Stilgherrian » crikey

In Canberra!

Stilgherrian — Tue, 24 Jun 2008 11:03:29 +0000

As previously warned, I’m in Canberra for tomorrow’s Politics & Technology Forum as a guest of that little husband-and-wife firm called Microsoft.

I’ve repeated the programme below, but right now my head is spinning with ideas. PubCamp Sydney was bad enough, what with conversations coming left, right and centre. And I watched the Twitter stream from Melbourne’s event yesterday — and I’m still processing the thoughts.

But this…!

My Twitter stream will use the hashtag #poltech and you’ll be able to track everything at Summize.com.

Meanwhile, tonight I’ll be reading, thinking and pondering over a quiet drink courtesy of that minibar over there [points]. If I have any amazing insights I’ll let you know.

I may even so an impromptu Stilgherrian Live Alpha later this evening. Watch Twitter for the announcement.

Politics & Technology Forum Programme

Keynote: Matt Bai, political writer for the New York Times magazine.

Panel 1: “Blogging, social networks, political movements and the media”, with Brett Solomon from GetUp!; Annabel Crabb from the Sydney Morning Herald; Peter Black from QUT; spin doctor Mark Textor of Crosby Textor, who ran the Howard government’s failed re-election campaign; and the editor of Crikey Jonathan Green.

Panel 2: “Politics 2.0: information technology and the future of political campaigning”, with Joe Hockey, the Liberal member for North Sydney; Senator Andrew Bartlett of the Australian Democrats; Labor Senator Kate Lundy (ACT); and election analyst extraordinaire Antony Green.

[P.S. Is Matt Bai the person to whom someone first said "kthxbai"?]

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Crikey: eBay Australia: Who? Us? Anti-competitive?

Stilgherrian — Fri, 30 May 2008 05:43:07 +0000

[This was me in Crikey yesterday.]

Thank the gods I don’t work for the ACCC! The poor sods have to read 700+ public submissions on eBay Australia’s plan to force sellers to use PayPal — which they own. As Crikey reported, this could breach the “third line forcing” provisions of the Trade Practices Act.

Being a lazy geek rather than a tireless public servant, though, I can skim for juicy tidbits. They reveal a widespread fear of eBay bullying.

Greg Walter, for instance, runs online payment system Qpay. He dismisses eBay’s claims that PayPal is the safest and, wearing my moth-eaten network security hat, I tend to agree. But eBay sellers often fear being cut off if they use PayPal’s competitor: Qpay has just one solitary eBay seller as a customer.

Bully or not, eBay is unquestionably Australia’s biggest online-only marketplace. With almost 6 million customers it dwarfs its nearest competitor Oztion with barely 250,000. New entrants BidSell and eSwap are even tinier.

Oztion saw a 22% rise in numbers following eBay’s PayPal-only announcement — proof, says eBay, that there’s genuine competition. But Philip Leahy of the Professional eBay Sellers Alliance reckons Oztion won’t last. It’s an “eBay clone”, he told the ACCC, and there’s “a belief” that once they get a bigger market share eBay will sue them into oblivion. Paranoia?

Even the Reserve Bank has weighed in. Requiring PayPal could make it harder for new online payment systems to establish themselves, restrict merchants’ ability to negotiate lower fees, and restrict consumer choice. Reading between the lines, the central bank sees its role as ensuring that money flows smoothly through the economy. Delays and fees are friction in the pipes which must be engineered out. Computers and network efficiencies should cause transactions costs to fall. eBay’s plan causes them to rise. Markets FAIL.

eBay’s 15-page response omits mentioning their claimed $2.6 billion contribution to the Australian economy. Instead it’s all harmless little eBay. “eBay transactions comprise only [redacted by ACCC] of all online retail transactions in Australia. Given that online retail transactions themselves represent only a part of the online payments market, eBay’s contribution must necessarily be considerably smaller than that.””

The ACCC’s decision will be known mid-June, just before eBay’s planned 17 June start of the PayPal-only regime.

Stilgherrian blogs at stilgherrian.com and is still trying to sell his old crap on eBay.

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eBay responds to 700+ submissions to ACCC

Stilgherrian — Tue, 27 May 2008 23:00:10 +0000

When the Australian Competition and Consumer Commission (ACCC) decided to investigate eBay Australia’s plan to force its sellers to use PayPal for their “protection”, there were more than 700 public submissions. eBay has responded by dismissing the objections.

