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[IP] more on SBC hints at charge to Web publishers By Frank Barnako, MarketWatch





Begin forwarded message:

From: Dana Blankenhorn <danablankenhorn@xxxxxxxxxxxxxx>
Date: November 1, 2005 5:15:55 PM EST
To: dave@xxxxxxxxxx
Subject: Re: [IP] SBC hints at charge to Web publishers By Frank Barnako, MarketWatch
Reply-To: Dana Blankenhorn <dana@xxxxxxxxxx>

http://www.corante.com/mooreslore/archives/2005/11/01/ net_neutrality_will_triumph.pNet Neutrality Will Triumph

Posted by Dana Blankenhorn
A lot of people are (rightfully) upset over SBC CEO Ed Whitacre's recent statements dismissing the concept of network neutrality.

Given that SBC will take the AT&T name once its merger with that company is complete it has many fearfully humming the theme from "Empire Strikes Back," seeing the Death Star in the sky again, preparing to see the Internet lights turned off all over the world. (The song is now a favorite of every Enormous State University band, usually played in the Third Quarter as Little Sisters of the Poor are crushed.)

Frankly, Mr. Whitacre is an idiot. There are many reasons why net neutrality, and not paid content access, will triumph in the U.S.:


Google is one of the largest owners of dark fiber in the world. That's what their San Francisco WiFi bid is really all about. They need to fill that fiber, and WiFi can easily render wired phones (and lines) obsolete. Sprint has some interesting deals going with cable companies that create a "triple play" with cable networks combining phone, mobile, and television service. Network neutrality in that offering could cause millions to switch off their phones. Level 3 can easily link their fiber backhaul capacity to new providers via WiFi and WiMax, delivering another alternative for consumers. People aren't stupid. Consumers understand what the concept of network neutrality means. If it's threatened they will demand it from regulators and Congress. The U.S. is an increasingly small portion of the Internet. Continued slow growth will make the U.S. an economic backwater, and people know that.

The fact is that Whitacre is a Bellhead, playing an old game of monopoly based on media power. The Internet routes around such games. And the Internet is the market, not the dial tone.

My guess is Whitacre will be quietly told these facts after the consummation of the merger, either by his own people or those he tries to stick-up for access to his customers. If he doesn't get the message, an ad campaign from Google, Sprint, or some consortia of companies (perhaps with Bill Gates as its TV spokesman) will do the trick.

He can back away slowly, or he can back away in utter humiliation. But the idea he won't back away is Clueless.


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