Fortune Great Leap Forward: Techies vs. Telcos

"It's been a grim time for the tech industry. Executives from companies that sell hardware, software, and Net services watched their stock prices and company sales fall off a cliff. Now, increasingly, they're starting to point fingers at one group they think is responsible for their troubles: the giants of telecom. At the usually upbeat Agenda conference held this October in Scottsdale, Ariz., Bob Metcalfe, the legendary network pioneer, took the stage and summed up the undertone of discontent when, on a panel about networks, he described the big regional telephone companies as "scumbags." Nobody objected or disagreed."

redux [06.01.01]
MIT Technology Review Web Behind Walls

"At stake is the future and form of the Internet for millions of Americans whose access to the online world comes through the set-top portals of cable television. Instead of the multivaried pathways of the World Wide Web, these users will be provided easy access to a much smaller subset of items and options that reflect the network owner's online programming, as well as the offerings of its content partners. Dubbed "walled gardens" by supporters and skeptics alike, these new "managed-content areas" will therefore offer the illusion of online choice, while leading subscribers down well-worn paths of proprietary content and affiliated programming?in stark contrast to the great diversity of expression the Web seemed to promise in its heyday, way back in, say, 1997."

redux [05.25.01]
Bob Frankston Content vs. Connectivity

"The consumers' connections to the Internet are controlled by companies who are in the business of delivering content and services funded by advertising. Consumers who wander the Internet represent lost revenue. Customers who use IP telephony no longer make phone calls. Customers who experiment with creating new services are called abusers.

As long as these companies control connectivity, we do not have a marketplace for the connectivity services vital to the growth of the Internet and necessary for innovation and the benefits we have come to expect.

We must allow for a marketplace by preventing players with interests opposed to connectivity from controlling connectivity. It is a dramatic case of conflict of interest and antitrust violation. We cannot afford to tolerate such behavior. It is allowed and abetted by accepting the self-serving fallacies of the existing players. We must challenge their claims and create the opportunities so necessary for our continued prosperity."

redux [06.06.01]
Gilbert & Tobin Internet Connectivity: Open Competition In The Face Of Commercial Expansion

"As a consequence, the rules for Internet interconnection are still in the process of being worked out - and in this uncertain environment, Internet interconnection is an inherently risky business. The new technology presents its own interconnection complexities, with multiple layers of virtual networks built one over the other - so that an operator at any layer of the infrastructure will have its costs determined by the prices charged by the virtual network below it, while its prices, in turn, will determine the cost structure of the layer above. Furthermore, while commercial principles would suggest that money should flow towards those operators which produce value, this does not always happen in practice (a hangover of the historical expectation that Internet access should be free for all). The uncertainties of the environment are aggravated by the fact that there is currently no consensus on the issue of how to attribute "value" to the various elements of Internet interconnection."