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Re: Imagine Your Business Competing with the Governmen said by needforspeed59:I am only trying to put a different perspective on this issue. First it's telecom. What's next? I have put 20+ years in with a company. I do not wish to see government get into the private sector even if it means saving me a few bucks on my cable or Internet bill. I think that is very short sited. But, this is just my opinion. Let the flames begin. LOL! You raise a valid point. The debate hinges on what each of us think the proper role of government is.
On the one had we have the highway and airline infrastructure model with public ownership of commodity infrastructure and private industry using that infrastructure to develop and offer a myriad of products.
One the other hand we had "pure play" private ownership model of the first-mile. In that case it is up to private enterprise to invest and build the access network. Having build it they have a fiduciary responsibly to maximize profit. They will do that by virtue of owning a very valuable and scarce resource develop a vertically integrated business model. This allows the owner of the first-mile access network to dictate how the network will be used.
The difficulty encouraging first-mile competition is cost is high compared to potential profit. No matter how you slice and dice it there are not going to be many players in the wired access network. Wireless is a little different in that capital cost are lower compared to revenue but it faces other technical challenges, such as bandwidth and antenna placement. The problem is limited to the first-mile access network. Cost vs revenue opportunity for the Interexchange carriers promotes health competition.
We are faced with a choice. Do we build the access network as a public commons, open to all or do we privatize it allowing a few, with the resources needed to build it, dictate the future of the Internet?
/Tom |