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A Skype IPO?

Skype must be preparing for an IPO. How else to explain the bizarre rumors it could be bought by Comcast or News Corp. for $3-billion. Didn't realize April Fool's Day happened early this year. The speculation culprit is Robert Cringely, who figures Skype is worth that much on a valuation of $150 for each of its 20 million regular users. An interesting concept but how he can possibly quantify “regular” would be fascinating to know given Skype provides no details on the activities of its premium service (SkypeIn, SkypeOut, Skype Voicemail) customers. So how does Cringely justify his pie-in-the-sky valuation? Here's his explanation:
“Skype absolutely takes money out of the pockets of existing telephone companies. And since the value of a telephone subscriber is generally a known quantity, the value of an active Skype customer can be at least guesstimated.”
But $3-billion? Come on, that's so farfetched it's a credibility-buster given Vonage, which generates significantly more revenue, has a valuation of about $1-billion. Speaking of $1-billion, that's the figure Tim Draper threw out half-seriously during the recent AlwaysOn conference. I think Draper was having some fun but maybe that the figure Skype's investor group is seeking - realistic or not.
Give Cringely credit for raising the idea of Rupert Murdoch entering the scene and the possibility a wireless carrier or broadband service provider could be a potential buyer rather than an ILEC or CLEC. If you believe where there's smoke, there's fire, Cringely rumor-mongering could be closer to the truth than you think. Andy Abramson, for one, thinks the News Corp. rumors are far from being far-fetched given Murdoch's affinty for disruptive technology.
Of course, there are others who believe Cringely is blowing smoke. Ethan Stock offers an extensive criticism of Cringely's arguments, and sums it up in three words: “wrong, wrong, wrong”.

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Who Gets to Blog?

July 31st, 2005 | No Comments | Posted in Main Page

The Corante's Bob Cauthorn has a lengthy column - rant? - on whether mainstream journalists have the “right” to blog. His thesis is large media groups are jumping into the blogosphere more for marketing reasons - i.e. trying to court a younger audience - than providing readers with a value-added service. As a result, he dismisses most efforts by Big Media to get into the game. Here's an example of his view of the world:
“Currently, there's a rush among traditional media outlets to get into that wicked bitchin', snaps inducing “blogging thing.” Almost all of these efforts are agonizingly misguided. Buzzword compliance is a big deal in traditional media. Unfortunately, in America, media leadership is marbled with mediocre minds. And, like loneliness, mediocrity craves company.”
Obviously, Cauthorn, the former head of the San Francisco Chronicle's new-media division who recently declared the daily newspaper is a “product going out of business”, has strong views and his first column for The Corante's new Rebuilding Media blog is cleary written to attract attention and create controversy. (It must be working because I'm writing about it after seeing a post on BusinessWeek's Blogspotting) but it's big-time generalization. The media blogs Cauthorn takes particular umbrage with are probably lame - either because they don't have a strong focus, an author not really into the blogosphere, or an organization that has no clue how blogs can be effective - but different - communications tools. Cauthorn conveniently decides to give passing acknowledgement to the good Big Media-related blogs out there that do a good job as complementary information outlets. Blogspotting and SiliconBeat are just two examples of insightful and interesting blogs. While my blog is not formally associated with the National Post, it is probably a good example of how Big Media could provide readers with information that can't find space in the daily world of newspaper journalism or perhaps doesn't totally meet the newspaper's editorial mandate. I'm certainly not suggesting my blog's content is always scintillating but hopefully it provides some value to people looking for new ideas or views on what's going on in the technology industry. Perhaps what makes my blog different from Big Media blogs is it wasn't created because an editor read about blogs in the New York Times or The Economist. It was spawned because I mocked blogs in a column as nothing more than online diaries - only to be challenged by Tucows CEO Elliot Noss who suggested I actually write one rather than summarily dismiss them. What started as a research project has turned into a passion. And perhaps passion is what good blogs are really all about, regardless of whether they're “published” by Big Media or an individual with a bunch of ideas. Take a look at the good bloggers out there such as Om Malik and Andy Abramson, and ask them about why they do it. It's not about the money; it's much more about being excited about something and sharing it with others. Sure, there's ego involved but ego doesn't make you invest your time and energy to blog on a regular basis. Cauthorn may have some valid points but what he fails to grasp is blogging is the newest form of journalism because it allows information to get out there quickly and, as important, provides a way to get comments from readers, who are interested in the topic and, in many cases, have a lot of knowledge/ideas they want to share. For Big Media not to explore blogs would be a strategic mistake. Some organizations have done a good job getting into the blogosphere while others are still trying to find their way. Cauthorn needs to be a more patient and accept the fact Big Media is going to have a presence in the blogosphere. The silver lining, of course, is the barriers to entry on the Web are extemely low so the small-guy blogs have just as much a chance of being recognized and valued as those provided by Big Media.

