NNSquad - Network Neutrality Squad
[ NNSquad ] Re: Broadband as Electricity: The Killer App of 1900
On Tue, Dec 15, 2009 at 10:03 AM, Rahul Tongia <tongia@cmu.edu> wrote: > Lauren, > > 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. > > Rahul > > > On Mon, Dec 14, 2009 at 10:53 PM, Lauren Weinstein <lauren@vortex.com>wrote: > >> >> As I've noted in the past, many of the same arguments made opposing >> universal broadband and Net Neutrality today, are echoes of similar >> arguments made regarding now common utilities. >> >> Broadband as Electricity: The Killer App of 1900 >> >> http://bit.ly/8bJXGu (Publicola) >> >> --Lauren-- >> NNSquad Moderator >> > >