re The Killer App of 1900

[Dave Farber <dave () farber net>]

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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