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Industry Threatened by Innovation at the 'Edge'?

penciling_in writes "In an article on CircleID, Bob Frankston, best known as the co-developer of the legendary VisiCalc and Lotus Express, shares his concern regarding industries desperate effort to control 'the edge' -- VoIP, P2P, Video on Demand... 'The commoditization of the transport is making it increasingly difficult to make money just because you own the pipe. The cable industries have a long history of owning the content and demanding a share in companies whose signals they deign to carry. As gatekeepers they have the ability to command a high fee for passage. The problem is that the scarcity is going away and with the shift to narrowcasting (as in Video on Demand) there is no scarcity. Instead they must own the content themselves if they are to retain any advantage. The Comcast/Disney issue (see: Comcast Family Protects Power) is portrayed as a media consolidation and convergence but that doesn't make sense. With transport becoming increasingly abundant it is easier for new players to enter the market and we should see increasing divergence once millions of people can experiment with new ideas.'"

160 comments

  1. common sense people by Shakrai · · Score: 4, Insightful
    regarding industries desperate effort to control 'the edge'

    He forgot to mention RIAA/MPAA's attempts to control the very way we can use their products after we legally purchase and pay for them.

    Why don't these companies wake up and realize the paradigms have changed? It's not like there isn't ample opportunity to make money with the new technology. Why stick to the failing methods of yesteryear?

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
    1. Re:common sense people by rholliday · · Score: 4, Insightful

      Profitable industries and large conglomerates suffer from insane amounts of inertia. Thank that these days there's the mitigating factor of elements like the open source community to force innovation in the their staid business models.

      Too bad half the time they end up just stealing the ideas, though ... :)

      --
      Xbox reviews.. We think they're funny.
    2. Re:common sense people by The+One+KEA · · Score: 1, Insightful

      Fear, laziness, arrogance and greed.

      --
      SCREW THE ADS! http://adblock.mozdev.org/ Proud user of teh Fox of Fire - Registered Linux User #289618
    3. Re:common sense people by rholliday · · Score: 1

      Whoops. Should have been "thank <diety> that" up there ...

      I will actually use the preview button ... I will actually use ...

      --
      Xbox reviews.. We think they're funny.
    4. Re:common sense people by stiggle · · Score: 5, Insightful

      You mean in the same way that ANY copyright holder controls the way we use their product after the legally obtain the right to use it?

      The FSF attempts to control the way I can use the source code of GPL programs I obtain in the same way that the RIAA attempts to control their artists copyrighted materials.

      If you don't like the licensing - then don't use the product. No one forced you to buy that Spice Girls CD! :-)

    5. Re:common sense people by deemon_ru · · Score: 1, Informative

      >> Profitable industries and large conglomerates >>suffer from insane amounts of inertia. Suffer they do not - they enjoy it, and try to extend it by any means possible, as this allows them to keep thir profits. - And for how long have you been suffering from those erotic nightmares? - Suffering? Oh no, I enjoy them very much!

      --
      Optimists learn English, pessimists learn Chinese, realists learn Kalashnikov.
    6. Re:common sense people by Ed+Avis · · Score: 4, Insightful

      Why don't these companies wake up and realize the paradigms have changed? It's not like there isn't ample opportunity to make money with the new technology. Why stick to the failing methods of yesteryear?


      They are adapting to new technologies, and that is the problem. Under the 'failing methods of yesteryear', you would buy a record and then be able to play it when and where you wanted, subject to copyright law's restrictions on public performance. When you'd listened to it enough you could sell it to a secondhand record shop, or maybe even donate it to a library.



      What the record / movie companies would like to do is to use new technologies to stop all that. They are moving with the times, just not in the way that you would like. Progress is not always a good thing.

      --
      -- Ed Avis ed@membled.com
    7. Re:common sense people by Jim+Starx · · Score: 4, Informative
      The FSF attempts to control the way I can use the source code of GPL programs I obtain in the same way that the RIAA attempts to control their artists copyrighted materials.

      How in the world is "we gave you this for free, you have to extend that same curtesy to others" even in the same ballpark as "you are not allowed to safeguard your property, if it breaks you'll just have to buy it from us again"...??

      Both are control's, that much is true. But that's like comparing a murderer with a firefighter just because both wield an axe. CD's don't come with a license agreement that says you can do this... you can't do this... you can do this under these circumstances... etc. The FSF uses licenses which are openly available to read before you use the product, the RIAA uses legal mauvering and threats after the fact and it uses those techniques to control actions that have been determined by law to be legal! If I want to make a copy of my cd in case the original gets scratched it's my right to do that and when I bought that CD I damn sure never agreed to a license that said I couldn't.

      --
      The darkness... controls the music. The music... controls the soul.
    8. Re:common sense people by Anonymous Coward · · Score: 2, Insightful

      after we legally purchase and pay for them

      Well to my knowledge there have ALWAYS been laws about broadcasting copyrighted material after you legally pay for them, or is there something I'm missing? People steal from shops every day. They have been doing it for centuries, so according to your way of thinking ... since you can also steal on the net, and people are doing everywhere, and since it's new technology, maybe we should allow theft on the net ...

    9. Re:common sense people by Shakrai · · Score: 1
      Well to my knowledge there have ALWAYS been laws about broadcasting copyrighted material after you legally pay for them, or is there something I'm missing? People steal from shops every day. They have been doing it for centuries, so according to your way of thinking ... since you can also steal on the net, and people are doing everywhere, and since it's new technology, maybe we should allow theft on the net ...

      This gets +2 insightful? WTF are the mods smoking? I was referring to the fascist DMA that comes with iTunes and DVDs. I'm sorry but if I buy something I have the right to use it on my portable mp3 device without having to rip it to CD first to bypass the DMA (probably breaking the license agreement in the process). I have the right to make perfect (i.e: not 700 meg VCD) backups of my DVDs without some embedded encryption or technological limitation barring me from doing so.

      If I pay for their product (where did I say steal?) I will use it however the hell I want. As long as I'm not giving copies to all my friends/the P2P community or running a private movie theater and charging people for admission what right do they have to complain or stop me?

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    10. Re:common sense people by beegle · · Score: 1
      The FSF uses licenses which are openly available to read before you use the product, the RIAA uses legal mauvering and threats after the fact

      First of all, remember that most people don't care about licenses. They just want to use what they've purchased in whatever way they see fit. The original poster's point was simply that both licenses try to restrict what a person might assume that they could do with the product.

      How do I check the GPL while I'm standing in Best Buy trying to decide whether to buy the latest version of Windows or the latest version of SuSE? Once I open the product, the license is inside, but Best Buy (and most software shops) won't let me return opened software.

      When I buy the CD, their software license comes up when I put the CD in my computer, and the store will (usually) take it back if I don't agree to the license terms.

      Sure, the GPL is available on the internet IF you know what the GPL is and how to find it, but the music licenses are also on the internet if you know how to find them.

      --
      --
    11. Re:common sense people by iminplaya · · Score: 1

      Maybe it's not just about the money, but about control. They want to control what we hear/see and when we hear/see it.
      (tin foil hat time)
      I also believe that the *AA's serve as the gov's main propaganda machine, and it serves their interests as much as anybody's to protect these industries. The main reason the Soviet Union fell is because their gov't lost their monopoly on information due to satellite TV. The Americans don't want the same thing to happen to them. Copyrights/patents serve as the weapon of choice to maintain this control.

      --
      What?
    12. Re:common sense people by Deliveranc3 · · Score: 1

      The new methods will quickly depose the industry aspect of music. If I can distribute, advertise, edit, and create my music for free why should I sell all my rights to big business and let them do it for me? It's that simple, already artists are trying to start independant labels, soon labels won't even be required.

  2. More generic article of him by Reinout · · Score: 4, Informative

    He's got a more generic article about what he means with "edge". It looks to have a bit more generic reading value than the article referenced here on slashdot.

    Reinout

  3. Now I understand by Chatmag · · Score: 1, Funny

    From the article: "During World War II cargo planes would drop supplies on Pacific Islands for later retrieve. Islanders without an understanding of technology joined cargo cults in hopes of petitioning their gods for more."

    So when I'm uploading a bunch of files, and screaming at a slow connection, can I now claim I'm having a "religious experience"?

    --
    Pete Carr Owner Chatmag.com
    1. Re:Now I understand by chess · · Score: 5, Insightful

      Of Course You have.

      And it surely is as well for the masses of people that have the Operating System "Word" at work and the Operating System "Internet Explorer" at home.

      These kind of people may be able to understand CNN.com ( TV news), eBay ( flea market) and amazon ( mail order retail).

      But I seriously doubt, if they ever understand the idea behind sites like slashdot or groklaw. And I suspect they thoroughly misunderstand P2P filesharing services.

      Evidence: When BMG bought Napster, I thought they'll made it a subscription service for small money and just count (on the central servers) how often which song was downloaded and then routed the income accordingly to musicians and their expenses.
      But no, it was killed off.
      Which lead to decentralized filesharing systems.
      Seems like EFF is a little late? Or are Record Labels already distressed enough?

      chess

  4. Hrmm by acehole · · Score: 4, Interesting

    When new technologies appear and make things more convinent, someone who was making money off the older technology loses out. Some companies want to simply protect their revenue without either pre-empting the change in technology or changing after a new technology has been adopted by the mainstream.

    If VoIP became mainstream, how many telephone companies would go bankrupt? how many would fight tooth and nail to implement measures that would ensure that they got a piece of the pie?

