.
The Financial Crisis (separate report)
Being in Washington DC in the midst of the financial crisis provided me with a unique opportunity to experience it as it occurred. This report contains my analysis and comments on the financial crisis as I saw it. (See Global Analysis – The US Financial Crisis and the effects on Communications)
Security in the USA
While jogging through Washington it is impossible to avoid the amount of security – there are guards, blockades and no-go zones everywhere. Every time I visit the US it hits me and makes me feel rather uneasy. I am sure that the Americans are used to it and might not even notice it anymore, but coming from Australia it feels quite intimidating. It reminded me of our travels through the Soviet Union in the 1970s. The US doesn’t look as bleak as Russia did then, but still, I don’t get that feeling of intimidation while travelling through Europe, India and China.
Russia during the Cold War and America during the War on Terrorism felt so threatened that they needed to implement an unprecedented level of security to protect their citizens.
The endless queues for air travel in the USA are a real nightmare, as well as such a simple thing as queuing for a taxi. The government can only guarantee the safety of passengers if they use a particular taxi company which has been accredited by the government. Obviously things are so bad there that the free enterprise system cannot be trusted any more.
One of my friends changed jobs simply because he was fed up with the problems and low level of service involved with flying throughout America. I can vouch for that because the quality of service and comfort on American planes is much lower than what we are used to in Australia and Asia.
However, to my surprise, the American airlines now provide normal metal cutlery (including knives) on their flights, leaving Australian flights as one of the few which still provide plastic utensils.
Poverty in the USA
In my Travelogue on India on another leg of this trip – (see soon to be released report – watch this space) – I wrote about the poverty in that county. However, while not on such a large scale, the poverty in the USA is equally obvious. Possibly many Americans don’t even notice it anymore, but two blocks away from the White House, in the park around the corner from my hotel, homeless people occupy all the benches day and night. Every day I saw a lady, surrounded by six or seven large garbage bags containing her possessions, animatedly talking to her imaginary friend next to her. I have never seen anything like it anywhere else.
Surely this is an indication that there is something seriously wrong with the richest country on earth.
Hopefully one result of the financial crisis in the USA will be to create a better balance which will also value elements other than money.
Still a beautiful country with beautiful people
However, despite all of this it is still a beautiful country with beautiful cities, and Washington certainly fits into that category. Jogging past the famous monuments, the White House and Capitol Hill, still gives me a thrill.
Whenever I get the opportunity I visit the Lincoln Memorial. I never tire of reading the wise words of this man over and over again. When reading this time I thought – we human beings have so much in common, and there are only small details which separate us.
This certainly applies to the American people, very close cousins of ours, and to a great many people who are my friends and colleagues.
It was good to catch up with old friends, several of whom where involved in a venture in the late 1980s called Numedia. Even 25 years ago we were well ahead of our time.
But this time, thanks to my participation in Gridweek (see below), the trip was also about making new friends from the energy community. I never come back from the USA without being inspired and invigorated by new ideas and different approaches.
Infrastructure separation discussion
During my telco discussions in Washington I wanted to test my analyses that the US will eventually face some structural changes to its telco/cable infrastructure. My argument for the last three or four years has been that FttH will be the ultimate infrastructure and not the HFC network. Cable companies will also need to eventually install FttH. So sooner or later the cable companies will have to face that situation, and when they do it would make sense to start looking at using the FttH infrastructure that is already in place, which I believe will result in some form of separation in order to safeguard competition.
In a recent analysis of the municipality broadband market (Global – Broadband – Infrastructure Trends & Developments) I mentioned the success of this development. In my discussions in Washington it was mentioned that this development could eventually have a major impact on FttH infrastructure developments in the USA. It certainly is something that I would take on board in my further analyses of infrastructure developments, not only in the USA but also in other countries with strong municipality developments such as Canada, Sweden and the Netherlands.
With more focus on proper governing, BuddeComm predicts that issues of governance and regulations for the infrastructure needed to operate a successful society and economy will become more acceptable.
Looming Digital TV issues
Apart from the legacy of the financial crisis, one of the first issues that the new government in the USA will have to face is the switch-over of Digital TV in February 2009. This will most certainly create a massive headache for the new government as tens of millions of people for various reasons will suddenly find themselves without TV. People will be provided with a subsidy, in the form of coupons, for an analogue-digital converter, but millions are missing out because of the bureaucracy involved with the registration system and the fact that these coupons have rather short due dates. Apart from that there are also technical issues all over the country.
Our senior analyst in North America will write a separate report on this development.
Gridweek
The reason for my visit this time was an invitation to speak at Gridweek, the national conference on smart grids. Judging by the number of people who approached me directly after my presentation and also during the course of the conference, I felt my presentation was very well received and worth the effort.
Gridweek was organised by the Gridwise Alliance, the sister organisation of Smart Grid Australia which I founded earlier this year. I was very well looked after by the Chairman of this organisation and was introduced to many of the leading players in US smart grid market. This was of course a great opportunity for me to establish contacts which will be very beneficial for future cooperation and collaboration.
What makes this US Alliance so strong and credible is that the Federal Government actively participates in Gridwise – the Assistant Secretary of the Department of Energy is the Co-chair. The organisation sees itself as a ‘movement’ and I think that is a realistic description because it is much more than just another industry association.
In all, it was a very worthwhile visit which has greatly assisted me in getting a deeper and broader understanding of the energy market.
For a full analyses of the latest smart grid developments see: soon to be released report – watch this space.
Other Reports
- USA – Broadband Market – Broadband over Power Line (BPL);
- USA – Broadband Market – Cable modem & DSL – Analysis, Statistics & Forecasts
- USA – Broadband Market – Fibre to the Home (FttH) Overview, Statistics & Forecasts.
- USA – Broadband Market – Wireless Broadband;
- USA – Broadcasting – Interactive TV;
- USA – Broadcasting – Major Cable Operators;
- USA – Broadcasting – Satellite TV.
- USA – Convergence – Digital TV & IPTV
- USA – Convergence – Triple Play & Quadruple Play
- USA – Internet Market – Analysis, Statistics & Forecasts
- USA – Major Telcos – Statistics & Analysis
- USA – Telecommunications – Key Statistics
- USA – Telecommunications – Regulatory Environment
- USA – Telecoms, Wireless & Broadband – Overview & Analysis 2007-2008
- USA – Utilities Broadband – Smart Grids & Broadband over Power Line (BPL)
- USA – VoIP Market – Analysis, Statistics & Forecasts
- USA – Wireless Market – Analysis, Statistics & Forecasts
- USA – Wireless Market – Major Operators
- Australia – Smart Grid Australia
- Australia – Smart Grids – Climate Change and the Environment
- Australia – Smart Grids – Demand Side Management
- Australia – Smart Grids – The Market in 2008
- Australia – Smart Grids and BPL
- Global – Smart Grids – Energy & Environmental Issues – 2008
- Global – Smart Grids – Overview 2008
- Global – Smart Grids and the communications revolution
