Welcome Back Monday . . .

THE BEGINNING OF THE END FOR NET NEUTRALITY:  By far the biggest tech news from the short holiday week was the FCC’s release of a draft regulation which would officially eliminate Net Neutrality.  As a reminder NN creates an even playing field for all websites and apps by requiring the ISPs (Internet Service Providers) to transmit data at a level speed.  But with NN gone the larger ISPs like Comcast, Verizon, AT&T, etc., can create a multi-tiered system whereby publishers can pay a premium to have their content delivered via a “high speed data lane” while the smaller guys will be stuck in the slow speed lane.  As noted in the attached Washington Post article, the ISPs are promising to be on their best behavior and not degrade the user experience just to squeeze publishers for extra fees.  And we all know the big Cable and Telcos would NEVER put profits ahead of customer service, right?  Anyways, the FCC’s draft is in a formal review period now with an expected final vote coming before EOY.

APPLE’S SMART SPEAKER STUMBLE:  In a jaw-dropping move last week Apple announced that it would not have its Homepod voice-enabled smart speakers in market for the holiday season.  This was supposed to be Apple’s important counterpunch to Amazon Echo and Google Home in the exploding connected device sector.  RAIN has a really thorough assessment of how Apple missed the deadline and what the ramifications are in the attached link.  Apple was trailing out of the gate, but an aggressive Homepod launch this year could have helped them catch up.  To miss the Holiday’17 smart speaker sales cycle, which is expected to triple from last year, is a major blow to the company who used to define tech innovation.  I guess they can keep milking the iPhone gravy train for another year or two (are we ready for the “11” yet?!?), while the rest of the techno-sphere takes over the new IoT world.  (And forgive me on the image below – I couldn’t resist having some fun at Apple’s expense.)

DELISTING DEATH SPIRAL FOR CUMULUS:  As if things couldn’t get worse for Cumulus, last week they were officially delisted from the NASDAQ stock exchange for having their stock price below $1 for 30 consecutive trading days.  Their stock is now available on the OTC market which is basically a catch all collection of penny stocks.  The delisting hurts because institutional investors often buy from an index of NASDAQ and/or NYSE stocks – so if you’re off those exchanges you’re not included in the big money buys.  Actually delisting is really just icing on the cake for Cumulus who has a much bigger financial mess in their near future.  Unless they can renegotiate credit terms with their lenders by this Friday (12/1) they’ll formally default on a missed interest payment which was due on 11/1.  If When they default bankruptcy liquidation will be next.

Have a great “back to work” Monday guys!

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