« Obama to the Telecoms: Our Internet, Not Yours | Weblog | Planning for OPLAN I »

And Now for Something Completely Different

Category: 

I'm stepping out in the world of blogging, adding my first embedded video. You'll appreciate the ten minutes you invest in watching this - it's a TWO-BY-FOUR TO THE HEAD.

The Mother of All Battles

British telecom pioneer Malcom Matson details a squandered opportunity from back in 1984, where the UK had an opportunity to accelerate into the digital age, but failed to take advantage of it. He describes three advances in digital technology, here and ready to go now, that change the name of the game in telecommunications: 1) fiber optic technology, with infinite capacity; 2) digital chip technology, with dramatically increased capabilities to process and store data; and 3) spread spectrum wireless technology, which brings us wireless mobility.

Check it out.

The Old Telecom Business Model - a scarcity-based business model, where a vertically integrated professional network operator manages a closed network and charge retail service fees to retail consumers in exchange for providing access to a limited commodity - Internet Access (and in many cases, bundled content and applications). In today's case, broadband bandwidth is but one more service to mete out to a starving consumer class, who should be grateful for the services the telecom provides over its proprietary network in a low-competition business environment. This service is more akin to buying a ticket on a railroad line to go from point A to point B.

The New Telecom Business Model - an abundance-based business model, where a neutral network owner (city, pension fund, etc.) manages an open network and charges wholesale service fees to service providers in exchange for providing access to an abundant commodity, local network access on which to run services and applications for resale to retail consumers. In this new case, the provisioning of broadband bandwidth is separated from the retail services, content, and applications. The Open Network brings an abundance of retail service providers and the benefits of bounteous competition, turning bandwidth into a basic commodity and letting consumers pay instead for retail value-added services. This service is more akin to driving a car on a road or highway, to go wherever you damn well please.

We know who won in the battle open and closed models in transporation, don't we? Railroads with their closed models were revolutionary in their day, but then along came cars with the freedom to go anywhere there was a road. So dirt roads gave way to paved roads to highways to Interstates, and we haven't looked back. Railroads are still here, but they missed their chance and couldn't compete, because you had to go where the rail was.

So I ask you, what's so different about moving bits of data around, when compared to moving physical objects? Choice is choice, whatever it is you're moving, and enhanced competition and lower prices make it an easy decision. Sometimes we just need a 2x4 to the head to see things in a new light.

Posted on October 31, 2007 at 10:01 AM

Comments

Post a comment