I’ve written about this at length previously, both here and in Crikey [1, 2], with plenty of interesting comments from readers. And I’ve just written a piece for Crikey today, to be published around 2pm Sydney time.

Meanwhile, you can read some overview pieces at Auction Bytes and The Sheet. And you can see eBay’s full 15-page response at the ACCC website: it’s the second submission on the page, from “Applicant”.

To make things just that little bit more interesting, yesterday Telstra’s Sensis division announced a free auction site at Trading Post.

[Update 1250pm: The story will now run in Crikey tomorrow (Thursday). Busy news day, apparently.]

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Oh dear, I’m going to Canberra…

Stilgherrian — Mon, 26 May 2008 23:09:15 +0000

… for Australia’s inaugural Politics & Technology Forum on 25 June. It’s being sponsored by Microsoft, and I’m going as their guest. Apparently I continue to fool them.

The keynote is by Matt Bai, political writer for the New York Times magazine, followed by two panel discussions.

Panel 1 is on “Blogging, social networks, political movements and the media”, with Brett Solomon from GetUp!; Annabel Crabb from the Sydney Morning Herald; Peter Black from QUT; spin doctor Mark Textor of Crosby Textor, who ran the Howard government’s failed re-election campaign; and the editor of Crikey Jonathan Green. It’ll be nice to finally meet my editor!

Panel 2 is “Politics 2.0: information technology and the future of political campaigning”, with Joe Hockey, the Liberal member for North Sydney; Senator Andrew Bartlett of the Australian Democrats; Labor Senator Kate Lundy (ACT); and election analyst extraordinaire Antony Green. Very scary indeed.

At this stage it looks like I’ll be heading to Canberra on 24 June and staying overnight. If this is of interest, please register as a stalker in the usual way.

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Crikey: Australia’s web 2.0 wipeout on the wave of the future

Stilgherrian — Fri, 23 May 2008 07:34:26 +0000

[Note: This is a slightly edited version of an article I wrote for Crikey this morning. The main difference is a bit more linkage. There's more CeBIT / Transaction 2.0 material to come.]

In 1980 futurist Alvin Toffler wrote The Third Wave. Following the Agricultural and Industrial Revolutions, he said, we’re now experiencing the Third Wave, or what might be called post-industrial society. Australia’s surfing prowess means nothing here, though. We’re still pissing in the shallows, barely held up by leaking floaties.

Why is tech-literate, well-educated Australia so bad at marketing and profiting from its own innovation, from the fisheye lens to gene shears? We do innovate, you know.

“Australians expect the government to do everything for them — but the government’s clueless,” explained journalist and evangelist Duncan Riley at yesterday’s Transaction 2.0 conference. “The Australia 2020 Summit is a classic example. The Internet was seen as an ‘emerging’ industry. Emerging? We’ve had it for 20 years! In the US alone it employs 7 million people.”

Riley, a one-time Howard government staffer, has successfully created his own internet start-ups. Until recently he wrote for Web 2.0 bible TechCrunch. Now he runs The Inquisitr.

“Why would you invest in some Internet business when there’s no tax advantage?” he asks. “If you want to make a movie you get tax benefits. If I had a farm I’d be a millionaire by now, there’s so many special benefits.”

Riley isn’t impressed with Australia’s broadband plans: a 12Mb/sec network by 2012 when, as Crikey has reported, others already do 100Mb/sec. “We’re still stuck in the dark ages,” he says. “Once we get this always-on culture, once we get the iPhone next month we’ll finally, hopefully, get unlimited data plans, Dear God!”

Compare Australia to Israel…

With a third of the population, Israel generates 10 times as many start-ups. “Israel is the second largest contributor of companies to NASDAQ after the US,” says Israeli-born Gilad Greenbaum, Director of IT for conference organisers Hannover Fairs Australia. “In the Tel Aviv – Herzelya – Natalia triangle alone [with a population the same as Adelaide] there are 3000 technology companies.” They’re not supporting the boom. They’re 3000 businesses with their own tech to sell.

Riley is frustrated at Australian businesses’ ignorance — even those attending Sydney’s massive CeBIT trade show. “I walked out there today and said ‘Web 2.0′ and ‘Google Docs’ and people just stared at me blankly.”

Meanwhile watch out for GoodBarry and their everything-for-business-online service. Winning “Best Aussie Business 2.0 Start-Up” yesterday, they’ve just opened an office in San Fran and were last seen talking to venture capitalist Jason Calacanis. An American.