    --
    Be you Admins? nay, we are but lusers!
    1. Re:Hrmm by sql*kitten · · Score: 4, Insightful

      how many would fight tooth and nail to implement measures that would ensure that they got a piece of the pie?

      You raise an interesting point: the only way an entrenched technology can fight innovation is if its supporters can get a government to intervene on its behalf. If government can be kept from interfering in the market, the best (in terms of cost/benefit ratio) technology will always win in the end.

    2. Re:Hrmm by tanveer1979 · · Score: 4, Insightful
      If VoIP became mainstream, how many telephone companies would go bankrupt? how many would fight tooth and nail to implement measures that would ensure that they got a piece of the pie?

      Not only that, in India VoIP is mostly illegal(you cannot connect to PSTN). This has come about because the telephone companies can bribe the Govt, and Govt also does not want VoIP coz it will mean lost revenue to state own telecom mammoth BSNL which has more than 100 Million Subscibers.

      It is a classic case of corrupt govt and greedy industry screwing the consumer
      --
      My Aurora : http://www.youtube.com/watch?v=o91ZsGwJYyg
      FB : https://www.facebook.com/TanveersPhotography
    3. Re:Hrmm by benjamindees · · Score: 1
      If VoIP became mainstream, how many telephone companies would go bankrupt?

      *None* of them. They all make insane amounts of money doing little more than advertising and selling, and they'd continue to make money, albeit less, by selling the physical 'pipes'. Why should a *monopoly* need superbowl ads and an army of salespeople, anyways?

      --
      "I assumed blithely that there were no elves out there in the darkness"
    4. Re:Hrmm by madfgurtbn · · Score: 2, Insightful

      in India VoIP is mostly illegal(you cannot connect to PSTN). This has come about because the telephone companies can bribe the Govt, and Govt also does not want VoIP coz it will mean lost revenue to state own telecom mammoth BSNL

      I'll bet you it becomes illegal not to connect voip to the pstn as the pstn walled garden whithers in the next couple decades.

      At some point, the pstn is going to be little more than a central dns server which will point dialed calls to the right client on the net. That's what the article is about, really-- the death struggles of industries which are obsolete today, but who will linger for a long time. While they linger, they will use any means necessary to try to maintain their current position, even if it's a kamikaze move like walling themselves off from VoIP, which over time is the same as saying, "We are not part of the internet." They should be taking this opportunity to become the innovators in enabling the pstn to interact with the internet, but instead they are taking this opportunity to make it clear they are obsolete.

      --
      Send lawyers, guns, and money. Dad, get me out of this.
    5. Re:Hrmm by madfgurtbn · · Score: 4, Insightful

      Why should a *monopoly* need superbowl ads and an army of salespeople, anyways?

      That's the point. They are losing their monopoly. That means they are no longer going to be able to collect monopoly rents.

      When the telephone and cable tv monopolies were granted in your locality, it was based on the idea that it would be inefficient to build more than one phone system and more than one cable system in your locality. Now the cable system is just another TCP/IP network and the phone system is just another TCP/IP network.

      What happens when the phone company sells video and the cable system sells voip? Worse yet (from the corporate perspective), what happens when the end users realize their cable (or satellite) tv, cell phone, home phone, etc., are really just nodes on the internet and begin to treat them as such? What happens when big bandwidth, omnipresent and too-cheap-to-meter wireless connectivity to the net becomes commonplace?

      --
      Send lawyers, guns, and money. Dad, get me out of this.
    6. Re:Hrmm by mwood · · Score: 1

      Telephone companies? You mean, the guys who are carrying the packets? Why would they go out of business? The revenue just moves from one division to another.

    7. Re:Hrmm by goatwhip · · Score: 1

      That seems like a naive point of view. There are plenty of "best technologies" that have failed, even without government intervention, and especially in cases where the worse of the two technologies is already entrenched in the market.

    8. Re:Hrmm by Anonymous Coward · · Score: 0

      This isn't exactly how it's playing out. The fact is that telephone companies offer such low toll charges to large corporations at this point that most fortune 500 sized companies can't cost justify VoIP based purely on toll savings. Every once in a while you'll run into a VP who is championing VoIP for vague gut-feel reasons, but if you run the numbers, they aren't usually big enough for most companies to care about. I know, because my job is to try to convince them to do just that.

      Instead, I've had better luck arguing from a distributed resource and automated move/add/chance stance. In other words, the greater short-term cost savings come from only having to buy one box (or software package) that is extensible over the network rather than one for each site that you want to service. That kind of solution is available in a traditional PSTN flavor also, but IP makes it scalable.

      The real benefits are going to come in a much more Long-term timeframe. The real power of this technology is not simply resource distribution or cheap transport, but easy integration with other network based apps. For example, how about tearing out all of the CTI servers and replacing it with a packet header field? Or integrating voice/video mail with email (at the IP level rather than the hardware)? That is the problem with PSTN technology that IP telephony is trying to overcome. It's the same old open architecture vs. closed architecture battle. The challenge is trying to convice enough people to use this technology based on the meager benefits that exist today in anticipation of greater benefits down the road. All of this with questionable certainty that their chosen vendor will be able to deliver or even be around when the real goods are ready.

      Most people are wisely waiting to see the real deal before investing millions in a new telecom system.

    9. Re:Hrmm by skifreak87 · · Score: 1

      While I have no knowledge of the particular statistics, I can only imagine that if suddenly VoIP became hugely popular and many telephone companies went bankrupt, our economy would suffer greatly. Anyone who reads /. has seen a myriad of complaints in regards to the lack of jobs that pay well available to educated people. This will only make it worse.

    10. Re:Hrmm by cpeterso · · Score: 1


      How many educated people work for the old school telephony companies? These companies are not innovating much these days. They are just laying wires. Those educated people laid off from telephony companies can get jobs at those VoIP companies or IP-support companies because the demand on IP software and networks would have increased greatly. Great news! :)

    11. Re:Hrmm by benjamindees · · Score: 1

      Like I said, they fire all the useless salespeople and ad execs and sell the bandwidth for a reasonable profit that the market will bear. If only for the reliability that wired access affords, they still have a product that people will purchase. I don't know what their debt structure looks like, but there's no need for anyone to go bankrupt, maybe just lose most of their stock value.

      --
      "I assumed blithely that there were no elves out there in the darkness"
    12. Re:Hrmm by 4of12 · · Score: 1

      What happens

      The consumer wins.

      Yes, the phone company and cable company will end up competing for our business. And, of course, the phone companies will have to press the government to get rid of the lop-sided taxes that afflict telephone bills (at least here in the U.S.; I'm assuming other countries have similar insidious taxes, whether line item or not).

      But if I have cheap high BW service to my house, then I'll start using more services, such as pointing my web browser at work to connections to video cameras around my house to insure everything is OK. Or video conference with relatives instead of audio.

      --
      "Provided by the management for your protection."
  5. His analysis is akin to the design of the Internet by ObviousGuy · · Score: 5, Insightful

    The Internet is designed such that any single network node can be obliterated and the network will continue to function by rerouting itself around the problem. Whole networks can be destroyed or otherwise cut off from the main network and the main network will still continue to function (as well, the cut off network will continue to function within itself).

    This is basically his premise of how technology adjusts itself around attacks against it by industries that seek to limit it. However, what I think he fails to take into consideration is that given enough time, enough laws can be enacted that any technology that would work its way around a company's defenses would be illegal to possess or at the very least execute. We are already seeing this type of legislation coming into effect with such things as the DMCA.

    --
    I have been pwned because my /. password was too easy to guess.
  6. The time for Artists to gather together is NOW! by torpor · · Score: 5, Interesting

    Content-delivery ain't what it used to be. Joe Bob Basement Studio can put his mp3's in the same pipeline that Mega-Record Pimp Corp can.

    The difference is, whether people will pay attention to you or not - not whether they -can- through whatever means are available, but whether they will.

    At ampfea.org we've been gathering together, as a crew of Artists, to present a united front and stable base of operations for use by our individual members to use for promoting their artistic efforts.

    This is the future. There's no -need- any more for media giants banded together to share/consume resources for promotion, there is now the need for Content Producers to cut through the dreck and get good material online, and deliverable. It costs nothing to promote an .mp3 track these days, far and wide, to all and sundry, and it can be done very, very, effectively.

    I see the day when those 80's Golden Dreams of media control in the hands of the people is actually feasible. Lets hope we avoid some of those other predictions ...

    --
    ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    1. Re:The time for Artists to gather together is NOW! by Anonymous Coward · · Score: 5, Insightful

      There are many independant artists who are far better than anything in the RIAA stables, but there are far more producing crap.

      The problem with the emerging model you're talking about is finding a way to for the end users to find music they like.

    2. Re:The time for Artists to gather together is NOW! by torpor · · Score: 5, Interesting


      That's what I'm saying: its not getting the material to the end-user, that is easy now in this digital age, for anyone. Its cheap. Super cheap.

      The problem is, getting the attention of the end-user. There's too much other stuff going on to compete for that persons attention.

      Artists banding together to solve this problem, technologically, I imagine is the worst nightmare of the Big Media Board ... but it is being solved. My fans, combined with your fans, combined with our other muso buddies fans == a massive fanbase to which we can all cross-promote together. Collectively, an Artists Group promoting to a Fan Group will result in both groups expanding in size ...

      The means to do this are now in our hands, as artists. What's needed, is more artists, banding together collectively, and then doing it. There are no longer any technologically significant barriers to this problem.

      --
      ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    3. Re:The time for Artists to gather together is NOW! by Andy_R · · Score: 2, Interesting

      The problem with the emerging model you're talking about is finding a way to for the end users to find music they like.

