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Over the last years the telecommunications market has been regulated on the basis of operating telephony services. Internet access has been added to this in recent years but it is still essentially linked to telephone line regulations. While major societal changes have been happening, since the 1980s at least, very few policy changes were made around the telecoms industry to enable it to play a key role in these changes. Key telecoms reforms in the mid- and late 1990s still refused to take a more multi-media -- or perhaps what we now call a trans-sector -- approach towards the industry. more
In the February 13th edition of the Wall Street Journal, Professor Thomas W. Hazlett offers a breathless endorsement of market concentration with the T-Mobile acquisition of Sprint, his go-to example. Apparently, mergers and acquisitions benefit consumers because they enhance competition and generate all sorts of positive outcomes that could not possibly have occurred but for the reduction in the number of industry players. more
T-Mobile and Sprint on Sunday announced a plan to merge in a deal that would reduce the number of wireless carriers in the U.S. from four to three. more
With all of the current turbulence in the American society, it is no wonder that its telecommunications market is also under severe pressure. In his election campaign, Trump promised his American supporters to make changes to what he called the Washington swamp, but it has become clear that the opposite is happening. While in previous Administrations lobbyists were at least somewhat separated from the politicians, now many of these lobbyists are actually part of the Trump Administration. more
The year 2012 isn't meant to be apocalyptic, and with a little forethought it won't be, but it is the year in which we will reopen the International Telecommunications Regulations (ITRs). For many companies this will be bad news for reasons that are already well-understood and for new reasons that countries keep piling onto the agenda: a recent favorite from Russia calls for the treaty to govern and regulate all telecommunications services, "existing, emerging, and future." more
Ten years ago, Nobel Prize-winning economist Milton Friedman lamented the "Business Community's Suicidal Impulse:" the persistent propensity to persecute one's competitors through regulation or the threat thereof. Friedman asked: "Is it really in the self-interest of Silicon Valley to set the government on Microsoft?" After yesterday's FCC vote's to open a formal "Net Neutrality" rule-making, we must ask whether the high-tech industry -- or consumers -- will benefit from inviting government regulation of the Internet under the mantra of "neutrality." more
Between 2010 and 2013, 120 million Machine to Machine (M2M) connections have been added globally reaching a total of 195 million in Q4 2013, according to a recent study by the GSMA. Globally, M2M connections account for 2.8% of total mobile connections in 2013, up from 1.4% in 2010. Global M2M connections will reach a quarter of a billion (250 million) in 2014, said the GSMA. more
Around the world governments, regulators and the industry are struggling with the old regulatory legacy systems. These have become a major stumbling block in the transition to a new environment. Increasingly countries are beginning to understand the social and economic benefits a national broadband infrastructure can offer, but it is impossible to bring that about while the systems are based on the present regulatory regimes. To take these broader benefits into account we will need to develop government policies to facilitate the digital economy... more
These days in Washington, even the most absurd proposals become the new normal. The announcement yesterday of a new U.S. State Department Cyberspace Bureau is yet another example of setting the nation up as an isolated, belligerent actor on the world stage. In some ways, the reorganization almost seems like a companion to last week's proposal to take over the nation's 5G infrastructure. Most disturbingly, it transforms U.S. diplomacy assets from multilateral cooperation to becoming the world's bilateral cyber-bully nation. more
Over the last year I have become deeply involved in the debate in the USA regarding the future of their telecoms sector, which is proceeding very much along the lines of the trans-sector approach towards infrastructure (using it for other sectors such as healthcare, education, energy), open networks and a separation between infrastructure and applications. While many of the issues are universal it was also interesting to observe the specific elements that make the USA so unique. more
The surest way to screw up future innovative applications would be for ISPs to make constraining assumptions about the future based on existing applications' performance. Discussing P2P behavior as if it were some monolithic, unchanging entity is simply wrong. What is P2P? BitTorrent? Skype? CNN live video feed fan-outs? And what of changes to these existing apps? What of future apps? more
When talking about the problems of attracting infrastructure funds to the telecoms industry, I would make one exception; that is backbone infrastructure... We increasingly describes mobile networks as fibre networks with a wireless access component. This clearly indicates the need for fixed backbone network capacity, eventually all the way to the street. more
My day job, which includes finishing a book, updating a broadband law treatise, and trying to engage undergraduate students in the challenges of telecommunication and Internet policy, prevents me from weighing in each time I see yet another outrageous claim on such issues as network neutrality, broadband market penetration, and the competitiveness of U.S. telecoms markets. But I have to make time for this one. more
A number of conversations have recently converged on a single problem: how to match applications to network access. Let's unpeel this issue... When I was Chief Analyst at Telco 2.0, we proposed there was a significant untapped market opportunity for network operators to bundle together access with content, applications or services. The revenue opportunity is to charge the providers of those services for delivering fit-for-purpose data at bulk wholesale prices. This is the "postage problem"... more
AT&T got critics' keyboards activated by announcing plans for a Sponsored Data service, enabling websites to pay for their end-users data consumption. The service has been characterized as a type of toll-free or "1-800? style service for mobile data. Does this contravene network neutrality principles? AT&T says the traffic from the sponsoring sites will be treated the same as other traffic on the network. A US public interest group, Public Knowledge, claims this is precisely what a net neutrality violation looks like. more
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