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Bell Mobility's Youth Marketing Misguided

July 30th, 2005 | 2 Comments | Posted in Main Page

Call me a prude but Bell Mobility's efforts to get jiggy with the youth market appears to be confused and misguided. The National Post has a story today that the country's second-largest wireless carrier is selling ringtones called PimpTones that feature references to “hoes”, “skanks” and “bitches”. Bell claims it's acceptable language because “there are mainstream TV shows and products that use that language. It's a big part of the culture these days”. It's a sad world when TV is used to justify societal behaviour and cultural norms. Then again, Bell's strategy to court the fertile youth market smacks of desperation. After failing to attract young consumers with its Solo brand a few years ago, Bell turned to Virgin last year for help. Shortly after the joint venture got off the ground, Bell launched an ad campaign that borrowed many of the elements used by Virgin. Last week, the Bell-Virgin relationship got more complicated when Bell relaunched Solo with free text-messaging. It's hard not to get the idea Bell may be having second thoughts about inviting Virgin into a market with lots of growth given Canada's wireless penetration rate is only 46%. Perhaps Bell feels the only way to correct its strategic “error” is to go head to head with Virgin rather than allowing its joint venture partner to court the youth market on its own.

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IE7 Catfight - Meow!

July 30th, 2005 | No Comments | Posted in Browsers, Main Page

You have to love the scrap that has broken out between The Register's Andrew Orlowski and Robert Scoble over the IE7 beta. Is it ego, pride or simply passion for Microsoft? I haven't had a chance to check out the beta but it doesn't appear to have much in the way of groundbreaking features. There are bunch of reviews already out there - here, here, and here - to tell you nearly everything you'd ever want to know about IE7. What's perhaps most eye-catching is you have to have Windows XP SP2 to use IE7, which leaves all those 2000, ME, 98SE users out of luck - unless, of course, they upgrade. While I'm going to stick with Firefox, I'm sure IE7 will be well-accepted. I only hope the browser market remains competitive and IE sees its share drop below 90%. This would ensure it would only be a matter of time before we saw IE8. Carry on, boys!

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Steve Nash Hawking MDG Computers

July 29th, 2005 | 3 Comments | Posted in Main Page

MDG Computers, which makes PCs and laptops, has suddenly become cool after signing a deal with Phoenix Suns' guard and NBA MVP Steve Nash. Nash (otherwise known as Captain Canada for his exploits with the Canadian Olympic basketball team) will appear in TV, radio and print ads, while MDG will support Nash's foundation and work with it to provide some Canadian schools with computer labs featuring MDG computers. Give MDG credit for stealing Nash right from under the noses of the big boys - HP and Dell - but it seems a little strange Nash would align himself with a white-label computer maker rather than a multi-national brand.

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HP and Apple Divorcing

July 29th, 2005 | No Comments | Posted in Main Page, Uncategorized

Now, here's a shocker for a quiet Friday afternoon. According to CNet, Hewlett-Packard has decided to stop reselling Apple's iPod just 18 months after the deal was unveiled. HP is still interested in the “digital-entertainment” market but not with the iPod - even though it just announced a new line-up of HP iPods. Not sure what to make of the move but it may be part of new HP CEO Mark Hurd's plan to sharpen the company's focus. It seems somewhat ironic that HP is severing its iPod ties given Apple has historically been reluctant to license its technology. That's what made the HP deal so intriguing because it suggested Apple was changing its stripes.