[Disclosure: I attended CeBIT and Transaction 2.0 as a guest of Hannover Fairs Australia.]

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Rudd government delivers yesterday’s broadband

Stilgherrian — Wed, 14 May 2008 16:08:30 +0000

One of the Rudd government’s election promises was a national fibre-to-the-node (FttN) broadband network, putting at least 12Mb/sec download speeds within reach of 98% of the Australian population. Tuesday night’s Federal Budget kept that promise. I think.

Here’s how I wrote about it for Crikey yesterday:

Of $4.7b promised for the National Broadband Network, only 0.16% has been committed: $2.1m this financial year and $5.2m next for “establishment and implementation”. The remaining 99.84% — you know, actually building the thing — is all “nfp”. Not for publication. We’ll get back to you.

Spending is now “up to” the pre-election $4.7b figure. Broadband is competing with run-down roads, railways and ports for a share of the $20b Building Australia Fund, where “disbursements… will be subject to budget consideration, and will be spent responsibly, in line with prevailing macroeconomic conditions.”

Whatever the final budget, Australia will still be rolling out a 12Mb/sec network in 2012. Other countries are rolling out 100Mb/sec networks now.

It really is building yesterday’s network, isn’t it.

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Covering the Federal Budget for Crikey

Stilgherrian — Tue, 13 May 2008 00:43:27 +0000

Joy (I think). I’m part of Crikey’s commentary team for Australia’s 2008 Federal Budget to be announced tonight at 7.30pm Sydney time. It’s the first budget for Chairman Rudd’s Labor government, and the first for treasurer Wayne Swan, so it’s bound to interesting.

My role — at least as I understand it, ‘cos I haven’t actually spoken with my editor yet — is to look at it from a geek perspective. That’ll include, I imagine, issues I’ve previously covered for Crikey: Internet censorship, the ABC’s move into Internet TV, social media, the national broadband network…

But what else should I look out for?

When I asked on the Link mailing list, here’s a partial list of the suggestions I got:

Functional separation of Telstra into wholesale / retail / pay TV entities.
The laptops for schools program — what hardware? networking? training? maintenance?
Copyrights & patents, including government-funded enforcement of music copyrights — something the music industry has been lobbying for.
Assistance for IT startups, both hardware and software.

I’m also wondering just how forward-looking the budget will be. The brain cells are already firing. What can you add to the list?

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Links for 06 May 2008

del.icio.us — Tue, 06 May 2008 22:01:59 +0000

Here are the web links I’ve found for 06 May 2008, posted automatically.

Detroit Digital Vinyl | Submerge Digital E-store: Classic Detroit techno vinyl converted to 320kps MP3 with (generally) no DRM protection. Detroit Digital vinyl started out as collaboration between legendary Techno label Submerge, Underground Resistance and Electrofunk Records.
Latest T-Shirts | Royaltech by Benn Glazier: If you like techno, real techno, you may well like these t-shirts.
Tony Abbott - Friend of the Long Nosed Bandicoot | First Dog on the Moon: One of the funniest cartoons ever from First Dog, though you do have to know who Tony Abbott is. (He's an Australian politician.)
Alison Young BarCamp Twitter Talk | SlideShare: "What the heck is this Twitter thing about? The why & how for max fun." Alison Young's presentation from BarCampSydney, April 2008. Eight slides, real quick.
Chips, gravy & cheese FTW! | BrightKite: So this is the future? "Here's what I had for lunch." With a location map. This WILL become normal.
Mark Pesce's "The Nuclear Option" | YouTube: "Our social networks, now so accelerated by hyperconnectivity, allow the perfect meeting of message and audience. Oh, and some stuff about how cool Twitter is! From the Walkley Public Affairs Conference on Social Media, Sydney, 5 May 2008."
Bill Bailey Kraftwerk Tribute | YouTube: The Hokey Kokey sung live in the style of Kraftwerk.
Enterprise 2.0 - What is it good for? | CIO: "A 12-step guide to getting the most out of Web 2.0 tools and making it safe-for-purpose." excellent sound bits from Stephen Collins.

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Social networks: the Nuclear Option

Stilgherrian — Mon, 05 May 2008 06:18:22 +0000

I’d planned to write something else today, but if I don’t mention this article now then I’ll appear way out of touch. Mark Pesce has just posted another magnificent essay: The Nuclear Option.

It’s a commentary on how Twitter and similar tools which help us create instantaneously-connected global social networks are changing the world. Entertainingly written too, as always — and not just because he mentions me.

