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GN ReSound Alera Arrives With A Dose Of Hyperbole, But Wireless Features Set The Bar Higher For Premium Hearing Aids

The wireless features in the new GN ReSound Alera family of hearing aids, which start shipping this week, are very similar to those found in several other high-end hearing aids already announced by other manufacturers. But, taken together, they help set the bar higher for premium hearing aids and assistive listening devices in general. The only question is how much better the new wireless features will make the new hearing aids from GN ReSound and other manufacturers when users start trying them out in the field.

One of the first things you learn in Marketing 101 is that  ”first,” “best” and “only” are some of the strongest words in the English language. So it’s no surprise that in the increasingly competitive hearing-aid industry, manufacturers are starting to use those words more often. GN ReSound’s news release announcing first shipments of the Alera hearing aids is a good example, claiming the company has come up with “the first truly wireless hearing aid with no strings attached.” The news release goes on to announce “a new approach to the way a hearing aid receives sound from devices such as TVs, stereos, cell phones and computers,” claiming that, “for the first time the patient can receive sound directly from the device without cables, wires or the need to wear uncomfortable accessories.”

That’s an exciting claim, except for the fact that, at least two other leading manufacturers that I know of have already announced products delivering very similar benefits by streaming wireless audio directly into their hearing aids. The new Widex Clear 440 family of hearing aids provides wireless streaming of cell phone and television signals directly into the hearing aids, without cables or wires, and the Oticon Streamer has been transmitting Bluetooth signals from a distance of up to 20 inches into hearing aids since its introduction along with the Oticon Epoq family of hearing aids in 2007. So it’s worth a close look at how GN ReSound is the “first” or “only.”

• UPDATE (Aug. 9): According to Karen Sams, a marketing representative for GN ReSound (see her comment at the end of this post), the Alera hearing aids’ proprietary 2.4 GHz transmission scheme eliminates the transmission delay that causes echoing and signal degradation in other wireless hearing aid products. It also transmits over longer distances than other hearing aid manufacturers’ wireless products, with the Alera Unite TV streamer broadcasting directly from your television set into your hearing aids — without requiring a second device worn on the body to relay the signal into your hearing aids. Not requiring an intermediary relay streamer is a real advantage that I’ve only seen with the GN ReSound Alera products. Most wireless hearing-aid products still use near-field magnetic induction, transmitting from the streamer through an  induction loop into the telecoils in your hearing aids. I’ve experienced widely varying results with wireless induction, especially the signal distortions and delays that GN ReSound says it is solving with the Alera wireless products featuring near-field induction technology. So GN ReSound is backing up its claim to be first to deliver new technology with new user benefits.

However, while bragging rights about who is first may be important for a while, at the end of the day the market will vote for “best.” And on that score it’s clear GN ReSound is in a neck-and-neck competition with other makers of premium-brand hearing aids to lead in delivering new wireless features that will substantially improve the experience of hearing-aid users. In the past, the only way to get audio from an MP3 player or your cell phone or your TV was to either plug them directly into a Direct Audio Interface (DAI) shoe, a clumsy connector at the base of your behind-the-ear hearing aid that wires you directly to the device, or else stream the audio through an induction loop you wear around your neck which transmits through the telecoils in your hearing aids. The new technologies from Widex, Oticon and GN ReSound skip that intermediary step with devices that transmit directly into your hearing aids from distances ranging from 20 inches to more than 20 feet.

The Bluetooth phone streamers are small and have enough range to transmit from within your coat pocket; however, as you need to speak as well as listen, you need to fasten the microphone to your lapel (GN ReSound Unite Phone Clip) or hang the device from your neck (Oticon Streamer) or hold it up and speak into it like any cell phone (Widex M-DEX). The TV streamers are more interesting, with the new GN ReSound Alera’s Unite TV Streamer an impressive product that plugs into the TV and transmits TV audio directly into your hearing aids over a distance of up to 7 meters (23 feet).

So I am looking forward to the marketplace voting on which of the new packages of wireless features from high-end hearing-aid manufacturers is best. Most likely, different brands will meet slightly different sets of needs for different users, who will gravitate to the solutions based on whether they are heavy Bluetooth phone users or whether they watch a lot of TV. In any case, the new wireless technologies are setting the bar a notch higher for all makers of high-end hearing aids, where the market soon will be demanding more and better ways of integrating hearing-aid users with all the listening, communication and entertainment environments they encounter.

