Two related bits of pundutry out there that illustrate my belief that success in network operation comes from innovation in funding and pricing models.
First, the prolific Mr Frankston:
Instead of having the strange phenomenon of carriers spending billions and then arguing that they deserve to be paid we’d have them bidding on contracts to install and/or maintain connectivity to a marketplace that is buying capacity and making it available so value can be created without having to be captured within the network and thus taken out of the economy.
To achieve this we need a different “unbundling” regime. Maybe call it the “secession” regime. I don’t believe the natural unit of purchase of connectivity is the household; the costs of marketing, billing and support are too high. Imagine that everyone connected to a central office exchange could vote to leave their “service provider” and collectively choose someone else to operate all the equipment in the switching centre. There are a number of possible fiscal models, such as absolute buy-out of the local loop assets, or rental and maintenance payments.
Here’s the other bit of related “who owns what resources” news from Techdirt on unlicensed spectrum:
Last year, we were intrigued by the new spectrum allocation plan in the UK that would create a much more open market for spectrum. The idea was that rather than (as the FCC does) setting exactly what the spectrum must be used for and who can use it, the market is allowed to decide. That is, anyone can purchase the exclusive rights to the spectrum, but then, they can do with it as they want — whether that’s selling it to others, or making use of the spectrum.
Here’s my idea. Some philanthropist with deep pockets wanting to make a lasting impact on society should just go buy up chunks of “private” spectrum, and then open it to the public in a managed way. In fact, we’ve got a great model for this already with physical cultural and landscape assets over here: the National Trust. (Hey, dig that commie tagline: for ever, for everyone.)
The good news is that there are enough tech billionaires out there who can pay as well as understand the benefit. I’m sure we can figure out a licensing scheme that immortalises your name onto every device operating in that spectrum band…
The bad news is I’m not one of them.
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In the US, you can buy your electricity from someone other than the company which delivers it to you. One result of that unbundling (other than a barrage of pamphlets designed to spread FUD from the local utility) is that several small towns have formed pools to negotiate with providers. By representing two to five thousand homes, they hope to get better pricing than an individual would. In true form, the local electric company has repeatedly sued the pools. If the first and largest wasn't formed in the richest suburb in this half of the state, they might have succeeded in stomping that innovation out.
Posted by: at March 14, 2006 05:17 PM