      That's easy to solve using existing technology too, there is not reason why I shouldn't be browsing something like ampfea.org and awarding a (+1 funky) or (-1 off-genre) to tracks that people have posted.

      All it needs is a critical mass of users and content creators.

      --
      A pizza of radius z and thickness a has a volume of pi z z a
    4. Re:The time for Artists to gather together is NOW! by Oscar_Wilde · · Score: 1
      The means to do this are now in our hands, as artists. What's needed, is more artists, banding together collectively, and then doing it. There are no longer any technologically significant barriers to this problem.

      I don't think artists banding together that will help the customer at the end of the day (after all artists banding together might become just as bad as industry groups are now).

      I suspect the future will probably be more geared towards collaborative filtering (by the masses, not by people who are driven by their own self interest).

      Check out iRate radio for an example. For everyone who is to lazy to go to the site:
      iRATE radio is a collaborative filtering system for music. You rate the tracks it downloads and the server uses your ratings and other people's to guess what you'll like. The tracks are downloaded from websites which allow free and legal downloads of their music.


      Sounds like a good idea to me.
    5. Re:The time for Artists to gather together is NOW! by Deliveranc3 · · Score: 1

      Internet radio, unfortunatly the RIAA got their fingers in this pie. Even if you run all independant music they get a cut. The RIAA has billed themselves as the musician union though everyone knows they represent the labels far more than they represent the artists.

      Some albumns that were released independantly are getting increadible coverage [grey albumn], I think part of the problem is the dearth of good music over the last few years (I'm only 20 but I have access to historical records, I recognize a drought when I see one).

  7. Change the business model by anandcp · · Score: 5, Insightful
    The business model of the past is changing just like Alvin Toffler predicted.
    Communication will increasingly become cheaper/free. What is communicated matters more than how you communicate. So, in near future we will see a flat rate for communicating using Landline telephones, mobiles, broadband. Iam talking about convergence as people use a variety of devices to communicate and a variety of modes of communication (wired, wireless, IR, etc). The industry will fracture so fast that Verizon will be flat-footed before it can say cheese. Traditional companies can hope to survive only if they change into content providers soon.

    --
    -------- Cluster bombing from B-52s is very, very accurate -- the bombs always hit the ground.
    1. Re:Change the business model by El+Torico · · Score: 4, Interesting
      I want to agree to this, but with a few caveats.

      The costs of transmission will decrease for every new technology as it is used and matures. However, it isn't cheap to maintain a large network since it becomes less expensive, but it never becomes cheap.

      Technology is only one variable; people, law, markets, etc. all have to be factored in. It isn't so easy to predict the death of an organization since it has options for staying alive that you didn't consider. As much as I don't like Verizon either (especially the old Nynex part), they have managed to stick around.

      Being a content provider is no guarantee of success. There have been more than a few spectacular failures of media companies (Vivendi comes to mind as a recent one).

      On a side note, I have always wondered why the 5 or 6 largest ISPs never tried to build a true cartel (aside from the law).

      --
      In the land of the blind, the one-eyed man is usually crucified.
    2. Re:Change the business model by Sivaram_Velauthapill · · Score: 3, Insightful

      On a side note, I have always wondered why the 5 or 6 largest ISPs never tried to build a true cartel (aside from the law).

      According to my view of capitalism, free markets lead to oligopolies and monopolies--at least that's my theory. So the day WILL come when only a few ISPs are left. The reason it hasn't happened now is because there are too many ISPs. That is to say, the market is pretty much what one would call perfect competition. There are far more than 5 or 6 ISPs. You can't collude under perfect competition so that's why it hasn't happened. But in a few years I expect a few ISPs to kill the rest of the competition and dominate (like in most mature industries.) At that point, you'll see collusion.

      Sivaram Velauthapillai

      --
      Sivaram Velauthapillai
      Seeking the meaning of life... @slashdot of all places ;)
    3. Re:Change the business model by danila · · Score: 1

      The industry will fracture so fast that Verizon will be flat-footed before it can say cheese. Traditional companies can hope to survive only if they change into content providers soon.
      Wrong. Traditional telcos need to start thinking longterm and do quality analysis and forecasting of technology trends. That means no more 3G bullshit in order to drive up their share price or what was the point of that panopticum.

      They should invest in those technologies that would allow to provide the cheap quality access in the formats the customers want. The investments should be such that they pay back before the technology becomes obsolete. In the end there can be both large telecommunication companies that just do it better as well as smaller ones that occupy a niche or specialise.

      Before we get to the Singularity, there is still space in the economy for telecommunications providers. Someone will have to install Wi-Fi all over the world cities, launch telecommunication satellites and wire the Earth with fibre-optics, including transoceanic cables. Those who will do it most efficiently will win. No content gimmicks necessary.

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
    4. Re:Change the business model by mwood · · Score: 1

      What your theory misses is that as a free market in X heads toward greater consolidation, the reduction of consumer choice creates opportunities for new players to enter the market with goods/services that the Big Boys cannot or will not offer.

      Some of the small fry get bought out, and some grow hugely and become Big Boys themselves. From time to time one of the Big Boys dies off. But the bigger the Big Boys are, the more room there is around them for fresh ideas that they won't adopt. There is probably a steady state, but it almost never is monopoly and it almost never eliminates all possibility of newcomers.

    5. Re:Change the business model by Anonymous Coward · · Score: 0

      "According to my view of capitalism, free markets lead to oligopolies and monopolies--at least that's my theory"

      It's a correct partial theory imo.

      The full one continues... ..until such point that by way of inertia the monopolies are broken up by the free market forces moving around them, and so continues the capitalist wheel of life.

      Right now we are approaching azimuth, consolidated corporate power is about to start fragmenting under the pressure of new markets and businesses flanking them on all sides.

      A great time to be starting into a venture on the small independent scale for any technology, music , media or whatever, you will surely catch the next big up that comes as the dominos start to fall.

    6. Re:Change the business model by cpeterso · · Score: 1


      The paradox of monopolies is that their huge revenue is so enticing to upstart competitors that monopolies ATTRACT competition. For example, Microsoft has a defacto monopoly on desktop OSes, but the huge market makes Apple, Sun, and Linux drool as they fight for a sliver. A small sliver of a big pie can be very profitable for a small company.

    7. Re:Change the business model by Sivaram_Velauthapill · · Score: 1

      True but... as any business course would say, large corporations' goal (at that point) is to establish barriers to entry. If the corporation knows what it is doing, these barriers cannot be overcome by new entrants. Examples of barriers include patents, economies of scale, locking up suppliers, etc.

      The niche markets that you are talking about (I'm assuming that's what you are referring to with the profitable markets for small companies) is too small for it to matter. Yes, small companies can capture these markets. But they are very small.

      For instance, I don't think Microsoft will be dislodged by anyone in the near future. The only ways they will go down is if they make some strategic mistake (some large companies do), or if they face oblescence. To give a more general example, I don't think any company can enter the car market sucessfully. The car companies that you see now will dominate (even more so in the future.) However, cars will become obsolete one day so they will face problems at that time.

      Sivaram Velauthapillai

      --
      Sivaram Velauthapillai
      Seeking the meaning of life... @slashdot of all places ;)
    8. Re:Change the business model by Sivaram_Velauthapill · · Score: 1

      Are you sure you meant to say 'azimuth'? That makes no sense. Anyway...

      I don't share your view that there will be some "peak" in monpolization (what you call consolidation) followed by a decline. Corporations are more powerful now than ever! The few large ones control more wealth and have greater influence than at any point in the past. This goes for all industries. There are less airplane companies now than ever (Boeing and Airbus primarily); there are less car companies now than ever (many of them merged recently); there are less media companies now than ever (something like 11 companies control 90% of US media); there are fewers movie studios now than before (many with different names are owned by the same company eg. Disney vs Touchstone); there are less retailers now than ever; less oil companies; and so on.

      I don't know what capitalist forces (aka free market forces) will break these things up. Do you really forsee a decline in the monopolization of media? Or cars?

      A great time to be starting into a venture on the small independent scale for any technology, music , media or whatever, you will surely catch the next big up that comes as the dominos start to fall.

      When do you expect the oligopolies I mentioned to fall?

      Sivaram Velauthapillai

      --
      Sivaram Velauthapillai
      Seeking the meaning of life... @slashdot of all places ;)
    9. Re:Change the business model by Sivaram_Velauthapill · · Score: 1

      Couple of points...

      Large corporations will erect barriers to entry. It will not be easy for small companies to enter or to survive. Typical barriers to entry taught in business schools include patents, vertical integration, signing exclusive contracts, locking up customers (eg. airmiles, proprietary file formats), among others. It will be difficult for small companies to succeed. Furthermore, large companies automatically have larger clout, and, perhaps more importantly, economies of scale. The existence of economies of scale pretty much means that large companies will always beat new entrants. For example, it is very difficult to enter markets such as electronics, retailing, and auto/cars. You can probably say the same thing about computer operating systems, CPU manufacturing, and others--although the computer industry is not very mature so it is easier.

      Some of the small fry get bought out, and some grow hugely and become Big Boys themselves. From time to time one of the Big Boys dies off. But the bigger the Big Boys are, the more room there is around them for fresh ideas that they won't adopt.

      Overall this makes little difference. One big corporation is replaced by another. YOU might become rich and powerful but that's irrelevant. From the viewpoint of the economy, it's pretty much the same. That is to say, a few large companies controlling everything. So you will still have oligopolies and monopolies.