Big Movie Theater Chains See Writing On Wall And Start To Provide More Closed Captions

On the same day that the U.S. Justice Department was asking for comments on a proposed rule requiring movie theaters to provide closed captions for hard-of-hearing customers along with audio descriptions for blind theatergoers, Massachusetts Attorney General Martha Coakley was finalizing an agreement with three of the biggest movie theater chains to dramatically increase accessibility options at movie theaters throughout the state.

It’s no coincidence that the major theater chains are finally agreeing to provide more accessibility services at the same time the government is making noises about strengthening its mandates. In Massachusetts, the agreement was a settlement of a formal civil rights complaint brought by deaf and blind residents alleging discrimination because of the absence of accessible technology.

The Justice Department put theater owners on notice it was considering changing its regulations under the Americans with Disabilities Act (ADA) to mandate closed captioning and audio descriptions at all theater locations. In a notice published in the Federal Register, the Justice Department noted the slow progress the industry had made in providing accessibility options in spite of advances in technology making captioning and audio descriptions easier than in the past:

The Department is concerned about what appears to be a significant disconnect between the production of movies that have captioning and video description capabilities and the actual exhibition or availability of such movies to individuals with sensory disabilities. The Department also is concerned that even when captioned and video described movies are exhibited, their showings appear to be relegated to the middle of the week or midday showings.

The publication of the notice about the proposed rule change is the start of a three-to-six month process that will include comments by all parties, hearings, and ultimately a decision to revise the regulations or maintain the status quo.

The consent agreement in Massachusetts may indicate which way the political winds are blowing and presage similar agreement to increase accessibility nationally. Three of the nation’s biggest theater owners, National Amusements, Inc. (which runs Showcase Cinemas), American Multi-Cinema (AMC Theaters) and the Regal Entertainment Group (Regal Theaters) agreed to ensure that every location in Massachusetts is equipped with accessible technology that will provide meaningful access to the hearing and visually impaired, including captioning technology and description technology.

Captioning technology takes a movie’s sound (dialogue, music, sound-effects) and converts it to a captioned format that a hearing impaired audience member can read.  Description technology provides a narration of what is displayed visually on the movie screen (action, scene changes, facial expressions) during natural pauses in the movie’s soundtrack through headphones worn by the visually impaired.

Additionally, the theaters agreed that multiplexes with 10 or more screens will have at least two accessible auditoriums, one of which will be in the locations’ largest auditorium — a huge benefit to theatergoers frustrated that the captioned movies are never the ones they want to see. By requiring captioning and audio descriptions in the largest auditorium, hearing and visually impaired patrons won’t have to wait for blockbuster films to make their way to the smaller auditoriums that have historically been equipped with accessibility equipment.

All in all, a banner week for captioning advocates, capping the celebrations of the 20th Anniversary of the signing of the ADA legislation and passage in the U.S. House of Representatives, by a huge margin, of H.R. 3101, the 21st Century Communications and Video Accessibility Act, that will require more accessibility over the Internet including closed captioning of TV shows broadcast on the web.

Does Amplifon’s Revenue Increase Mean The Global Hearing-Aid Industry Is Ready To Rebound From Recession?

When Amplifon S.p.A., the leading global hearing-aid distribution company, yesterday announced that its revenues in the first half of 2010 increased 8.9 percent to 314.4 million Euros, it may have sounded the opening bell on a rebound for the hearing industry generally.

Amplifon, based in Italy, is the leading distributor of hearing aids in Europe, through its company-branded stores, and in the U.S., where it sells through its well-known Miracle Ear and Sonus subsidiaries. Because it distributes in most major markets and sells multiple brands of hearing aids, Amplifon is a good company to watch for indications of the relative health of the hearing solutions industry generally.

While the company’s growth is real, with 5.9 percent organic growth and the rest through acquisitions, it is not yet booming, and Amplifon CEO Franco Moscetti went out of his way in the earnings announcement to reference the “uncertain and volatile economic scenario” that all companies will have to contend with through the end of the year and beyond. And while the company also enjoyed an increase in profitability, it pointed to its ongoing cost-containment measures combined with the revenue growth.

The most gratifying news was the rebound in the European market, where Amplifon sales grew 12.6 percent, which raises the question whether Europe is enjoying a stronger than expected recovery from the deep recession. In the U.S. market, where Amplifon does considerably less business, sales were down 4.3 percent, in line with a slow-growth-to-no-growth first half that most hearing-aid sellers endured. The performance may indicate that the U.S. market will continue its snail’s pace recovery in all sectors except for the federally supported Veterans Administration channel, where sales growth of hearing aids has been in the double digits.

