{"id":260,"date":"2009-04-17T06:31:00","date_gmt":"2009-04-17T06:31:00","guid":{"rendered":"https:\/\/mhgoldberg.com\/blog\/?p=260"},"modified":"2009-04-17T06:31:00","modified_gmt":"2009-04-17T06:31:00","slug":"interneconomics","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=260","title":{"rendered":"Interneconomics"},"content":{"rendered":"

<\/a>Some miscellanea for your weekend reading list.<\/p>\n

We are constantly teaching our kids that you can’t believe everything you read on the internet. We tell them to look at the sources.<\/p>\n

As on-line news continues to overtake traditional media, one might hope that certain traditional media affiliated websites would apply journalistic standards to their reporting. It would seem to be a competitive differentiator.<\/p>\n

Check out this excerpt from CBC Online’s coverage<\/a> on Tuesday of the wholesale internet dispute:<\/p>\n

Smaller ISPs were given access to the networks of phone companies in the first place because the incumbents held a natural infrastructure monopoly, which was initially built through taxpayer funds when they were government-owned. The rules were put in place to boost the number of competitors selling internet access to the public, and thus keep prices down and service levels up. <\/p><\/blockquote>\n

Which government-owned incumbents are they talking about? Most of Canada’s phone lines have been in the hands of the private sector for the 140 year history of the telephone.<\/p>\n

What source did the CBC use for that erroneous factoid? Reading through the comments, that little error drove misplaced hostility.<\/p>\n

Interestingly, most arguments against usage based billing say that it means an end to flat rate pricing. <\/p>\n

It would effectively prevent competitive ISPs from offering flat-rated Internet services, or any other type of offering that didn’t follow Bell’s UBB model, since they would have no means of containing their costs, if their customers were to exceed Bell’s usage caps. <\/p><\/blockquote>\n

Now, many of these same people are saying that the major phone companies and cable companies should offer flat rate service, despite their own costs being tied to usage.<\/p>\n

Just because your costs are variable doesn’t mean you can’t offer a flat rate price; ask any restaurant that offers an all-you-can-eat buffet. Of course, those restaurants might choose their locations carefully, to balance their client mix.<\/p>\n

If you happen to read the story on CBC and then glance at the comments, you will notice that the knowledge of the masses doesn’t hold a lot of promise for our future. One of the most common errors is mixing up bits and bytes. I’ll simply observe that 60GB works out to 133 hours of continuous streaming of 1 Mbps. It is way more than most of us come close to using, and less than what some people want.<\/p>\n

So, going back to all-you-can-eat restaurant – how would you strike a fair balance?<\/p>\n

Finally, for your weekend reading pleasure, let me commend to you this article called “Do You Think Bandwidth Grows on Trees?<\/span>” from Slate Magazine<\/a>, to which I was pointed by a long-time associate, colleague and friend.<\/p>\n

Enjoy the weekend.<\/p>\n

Technorati Tags:
CBC<\/a>, ISP<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Some miscellanea for your weekend reading list. We are constantly teaching our kids that you can’t believe everything you read on the internet. We tell them to look at the sources. As on-line news continues to overtake traditional media, one might hope that certain traditional media affiliated websites would apply journalistic standards to their reporting. …<\/p>\n

Interneconomics<\/span> Read More »<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-260","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nInterneconomics • Telecom Trends<\/title>\n<meta name=\"description\" content=\"Some miscellanea for your weekend reading list.We are constantly teaching our kids that you can't believe everything you read on the internet. 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