The markets that need a new business model at home

My mother attended the same undergraduate university as me. Often when I was sitting in the library researching on my computer I would try to imagine her searching through reference stacks, peering at the microfilm screen, and waiting for updated binders of CQ researcher to be delivered. The thought of obtaining any degree without access to a computer and the internet is unimaginable to me. Awhile back when I first started hearing about groups that were trying to provide laptops and internet access to students, I was in that camp of people that question the value of internet access versus teacher training or other educational resources, but more and more I realize how important bridging this gap is. Sometimes in class I am frustrated hearing about products and services adapted to emerging markets and wondering whether these same approaches can be taken to address access and availability problems here within certain income groups in the states. Eyring, Johnson, and Nairs article discusses the importance of developing new business models to approach these new markets. I question whether this sort of incentive could exist here in the states. The economist article “beyond voice” discusses how the mobile networks coupled with inexpensive netbooks will probably drive expanded internet access. I was interested to find out a couple of weeks that this use of netbooks (but not mobile broadband) is actually being brought to the US through Comcast. FCC basically forced Comcast to promise to work on affordable internet access because of the NBC acquisition (but of course Comcast is not advertising that fact). Comcast is starting to provide a program called “Internet Essentials” where families who meet certain income requirements (the same as those whose children receive free or discounted lunch) can sign up for internet access for about 10$ a month, with free installation and a voucher for a small netbook provided by dell or acer. Critics say the connection is likely to be extremely slow (and those of us who are forced to use Comcast know the pretty poor quality of service those who pay standard rates get). Still- it’s something. Now families will be able to access internet beyond library and school hours. In each city, internet essentials is partnering with public servants and community groups to help publicize the program and provide internet literacy training. Here in Pittsburgh, the Urban League of Greater Pittsburgh is integrating training into existing programs. The program just started so there is little to no information of its impact, how many people have signed up, or other details. There’s also little info on the business plan. I wonder how sustainable the project is—the price is much less than current Comcast standard rates but given the slow connection and the infrastructure already in place, and the fact that there is a partnership with Dell and Acer to provide the netbooks, I wonder whether the 10 per month is covering the cost of the program. The program is scheduled to continue for three years, but if Comcast can prove it profitable, other internet providers will probably follow suit. We’ll have to keep our eyes on this project, and watch out for other approaches for meeting the needs of American’s beyond the middle/upper income groups. http://www.post-gazette.com/pg/11229/1167779-53-0.stm http://www.pcmag.com/article2/0,2817,2393253,00.asp#fbid=kwF9fAXM8yL http://www.internetessentials.com/news/News.aspx http://www.fiercecable.com/story/microsoft-best-buy-back-fcc-connect-compete-initiative/2011-10-12