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re: Obama's plan to save the internet draws bold reactions
Posted on 11/11/14 at 9:12 am to TigerinATL
Posted on 11/11/14 at 9:12 am to TigerinATL
Great Op-ed today in the WSJ on this topic.
WSJ
Try to find the article if you can. This is a much more complicated issue than some are stating. It seems NN proponents are nieve to the long term consequences that governement regulations would have on this industry. One thing is certain, this issue will receive thorough inspection in the near term.
WSJ
quote:
But the Internet cannot function as a public utility. First, public utilities don’t serve the public; they serve themselves, usually by maneuvering through Byzantine regulations that they helped craft. Utilities are about tariffs, rate bases, price caps and other chokeholds that kill real price discovery and almost guarantee the misallocation of resources. I would know; I used to work for AT&T in the early 1980s when it was a phone utility.
quote:
More utility follies? The first cellphone call was made in St. Louis in 1946 with AT&T’s Mobile Telephone Service, but the company let the innovation wither. It took until 1983 for Motorola to introduce the now comically unwieldy DynaTAC
quote:
If the Internet is reclassified as a utility, online innovation will slow to the same glacial pace that beset AT&T and other utilities, with all the same bad incentives. Research will focus on ways to bill you—as wireless companies do with calling and data plans—rather than new services.
Try to find the article if you can. This is a much more complicated issue than some are stating. It seems NN proponents are nieve to the long term consequences that governement regulations would have on this industry. One thing is certain, this issue will receive thorough inspection in the near term.
Posted on 11/11/14 at 10:15 am to Oenophile Brah
quote:
But the Internet cannot function as a public utility.
quote:
First, public utilities don’t serve the public; they serve themselves, usually by maneuvering through Byzantine regulations that they helped craft.
quote:You know what also kills real price discovery? A market with only one seller.
Utilities are about tariffs, rate bases, price caps and other chokeholds that kill real price discovery
quote:Oh, well, if he would know then I guess it's settled!
I would know; I used to work for AT&T in the early 1980s when it was a phone utility.
quote:What?! I guess I should expect this sort of bullshite from a WSJ writer trying to write about technology. AT&T's "Mobile Telephone Service" was basically a walkie-talkie, only 3 people in a city could use the service at the same time, and the equipment weighed 80 fricking pounds. Not so "mobile", huh? Yeah, it took nearly 4 decades to make it portable. Not because of "utility follies", but because it was a gigantic technological leap made up of thousands of smaller leaps that took a long time to develop. And the DynaTAC is only "comically unwieldy" compared to today's phones. At the time, the DynaTAC was a technological marvel that was 40 years better than AT&T's "mobile telephone service".
More utility follies? The first cellphone call was made in St. Louis in 1946 with AT&T’s Mobile Telephone Service, but the company let the innovation wither. It took until 1983 for Motorola to introduce the now comically unwieldy DynaTAC
quote:So, if I follow his logic here, if we classify the internet as a utility, then companies will focus on ways to bill us, and his example for that is that wireless companies, which are NOT classified as utilities, do it? What a fricking hack.
If the Internet is reclassified as a utility, online innovation will slow to the same glacial pace that beset AT&T and other utilities, with all the same bad incentives. Research will focus on ways to bill you—as wireless companies do with calling and data plans—rather than new services.
Posted on 11/11/14 at 2:22 pm to Oenophile Brah
quote:
quote:
But the Internet cannot function as a public utility. First, public utilities don’t serve the public; they serve themselves, usually by maneuvering through Byzantine regulations that they helped craft. Utilities are about tariffs, rate bases, price caps and other chokeholds that kill real price discovery and almost guarantee the misallocation of resources. I would know; I used to work for AT&T in the early 1980s when it was a phone utility.
quote:
More utility follies? The first cellphone call was made in St. Louis in 1946 with AT&T’s Mobile Telephone Service, but the company let the innovation wither. It took until 1983 for Motorola to introduce the now comically unwieldy DynaTAC
quote:
If the Internet is reclassified as a utility, online innovation will slow to the same glacial pace that beset AT&T and other utilities, with all the same bad incentives. Research will focus on ways to bill you—as wireless companies do with calling and data plans—rather than new services.
And in the internet's current model, what incentive do the companies have to innovate? None! They are all monopolies!
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