Amplifon is less well known in the U.S. than in Europe, where it has spent the last several years actively investing in promoting the Amplifon brand name and opening Amplifon retail outlets. But it’s a good example of a macro-trend in the hearing industry toward consolidation of the sales channel. Independently owned audiology practices are still a major channel in developed markets, but increasingly the leading manufacturers are buying up audiology practices and conglomerating them into point-of-sale chains that will compete against the largest independent distributors such as Amplifon, that are also consolidating their ownership and branding at the point of sale.

Whether this trend will result in better service and better value (i.e. lower prices) for consumers, is an open question. Volume sales through conglomeration can help drive prices down, but at the same time it can lead to less personal service in a business where success or failure is determined one ear at a time.

After A Five-Year Wait, CapTel Real-Time Captioned Telephone Service Is Finally Available In Massachusetts

Nearly five years ago, I wrote, “I’m still a CapTel wannabee.” That was when the 32 states in the U.S. that had already approved the captioned telephone service did not yet include my home state of Massachusetts. Today I’m happy to say the wait is over. Starting on August 1, Hamilton Telecommunications will start providing its Hamilton CapTel service to residents of Massachusetts.

The CapTel captioned telephone service provides real-time captions of telephone conversations displayed on your phone. Users conference in a relay-service operator to provide a computer-aided transcription, which appears on an LCD display on their phones.

Why the long wait in Massachusetts? Politics, as usual. Enabling legislation was required to pave the way for the service, and our state legislature was slow off the mark. (Maybe that’s one of the reasons Massachusetts’ famed “Route 128 Technology Corridor” is a shadow of its former self these days.) The good news though is that I’ve been able to use another CapTel service for a while now, ever since the WebCapTel service went online. With WebCaptel, you don’t need a special phone but use your Internet connection instead to display the captions, and it works well. You can use it with your desktop or portable computer, or even with your iPhone. Web CapTel is available from Sprint WebCapTel as well as from Hamilton WebCapTel.

But even though I’m happy with the WebCapTel service, I’m sorely tempted to buy the CapTel phone manufactured by Ultratec and sign up for the service. It looks like a slick product that would be fun to use. In any case, being able to “see what they say” is the best way to avoid all those costly errors you must endure when a poor phone connection or a bad hearing day makes it impossible to get through a normal phone call.

U.S. House Passage Of Telecommunications Access Act Brings Universal Closed Captioning And Other Services A Giant Step Closer

The U.S. House of Representatives’ passage of H.R. 3101, the 21st Century Communications and Video Accessibility Act, was a huge bi-partisan(348 to 23) vote of confidence in the commitment of our society to support the right of equal access to commonly used public services — especially the airwaves and Internet — no matter what disabilities a citizen might have. The vote, on the 20th anniversary of the passage of the Americans with Disabilities Act, ensures equal access for deaf, hard-of-hearing, and blind consumers to the media.

For hard-of-hearing people, it requires that TV programs distributed on the web provide closed captions, that remote controls have a button to easily access closed captioning on broadcast and pay TV, and that telecom equipment used to make calls over the internet be compatible with hearing aids, just as land line phones and cell phones must be hearing aid compatible. Mandating more captioning of popular web videos will bring the day of universal closed captioning in all media a huge step closer.

“Two decades ago, Americans with disabilities couldn’t get around if buildings weren’t wheelchair accessible; today it’s about being Web accessible. The ADA mandated physical ramps into buildings,” said U.S. Rep. Edward Markey (D-MA), the sponsor of the legislation. “Today, individuals with disabilities need online ramps to the Internet so they can get to the Web from wherever they happen to be.”

The U.S. Senate version of the bill, S.3304, the Equal Access to 21st Century Communications Act, has been introduced by Senator Mark Pryor (D-AR) and reported out by the Senate Committee on Commerce, Science, and Transportation. Given the overwhelming support in the House, prospects for passage in the Senate and the President signing a combined version of the bill into law are good. Both the House and Senate versions also provide many protections for blind Americans, including audible descriptions of on-screen action on television and making cable TV program guides and selection menus accessible to people with vision loss.

