Our industry is the one that this going to get the economy through this recession.

– Gary Shapiro, president and CEO of the Consumer Electronics Association

The International Consumer Electronics Show will kick off next week shrouded in a nimbus of recessionary gloom. Show attendance is expected to be down eight percent this year, according to Gary Shapiro, CEO of the Consumer Electronics Association, who expects 130,000 attendees to flood the convention–11,000 fewer than last year. The show floor itself will be slightly diminished as well. CES exhibitor booths required 1.8 million square feet in 2008. In 2009, they’ll take up 1.7 million, presumably thanks to the absence of Seagate (STX), Logitech (LOGI), Cisco (CSCO), Philips (PHG), Yahoo (YHOO) and Sanyo–all of which have abandoned plans to exhibit on the show floor. That said, the overall number of exhibitors will remain the same as last year, at about 2,700.

So the show will be a bit smaller and a bit less clamorous than in years past. Likely a bit more sober as well, given this rough retail year. Quite a change from the extravagance of years past, but not without a certain upside. “This is the bleakest CES in 30 years going in,” said Envisioneering Group analyst Richard Doherty. “[Some exhibitors] will be spending more of their time off the show floor. We may now be able to get between the Venetian and the convention in less than an hour.”

The White Spaces Coalition, an alliance of companies developing a new wireless broadband service that taps into unused and unlicensed portions of the television spectrum known as white spaces, has
submitted another prototype device to the FCC for testing. Like its predecessor, this device (developed by Philips) is designed to demonstrate that white-space technology won’t muck up the airwaves for the telecom and cable companies who will almost certainly try to sandbag it on those very questionable grounds. “The telephone companies are terrified they’ll lose 40% of their wireless minutes, because you’ll be able to connect from work or home and bypass their wireless networks,” J.H. Snider, research director of the Wireless Future Program at the New America Foundation told MarketWatch recently. Which is funny, because the incumbent telecoms could have developed their own white-space technology if they’d wanted, they just didn’t bother because white spaces can’t be licensed in contiguous blocks, and apparently it’s far easier to add ridiculous modifiers to old technologies (Comcast PowerBoost!) than it is to develop new ones. Innovating is such a hassle.

Of course, now that the WSC–whose membership includes Google, Dell, EarthLink, H-P, Intel, Microsoft and Philips–is making its presence felt in Washington, it’s a different story. Anyway … the FCC plans to conclude its testing of the WSC’s white-space devices in July. If all goes as planned, and the incumbent telecoms don’t manage to undermine the effort, white-space broadband service could begin in the U.S. in February 2009.