      There is probably a steady state, but it almost never is monopoly and it almost never eliminates all possibility of newcomers.

      I'm not implying that everything will tend to monopolies. That's why I say oligopolies and monopolies. The point is that there will be a FEW companies controlling most of the industry. In some cases it will be monopolies while for most, it would be oligopolies. I am also not saying that the SAME companies will remain in power or that there is zero possibility of entry into a market. Clearly, there is ALWAYS the possibility of entering any market (the only way this won't be true is if entering a market is outlawed eg. military weapons.) But the key thing is, a few companies will rule each industry. So, I don't expect Microsoft, IBM, and Intel to dominate the "computer*" industry in 50 years. However, I DO expect perhaps 2 or 3 large corporations to dominate the "computer" industry in 50 years.

      Sivaram Velauthapillai

      NOTE:
      * What we call "computers" may not exist in 50 years. That's why I put computers in brackets. I'm basically referring to something similar. Perhaps computers will be replaced with quasi-biological machines.

      --
      Sivaram Velauthapillai
      Seeking the meaning of life... @slashdot of all places ;)
    10. Re:Change the business model by Keybounce · · Score: 0

      Hang on... The day _WILL_ come when there are only a few ISPs?

      Today we have:

      1. AOL.

      Distant #2: Earthlink.

      Way way off in the distance, some tiny startups:
      juno, people pc, walmart.

      Other than that? Regonal tiny companies, like phone companies or city-wide ISPs.

      If you want a nation wide ISP that you can use while traveling with your laptop, you've got 5. And only 2 of them are any size at all.

      Keep in mind: AOL spent 10-12 years purchasing market share at a major loss before finally starting to make a profit. AOL's investors and VC's spent their money buying a virtual dominance if not outright monopoly. Even today, what does Microsoft do to inflict its new email fiat on everyone? That's right. Gets AOL to sign up, and ignores earthlink, walmark, phone companies, etc. They don't matter. They're too small.

    11. Re:Change the business model by 36-bitter · · Score: 1

      Mmmm, we may be arguing over terminology rather than models. To me, "monopoly" means that one player controls 100% of the market, and "oligopoly" means that a small number of large players control 100% of the market. In each case there is no possibility for any new players to enter without *first* pulling down the market's owner(s).

      What we usually see is a bit different. The large players can maintain their positions, most of the time, but they cannot completely eliminate the small players. The large players continue serving the needs of the majority of buyers, who are not very particular and will tolerate products homogenized to almost satisfy nearly everyone. The small players survive by serving those who have very specific needs and are willing to pay a premium to meet them. I think this is probably a good deal, and markets tend to agree with that because the setup is quite stable. I don't mind paying a little more for something I think is better; what I object to is having good (in my opinion) products crowded *completely* out of the market by poor (in my opinion) products just because a big player is determined to have a 100% share regardless of how disaffected his captive market may become. I don't *care* that A is bigger or more popular, so long as I can still buy B if I want to.

      Things become unstable when a small player offers something which (often unexpectedly) appeals to a majority. If the big players remember that they are businessmen, they'll find a way to offer it too and so stay in the game; those who have forgotten business and are in the market to exercise power will be dealt out, although they may do a lot of damage before they lose their dominant positions.

  8. This is not news by abiggerhammer · · Score: 5, Insightful
    Robert Heinlein had an interesting, if cynical, remark about how long it takes to conquer a nation. Three generations, he said, because by that time, all the people who were born under the old regime are dead.

    If you look at the songwriters' attempt to shut down radio stations back in the first half of the twentieth century, there's a great deal of similarity with the current file-sharing situation. BMI, ASCAP and other licensing schemes grew out of this (and the EFF has just proposed a similar licensing scenario which would place a great deal of the (fairly light) burden on broadband ISPs, who could then offset that by raising costs slightly. Not a bad idea -- but at the same time, it's one of a very small number of times that something like this has been proposed in the last century. The old model is still perceived as viable simply because so many people see it as viable; sadly, the only thing that will finally put it to rest is time and boring effort.

    Social progress, much like scientific progress, often moves forward one funeral at a time.

    --
    Dance like nobody's watching. Sing like you're in the shower. Fuck like you're being filmed.
    1. Re:This is not news by Anonymous Coward · · Score: 0

      The Robert Heinlein quote got my attention anyway. I think the 3 generations part is assuming citizens of the conquered people are assimilated by the conquerors. If the conquerors decide on exculding the conquered people, be it via apartheid, legalised electoral disenfranchisement, native reservations, or ethic cleansing... But this is offtopic.

  9. That's raw capitalism by xixax · · Score: 4, Insightful

    Why is "industry" so surprised? This is what capitalism is supposed to be about; the inefficient are driven to extinction and new, more efficient players take their place. They have to take the good with the bad and shouldn't be allowed to legislate protection everytime the wind blows their way.

    Xix.

    --
    "Everything is adjustable, provided you have the right tools"
    1. Re:That's raw capitalism by ed__ · · Score: 3, Interesting

      > Why is "industry" so surprised? This is what
      > capitalism is supposed to be about; the
      > inefficient are driven to extinction and new,
      > more efficient players take their place. They
      > have to take the good with the bad and shouldn't
      > be allowed to legislate protection everytime the > wind blows their way.

      well, it's a slippery slope: once you start
      taking the good, and then take the bad,
      and then you take them both and there you have, the facts
      of life, the facts of life.

      especially when the world never seems, to be living up to your
      dreams and
      suddenly you're
      finding out the facts of life are all about you.
      yooouuuuuu.

      that's why the industry is so surprised:
      it's obvious that it's going to happen, it just
      wasn't clear to them that it was eventually going
      to happen to *them*.

    2. Re:That's raw capitalism by hachete · · Score: 5, Insightful

      No. Capitalism is about making money. To make money you have something someone wants. You maximise making money by being the sole supplier of that "something". In it's raw state, *any* means of making that money is seen as legitimate.

      The pop-Darwinian overlay you put on it is simplistic: competition itself leads to "monopolies", even if that of species. The drive to survive will include the drive to exclude *all others* from their food-sources. In other words, winners monopolise.

      In fact, monopolies abound in capitalism - in the patent market, for example. Other include the monopolies granted by King James I. A more recent example would be the shipment of ice from Connecticut to the West Indies and India in the last century. The entrepreneur involved got himself into a monopoly and made a lot of money.

      I agree that the RIAA et al should not be allowed to use legislation to consolidate their position, but this is a moral view which is probably unpopular with said legislators and with the organisations - the drive to monopolise being seen as a legitimate business strategy. IMV,the role of the legislator is to ensure that the winner-takes-all Darwinian situation *does not* arise, thus avoiding the catastrophe of an industry collapsing under it's age. But that requires foresight and common-sense, and looks almost like a Planned Political economy which is probably something you hate as well.

      h

      --
      Patriotism is a virtue of the vicious
    3. Re:That's raw capitalism by Nick_dm · · Score: 3, Insightful

      The "capital" in capitalism doesn't just refer to the people at the top making money. It refers to the fact that effectively, everything has a price and can be viewed in terms of capital. The value of land, goods and workers wages is determined by the demand. Ideally this should encourage companies to be efficient and provide good value for money, in reality this doesn't always happen due to customer inertia and advertising affecting the publics' buying habits, legal issues them come into play as well.

      While monopolies will always occur in capitalism, for the system to work well, ideally they should not be able to affect their market control using anything other than the quality of their product and value for money. However we often see people control the market by using one product to help another (financial support or compatibility issues) or lobbying for favorable laws to be passed.

    4. Re:That's raw capitalism by danila · · Score: 1

      Good point about Darwinism. Where the analogy stretches too far is that corporations don't always allow entrepreneurship, which is analogous to sexual reproduction. If RIAA (a major label) had a hundred or so departments that would compete with each other, while still being a part of the whole, we would not have these problems. But the only competition is about who will be the director...

      Evolution requires heredity and mutations. In the capitalism world mutations (change) are looked down upon.

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
    5. Re:That's raw capitalism by mwood · · Score: 1

      I see a lot of use of the term "efficiency" in economics with precious little discussion of just what is being made more efficient. I submit that one reason monopolies are so hard to hold together, despite massive advantages, is that what is efficient for the owners is generally inefficient for the customers, and often for the workers.

    6. Re:That's raw capitalism by Moofie · · Score: 1

      Capitalism is about making money IN A FREE MARKET.

      Your evolution algorithm is totally broken. There are DOZENS of species of high-order predators on Earth. None of them monopolizes the food sources (with the arguable exception of humans, which are THE alpha predator of this rock)

      Evolution has checks and balances built in. Too many wolves==not enough deer==fewer wolves==more deer==more wolves. Circle of life.

      I'm a big fan of laissez-faire capitalism. However, no corporation in the history of the planet has ever liked the notion. When they talk about "laissez-faire", that means that they want the government to protect THEIR interests and let them rape MY interests.

      --
      Why yes, I AM a rocket scientist!
    7. Re:That's raw capitalism by hachete · · Score: 1

      No, your interpretation of my email is off. The drive is to exclude all others. That doesn't mean they actually attain that goal. In the same way that MS does not control every single desk top in the world - just enough to make it matter. It's at the point where the effect of competition is beginning to lost it's grips on microsoft. The busines-cycle, too, has checks and balances. My email did not include this effect - then again I wasn't intending to write a book on the topic.

