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Home Always-On

The Wealth of Nations in the 21st Century

by Dana Blankenhorn
March 28, 2006
in Always-On, Broadband, Broadband Gap, censorship, Communications Policy, Competitive Broadband Fiber, economics, Internet, network neutrality, politics, regulation, Web/Tech
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We can sum up what we want on Internet issues in one word:

                                                                            Connectivity

Connectivity will never be perfect. Connectivity will also be somewhat subjective. But when we use the Internet this is what we want.

There are natural limits to connectivity:

  • Language is a limit. Much of China’s Internet is now unreachable because the URLs are in Chinese. This will increase, and we will become dependent on translators to push the best of both worlds through language walls that block connectivity.
  • Security is a limit. All governments consider some forms of connections out of bounds. All governments seek to control those actions, even within connected networks. And all efforts to do this limit connectivity.
  • Speed is a limit. The slowest speed between you and the data (or person) you wish to reach is the speed of your connectivity. This will usually be sub-optimal somewhere along the way, but we can work to fix that. Latency translates as temporary loss of speed.

Connectivity is not what the Bells and cable operators provide. It is not what they wish to provide. What they wish to provide, what they claim they do provide, is:

                                                                            Services

Services combine the connection and what is transacted between the ends. A phone call is a service. A TV show on cable is a service. A software program (or other downloadable file with a fixed cost) is a service. A service provides a business model to one side of the transaction, and rains unearned money on the company providing the connectivity.

When Harold Feld of Wetmachine talks of Whitacre Tiering, he’s talking about the Bells conflating connectivity with services. By defining the former as the latter, then holding up delivery until one side pays extra, AT&T seeks to create a bogus "service" it can charge extra for.

This is, of course, nonsense.

Ah, but what of the cost? Click and find out.

In the 21st century, connectivity is our basic infrastructure. The more
you have — the more speed, the more access across all sorts of
boundaries — the greater your access to the world. And the greater
your access to the world — the more connectivity you have — the more
wealth you can create and accumulate.

Let me  summarize this in a way you might understand:

  • Guns defined the 17th century, colonization.
     
  • Ships defined the 18th century, trade.
       
  • Canals and railroads defined the 19th century, industrialization.
       
  • Roads defined the 20th century, mass production.
       
  • Connectivity will define the 21st century, information.
       

On this we will base the Wealth of Nations going forward.

Now, how rich do you wish this country to be? And what are you willing to do, politically, in order to assure that?

Tags: AT&Teconomicswealth of nationsWetmachineWhitacre Tiering
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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn began his career as a financial journalist in 1978, began covering technology in 1982, and the Internet in 1985. He started one of the first Internet daily newsletters, the Interactive Age Daily, in 1994. He recently retired from InvestorPlace and lives in Atlanta, GA, preparing for his next great adventure. He's a graduate of Rice University (1977) and Northwestern's Medill School of Journalism (MSJ 1978). He's a native of Massapequa, NY.

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Comments 5

  1. Jack Yoest says:
    19 years ago

    Army of Davids; Army of Blue Ants

    Internet Cafe in Chongqing, ChinaYour Business Blogger just bought The Big Blogger, Glenn Reynolds’ new book An Army of Davids: How Markets and Technology Empower Ordinary People to Beat Big Media, Big Government, and Other Goliaths. The Instapundit t…

    Reply
  2. Jack Yoest says:
    19 years ago

    Army of Davids; Army of Blue Ants

    Internet Cafe in Chongqing, ChinaYour Business Blogger just bought The Big Blogger, Glenn Reynolds’ new book An Army of Davids: How Markets and Technology Empower Ordinary People to Beat Big Media, Big Government, and Other Goliaths. The Instapundit t…

    Reply
  3. Jack Yoest says:
    19 years ago

    Army of Davids; Army of Blue Ants

    Internet Cafe in Chongqing, ChinaYour Business Blogger just bought The Big Blogger, Glenn Reynolds’ new book An Army of Davids: How Markets and Technology Empower Ordinary People to Beat Big Media, Big Government, and Other Goliaths. The Instapundit t…

    Reply
  4. Jack Yoest says:
    19 years ago

    Army of Davids; Army of Blue Ants

    Internet Cafe in Chongqing, ChinaYour Business Blogger just bought The Big Blogger, Glenn Reynolds’ new book An Army of Davids: How Markets and Technology Empower Ordinary People to Beat Big Media, Big Government, and Other Goliaths. The Instapundit t…

    Reply
  5. Jack Yoest says:
    19 years ago

    Army of Davids; Army of Blue Ants

    Internet Cafe in Chongqing, ChinaYour Business Blogger just bought The Big Blogger, Glenn Reynolds’ new book An Army of Davids: How Markets and Technology Empower Ordinary People to Beat Big Media, Big Government, and Other Goliaths. The Instapundit t…

    Reply

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