I won’t quote it. Just read it. Then make a cup of tea, read it again, and stare out of the window for a while.

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Music industry internetz FAIL

Stilgherrian — Mon, 05 May 2008 01:57:20 +0000

Ah, the music industry really doesn’t grok teh intenetz. Music Industry Piracy Investigations (MIPI), who coordinated the Australian Music In Tune propaganda flick I mentioned on the weekend, didn’t know their website was offline until phoned them. Meanwhile I’ve written a piece on this for Crikey, to appear a couple hours from now. [Update 1.20pm: It's being held over until tomorrow. Apparently Crikey found something more important than me.]

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eBay Australia making even fewer friends over forced PayPal

Stilgherrian — Wed, 23 Apr 2008 02:17:36 +0000

eBay Australia isn’t exactly making friends by requiring its sellers to use eBay-owned PayPal to receive their money. No more direct bank deposits, cheques, money orders or your own card merchant account. I’ve written about this twice for Crikey [1, 2], but today there’s more news: the Reserve Bank might weigh in against eBay.

Here’s how I first described the scenario:

Imagine that you’re Alice, proud owner of the new shoe shop at your local Westfield. Bob is buying a pair of brogues. As Bob opens his wallet, suddenly Frank Lowy appears. “There’s some terrible con-men around,” he intones gravely. “Let me handle that.” He grabs Bob’s cash and pockets a fiver. “I’ll give you the rest next Wednesday,” he says, and disappears.

Alice, understandably, is mightily pissed off.

Sellers on eBay have been mightily pissed off overnight too, because the world’s biggest online marketplace has just pulled the same stunt. From 21 May, all eBay sellers must offer PayPal as a payment method. And from 17 June — unless the buyer is physically collecting the item from you or for a few big-ticket categories like real estate and motor vehicles — they must pay you via PayPal.

Now as Alex Willemyns pointed out, Alice could just set up shop elsewhere. Bob could choose another shoe store. However since Westfield and eBay both dominate their respective markets, that could well be a poorer choice.

The ACCC has also pointed out that eBay must prove that the public benefit from this move outweighs the detriment of what could be a breach of the “third line forcing” provisions of the Trade Practices Act. eBay has requested immunity from legal action. The ACCC is accepting public comments until 2 May.

Today’s Reserve Bank angle is interesting. As The Age reports:

The Central Bank has long called for buyers and sellers to have as much choice as possible in what payment systems they use and strongly opposes any moves that reduce competition in the market…

The Reserve has expressed support for new methods of payment that could act as competition for international card schemes. New methods could give merchants and customers more choice about how they make and receive payments.

A 2006 speech by an Assistant Governor of the Central Bank, Philip Lowe, documented the growth of alternative payment schemes overseas that had not yet been adopted in Australia.

For example, a number of countries had adopted “online debit” schemes that allow customers to transfer money directly from their bank account to the merchant without needing to use a credit card or scheme debit card.

Reading between the lines — and without doing any further research on the point — it seems to me that the Reserve Bank sees its role as ensuring the money flows as smoothly as possible. Delays and fees are friction in the pipes which need to be engineered out.

Computers and network efficiencies should cause the cost of transactions to go down. eBay’s move causes them to go up. Market FAIL.

Now PayPal isn’t necessarily evil. Indeed, for small businesses setting up an online presence, they’re often the most cost-effective way to accept credit card payments, and the easiest to set up technically.

But delays and fees are certainly the problem. eBay sellers don’t like PayPal’s extra transaction fees of 1.1 to 2.4%, nor the 5 to 7 working days it takes to access your money. If a transaction might be “risky” (PayPal’s call), they can freeze it for 21 days. During this time, says their Product Disclosure Statement, “Any money in your PayPal account will be pooled with money from other holders of PayPal Accounts and deposited by PayPal with a licensed bank.”

In other words, PayPal banks your money and earns interest. You don’t.

According to a CNN report, US PayPal users can keep their account balances in a Money Market Account — provided they remember to opt in. Australians don’t have the choice.

PayPal also has a poor reputation for dispute-handling. The internet is littered with stories about people’s accounts being frozen without warning, about consumer credit rights being ignored because PayPal claims their terms of service over-ride them — at paypalsucks.com and screw-paypal.com and here for starters.

eBay is spinning this as being “for your protection”. Their announcement uses words based on “safe” 6 times, “protect” 12 times, and “secure” twice. But then bullies demanding a percentage of your business takings has always been called a protection racket.