      Interesting that you should mention a FREE MARKET - which is obviously important to you - and I was wondering if you could define it further?

      h

      --
      Patriotism is a virtue of the vicious
    8. Re:That's raw capitalism by Moofie · · Score: 1

      A free market would include minimal protections on intellectual property (like document formats, say) and no pro-business legislation (DMCA et al). This is a topic that could easily consume a book, but let's start with good old fashioned libertarianism and add really solid consumer protection laws, and we're on the right track.

      --
      Why yes, I AM a rocket scientist!
    9. Re:That's raw capitalism by hachete · · Score: 1

      Yes,another book on the subject is what the world needs. BTW, your definition fails according to Google which, as we know, the Font of All Knowledge. Check out http://www.google.com/search?q=define%3Afree+marke t&sourceid=mozilla-search&start=0&start=0&ie=utf-8 &oe=utf-8

      h

      --
      Patriotism is a virtue of the vicious
    10. Re:That's raw capitalism by Moofie · · Score: 1

      If you wanted Google's definition of a free market, ask Google. But you asked me, so I gave you mine.

      --
      Why yes, I AM a rocket scientist!
    11. Re:That's raw capitalism by xixax · · Score: 1

      There's nothing "pop-Darwinian" about it. Economic Rationalism says that regulation is bad and that un-fettered capitalism will self regulate by finding the most efficient methods. Yes, capitalism is about turning a profit, but one guy's profit is another's market inefficiency.

      The eco-rats would possibly even argue that all monopolies arise from market intervaention and regulation (aka an imperfect free market). The granting of patents and allowing the creation of guild such as the RIAA would if anything support that argument.

      Xix.

      --
      "Everything is adjustable, provided you have the right tools"
  10. Why not take capitalism into account? by ebbomega · · Score: 5, Insightful

    My attitude on this matter so far has always been the same.

    Free Market.

    Face it. The music industry in its current form is dead. The only reason that they're getting away with suing people is because the government is letting them with crap like the DMCA, something I personally think was entirely developped to stunt the inevitable change of the global market.

    CDs are obsolete as a distribution form. The internet is cheaper, quicker, easier. CDs used to be a marketable product: People wanted music in a decent high-quality format and CDs were the best thing available for it.

    But now that's changed. CDs are no longer worth the same money that we pay for it because it has less value. So why are the governments bending over for the music industry and outright saying "I don't care what they're worth now. They were worth $20 20 years ago, they should be so now too."

    When Henry Ford invented the assembly line, cars dropped radically in price. We're looking at the new economic revolution, and it's digital. An exceptionally cheap means of distibuting any digital media, be it software, music, videos or anything along the way. But the fact that it's not patentable or marketable has a lot of these now obsolete industries going crazy. Granted, the software industry always had to cope with this, and Microsoft did a great job at it by basically cramming their product down everybody's throats to the point of dependency. But the fact of the matter is that these distributors of software and data are becoming more and more obsolete the more accessible stuff is becoming through digital media.

    And of course, lobbying seems to have forced the government's hand to agree with them, and so technology as we know it isn't being given the breathing room it needs to flourish, and so these companies are refusing to adapt, with disasterous results: Suing 12 year old girls, awful mediocre music giving us outright reason to stop listening to radios and stop buying CDs, buggy software with no less than 3 major worms in the last year hitting a bunch of people and making everybody pissed off with their computers (honestly. Your computer didn't do anything wrong. It did exactly what it was supposed to in that situation. Maybe next time you'll think twice before you shell out $150 to those boys in Redmond).

    But of course, in this so called "Capitalist" society we're going to completely refuse the concept of the Open Market because it seems now that people will actually have to play the game of supply and demand instead of venture into Count-Zero like mafia-war tactics of Big Business. And of course we can't let that happen because... well... I can't think of any reason other than to let the rich get richer. 1984 here we come!

    This is why I support open software. This is why I download my music. This is why I waste hours on the internet trying to learn as much as possible about computers. Because I ultimately want to help this world progress into something better than it is now, rather than let it perpetuate itself into staleness.

    --
    Karma: Non-Heinous
    1. Re:Why not take capitalism into account? by Sivaram_Velauthapill · · Score: 1

      I have this theory that free markets lead to oligopolies and monopolies under capitalism. Admittedly, this is an anti-capitalist view and capitalists don't accept it. All I can say is that your faith in the free market is misplaced.

      You say that these companies have to play the "game of supply and demand." Well, they have always played that game. It's just that they gained power over time and skew the market in their favour. It is my opinion that you can't do anything to combat that under capitalism, unless you implement anti-capitalist measures (eg. anti-trust regulations, taxes, etc). All the so-called "evil" large corporations started out small, often under perfect competition. People like you pick on Microsoft, for example, but 20 years ago it was a small company that was playing the "game of supply and demand" as you desire. What happened?

      The fact of the matter is, under capitalism, the primary goal of a business is to monpolize the industry. This will always be true as long as the system is based on maximizing profits, which capitalism is.

      Most of your arguments are weak. For example, the computer industry, with its heavy patent and protectionism of "intellectual property", has managed to drop prices more than the Ford that you cite. What does this say? Companies like Microsoft did not become monopolies by manipulating the government--they did it on their own. You were never forced to use Windows or DOS. You could have used UNIX or Apple (which was even more expensive). If you became locked into proprietary technologies, it is probably your fault.

      As far as content based industries are concerned, I don't see you providing any solutions. You download your music. OK. Fine. How exactly is this contributing to the artists? If everyone did this, the industry will collapse.

      I don't see what you are doing to help this world progress into something better. You are just supporting the existing system of capitalism, with a small twist. Nothing will change.

      Sivaram Velauthapillai

      --
      Sivaram Velauthapillai
      Seeking the meaning of life... @slashdot of all places ;)
  11. Direct purchase by Anonymous Coward · · Score: 5, Interesting

    Imagine purchasing your shows direct from the producing company. One new copy made available per week. Mine to download and then view when I felt like it. No 'channels' or 'networks' in the traditional sense.
    No adds.

    Or another scenario; I live in a large city ( > 4 million). Only the very largest of companies can afford to advertise. With narrowcasting a sort of advertising model could be supported where a small business might only choose to advertise in a 2km radius - or maybe only to profiled recieptients.

    Dunnno.... but things have got to get better.

    AC

    1. Re:Direct purchase by blincoln · · Score: 5, Insightful

      Imagine purchasing your shows direct from the producing company. One new copy made available per week. Mine to download and then view when I felt like it. No 'channels' or 'networks' in the traditional sense.
      No adds.


      If someone were to do this with reasonably high quality (say a 300-400MB DivX file for a single 40-60 minute episode, $25 or so per "season"), I might start watching TV again.

      Right now I just wait until the series I want is out on DVD and buy that. I lost my patience for commercials when broadcasters started split-screening them into the ending credits of the few shows I was still watching.

      I would be willing to pay more (e.g. $30+ per season) if I could get a discount when the DVDs were released if I wanted high quality copies.

      --
      "...always new atoms but always doing the same dance, remembering what the dance was yesterday." -Richard Feynman
    2. Re:Direct purchase by Jason1729 · · Score: 1

      Decent cable is at least $40/month these days or about $500/year. If a season on DVD averages out to $50 per show, you can buy 10 shows/year on DVD before it becomes more expensive. So it sounds like a good idea

      The way they get you though is the delay before it comes out on DVD. You're right, it would be a great business model as you described it.

      Jason
      ProfQuotes

    3. Re:Direct purchase by AnotherBlackHat · · Score: 1

      If someone were to do this with reasonably high quality (say a 300-400MB DivX file for a single 40-60 minute episode, $25 or so per "season"), I might start watching TV again.


      Farscape was estimated at $3,000,000 an episode.
      Even if you ignore the production and distribution costs of the media, you're still looking at more like $75 for 26 episode season if you're going to try and cover the production costs.
      If you include all the failed shows too (or if you prefer, think of it as factoring in the risk of failure) the cost is not surprisingly higher than the current cost of a DVD boxed set.

      Broadcast televison (and to a lessor extent cable) is still one of the most cost effective way to distribute video.

      -- this is not a .sig

  12. Parallels to the history of print by kompiluj · · Score: 5, Interesting

    You might not know but the inventor of print, Gutenberg did not want to print large volumes of books - he wanted to print books that would look similar to the hand-copied ones (hence fancy font and illuminations) - see the Gutenberg bible - these were the incunabuli
    He wanted to make much money. Were it not for his followers that stole his invention and started mass production of books (very similar to those we now nowadays - set up in antiqua typeface) that cheap books started to exist and made wide dissemination of knowledge possible.
    If there were patents in Medieval Times, surely Gutenberg would obtain a one, and no print as we know it would be possible.

    --
    You can defy gravity... for a short time
    1. Re:Parallels to the history of print by Anonymous Coward · · Score: 0

      "no print as we know it would be possible"

      until the patent expired.

    2. Re:Parallels to the history of print by cmacb · · Score: 5, Interesting

      "If there were patents in Medieval Times, surely Gutenberg would obtain a one, and no print as we know it would be possible."

      Don't be silly! Of course there would be print today.

      The Gutenberg/RIAA (hey, maybe they'd even call it project Gutenberg) foundation would monitor it all and make sure that the "right" things were done. Your newspaper would cost $15 or so and you'd have to make sure that when you were done with it you either shredded or burned it so that nobody else could ILLEGALLY read it.

