March 15th, 2010
See our RealClearMarkets commentary contrasting mounting Washington liabilities versus America’s key strategic assets. We also outline a new Internet paradigm for cloud-based video and software streaming that will create new digital content models, boost Web traffic, and require an ever more broadband Internet.
the graphics chip revolution will have a deep impact on the network. High-definition video requires big bandwidth, and real-time applications tolerate very little delay. UC-San Diego estimates that 55% of total American information consumption, or 1,991 exabytes per year, is (brace yourself) video games. If just 10% of these games moved online, they would generate twice the worldwide Internet traffic of 2008. Video is not always the most important content on the Web, but it defines the architecture and capacity of (and often pays for) the networks, data centers, and software that make all the Web’s wonders possible.
Read the whole article »
January 13th, 2010
Later this week the FCC will accept the first round of comments in its “Open Internet” rule making, commonly known as Net Neutrality. Never mind that the Internet is already open and it was never strictly neutral. Openness and neutrality are two appealing buzzwords that serve as the basis for potentially far reaching new regulation of our most dynamic economic and cultural sector — the Internet.
I’ll comment on Net Neutrality from several angles over the coming days. But a terrific essay by Berkeley’s Jaron Lanier impelled me to begin by summarizing some of the big meta-arguments that have been swirling the last few years and which now broadly define the opposing sides in the Net Neutrality debate. See the first in a new series of posts on Internet innovation and possible Net Neutrality regulations »
October 4th, 2009
In Monday’s Wall Street Journal, I address the once-again raging topic of “net neutrality” regulation of the Web. On September 21, new FCC chair Julius Genachowski proposed more formal neutrality regulations. Then on September 25, AT&T accused Google of violating the very neutrality rules the search company has sought for others. The gist of the complaint was that the new Google Voice service does not connect all phone calls the way other phone companies are required to do. Not an earthshaking matter in itself, but a good example of the perils of neutrality regulation. Continue reading this entry »
September 21st, 2009
Today, FCC chairman Julius Genachowski proposed new regulations on communications networks. We were among the very first opponents of these so-called “net neutrality” rules when they were first proposed in concept back in 2004. Here are a number of our relevant articles over the past few years:
September 17th, 2009
With an agreement between the U.S. Department of Commerce and ICANN (the nonprofit Internet Corp. for Assigned Names and Numbers, headquartered in California) expiring on September 30, global bureaucrats salivate. As I write today in Forbes, they like to criticize ICANN leadership — hoping to gain political control — but too often ignore the huge success of the private-sector-led system.
How has the world fared under the existing model?
In the 10 years of the Commerce-ICANN relationship, Web users around the globe have grown from 300 million to almost 2 billion. World Internet traffic blossomed from around 10 million gigabytes per month to almost 10billion, a near 1,000-fold leap. As the world economy grew by approximately 50%, Internet traffic grew by 100,000%. Under this decade of private sector leadership, moreover, the number of Internet users in North America grew around 150% while the number of users in the rest of the world grew almost 600%. World growth outpaced U.S. growth.
Can we really digest this historic shift? In this brief period, the portion of the globe’s population that communicates electronically will go from negligible to almost total. From a time when even the elite accessed relative spoonfuls of content, to a time in the near future when the masses will access all recorded information.
These advances do not manifest a crisis of Internet governance.
As for a real crisis? See what happens when politicians take the Internet away from the engineers who, in a necessarily cooperative fashion, make the whole thing work. Criticism of mild U.S. government oversight of ICANN is hardly reason to invite micromanagement by an additional 190 governments.
August 20th, 2009
There are two key mistakes in the public policy arena that we don’t talk enough about. They are two apparently opposite sides of the same fallacious coin.
Call the first fallacy “innovation blindness.” In this case, policy makers can’t see the way new technologies or ideas might affect, say, the future cost of health care, or the environment. The result is a narrow focus on today’s problems rather than tomorrow’s opportunities. The orientation toward the problem often exacerbates it by closing off innovations that could transcend the issue altogether.
The second fallacy is “innovation assumption.” Here, the mistake is taking innovation for granted. Assume the new technology will come along even if we block experimentation. Assume the entrepreneur will start the new business, build the new facility, launch the new product, or hire new people even if we make it impossibly expensive or risky for her to do so. Assume the other guy’s business is a utility while you are the one innovating, so he should give you his product at cost — or for free — while you need profits to reinvest and grow.
Reversing these two mistakes yields the more fruitful path. We should base policy on the likely scenario of future innovation and growth. But then we have to actually allow and encourage the innovation to occur.
All this sprung to mind as I read Andy Kessler’s article, “Why AT&T Killed Google Voice.” For one thing, Google Voice isn’t dead . . . but let’s start at the beginning. Read the rest of this entry »