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Linux and Open Source

Steven J. Vaughan-Nichols & Paula Rooney

Will Bells hijack the broadband stimulus?

By | January 28, 2009, 6:38am PST

Summary: The issue is vital because without open access competition is limited to those large companies that can afford to build their own end-to-end networks. This is how the cellular world works, it’s how cable works, and it’s the opposite of the way the Internet works, where every network interconnects under a single standard.

Bell companies are working to strip open access provisions from the $6 billion broadband component of the stimulus bill now being considered in Congress.

The issue is vital because without open access competition is limited to those large companies that can afford to build their own end-to-end networks. This is how the cellular world works, it’s how cable works, and it’s the opposite of the way the Internet works, where every network interconnects under a single standard.

The Cellular Telecommunications Industry Association (CTIA), whose largest members are Verizon and AT&T, is leading the charge against open access, as well as network neutrality. They claim these provisions would discourage investment.

The biggest player in this lobbying war is the Information Technology & Innovation Foundation (ITIF), of which former ZDNet blogger George Ou is a staff member.

They issued a report this week claiming the tech part of the stimulus ($30 billion, including health IT and electrical grid investments) would create 949,000 new jobs. IDC says its analysts contributed to the report.

Art Brodsky of Public Knowledge says “Congressional Internet protection starts now,” noting that the Bells may try to strip out open access and net neutrality language later in the process. Or, as ITIF founder Robert Atkinson told Business Week, they could simply redefine the terms so as to render them meaningless.

But there is another way to look at it.

Visicalc co-founder Bob Frankston says the whole debate misses the point.

“Focusing purely on “broadband” is akin to looking for your lost key under the lamppost because that’s where the light is rather than where you actually dropped the key,” he wrote Monday.

It’s not about the network – it’s about how we use the facilities available. It’s about our ability to create applications outside the network without having the network itself having to change to accommodate new ideas. 

Frankston proposes that all networks be a “bit commons,” that what the bits do be separate from how they’re moved. “By decoupling the physical facilities from the services we create sustainable self-regulating markets (or, if you prefer, business models),” he writes, feeling that he’s describing a highway system to railroad tycoons.

“Today people know that they want more “Internet” so they ask for more of the same by saying ‘broadband’,” he concludes.  ”Our future lies in universal connectivity and simplicity. We can do better than living in the past glory of telecommunications.”

What Frankston is proposing — separating what the bits do from how they get there — is the essence of the Internet. And it is this essence the Bell mobile networks and cable operators most want to destroy, because they make more money defining bits as “services” than merely moving them.

That is the fight it seems to me we need to be having, not a scrum over dollars.

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Topics

Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983.

Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years.

At the present moment I run only a personal blog in addition to my ZDNet open source blog.

DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air.

My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

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But We Can TRUST Big Korporate Ammurika To Do Right w/out Regulation!
drprodny 29th Jan 2009
::headpalm!:: After three decades of constant deregulation of everything, and the total disaster it produced in this country (including an economy flushed down the toilet by the financial industry, those "rugged individualists" who where the first to show up in Washington with their hands out, and an ill-equipped military made up mainly of reversists but a LOT of "private military contractors" like Blackwater and KBR!), you would think even Ayn Rand would finally have to admit that sometimes, Government IS the Solution. But I reckoned without all the clowns on here who read the Classics Illustrated version of THE FOUNTAINHEAD once upon a time and now consider themselves "Objectivists" - because to them, anything that suggests a check on untrammeled corporate greed and rapine is "Socialism"!

I was a member of the Libertarian Party of NY for over a decade - and it's comic-book "libertarians" like OpenSourceUser1 and NotMSUser, who worship at the altar of "Objectivist Thinker" Howard Stern(!), that made me burn my membership card....
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Socialist economy...
Christian_<>< 28th Jan 2009
What is next Government housing and Yugo's?



sad
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But how would you feel
GuidingLight 28th Jan 2009
when you pay your taxes to the government only to have them take that money and use it to put you out of business by building a free competeing technology?

Does not seem all that fair at that point, does it?
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Do not need Gov to do anything
Christian_<>< 28th Jan 2009
Except the Gov needs to stay out of business,

one look at the welfare, socialist garbage and see

what you get.

