The wrong way to spread broadband

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It's the business model

I think the real problem is that phone companies want to operate under the cable model rather than continuing as communications common carriers.

Cable companies provide both a pipe and content. That allows them to keep a cut of the subscribers' monthly cable bills. The bigger the bill, the bigger the cut.

Common carriers, on the other hand, only get paid for the pipe. You pay the same for your phone if you get no calls all month or constantly talk to friends who want to chat.

Broadband threatens the cable business model because it allows the consumer to deal directly with content providers. That's why they're looking for a way to steer business toward services where they continue to get a cut of the pie.

I think the discussion of "net neutrality" misses the underlying issue of whether it's time to move to a common carrier model for broadband. Local governments will howl because they also get a juicy cut of the cable bill, but the easiest way to ensure neutrality is remove the incentives to practice bias.

Posted by: scustin   Posted on: 05/04/06 You are currently: a Guest | Members login | Terms of Use

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