Taming the internet

Mark Evans has a posting today with a title that is reminiscent of an Op Ed that Bernie Farber wrote in the Ottawa Citizen last fall: Taming the web’s Wild West.

As Bernie wrote at that time:

Those of us challenging the spread of hate promotion have tried for many years to find the fine balance between the right to free speech and the right of individuals not to be the objects of hate and violent speech.

Unfortunately, the dark side of the internet has chosen another target. Mark Evans suggests

the time has come for everyone (government, the business community, think-tanks, etc.) to determine how to fight the dark side while still allowing the Web to flourish and grow

There is a session that will look at the issue of Illegal Content on the Internet at The 2007 Canadian Telecom Summit. Bernie will be there, as will experts on child exploitation. It will be an interesting opportunity to explore meaningful ways to deal with these issues.

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Electric networks and net neutrality

Tim Wu of Columbia University compares the internet to the neutrality of electric utility grid. With electricity, he says, you don’t have to ask the electric company for permission to plug in whatever device you want. It is an interesting metaphor that is worth examining.

Let’s look at some reasons why I’m not convinced the metaphor fits:

  • Electric networks are generally uni-directional, and certainly not peer-to-peer. Virtually all of us are consumers of electricity, not generators. I suspect that when I choose to install a wind turbine in my backyard and I try to send some of the power over to my friend across town, and only my friend, it will need a little bit of effort from the electrical network. And try to send a bigger chunk of the power to a business colleague around the world – simultaneously.
  • There are exceptions to simple plug-and-play electrical power. My electric dryer and my wife’s ceramics kiln won’t just plug into the wall. I have an electrician rewire. So much for application independence.
  • The electric grid sometimes does interfere with my applications. Look at summer brown-outs, smart meters and systems that disable clothes dryers and air conditioners during peak periods.

Electricity is generally a metered service. I wonder how many of the network management challenges of retail internet access are created by the all-you-can-eat flat rate business model. But please don’t tell me the answer is to change the business model of retail internet sales to pay-as-you-go. If you want to enter the ISP business and offer that model, go ahead. But we don’t get to make those kinds of business decisions for other people – specifically ISPs.

Environmental concerns are further leading to an evolution in the electric grid that will challenge its neutrality. Already, people distinguish between essential and unprotected applications: which devices need to be connected to back-up power. If you are in your office, look for the orange electrical outlet.

The near future may see significant changes to the way power is delivered – interruptible power to certain demanding appliances – transforming the application neutrality of the electric grid because we can no longer afford such a luxury. Forcing us to dial down our major electricity consuming appliances sounds similar to traffic shaping those movie and music downloads, doesn’t it?

Still, there is something attractive about network neutrality as a “network design principle” as Professor Wu describes. Can there be agreement that not all bits can always be treated the same.

Consumer information may be the best way to manage expectations.

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Beyond bundling: extending the triple play

ATTAT&T; (NYSE: T) has announced content for 3 screens (TV, broadband and mobile) that moves the triple play beyond a pricing bundle.

Under an agreement with the Masters, AT&T; will provide golf fans with access to Masters previews and daily highlights, live tournament and practice range coverage, player interviews, live updates, links to real-time scoreboards and more.

By extending the excitement of the 2007 Masters Tournament across the three screens, AT&T; is giving golf fans more ways to enjoy one of the greatest traditions in all of sports

Masters programming, beginning next week, will be available to AT&T; customers at no additional charge, and select content will be available for 60 days following the conclusion of the tournament.

AT&T; is hosting the cocktail reception on June 11 at The 2007 Canadian Telecom Summit and will have the closing keynote speaker that day.

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Focus on wireless pricing

I’d like to relate a little side discussion I have had with a colleague in the wake of my ‘wireless pricing‘ posting from last week.

He wrote me:

the focus of the ads and campaigns is the package, not the price per minute – there’s no focus on price (whether on a per minute or monthly basis) whatsoever – I don’t think the average consumer does that calculation and that’s where the confusion comes in – you can’t compare apples to apples – obfuscation rules!!!

He added a couple dozen exclamation points, so excuse me for having abridged the quotation.

My reply to him was to look at the personal computer marketplace, and compare it to mobile services. I think there may be a few comparisons. Both are ‘high tech’ productivity devices. The government would like to see all of us using them. For PCs, there seem to be 3 price points: entry level of around $500; mid-level around $1000; and power user (multi-media, gaming) around $1800. Each supplier offers bundled systems around these price ranges and you can take each package and enhance it until you reach the point that you might be better off with the next level of bundled capabilities.

The focus for the PC ads is the package. I don’t see PCs being sold on a dollar per MHz of CPU or cents per MB of storage basis. Still, I don’t think anyone would suggest that there isn’t price competition for PCs. I’d like to have that gaming computer with the 22 inch wide-screen flat panel, dual DVD drives …

Still, would anyone argue that we need a government subsidy to help a new computer company get into the market?

Uncertain on centrex

Since last summer, MTS Allstream has been upset with the rate increases on Centrex imposed by other carriers. I wrote in January about an application calling for changes to the way the ILECs sell their Centrex services.

At the time of the CRTC’s approval last October, I said:

There are three ways for Bell to succeed on this filing: unit revenues for Centrex go up 10%; competitors get hurt; and, customers are incented to migrate to Bell’s portfolio of VoIP solutions

Allstream has recently filed its own rate increase for Centrex.

What does that do to its arguments fighting against Bell’s rate increase? If you can’t beat them…?

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