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The newest innovation from Silly-con Valley: Slow Internet!
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By Scott McCollum
SPECIAL TO WORLD TRIBUNE.COM
Some of you are fed up with 56K modems and you want broadband Internet
access. You've heard the tales from those who have a cable modem or have
their houses wired for DSL. The men and women with cable/DSL services swear
by these digital connections to the Internet. The conventional wisdom is:
once you have experienced the difference between the insufferable wait
imposed by an analog AOL connection and an always-on digital cable modem,
you'd be crazy to ever want to go back.
Apparently, there are many more crazy people in Silicon Valley than I
originally thought. A recent incendiary and lopsided story from the Ziff
Davis Network proclaims that a "dump broadband movement is growing" amongst Bay Area Internet users.
According to the article, many early adopters of broadband Internet access
are bailing out and presumably returning to the old days of clunky modem
connections. Factors like a "sour economy, broadband price hikes... the
demise of 'Napster' (the peer-to-peer software that allowed people to
transmit illegal copies of copyrighted music, movies and books across the
Internet)... as a 'killer app' (an application that would make users
immediately pay for broadband access no matter what the cost)" are
supposedly forcing some early adopters to drop their DSL and can their cable
modems. The sources for this article were an out of work dot-com
telecommuter and a guy working for a financial software company that uses
the high-speed Internet at work for "free" rather than paying for it at his
home.
Even though several spokesmen for broadband ISPs and industry analyst firms
all agreed "everything's fine Ñ situation normal," the article takes pains
to make the "evil broadband providers" out to be the bad guys. The whole
article reads like some greasy hippie kid was shouting it into a bullhorn to
a crowd at UC Berkeley: "The evil corporations raise rates and make it too
high for the proletariat! The evil corporations have taken away Napster,
thereby destroying our freedom to share copyrighted songs and movies,
because it cuts into their precious profits! The corporate fools don't know
that Napster was their broadband killer app and they have committed an
atrocity to themselves and their bourgeois consumers! In protest, we shall
use the 'free as in beer' corporate high-speed Internet connections at our
jobs instead! Then we can get overtime pay AND have a proper Internet
experience. Power to the people!" Amazingly, millions of South Korean and
Japanese users pay around $42 (US) a month for broadband without complaint
for the "killer app" of email.
Internet users outside of California are much less apt to attend dump
broadband protest marches. Leonard Thompson in Raleigh, NC explains that
his costs were actually lowered by broadband access. "I recently went from
dial-up to cable and the difference for me was cheaper and much faster."
Mr. Thompson said. "I was paying $24 for an ISP and $21 for a second phone
line. Cable costs me $40. Who's dumping who?" I have heard similar
comments from regular folks from Dallas, Texas to Suwon, South Korea that
all say the same thing. Broadband, if you can get it, is the way to go.
The problem is that not everyone can get broadband. "I would dearly love to
have a high-speed connection," said Liz Courts of Bend, OR. "But
unfortunately, where I live, which is a semi-rural area, it's next to
impossible." The reason why the United States doesn't have ubiquitous
inexpensive broadband is government regulations. Thank the Clinton
Administration pushing for "fairness and competition" from the big phone
companies by way of the Telecommunications Act of 1996.
The Telco Act works like this: if you are a company like AT&T or Verizon
that spends billions on wiring the country with fiber optic cable, any and
all of your competitors have the right to siphon off of your bandwidth for
cost. Say you own "Company A," one of the largest telecommunications
companies in America. Company A spends billions of dollars to lay down
fiber optic cable, repeaters, boosters, switches, flux capacitors and
whatever else in the interest of widespread broadband access for her
customers in Metro City. It will be a few years and the initial costs will
be high, but after a fashion the money invested by your company and the
early adopters of your service will pay for furthering the dream of
ubiquitous broadband.
Enter the competition. Since your competition doesn't want to spend the
billions for their own infrastructure but would like to get in on that easy
Internet money, they cry to Metro City elders. "Company A has a monopoly on
all the Internet service!" the competition screams. "We cannot afford to
spend all our money to compete so we want to use Company A's equipment to
foster competition and help consumers."
The Metro City elders see that you seem to have the only network around these parts and judges that you indeed hold a monopoly position on networking infrastructure. The elders decree that all competitors of Company A may now lease bandwidth off of Company A's lines at cost in the interest of fairness. Since youÕve spent billions on big pipes the bandwidth is more than enough for several companies to use (You were forward-thinking enough to realize that your customers' needs would grow in the future, and bought the highest capacity lines). There is no loss of speed when a dozen other companies lease/leech off of your infrastructure.
Company A now stops dead in her tracks when it comes to rolling out more
lines to reach the rest of the customers in Metro City. Why spend the
needed billions on laying down more cable when dozens of little companies
will come in, use the infrastructure you paid for and then undercut you in
the interest of "fairness?" This is the Telecommunications Act in action.
It is why Ms. Courts will have a difficult time getting DSL or cable in her
rural Oregon town, not some corporate conspiracy. Believe me, these
companies want more broadband customers Ñ not fewer.
To fix this problem, fix the Telecommunications Act. Make the companies
with fiber optic backbones between cities have a regulated monopoly (they
own the cables but cannot charge more or less to their customers), and allow
local "last mile" providers to resell the bandwidth from these big companies
with added service and support. Dumping broadband and reverting back to old
technology is not a solution. That option is a Luddite punishment for which
the so-called "innovators" in Silly-con Valley should be ashamed.
What are your thoughts about this issue? Email me
scott@worldtechtribune.comwith your opinions and comments.
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