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The biggest challenge however is one that both Apple and Google face: Only a small fraction of the 10 million or so retail outlets in the U.S.–220,000 at last count–have checkout readers that can accept payments from either system. Both wallets use a radio technology called Near Field Communication to send payment, and it's expected to take years for most stores to be upgraded. What's at play? The big tech companies and carriers seem convinced that our phones will eventually replace our wallets. For carriers, that could make mobile wallet technology table stakes over the next few years as they compete for consumers.
"Rural call completion problems have significant and immediate public interest ramifications," the FCC said in its order on the Verizon settlement today. "They cause rural businesses to lose customers, impede medical professionals from reaching patients in rural areas, cut families off from their relatives, and create the potential for dangerous delays in public safety communications." Verizon has been accused of letting its copper landline network decay while it shifts its focus to fiber and cellular service. The FCC is working a plan to protect customers as old copper networks are retired.
The FCC presently defines broadband as 4Mbps down and 1Mbps up, a definition that hasn't changed since 2010. By comparison, people in Sweden can pay about $40 a month for 100/100 mbps, choosing between more than a dozen competing providers. The FCC is under mandate to determine whether broadband is being deployed to Americans in a reasonable and timely way, and the commission must take action to accelerate deployment if the answer is negative. Raising the definition's speeds provides more impetus to take actions that promote competition and remove barriers to investment, such as a potential move to preempt state laws that restrict municipal broadband projects.
The expense of replacing old copper lines with fiber has allegedly led Verizon to stop building in new regions and to complete wiring up the areas where it had already begun. The fiber network was profitable, but nowhere near as profitable as their wireless network. So, if Verizon hasn't started in your neighborhood by now, they never will, and you'd best ignore all those ads for FiOS.
Verizon says it's initially pitching the $45 per phone service to government agencies and corporations, but would ultimately love to offer it to consumers as a line item on your bill. Of course by "end-to-end encryption," Verizon means that the new $45 per phone service includes an embedded NSA backdoor free of charge. Apparently, in Verizon-land, "end-to-end encryption" means something entirely different than it does in the real world.