Panasonic Rolls Out Family Of Behind-The-Ear And Receiver-In-The-Canal Hearing Aids In North American Market

Global consumer electronics giant Panasonic is using its decades of experience selling hearing aids to its home market in Japan to deliver a complete family of hearing solutions to the North American market for the first time, with its sales roll-out starting this month. Following the company’s announcement at the American Academy of Audiology convention in April, North American sales leader Delain Wright has assembled a national team that is signing up a network of audiologists throughout the region to introduce American consumers to Panasonic’s behind-the-ear (BTE) and receiver-in-the-canal (RIC) hearing aids. The initial product lineup consists of the Panasonic 4 Series RIC hearing aids, the Panasonic 2 Series BTE hearing aids, and the innovative JZ Series hearing amplification system worn around the neck with an attachable binaural headset.

The RIC and BTE hearing aid lines each come in standard 9-channel, mid-range 12-channel and and high-end 16-channel models. Based on Panasonic’s own digital signal processing chip and sound processing software, they provide a range of options for audiologists to fit, from entry level to high end. Both lines feature an “intelligent scene selector,” which automatically adjusts the sound processing system’s program settings for up to seven different listening situations. They also feature adaptive, dual-focus directional microphones, adaptive noise suppression, feedback cancellation, and wind-noise suppression.

The JZ Series is a small personal sound amplification unit with a microphone and sound processor that hangs from a cord around the neck, and a lightweight binaural headset. It can be custom-tuned to meet the specific needs of users with moderate hearing loss. It is a step toward the goal outlined at the initial announcement by Yoshi Yuasa, Corporate Senior Vice President of Panasonic North America, “to participate in the convergence of audio products and hearing aids.” Wright says more products will be coming from Panasonic’s design labs that compete head-to-head with other premium hearing-aid brands and deliver innovations based on Panasonic’s consumer electronics experience.

Two Cheers For On Semiconductor’s Acquisition Of Hearing-Aid Chip Maker Sound Design Technologies

On Semiconductor’s recent acquisition of Sound Design Technologies reduces the number of independent manufacturers of digital signal processor (DSP) chips for hearing aids, lessening competition in an industry that is already highly concentrated. Less competition is not a good thing over the long run, because when fewer manufacturers control a market, they can charge higher prices for the products they’ve already built. They can also invest less in new technology innovations because there are fewer competitors out there likely to leapfrog them. However, over the short term, On Semiconductor’s acquisition acquisition of Sound Design may actually be a very good thing for the hearing industry. Here’s why.

Ever since Sound Design spun out of Canadian semiconductor maker Gennum several years ago, it has been the only independent DSP chip manufacturer focused on the hearing aid market. Many hearing-aid manufacturers who do not design and build their own chips use Sound Design’s chips to power their hearing aids. DSPs are specialized semiconductor products whose hearing-aid manufacturer customers expect lower costs and higher performance every year along with more miniaturization and special features. DSPs allow hearing-aid makers to provide better feedback canceling capability, automatic adjustment to different listening environments, automatic adjustment of directional microphones, wireless communication between left and right hearing aids to provide better hearing “in stereo,” Bluetooth integration, and numerous other features that have dramatically improved digital hearing aids in recent years.

Sound Design’s new Wolverine DSP is a high-performance digital engine for hearing aids that is smaller than earlier DSPs, consumes less power, delivers more processing capability and enables easier and more flexible development and deployment of custom sound-processing algorithms and special applications by hearing-aid manufacturers. Clearly the company’s focus on the hearing-aid market has paid off.

But chip design, manufacturing and distribution is a highly capital-intensive business, and Sound Design on its own was nowhere near as large as many of the semiconductor companies it would have to compete against. Without being able to achieve economies of scale from a manufacturing operation selling a lot of products, it’s hard for a chip company to keep costs as low as customers want.

Therefore being acquired should enable Sound Design to leverage On Semiconductor’s mass-production capabilities to keep costs down. It will also be able to tap On Semiconductor’s deep bench of designers with extensive experience developing power and signal management semiconductors, logic chips, discrete components and custom devices — all of which can be applied to next-generation hearing-aid DSPs. That’s a benefit to hearing-aid manufacturers, who need to continue integrating all kinds of new capabilities into ever-smaller form factors. On Semiconductor spun out of Motorola several years ago and is now a leading publicly held semiconductor company with nearly $2 billion (USD) in annual revenue, so it’s got all the resources a small manufacturer of hearing-aid DSPs should need. If it allows Sound Design’s team of executives to continue focusing as relentlessly on the hearing-aid market as they have in the past, the acquisition could be a win-win-win for On Semiconductor, Sound Design, hearing-aid manufacturers who depend on them, and hearing-aid users who will continue to benefit from new technologies and better performance at lower costs.

