Koelemay's Kosmos

Doug Koelemay


 

 

What Hath God Wrought?

From the telegraph to BlackBerry, advances in technology define the challenges to Virginia far better than does the squabbling in the General Assembly. 


 

The legions of reporters and broadcast trucks along Main Street in Virginia’s capital city late in February weren’t there for a festival. They cared not a hoot for the 60-day, 80-day, whatever, General Assembly session up the hill. The media came to Richmond for an appeals court hearing between Virginia firm NTP and the Canada-based company Research in Motion (RIM) that threatened to shut down BlackBerry services for 3.2 million people in the United States.

 

The case was one of patent infringement, which Virginia- based NTP alleged that RIM had engaged in while making and running its popular wireless email devices for years. Appeals court judge James Spencer could have shut Blackberry down but he didn’t.

 

Knowing the judge had injunction in hand, however, made RIM swallow hard and reach a $612 million settlement with NTP a few days later to keep the BlackBerrys working. RIM in return gets a license to NTP’s patents going forward.

 

If you’re not a BlackBerry user, it may be hard to comprehend why a world without remote email access and instantaneous communication might be a deprivation. After all, what would anyone really need to read about or respond to instantaneously?

 

The first answers to those questions hearken back to another technology, the telegraph, in another century. Six weeks ago and after almost 155 years of service, venerable Western Union sent its last telegram. And it did so with the most cryptic of announcements: "Effective January 27, 2006, Western Union will discontinue all Telegram and Commercial Messaging services. We regret any inconvenience this may cause you, and we thank you for your loyal patronage. If you have any questions or concerns, please contact a customer service representative."

 

Samuel Morse had sent the first telegram back in 1844 from Washington, D.C. to Baltimore with the words, "What hath God wrought." And Western Union drew on the breakthrough and its Mississippi Valley Printing Telegraph Company roots to make communications something other than transportation. By 1861 Western Union had consolidated a coast-to-coast network: By 1866 it had introduced the first stock ticker, which later would make its Virginia debut at The Homestead Resort in Bath County. Where better to keep up with one’s investments?

 

The technologies of the telegraph gave way first to the telephone, then the radio, the television and the Internet. No way that telegrams could compete with ludicrously inexpensive cell phone minutes, much less endless e-mail communications and text messaging. Wisely Western Union long ago moved its focus from telegrams to money transfers, now a $3 billion business.

 

There is a continuing stream of technology breakthroughs worth noting even closer to home. Pragmatics Inc. of McLean is working on a $4 million task order from the Justice Department to provide systems engineering, design and development to help federal law enforcement agencies electronically book, identify and share data about people in federal custody. Samuel Morse would be impressed.

 

Alexandria’s The Ashlawn Group is using its proprietary fuel cell technology as a post-launch power source for the U.S. Army’s MOFA -- that’s multi-option fuze artillery -- a non-traditional market for alternate energy. A research agreement with Case Western Reserve and production of tens of thousands of fuel cells in an Ohio manufacturing facility could mean economies of scale useful for other applications.

 

And the City of Manassas has launched a pilot project with start-up Square Loop, a company that provides location-based messaging that can warn residents and motorists automatically via cell phones of emergencies or impending natural disasters. Square Loop, incidentally, is one of 12 promising Virginia technology startups that has received seed funding and technical assistance from the Center for Innovative Technology.

 

Even as it failed to seek common ground on funding transportation, the pre-telegraph form of communications, the Virginia General Assembly, to its credit, did reach consensus before adjourning March 11 on two critical policy responses related to the convergence of technologies. New laws effective July 1, 2006 will make it easier for what once were telephone companies to compete with cable television companies for franchises to deliver video services to Virginia customers. And the Assembly replaced the thicket of utility franchise, local exchange, paging, inter-exchange, relay and cable franchise fees plus local consumer utility and local gross receipt taxes with a simpler five percent sales tax on all communications and video services.

 

Even consumers of satellite television, voice-over-

Internet-protocol and satellite radio who face the sales tax on their services for the first time -- yes, the House of Delegates and Virginia Senate already have voted in 2006 to raise taxes -- will find simplicity and savings as those other fees and taxes disappear from phone, cable and other bills.

 

As for House and Senate budget conferees who must resume communications in time to deliver a budget by a March 27 special session of their colleagues? Remember that the judge made it clear to RIM an injunction was coming unless it settled. Western Union started laying the groundwork for its future long before telegrams were gone for good STOP. And be mindful that there are emerging every day plenty of innovative ways of delivering services old and new. Faster and more ambitious research, development and commercialization tools for innovative companies in Virginia might even anchor Ashlawn’s next round of fuel cell breakthroughs with Virginia universities and manufacturers.    

 

-- March 20, 2006 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contact info

 

J. Douglas Koelemay

Managing Director

Qorvis Communications

8484 Westpark Drive

Suite 800

McLean, Virginia 22102

Phone: (703) 744-7800

Fax:    (703) 744-7994

Email:   dkoelemay@qorvis.com

 

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