Thursday, June 29, 2006

'ow wouldn't it be loverly part deux

"One example of the collateral damage caused by today's approach is the utter lack of simple wireless connectivity. Another is that we have redundant capital intensive bit paths whose only purpose is to contain bits within billing paths," Frankston explains. "In practice, the telcos are about nothing at all other than creating billable events. Isn't it strange that as the costs of connectivity were going down your phone bill was increasing -- at least until VoIP forced the issue."

"We have an alternative model in the road system: The roads themselves are funded as infrastructure because the value is from having the road system as a whole, not the roads in isolation. You don't put a meter on each driveway. Tolls, fuel taxes, fees on trucks, etc. are ways of generating money but they are indirect. Local builders add capacity; communities add capacity and large entities create interstate roads. They don't create artificial scarcity just to increase toll revenues -- at least not so blatantly."

"I refer to today's carrier networks as trollways because the model is inverted -- the purpose of the road is to pass as many trollbooths as possible. We keep the backbone unlit to assure artificial scarcity. Worse, by trying to force us within their service model we lose the opportunity to create new value and can only choose among the services that fill their coffers -- it's hard to come up with a more effective way to minimize the value of the networks."


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