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re The Killer App of 1900
From: Dave Farber <dave () farber net>
Date: Wed, 16 Dec 2009 09:56:36 -0500
Begin forwarded message:
From: Rahul Tongia <tongia.cmu () gmail com>
Date: December 16, 2009 8:51:48 AM EST
To: dave () farber net
Cc: ip <ip () v2 listbox com>
Subject: Re: [IP] The Killer App of 1900
Dave,
For IP Consideration, though I've already shared this with another
group :)
A few brief observations (I've written about broadband as a utility,
or at least the fiber so competition can be at higher
layers...background disclaimer)
1) Utility type services are mostly regulated. In return for
guaranteed returns and relatively low risk, the provider *must*
provide services within their territory - unlike cell phones where
if you don't have coverage at your house, you can try to switch
carriers, or switch homes.
2) Utility type services inevitably have an element of cross-
subsidy. Electricity rates for all homes in a coverage area are the
same, regardless of home, apartment, mountain shack, etc. (there are
variances for industry, commercial, etc.). Trying to make a system
where everybody pays their "fair" cost is tricky for several
reasons, beyond transaction costs. (a) The answer changes changes
all the time (need a very dynamic system); (b) The issues are often
very local; (c) Most importantly, the issues of average versus
marginal costs [latter lower, and MUCH lower in the broadband world]
have multiple models of cost allocation, each with their tradeoffs.
That said, I am happy with a regulated fiber utility with cross-
subsidies so everyone (or, say, 98 or 99% of homes) can get it. We
could have competition at different layers. Using the road analogy,
we don't build 3 roads in the name of competition. Ford/GM/Toyota
compete (or we hope they do); DHL, FedEx, and UPS compete, etc.
Contractors compete to fill potholes, etc.
Rahul
On Wed, Dec 16, 2009 at 7:16 PM, David Farber <dave () farber net> wrote:
Begin forwarded message:
From: Brian Randell <Brian.Randell () ncl ac uk>
Date: December 16, 2009 5:53:55 AM EST
To: dave () farber net
Subject: The Killer App of 1900
Hi Dave:
For IP if you wish.
cheers
Brian
---
> Tech Nerd
> The Killer App of 1900
> by Glenn Fleishman, 12/11/2009, 11:18 AM
>
> It's instructional to look back 100 years, not long after the
first electrical generation plants were built to bring power to
towns and cities, to assess the situation we find ourselves in with
broadband availability today.
>
> A hundred years ago, lighting was the killer app for electricity,
the thing that made it worthwhile to have installed. No one
particularly understood what else electricity might bring to the
mass market, because other uses were generally specialized, the
province of experts, the wealthy, or industry. Compressors to allow
refrigeration and freezing, electric heat, and other innovations
came later to homes.
>
> Arguments raged from the start of electrical power generation
against municipal ownership of utilities, partly for practical
reasons: Many early efforts around the world had led to huge debt
and poor operations when cities got involved. But the experience
wasn't uniform, and neither was the quality of privately owned
enterprises.
> . . .
Full article at:
http://publicola.net/?p=20687
--
School of Computing Science, Newcastle University, Newcastle upon
Tyne,
NE1 7RU, UK
EMAIL = Brian.Randell () ncl ac uk PHONE = +44 191 222 7923
FAX = +44 191 222 8232 URL = http://www.cs.ncl.ac.uk/people/brian.randell
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