      Quoting from a newpaper, book , or magazine would of course be out of the question. The Internet would represent a big threat, in fact the GRIAA would attempt to pass laws that ALL written content be on PAPER DAMMIT! and not appear on our video screens. Both Democrats and Republicans would fall all over themselves to help the GRIAA maintain law and order, after all, our laws are recorded on paper, in writing, and all of that would be property of the GRIAA. Can't afford to piss them off (and besides, Orin Hatch is no doubt an author as well as an accomplished composer and would have all sorts of personal reasons to wish that GRIAA violators would have their houses burned down).

      I think things will change. When a lot of the old farts at the head of these industries (and our government) die, and probably not before. Lets hope they are all heavy smokers and drinkers. Actually I think it's a safe bet. (Except for Orin that is).

  13. suffice it to say.. by zeruch · · Score: 5, Insightful

    ...what he is saying is not new. In past eras it was the rush to vertically integrate all soup to nuts related items (and some not related items) into a single conglomerate that supposedly trumpeted the 'efficiency' of a larger player, when in fact all it really amounted to was a stock inflation that eventually sank and resulting in spinning off or eradication of units that were formerly productive entities on their own.

    While written long before the issues brought up in this article, a great read about similar behavior and how it pertains to public policy is Corporations and Political Accountability by Mark V. Nadel. Personally, I like the Comcast/Disney deal, because chances are Comcast will not know how to run it and the gelatinous radioactive mess that results will cause Disney to become a footnote in entertainment history.

  14. How about a distributed wireless network? by Quizo69 · · Score: 4, Interesting

    The problem of content and transmission today have to do with one thing - making money for someone. Everybody thinks in terms of paying for either bandwidth speed or throughput, or paying for content exclusive to one provider. This is not going to get us anywhere.

    What I envision is much simpler - pay for a piece of hardware once(high speed wireless transmitter/receiver with intelligent peer routing), and then the bandwidth is not paid for by anyone, because there's no traditional infrastructure to set up. If a company would just make this type of equipment it could set free all those who currently are beholden to their ISP/cable companies for "giving" them a certain amount of bandwidth in exchange for $$$. If you make these wireless internet nodes in such a way that they auto-aggregate and reorder themselves based on surrounding nodes, you would effectively have unlimited bandwidth (to the limit of transmission tech of course) not monopolised by anyone. Much like Bittorrent, the more nodes you had, the faster it would be. Conversely, you could have high power models for remote areas to transmit/receive further.

    It's a paradigm shift in thinking (since the very notion of not needing to pay constantly for access is foreign to most), and I don't have all the technical answers to this sort of idea, but surely the idea itself has merit?

    1. Re:How about a distributed wireless network? by coopaq · · Score: 5, Interesting
      Every geek I know dreams of this. Of course the cable that is in the ground right now is faster than the wireless technology which you propose.

      While some may settle for, let's say, 10Mb/s bandwidth they get from sharing their "neighborhood" wireless connections the physical wires directly to the cable/phone/ISP will be faster due to their really expensive hardware and fiberoptics which they own. We all will have a tough time putting Cisco routers in our houses.

      All of us here seem to have this otaku for wireless and free internet service so we can download our free content and free music which will all be produced for free of course.

      We will find a way to live in a globalised world with more competition and commodities and a balance will be found around the monopolies we see today.

      One could make the argument (easily) that our country (the US)is a monopoly and soon, if not already, we will be experiencing serious and unexpected competition which will drive many of our standards of living downward or sideways at least. It will make these industries that are threatened by the edge actually threatened more frequently and more rapidly.

    2. Re:How about a distributed wireless network? by ndecker · · Score: 5, Insightful

      I see one problem with a completely free network. This creates a limited resource ( by the number of nodes, ... ) that can be used by anybody as much as they want without charge. This is very much like Air. If there were no environmental regulations, every factory would blow out any dirt they can because it is a little bit cheaper for them.
      In a shared wireless network there would be leechers that modify their access points to use all the bandwith of their neighbours making the network useless for others.

    3. Re:How about a distributed wireless network? by Anonymous Coward · · Score: 0

      Very good point. But the analogy breaks down because, with air, individuals are not able to effectively prevent the abuse - the EPA (is suppossed to) represent those individuals' interests to counter-balance the abusers.

      The difference between the air analogy and free aggregate wireless network is that for air, we are all just consumers - unless you are a tree. For an aggregate network, we both consume bandwidth and produce bandwidth, we have direct control over our bandwidth production.

      So, any workable (and scalable) aggregate networking protocols will, by definition, include abuse detection and prevention. In simplified terms - if you see your network neighbor taking more than his "fair share" (define as you like) of bandwidth you can just throttle back on how much bandwidth you provide him.

      In fact, in a correctly implemented system there should not even be the concept of "abuse" -- it will work out to be a kind of autopoeitic network version of, "from each according to his ability, to each according to his needs."

  15. Re:Until... by Anonymous Coward · · Score: 0, Funny

    Nah, the Teenage ones are too bust on Kazaa

  16. Someone just sues you, by Bender+Unit+22 · · Score: 4, Funny

    Why try to invent anything, someone will just come up and sue you, claiming the have a patent on it.
    It is much better to take an existing product and put a clock in it.

    1. Re:Someone just sues you, by Anonymous Coward · · Score: 0

      But then how could you improve a clock?

  17. Article raises an interesting question. by Duderstadt · · Score: 5, Interesting
    While most people are ignorant of this fact, unlimited access to the Internet requires nothing more than an access point into the global communications infrastucture.

    You certainly do not need a so-called Internet Service Provider.

    So, what would it take to create your own access point?

    1. Re:Article raises an interesting question. by houghi · · Score: 1

      So, what would it take to create your own access point?

      The only thing you need is a connection with somebody that is an ISP. It is better that you have two or more. It is called peering. That is on the side of the Internet. On the other side you need people, or even better, computers who link trough you to the Internet. At that moment you are an ISP.

      Wether you do this by modem, cable, ADSL or whatever is irrelevant.

      --
      Don't fight for your country, if your country does not fight for you.
    2. Re:Article raises an interesting question. by chess · · Score: 1

      Well, err, actually You need an Internet Provider.

      Unforunately they call themselves Internet Service Provider and tend to do silly things like:
      Swamping You with CDs containing superfluous Access Software and broken Browsers, harras You with Hard Coded Homepages that put you to their blinking, ad-infested unnecessary Portals.

      On the plous side, You'll also get an E-Mail adress and some Web-Space.

      So do not let confuse you by bells and whistles.
      Your ISP is really what you want.

      In Europe, it is also usual to pay some Telco for the raw connectivity seperatley from the one that does the actual connection to the rest of the Internet.

      chess

    3. Re:Article raises an interesting question. by ComputerSlicer23 · · Score: 4, Informative
      Hmmm, you appear to be ignorant of the facts (no disrespect). Unfettered access to the internet, is a series of red tape issues that must be traversed. You can't get service to the Internet without some type of ISP. All but the largest ISP's have a transit provider which is for all intents and purposes, their ISP.

      So if you really want your own access to the Internet, where you are in control of as much as you can be without having an international network, these are the steps:

      First, you have to aquire IP addresses. This used to be a relatively simple process (or so I'm told). You can either get them from the people who give you connectivity (read: your ISP).

      However, you say, we don't have an ISP. So we have to go get them from the source. So, you'll have to get them from one of the regional IP providers. In this case, it'd be ARIN (in North America at least). You can pick them up for the bargin basement price of $20K for a /20 (2^12 = 4096). Oh, and part of the paperwork is to prove you'll use it all.

      Actually, after poking around, I've found that is the route you have to go if you are an actual ISP. It appears you can apply directly for IP's yourself. For a /24, that'll cost $2,500, plus an additional $100/year. If you want to have the numbers be publically routable, you'll probably want an AS number ($500 initial fee, plus $100/year). You can apply for these, buy you need a pretty good reason it appears, all of which must be justified periodically on why you get to keep the IP's. Also note, that these IP's are very likely to be filtered by large ISP's, because the routing table is getting too big, so they just drop routes that are for too small a block of addresses. So there will be significant parts of the Internet that can't get to you.

      Now, you have IP's reserved especially for you. However, you have to actually get get physical access to someone or something that will allow you to connect to the Internet. Most people do this by an ISP. However, that again is out in this case. So, now, you have to setup a peering agreement with someone.

      Essentially, a peering agreement is a deal where several groups throw in together, and line of physical data lines to some one else on the internet. They create a Point of Presense (PoP) where that data line is terminated. Each group gets access to this PoP to get connected to the Internet at large. Now, they all agree to pay the fees associated with the lines. One of which is to pay the company that owns the line (unless they paid to have it buried). They have to pay for the physical space that houses the equipment. They also have to pay the entity at the other end of the line.

      That entity is the PoP's ISP. Normally, in this case they are referred to as a "Transit Provider", as opposed to an ISP. The fees associated with this are contractually drawn up by the entity you are connecting to. Normally, it's done by the byte, or by a threshhold of bandwidth utilization.

      If really big transit providers (Tier 1 ISP's) construct a peering point, generally no money changes hands. However, at this point, you are an ISP to other large ISP's, as opposed to having one.

      In the end, unless you are an ISP (and have a global worldwide network), you MUST have an ISP. It might be a no frills, IP transit only arrangment. However, in the end, you must have an ISP. Unless you can convince someone who currently has access to the Internet to lop off some numbers and give them to you. However, they are still the entity providing you Transit, and in some sense are your ISP.