Government = disaster in business
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A rhetorical question, I presume
davebarnes 28th Jan 2009
Will Bells hijack the broadband stimulus?
Of course they will.
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Open competition didn't work
NotMSUser 28th Jan 2009
How far did we get with open competition for local phone service? Most of those companies died off. Cable companies are competing for phone customers on a network they had to build themselves. Long-distance competition lasted a while but the cable and telco providers are matching anything they offer - so why bother?
On the other hand, a bunch of ISP upstarts leasing other systems' networks could be a good market bubble to temporarily buoy up the economy until the next bubble arises.
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Competition was destroyed by monopolists
DanaBlankenhorn 29th Jan 2009
...with the connivance of policymakers. In
England and Japan, which used the original 1996
Telecomm Act plan in their own market reforms,
there's lots of competition.

We stopped using it. The Bells ignored the law,
got away with it, then changed it to suit
themselves.

Competition did not fail. Government failed.
::headpalm!:: After three decades of constant deregulation of everything, and the total disaster it produced in this country (including an economy flushed down the toilet by the financial industry, those "rugged individualists" who where the first to show up in Washington with their hands out, and an ill-equipped military made up mainly of reversists but a LOT of "private military contractors" like Blackwater and KBR!), you would think even Ayn Rand would finally have to admit that sometimes, Government IS the Solution. But I reckoned without all the clowns on here who read the Classics Illustrated version of THE FOUNTAINHEAD once upon a time and now consider themselves "Objectivists" - because to them, anything that suggests a check on untrammeled corporate greed and rapine is "Socialism"!

I was a member of the Libertarian Party of NY for over a decade - and it's comic-book "libertarians" like OpenSourceUser1 and NotMSUser, who worship at the altar of "Objectivist Thinker" Howard Stern(!), that made me burn my membership card....
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Maybe they were waiting for the elections to be over so they'd know which politicians to buy.

Oops, I mean which politicians' campaigns they should give contributions. After all, I wouldn't want to accuse any of those fine upstanding individuals in Washington DC of providing a vote for a fee.
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AT&T already did...
olePigeon 28th Jan 2009
AT&T already did. Part of the condition for AT&T to be able to remerge
all the Bells was to lay down new infrastructure; to stop depending on
copper and put down some fiber.

Long story short, they didn't. They merged back together into one huge
conglomerate and continued laying down unshielded copper pairs
everywhere.

Bunch of crooks.
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Businesses need oversight...
olePigeon 28th Jan 2009
Businesses need oversight or they'll exploit people and the
free market. Even with regulations and oversight, just look
what happened with AIG, Merrill Lynch, and Goldman
Sachs. They get billions of dollars in federal aid to be
used to keep people employed and to keep the businesses
going. So what happens? They fire 10,000 people and
spend all the money on executive bonuses, private
jets, and parties.

Businesses are like children, you can't trust them to be
responsible without a parent around to keep them in line.
Yes cable is not telephone, each have their own wire, though the methods seem to be merging yearly.

True each has their own delivery system, but originally they were each a monopoly in their own right, then they abused their monopoly by exploiting citizens, so citizens demanded justice, hence the anti-monopoly laws.

We shouldnt have to rely on the goverment to monitor every business, but if businesses were responsible, they wouldnt put themselves in that position in the first place.

I dont like to government setting pricing, etc, but if i have no choice but to live somewhere else just because one bell owns my entire state, is that really fair to me?

This applies to power, cable and tele.
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It's an old argument
DanaBlankenhorn 29th Jan 2009
This argument was engaged in the 1880s regarding
railroads, then in the next decade regarding
other combines.

The Republican result was anti-trust law, law
that worked. If you have a monopoly you accept
regulation. If you want no regulation you can't
be a monopolist. Simple. Easy.

But not the way it has been for the last 20
years or more, with predictable results.
Unregulated monopolies not only stifle
competition but (more important) they stifle new
investment.
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The best solution here is a robust set of BB providers which foster competition and improves pricing and services in general. That's why I want to see Clearwire and the build-out of WinMax (4G) technologies. 4G can come into a market dominated by the "Bells" and "MSOs" and provide a good alternative.

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