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Bell VOIP Plans Unclear and/or Unknown

If anything, the appeal of the CRTC's VOIP decision by Bell, Telus, Aliant and SaskTel has got tongues wagging with strong views on both sides. Putting aside the regulatory arguments for a minute, what are the ILECs plans when it comes to VOIP? In other words, they're happy to talk the talk - and hold a press conference to do it - but what about walking the walk? The answer from Bell about its Digital Voice service is “no comment”. How come? They contend talking about expansion beyond its four-city stronghold in Quebec would tip off the competition. Seems like an odd stance given the competition - otherwise known as the cablecos - have little problem talking about their plans. Telus, by the way, is still holding firm on its plans to launch a VOIP service later this year but there are no details on the table yet.
One way to perhaps think about it is the ILECs are in strategic limbo. On one hand, they've got some annoying - but relatively minor - regulatory hurdles when it comes to moving into the VOIP market. On the other hand, their existing local telephone businesses are cash cows that provide consumers with reliable, low-cost service. So what do they do - get aggressive on VOIP and/or start marketing how traditional local service meets the needs of most consumers? In any event, they've got to do something other than complain to the federal government and CRTC.

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Some Insight into Blogdigger and Ice Rocket

July 29th, 2005 | No Comments | Posted in Blog Services, Google, Main Page

After posting about Yahoo's RSS search test site earlier today, I got an e-mail from Greg Gershman, who runs Blogdigger. Here's the scoop: the company is based in Baltimore and has two part-time employees, including Gershman, who has a full-time job as a software developer. If you're a VC looking to invest in the blog/RSS search space, you should send Greg an e-mail or give him a call. Some start-up capital, he said, would let Blogdigger hire people to do business development. In terms of Blogdigger's search methodology, which I think produces superior better results than Technorati, Gershman said two techniques are used: predictive algorithms that spider blogs based on their historial behaviour; and pinging tools such as Pingomatic. A problem with pings, he said, is they have been embraced by spammers.
I also got some feedback from Ice Rocket's Blake Rhodes, who has a habit of sending nice notes to people who mention Ice Rocket in their blogs. Rhodes confirmed that Mark Cuban is an investor, which explains why Cuban refers to Ice Rocket as “we” these days. Rhodes said Ice Rocket's searches for blog content primarily by date to keep the data as fresh as possible. The company is also working on a tool that will look at how many links each site has, and then rank them by importance - which should be an interesting concept.

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Yahoo Developing Technorati-Like Tool?

July 29th, 2005 | 1 Comment | Posted in Blog Services, Google, Main Page

There are rumbles out there Yahoo is developing a Technorati-like tool. Steve Rubel captured a couple screen images that clearly show Yahoo is working on an RSS search tool. The test site, however, was quickly taken down. You knew it had to be a matter of time before someone (Yahoo, Google, Microsoft) came up with a better blog search engine. Technorati had a perfect Google-like opportunity to come out of nowhere to become the default blog search engine but it is struggling under the weight of its own popularity. Mark Cuban's Ice Rocket looks to be trying to fill the void but it still requires more work (interface, presentation of results) before it can be taken seriously. I'm a bigger fan of Blogdigger, but I don't know too much about them other than it was started in 2003 by Greg Gershman.

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Ballmer's Big Boast

July 28th, 2005 | No Comments | Posted in Main Page, Software, Web-based Services

Hey, guess what? Microsoft is going to rule the Web, just as it has dominated the desktop. That's the gospel according to Microsoft CEO Steve Ballmer. “We have won the desktop. Now're we're going to win on the Web,” he told analysts today in Redmond. Just to keep things interesting, Ballmer also said Microsoft will jack up sales by - wait for it - introduce higher-priced versions of Windows and Office. With all due respect, I hope Microsoft fights the good fight for a strong Web position but I fear the day it wins the Web. You could easily argue the worse thing to happen to the operating system and browser markets is Microsoft's stanglehold on them. IE, for example, is still built on old Spyglass technology and its flaws are becoming more apparent as Firefox becomes more popular. To his credit, Ballmer has no qualms about beating the Microsoft drum. I wonder how his comments are resonating within the executives suites of Google and AOL?

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