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| Network Computers
Some network computers (NCs) will be set-top boxes that use a TV as the display device and connect to the Internet via a telephone or cable television modem. They may allow an NC set-top box to replace existing types of cable TV boxes. NCs link to the World Wide Web major Internet service. NC basic hardware requirements are a screen with good resolution, a pointing device and provision for text input and audio output. The NC may have an optional hard disk, floppy drive or other storage device, but these add to cost and allow users to access risky, untested software. The NC uses a network connection and may be able to run common software, but they use a flexible applications environment. Problems with the NC concept include a lack of compatibility with existing software and slow working speeds. Industry may settle on standards this year. NCs should also be able to read standard smartcards (see Research Note 48, 1996) for identification and billing. |
These devices are already on sale in America and involve a monthly service contract through a cable TV supplier that links to an Internet service, plus telephone line access. Early reports of their use seem to be quite favourable. Australia's cable television operators, linked with Telstra and Optus, appear certain to offer similar services here soon.
Voice Services
The use of the Internet for telephone-like voice services is still in its infancy. The quality is poor and billing is unclear but it remains a low cost alternative to normal calling. While the Internet mainly carries data files that can tolerate delays, voice is delay-sensitive and requires dedicated circuits. However, it is still a promising option, especially for small networks such as those in offices.
Users require some minimal equipment such as a personal computer and modem, micro-phone, speakers and sound card along with access through a service provider. Some telecommunications carriers already provide Internet voice access while others oppose it on income loss grounds.
Industry Moves
Major American industry players are positioning themselves to provide the units needed for Internet home use. Sony and Philips have joined WebTV Networks to make and sell $400 machines to link televisions, telephone lines and the Internet with a remote control device. The remote control is a simple unit with a few buttons to move the screen cursor, and with paging and activating links. The WebTV browser system also accepts smartcards and stereo sound.
There are other hybrid types available. Gateway 2000 is already selling its Destination system that uses a basic $5000 personal computer linked to a television. Zenith is selling $1200 televisions with built-in Web browsers. Personal Digital Assistants (see box) also operate.
| PDAs Versus Web TV
Personal Digital Assistants (PDAs) are hand-held units ranging from electronic organisers up to miniature personal computers. Most can send and receive electronic mail and faxes and can run simple packages, while more complex models can access the Internet and have a mobile telephone built-in. As such, they offer some competition to basic home-based Internet access, trading mobility for screen presentation quality. Current PDA models include Palmtop, Pilot, Zaurus and Newton. No doubt, alternatives will arise in the years ahead. |
Recently, Time Warner has asked Scientific Atlanta to supply new digital television (see Research Note 5, 1996-97) set-top boxes that offer more channels and Internet access. The boxes will cost under $500 each for use in cable subscriber homes. The initial order is for 500,000 units.
Australia's Netcomm and ADC Telecommunications have a cable modem available for some $500. It may suit the OptusVision and Telstra-Foxtel cable systems now operating in major cities to enable on-line service broadband access.
On-line Services
Gambling, home shopping and computer games appear to be the major markets for on-line services. The Internet already provides some of these, but remains basically an interactive information resource. Pay television does not appear to be a major growth market. It is on-line services that will drive development of new media markets and lead to changes in the home and working environments.
On-line services fall into five categories: communication (electronic mail), transactions (electronic funds transfer), information (World Wide Web), entertainment (games/television) and education (instruction). The boundary between these service types is becoming more and more blurred as they combine, interact and develop. As a result, it is difficult to foresee ultimate network arrangements.
Accordingly, governments may be unwise to invest in national infrastructure such as broadband switched networks until demand and costs are clear. However, any regulation should aim to encourage content industries, protect consumer interests, uphold network standards and ensure universal access. In this way, many Australians may look forward to cheap, easy home-based Internet access utilising their televisions and telephones!