However, that’s a big “if.” The business landscape is littered with the carcasses of failed acquisitions where hoped-for synergy was never achieved. And in this case, competition in the target market has suffered a double-whammy, because in 2007 On Semiconductor acquired the other leading independent maker of hearing-aid DSPs, AMI Semiconductor. Combining Sound Design with AMI’s hearing-aid products leaves On Semiconductor as the only game in town for hearing-aid manufacturers who want to acquire a standard DSP rather than develop their own. That means less competition in the hearing-aid industry. Which gets us back to where we started — the fear that as one of only a few suppliers in an already-concentrated industry, On Semiconductor might slow down investments in new technology and features to improve its profit margins and, with fewer competitors breathing down its neck, limit price reductions as well.

That’s why I’m giving On Semiconductor’s aggressive move into the hearing-aid business two cheers, not three. They are big cheers, because On Semiconductor should be able to continue providing new DSP technologies that improve performance while lowering costs for hearing-aid manufacturers. But I will reserve my third cheer for the yet-to-be named competitors out there, in Silicon Valley and elsewhere, who are inventing new chips that will outperform what’s on the market today and give On Semiconductor a competitive run for its money.

Will HearingPlanet Still Give Objective Advice About Other Hearing Aid Brands When It Is Owned By Phonak Parent Sonova?

Audiology Online published an intriguing interview yesterday with a senior executive of the The Sonova Group, parent of the Phonak, Lyric and Unitron hearing-aid brands, among others, on why Sonova acquired HearingPlanet, the popular web site that provides detailed information on multiple hearing-aid brands for potential customers. In the AudiologyOnline Q&A, Sonova Group Vice President Alexander Zschokke says the acquisition will enable Sonova to “provide more leads” to the audiologists and other hearing health care professionals who dispense Sonova’s hearing aids. But the one question the interview doesn’t ask is, “Will HearingPlanet still give objective advice about other hearing aid brands when it is owned by Phonak’s parent company?”

HearingPlanet’s success for more than a decade has been based on its ability to offer objective advice to potential purchasers of hearing aids who may be confused about the many choices among different manufacturers’ brands, form factors, product types, and prices. On its web site, HearingPlanet notes that with “numerous brands and styles available,” hearing-aid buyers should “compare prices and technology across brands” and “choose a hearing care provider which offers multiple brands and models so that you can find the right hearing aid for your needs.” It goes on to provide a wealth of information that will help you research the various choices in the market, including a fact-filled comparison chart on 18 different hearing-aid brands that includes major features and pricing.

So there seems to be a potential built-in conflict between Sonova’s stated desire to use HearingPlanet to send more buyers to dispensers of Sonova-owned hearing aid brands, and HearingPlanet’s traditional mission to provide objective advice about multiple brands so customers will find the product that suits them best, regardless of the brand. Of course, this is the real world of commerce, where conflicts of interest abound (see: Goldman Sachs), and it would be self defeating for HearingPlanet to change its winning formula for one that favored one manufacturers’ brands over all others. As of today, the only possible sign of favoritism is the fact that Phonak is the first brand name on the HearingPlanet comparison chart, but that’s not a big deal — anyone who doesn’t look past the first entry on a comparison chart isn’t really looking for comparative information anyway. Otherwise HearingPlanet looks much the same, and we will see if the site changes at all over time.

The acquisition is an interesting example of the consolidation trend in the hearing-aid industry. Phonak’s CEO Valentin Chapero several years ago unsuccessfully attempted to reduce the number of hearing-aid manufacturers with global reach by making a bid to acquire GN ReSound (the acquisition was thwarted by a German antitrust court ruling, which, though later overturned, ended the acquisition bid for good). Since then, financial analysts have said the global hearing aid industry might consolidate through other mergers, through the leading manufacturers increasing their market share, and through the major players acquiring their distribution channels to capture more revenue and gain leverage from vertical integration.

HearingPlanet is a spectacularly successful generator of highly qualified leads to audiologists — in the interview, Sonova’s Zschokke notes that even though most of the people who go to HearingPlanet have never worn a hearing aid before, more than fifty percent of the patients HearingPlanet refers to a hearing health professional in its network go on to purchase hearing aids. So Sonova is smart to want to own HearingPlanet to make sure the leads keep coming to Phonak and its other brands. But let’s hope Sonova doesn’t kill this golden goose by undermining HearingPlanet’s traditional objectivity, depth of information, and excellent advice in any way.

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