      Where I work, we have UUNet (WorldCom) as our ISP. They are the have the single largest network in the world. They give us unfettered access to the internet, but they are still an ISP. They give us a block of 128 IP addresses, and we have T1 connectivity for about $1,200/month (roughly, between them and the phone company). Technically speaking, we setup a peering agreement with UU

    4. Re:Article raises an interesting question. by Big_Al_B · · Score: 2, Insightful
      Huh? Respectfully, this is nonsense. The vast majority of us have at least one "access point into the global communications infrastucture." They're called "phones". Does this give us all "unlimited access to the Internet?" Of course not.

      Definitionally, as well as practically, the Internet is a very specific arrangement of routed IP networks that have peering or customer/vendor relationships. Your access point must have at least one routable IP address on one of these networks. Period.

      For Internet access, any physical connection (DS0/DS1/DS3/OCN/Wireless) you have to a local exchange carrier, e.g. the global communications infrastructure, is moot without a business or consumer relationship with an ISP.

      You can run your own IP network between your own sites, but you're not going to read /. from there.

  18. Architectual Principals of the Internet by anti-NAT · · Score: 2, Informative
    --
    The Internet's nature is peer to peer - 20050301_cs_profs.pdf
    1. Re:Architectual Principals of the Internet by Anonymous Coward · · Score: 0

      How is it that you can paste "Architectural Principles of the Internet" and then you write "Architectual Principals of the Internet" (what is this, an engineering school with multiple heads?) I am amazed and astounded.

  19. that's a different topic by sacrilicious · · Score: 4, Informative
    He forgot to mention RIAA/MPAA's attempts to control the very way we can use their products after we legally purchase and pay for them.

    It's not that he forgot, it's that this topic actually doesn't fall into the domain he's discussing. He's talking about re-conceptualizing the end-to-end substrate of the internet, and hinting at some simple technical protocols/implementations to accompany and bolster such a shift in conceptualization. The goal of this shift is to enable innovation again. This does have some similarities to the topic you suggest, but only to the extent that there are technical and legal issues, and that big companies want more money at the expense of the public... which pretty much includes just about everything.

    --
    - First they ignore you, then they laugh at you, then ???, then profit.
    1. Re:that's a different topic by Comen · · Score: 1

      Allot of trouble with giving control to users at the edge, where he hints in new
      protocols that would allow the users to choose services, probably from other
      providers rather than the transport provider, is that you almost in all cases have to be
      able to control the priority of the packets through the IP network to allow most
      media services to exist. the transport providers have to control this, they cant let the
      users decide what packets take priority through their network. There might be ways
      around this, let users mark priorities on their own packets but charge them for doing
      so, but I don't know don't seem like it would scale, you simply cant have users
      marking all packets with high priorities.
      That would remove the the benefit of marking the packets in the first place. Right
      now the transport providers are getting ready to role out things like 50mb DSL, not
      so much for internet access, hell their connection to the internet wouldn't be able to
      give all users 50mb to the internet, but are trying to role out video/voice service on
      these lines.

    2. Re:that's a different topic by KrackHouse · · Score: 1

      Agreed. It is scary that the ignorant politicians are being swayed by the even more ignorant masses and the corporations that understand the issue are afraid of change so they lobby just in case someone in congress manages to figure it out. A quote by Abe Lincoln "It is unworthy and ultimately untenable to have the most basic questions settled-and unsettled-by votes. The nation needs a foundation more durable than the sand of opinion that can be easily shifted in each election" My only hope is my faith in the old saying "The market always wins" I don't think democracy can exist without capitalism. Regardless of how dumb we are, we're smart enough to find the best deal.

      --
      What if Digg added local news and a Slashdot inspired comment karma system? ---
      http://houndwire.com
    3. Re:that's a different topic by ahdeoz · · Score: 1

      He's dead wrong though. The internet exists because it uses standard protocols: TCP/IP & DNS, (as do the majority of applications: SMTP, HTTP, etc.) If you fragment, it'll disappear. Morse Code created the telegraph network. Not the other way around. Not that there was anything special about those dots and dashes, but because it was accepted as a standard by all the various vendors & end users in their day. We've had connectivity for decades (the internet was built on the back of 28.8, 9600, and even 300 baud modems.) The tecnology rises to meet the applications' needs, and the applications are created when there's a reliable market. Unfortunately, the trusts have gotten ahold of things. They would love to see everyone using Kazaa or Morpheus or Napster and trading music they release rather than creating and distributing their own on a common network. They love SPAM, because they can't wait to let you onto their "secure" private email network where all ads must be designed by Madison Avenue firms, and they get a sliver of each pie in your face. They hate open protocols like SIP, but they don't really fear it, because they control the routers and firewall and know that it's only a matter of time before they can squeeze TCP/IP out of existence, through legislation, through junk traffic, and through proprietary apps & content.

  20. Re:His analysis is akin to the design of the Inter by segment · · Score: 4, Insightful
    I wouldn't even worry about the DMCA affecting any outcome of law more than I would the governments of every country trying to capitalize on which gets to control what via which regulations they want to impose. Now I know it sounds like a trollish rant, but take a look at the so called war on terror where anything that happens is automagically al Qaeda. it stirs the emotions and leads people to believe more needs to be done to fight these terrorists, hence somebody has to do something, hence the abuse of corporations, Halliburton, Bechtel, nuff said. Hear me out before you truly think I'm trolling.

    Considering the gov in the US started the entire FUD based game on hackers in the mid 80's and steroided it up, what do you see now...? Let me give you an example...

    All studies pointing to the same thing read the titles... A Primer on E-Government: Sectors, Stages, Opportunities, and Challenges of Online Governance, throw that in with consortiums like CALEA, and you get a handful of companies that get to dictate what is "law" now it sounds fair but law according to whom? It the UK tried to pass their law here, Americans would be in an uproar (or too busy looking at Martha Stewart), so what makes you think other countries should/will stand for our rules. Talk about the potential for fallout.

    So if you think it's about the DMCA only, or MS only, you're really short sighted. It's about anyone willing to kick up some cash for those in office. Hey one hand washes the other. And for those who don't believe or think it's some "tin foil on the head" -what you misconstrue and call - conspiracy, I suggest you look into the words perception management, cognitive dissonance on google. There are studies done daily in hopes of finding a way to make you believe whatever they'd like:

    1.4. Perception management in support of Enduring Freedom and Iraqi Freedom

    With or without the OSI, the US Defense Department, State Department, and White House conducted large-scale "perception management" or "strategic influence" campaigns in support of Operations Enduring Freedom and Iraqi Freedom as well as in support of the broader war on terrorism.

    ...

    2. Shaping the public discourse on civilian casualties: case studies from the Iraq war

    In the remainder of this report, we analyze key aspects of the US public discourse on collateral damage in the Afghan and Iraqi wars, with special attention to those concepts advanced by the US defense establishment to define and explicate the issue.

  21. ps... by segment · · Score: 0, Offtopic
    that last blockquote is from a document called "Disappearing the Dead" In some circumstances, attention to collateral damage is more urgent than in others. Its importance may vary inversely with the perceived necessity of a war, for instance. When war is literally forced on a nation -- as it was on the Alliance powers in the Second World War -- the prospect of suffering casualties and adding to collateral damage may not be pivotal in the decision to take up arms. A threat to national survival trumps all other considerations. But when a prospective threat does not immediately imperil national survival, or when a contest turns on the need to broadly win hearts and minds (as does the war on terrorism), then the issue of collateral damage (as well as other war costs) may loom larger in debates about how to proceed. Document

    The chapters alone should tell you more or less what its about... "How to shape the public's mind and hope forget the truth 101"

    1. War and perception: the battle to enable American power

    1.1 The evolving American calculus of war

    1.2 The media, casualty intolerance, and asymmetric warfare

    1.3 The public information battlespace after 9/11

    1.4 Perception management in support of Enduring Freedom and Iraqi Freedom

    2. Shaping the public discourse on civilian casualties: case studies

    2.1 Spinning the Iraqi market place bombings

    2.2 Framing the air attack on Baghdad Waging lawfare Strategic bombing and the illegality of air defense

    3. Framework propositions on war casualties and collateral damage

    3.1 Claims about "precision attack" and the "new warfare"

    3.2 Claims about damage limitation efforts

    There are too many to list. I have docs along these lines pertaining to compsec, ecommerce, you name it. I'm just too tired to look through my entire FOIA which is why I pointed this one out, it was just written last week. When I find it, if I remember when I wake up I'll post it for anyone interested in how the gov tries to shape your mind while they fiddle with policies, standards, and laws.

    1. Re:ps... by Doc+Ruby · · Score: 1

      Keep this illuminating info coming - publishing the results of your FOIA queries multiplies its power, especially for us who haven't requested anything.

      --

      --
      make install -not war

  22. and the public good by sacrilicious · · Score: 3, Insightful
    You've written a post that plays well with me. :)

    My attitude on this matter so far has always been the same. Free Market.

    The only thing I'd add would be that that my attitude has always included: the public good. Regulation of the free market - e.g. antitrust legislation - are sometimes necessary for the public good.

    The reality of our current broken sociopolitics is that regulation under the auspices of the public good is often used for the opposite result, namely for the profit of corporations at the expense of consumer choice and even of basic freedoms. Likewise, the free market concept is often successfully invoked by corporations to achieve detriments to the public good. So in terms of implementation, perhaps neither "free market" nor "public good" has a particularly better record. But in a parallel universe where politicians are noble and corporations behave, the public good takes precedence over the free market, and sets policy for it.

    --
    - First they ignore you, then they laugh at you, then ???, then profit.
  23. poetry by Anonymous Coward · · Score: 0

    The way you laid out the text of your post, I actually expected it to rhyme.

