November 29, 2007
Could a Net Based Services vs Duopoly war be looming?
If Google does indeed bid on and win 700MHz spectrum, it will truly be a shot heard around the world, and could be the manifestation of a new American revolution. If it happens it will be the outward and very public manifestation of a shadow war that is already in progress. The battle is between an elite class of monopolists who constrain the supply of a network commodity to perpetuate fee for service vs an open bazaar for services that want to be free or nearly free. Traditionally, the network and services were separate businesses, but services are now a feature of the network, and in terms of how they are used, the dividing lines have vanished:
The industries were separated at birth in 1956 by a consent decree that banned AT&T (T) from offering information services. Though the present form of both industries can be traced back to the invention of the transistor, in 1946, their development over the years offers a case study in nature vs. nurture. The interventions against IBM’s pursuit of a monopoly, for example, proved to be far more vigorous and successful than those leveled against AT&T.Although the two industries operate under the same laws of physics, different levels of competition produced entirely different results. A telephone call between neighbors offers the same quality and experience today as it did 1956, whereas nothing about the infotech industry in 1956 survived 10 years, much less 50. The policies pursued to avoid monopoly in the cell phone business prove the ability of telecom companies to innovate when they have no other choice (although these days it’s the competitive handset industry doing most of the innovating, as Verizon Wireless recently admitted).(from Gigaom)
Will the government allow to war to go forward, or will they play UN and protect brutal dictatorships in the name of preserving the peace? If the war proceeds the spoils will go to the consumer.
Filed under 700 mHz, Legislation / Regulation by admin




Comments on Could a Net Based Services vs Duopoly war be looming? »
Well Commissioner Martin would certainly lean the way you describe. But he’s got to get 2 other commissioners to say yes and the lobbyists are doing their best to prevent that.