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Monday, March 06, 2006

AT&T, BellSouth, and Carrier Economics

So as AT&T positions to grab BellSouth and become Godzilla to Verizon's Mothra, the finer points of carrier economics are in the news.

The New York Times has a story (Reg. required) today about moves by carriers to end "open access," the unstated agreement in place since the Internet went commercial more than 10 years ago, that all content would be carried equally.

But if cities go ahead and offer free high-speed wireless access, carriers will lose all monthly access income, and a volume model will arise: If you download a lot of video or music, you'll pay a lot; if you surf sites and send email, you'll pay a little.

Isn't that more democratic than having us pay a huge monthly fee for what is, at its core, a basic public service? Or will cities have to raise taxes to maintain and keep secure those wireless networks?

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