The CEO of PayPal competitor Paymate, Dilip Rao, isn’t impressed with the security spin either. “eBay have presented no data to show that Paymate is a less safe way to buy or a less reliable way to sell on eBay compared to PayPal,” he says. Ironically, Paymate was created by eBay Australia but sidelined when its US parent bought PayPal.

eBay is burning bucketloads of goodwill here. So far their response is to tough it out. But any online business can be replicated with a few programmers, and goodwill is your only real asset.

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I have not disappeared

Stilgherrian — Thu, 17 Apr 2008 02:24:38 +0000

No, there is no technical error. I really haven’t posted anything since Monday. Been otherwise occupied. I intend to fix that this afternoon with a mashup of my recent Crikey pieces about eBay Australia forcing its sellers to use PayPal — which they own. Meanwhile if you’re desperate for your daily dose of Stilgherrian, you could always follow my Twitter feed.

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eBay requiring sellers to use PayPal

Stilgherrian — Fri, 11 Apr 2008 01:54:32 +0000

Anti-competitive behaviour news story of the day: With a few minor exceptions, eBay will require all payments to be made via PayPal — which they own. I’ve just written a piece for Crikey, ~~which will appear around 2pm Sydney time~~ which is now online.

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Ranting in the Sunday Age

Stilgherrian — Mon, 07 Apr 2008 02:00:52 +0000

Following my semi-snarky review of ABC Playback in Crikey last week, journalist Melinda Houston thought I might have something valuable to say for her piece in Melbourne’s Sunday Age yesterday. Apparently I did, ‘cos my quote led the piece, and there was a slab of me later.

The article opened thusly:

“I SUSPECT many people who have had extremely successful careers in television are baffled by what’s happening now,” says former broadcaster and now new media consultant Stilgherrian (yes, just the single name — very 21st century). “They need to spend an afternoon with a bunch of 15-year-olds.”

The self-confessed uber-geek is one of a coterie of middle-aged men who have lost patience with traditional broadcasting. But if he was 15, or even 25, he’d be the norm. Rumours of the death of television may be exaggerated, but there’s no doubt it’s taken a hit.

It’s worth reading the entire article, because it’s a good summary of how the Internet is affecting TV, aimed at a mainstream audience. However I’ll quote my own bits here, just in case Fairfax decide to take it offline one day.

“Commercial television networks have an infrastructure built around the industry, and the world, operating in a certain way,” says Stilgherrian. “And it doesn’t work that way any more. They’re used to fixing viewers into a habit — 7.30 Sunday night, sit down and watch television.”

But teens and those in their 20s are used to the exact opposite. “The next generation — and I’m talking five years from now — will be astounded to think of television as a big box in a dedicated room, just as the idea of having to go to a particular part of the house to make a phone call now seems completely ridiculous,” Stilgherrian says. “Fast connections and portability mean that young people are very fluid in the way they use these technologies. They’ve never known a time when there wasn’t the internet. It’s like a time before cars or phones or electricity or running water.”

The broadcasters are largely relying on compelling content to counter this trend, but it’s a strategy with inbuilt flaws. “There’s no allowance for the fact that just because someone didn’t watch something at the time it was broadcast, that doesn’t mean they don’t want to watch it,” Stilgherrian says.

But it is impossible to measure — and therefore generate revenue from — the other ways things are watched. You can look at the number of downloads from a website, but where does it go from there? How many more times is it distributed? That’s when it gets tricky.

“Free-to-air television won’t die. Any more than radio died, or newspapers,” Stilgherrian says. “But it will have to evolve. The broadcast signal needs to become less important as a proportion of the total revenue mix. And there are people in these organisations who understand that. The question is, are they decision makers?”

Now, where can I get a hard-copy of the Sunday Age in Sydney…?

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2 Web Crew podcast finally online

Stilgherrian — Tue, 01 Apr 2008 09:22:15 +0000

The episode of the 2 Web Crew podcast we recorded last Wednesday is finally online. The Podcast Network’s Cameron Reilly, Laurel Papworth, TechCrunch’s Duncan Riley and I chat about Underbelly, P2P networks, BitTorrent and distribution, telcos and innovation, Crikey and media impartiality. The audio quality’s a bit dodgy, but hey. I’ll also be on the episode being “recorded live” tomorrow at 1300 Sydney time on Ustream.