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Some encouraging words here about Verizon’s expected 4G data rates:

After testing in the Boston and Seattle areas, the provider estimates that a real connection on a populated network should average between 5Mbps to 12Mbps in download rates and between 2Mbps to 5Mbps for uploads. Actual, achievable peak speeds in these areas float between 40-50Mbps downstream and 20-25Mbps upstream.The speed is significantly less than the theoretical 100Mbps promised by Long Term Evolution (LTE), the chosen standard, but would still give Verizon one of the fastest cellular networks in North America.

No mention of metering or data caps, of course.

Remember, these are phone companies. They love to meter stuff. Its what they know. They can hardly imagine anything else. They are billing machines with networks attached.

In addition to the metering problems Brett Glass details here, there is the simple question of whether carriers can meter data at all. Data ain’t minutes. And metering discourages both usage and countless businesses other than the phone companies’ own. I have long believed that phone and cable companies will see far more business for themselves if they open up their networks to possibilities other than those optimized for the relocation of television from air to pipes.

Data capping is problematic too. How can the customer tell how close they are to a cap? And how much does fearing overage discourage legitimate uses? And what about the accounting? My own problems with Sprint on this topic don’t give me any confidence that the carriers know how gracefully to impose data usage caps.

There’s a lot of wool in current advertising on these topics too. During the Academy Awards last night, Comcast had a great ad for Xfinity, its new high-speed service, promoted entirely as an entertainment pump. By which I mean that it was an impressive piece of promotion. But there was no mention of upstream speeds (downstream teaser: 100Mb/s). Or other limitations. Or how they might favor NBC (should they buy it) over other content sources. (Which, of course, they will.)

Sprint‘s CEO was in an another ad, promoting the company’s “unlimited text, unlimited Web and unlimited calling…” Right. Says right here in a link-proof pop-up titled “Important 4G coverage and plan information”, that 4G is unlimited, but 3G (what most customers, including I, still have) is limited to “5GB/300MB off-network roaming per month.” They do list “select cities” where 4G is available. Here’s Raleigh. I didn’t find New York, Los Angeles, Chicago or Boston on the list. I recall Amarillo. Can’t find it now, and the navigation irritates me too much to look.

Anyway, I worry that what we’ll get is phone and cable company sausage in Internet casing. And that, on the political side, the carriers will succeed in their campaign to clothe themselves as the “free market” fighting “government takeovers” while working the old regulatory capture game, to keep everybody else from playing.

So five, ten years from now, all the rest of the independent ISPs and WISPs will be gone. So will backbone players other than carriers and Google.  We’ll be gaga about our ability to watch pay-per-view on our fourth-generation iPads with 3-d glasses. And we won’t miss the countless new and improved businesses that never happened because they were essentially outlawed by regulators and their captors.

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For the form of life we call business, we are at a boundary between eras. For biological forms of life, the most recent of these is the K-T boundary between the  and the Eras. The Mezozoic Era ended when Earth was struck by an object that left a crater 110 miles wide and a world-wide layer of iridium-rich crud. Below that layer lies the Age of Dinosaurs, completed. Above that layer accumulate the fossils of life forms that survived the change, and took advantage of it. Notable among these is a branch of theropod dinosaurs we call birds.

In business we have the I-I boundary: the one between the Industrial and Information ages (which Alvin Toffler first observed in The Third Wave, published in 1980).  Below that boundary we find a communications environment dominated by telecom and cablecom. Above it we find a radically different communications environment that still supports voice and video, but as just two among an endless variety of other applications. We call that environment the Internet.

At this moment in history most of us know the Internet as a tertiary service of telephone and cable companies, which still make most of their money selling telephone service and cable TV. Since those are highly regulated businesses, the Internet is subject to degrees of regulatory capture. Some of that capture is legal, but much of it is conceptual, for example when we see the Internet as a grace of telecom and cablecom — rather than as something that subsumes and obsoletes both of those Industrial Age frames.

Such is the risk with “broadband” — a term inherited by the Internet from both telecom and cablecom, and which is a subject of interest for both Congress and the FCC. In April of this year the FCC announced the development of a national broadband plan, subtitled “Seeks Public Input on Plan to Ensure Every American has Access to Broadband Capability”. In July the commission announced that Harvard’s Berkman Center would conduct “an independent review of broadband studies” to assist the FCC. Then yesterday the center put up a notice that it “is looking for a smart, effective fellow to join our broadband research team”. (This is more than close to home for me, since I am a fellow at Berkman. So I need to say that the broadband studies review is not my project — mine is this one — and that I am not speaking for the Berkman Center here, or even in my capacity as a fellow.)

The challenge here for everybody is to frame our understanding of the Net, and of research concerning the Net, in terms that are as native to the Net as possible, and not just those inherited from the Industrial Age businesses to which it presents both threats and promise — the former more obvioius than the latter. This will be very hard, because the Internet conversation is still mostly a telecom and cablecom conversation. (It’s also an entertainment industry conversation, to the degree that streaming and sharing of audio and video files are captive to regulations driven by the recording and movie industries.)

This is the case especially for legislators and regulators, too few of which are technologists. Some years ago Michael Powell, addressing folks pushing for network neutrality legislation, said that he had met with nearly every member of Congress during his tour of duty as FCC chairman, and that he could report that nearly all of them knew very little about two subjects. “One is technology, and the other is economics,” he said. “Now proceed.”

Here is what I am hoping for, as we proceed both within this study and beyond it to a greater understanding of the Internet and the new Age it brings on:

  • That “broadband” comes to mean the full scope of the Internet’s capabilities, and not just data speeds.
  • That we develop a native understanding of what the Internet really is, including the realization that what we know of it today is just an early iteration.
  • That telecom and cablecom companies not only see the writing on the wall for their old business models, but embrace other advantages of incumbency, including countless new uses and businesses that can flourish in an environment of wide-open and minimally encumbered connectivity — which they have a privileged ability to facilitate.
  • That the Net’s capacities are not only those provided from the inside out by “backbone” and other big “carriers”, but from the outside in by individuals, small and mid-size businesses (including other Internet service providers, such as WISPs) and municipalities.

That last item is important because carriers are the theropods of our time. To survive, and thrive, they need to adapt. The hardest challenge for them is to recognize that the money they leave on the shrinking Industrial Age table is peanuts next to the money that will appear on the Information Age table they are in a privileged position to help build.

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