  24. Why not just pay for what we get? by Anonymous Coward · · Score: 0

    We can't enjoy high speed access through fiber and have it uncontrolled by gov't or corporation. But I'd be happy if I only had a decent contract with my ISP. Why can't we just pay a flat fee per megabyte? No more exceeding my unlimited bandwidth, no more services I can't opt out of.

  25. No! Printing would have spread more rapidly! by N+Monkey · · Score: 3, Interesting

    Were it not for his followers that stole his invention and started mass production of books (very similar to those we now nowadays - set up in antiqua typeface) that cheap books started to exist and made wide dissemination of knowledge possible.
    If there were patents in Medieval Times, surely Gutenberg would obtain a one, and no print as we know it would be possible.


    It's an interesting hypothetical situation but you've got the outcome wrong!

    (For the moment, let us ignore the chicken and egg problem of actually making copies of such a patent.....)

    Patents only last for, at most, 2 decades. Let's say Gutenberg did patent his press. Once the patent expired everybody would be legally entitled to make their own press.

    In the mean time, because Gutenberg has had to put down a detailed description, with diagrams, of how the printing press works, far more people will have got the opportunity to see how to build their own. Moreover, others may then seen ways to make it better.

    In other words, instead of it being a trade secret, and hence kept hidden away slowing down the spread of printing, a patent would have helped speed up its adoption.

    1. Re:No! Printing would have spread more rapidly! by Keybounce · · Score: 0

      No, you just make a copyright of how the printing press works. Sure, patents expire, but corporate copyrights just keep going (label A:) and going and going and going and going and going (goto A)

      Michael

  26. Welcome to communism by EvilTwinSkippy · · Score: 1, Interesting
    Folks, Capitalism only works if a product is scarce. We don't charge for air because it's freely available everywhere. Unless, of course, you need a quantity to take with you underwater but even then it's relatively cheap.

    With all of our rampant cost cutting and large scale manufacturing we are rapidly entering an age in which the most expensive part of a product is the carton it's shipped in and the shelf space it occupies.

    Look at phones. I am usually they guy who bitches about de-regulation, but I have a flat fee I pay that allows be to yak for an unlimited amount of time to anywhere in the US. The billing and tracking what call goes where costs more than providing the service, so many new providers are just charging a flat rate.

    The same is true with roadways. The first highways were toll roads. Now, everyone chips in a little in tax money, and the roads are free. Well at least everywhere but the Northeast.

    I used to love college because you had the meal plan. You pay and assload of money up front, but you get to stroll into the cafeteria and eat however much, or little, however many times you wanted.

    To tell you the truth, the most expensive part of a resteraunt these days are the staff, rent, and utilities. The huge portions are so you don't feel ripped off for paying $10/plate. How long till some large chain starts a "membership" club. Pay a flat fee, and eat as often as you like. Just think of the line at checkout. There wouldn't be one.

    --
    "Learning is not compulsory... neither is survival."
    --Dr.W.Edwards Deming
    1. Re:Welcome to communism by Anonymous Coward · · Score: 0

      And how is what you described communism? From what i understand, communism is when there no state, no currency and no class system. Pretty far from it at the moment i think.

  27. AI Edge Will Bypass Industry Establishment! by Mentifex · · Score: 1, Interesting

    Artificial Intelligence -- not just the Cable Industry -- is another battleground where innovation at the Edge threatens the entire Industry Establishment, yessiree Bob Frankston right-on bro'.

    Artificial intelligence has been solved at the edges and fringes of the field and not by the dinosaurs of the AI Establishment.

    The Edge is bypassing the AI Establishment -- just like in the collapsing free-for-all of the Cable Industry.

    With accusations of kookery at the Edge, the AI Establishment (DFKI etc.) is fighting back and trying to discredit the Edge of AI, mais la verite est en marche, et rien ne l'arretera!

    Artificil intelligence is evolving and multiplying in 'Net-wide Diaspora from the Edge back into the foundations of the AI Industry. Join in, or watch from the Edges?

    1. Re:AI Edge Will Bypass Industry Establishment! by smallfries · · Score: 1

      Wow! The legend himself, so whats it like being one of the biggest weirdest kooks on the internet? Does it float your boat?

      --
      Slashdot: where don knuth is an idiot because he cant grasp the awesome power of php
    2. Re:AI Edge Will Bypass Industry Establishment! by Anonymous Coward · · Score: 0

      Whoever moderated this "interesting" should have a look at the Arthur T. Murray/Mentifex FAQ...

    3. Re:AI Edge Will Bypass Industry Establishment! by Anonymous Coward · · Score: 0

      I think the question should be. "So how does it feel to be the biggest weirdest kook in a room full of big weird kooks?"

  28. Revolution by Anonymous Coward · · Score: 0

    We need a revolution.
    There's many about here both left and right, but i think we can all get more of what we want if we overthrow authoritarianism, that is, corporate fuedelism, and their phoney government structures.

  29. NOOOO!!! by spectrokid · · Score: 3, Funny
    we should see increasing divergence once millions of people can experiment with new ideas

    My god!, even more bored housewives who are going to take their clothes off...

    --

    10 ?"Hello World" life was simple then

  30. Just owning the pipes counts for something... by transporter · · Score: 5, Interesting

    I have been involved in a wireless ISP providing high speed Internet access to people in rural areas who can't get DSL. As innovative as our product is, as we use Motorola Canopy to get to the customers the phone company didn't want to spend the money on, our backend is still provided by...that same phone company. The phone company makes about 18,000-plus a year just on its T1 line to us. We get more customers and need another T1 or to go to a T3. The phone company makes even more off of us.

    So the moral of the story is, don't discount owning the pipes. Some people may find a way around part of your business, but you can still stick it to your remaining customers for quite some time and get away with it!

    Transporter

    --
    I'm going to be wearing a hockey mask when I go off on everyone...
    1. Re:Just owning the pipes counts for something... by transporter · · Score: 2, Interesting

      Oh yeah, and if we do go against an area that does have DSL available, we have to compete against the same people who provide our backend!

      Transporter

      --
      I'm going to be wearing a hockey mask when I go off on everyone...
    2. Re:Just owning the pipes counts for something... by Anonymous Coward · · Score: 0

      So find a wireless provider and arrange a peering arrangement with them - use repeaters or microwave or laser or even a direct T1. The first few won't be enough to wean you from your ISP, but consider it an investment in a revolution.

  31. Entrenched industries being threatened by Anonymous Coward · · Score: 1, Insightful

    Is the very idea behind innovation. Make something expensive cheaper. Undercut a monopoly. Create new competition. That's how capitalism works. Yet nobody calls the cable companies pinko commies.

  32. We should be able to have our own servers by Anonymous Coward · · Score: 1, Interesting

    Why can't I use my PC as a server? Why does my cable company ISP (and, I'm sure, most ADSL companies) get away with saying that "you can't use your PC as a server" policy.....the download speeds are sort of okay, the upload speeds are pathetic..I know people can use their PC's as servers (I think that most ISP's (in their contract with you) state that if you run a server, you'r screwed...these are the policies of outdated models...I should be able to have a server (you'd think so, with all the money it costs per month for so-called high speed internet access) on my PC..it's stupid that I when I want my own web page, I have to shell out $ to my ISP or somebody else to get one (and get billed $ for so many web accesses to it). This reeks of an overpriced model of access to the internet based on outmoded pricing structure that this article plainly states....these companies want and like, their old comfortable revenue generating models rammed down our throats and what us to be nice docile consumers (old cable model, one-way information flow (no creativity)), that's why people are not watching TV anymore, they are surfing on the net...why should I have to do what some bloated company wants...I am not here to make other people rich...this model of the service providers (cable TV and radio) can go into the garbage can of history for all I care...people should demand cheap realistic, yes, I can use my PC-as-fast-server,(not expensive $/bit one-way, based on some sort of expensive cell-phone type pricing structure) internet access...I am sure that as the pipes get 1000's of times faster in the future, (ie: cheap fiber to the door hardware), the concept of paying say, $40/month for internet access of say 1 gig/day is going to look very quaint in, say the next 5 to 10 years...these companies only want your money and will do anything (twist goverments, buyup and consolidate the whole panet if they have too)...it's unfortunate that some governments (bush, for instance) will probablly let this happen. Arn't the new internet standard supposed to make running your own server (from your PC) really easy to do, but most cable co's and tel co's don't like this?

    1. Re:We should be able to have our own servers by mwood · · Score: 1

      It's very simple: you signed a contract explicitly empowering them to place these restrictions on your use of their services. If you don't like the deal, don't take the deal; do business with someone offering a deal you think is better.

  33. Mentifex is back by StrawberryFrog · · Score: 1

    Hay, Mentifex, long time no see. I'd say that we missed your relentless punting of your pet project, but well, we didn't. I'm sorry to see that you still sound like a stuck record, and still think you're writing an AI in JavaScript. Have you made much progress at the actual coding since last you flooded Slashdot with this off-topic punditry?

    Some might call you a troll, but to be a troll requires a level of cynicism and self-awareness that I really don't think you possess.

    --

    My Karma: ran over your Dogma
    StrawberryFrog

  34. Yaaaaaaawn by Anonymous Coward · · Score: 0

    Man, VideoOnDemand and VoIP are sooooooo 90's.

    I remember the excitement in the networks laboratory when we first set our eyes upon VideoOnDemand. Because it was thought then that the wave of the future is to turn computers into stupid receivers like TV. This is old and out of fashion. :slashdot: THE ms zealot's site since 2002.

  35. Transport vs. App Layer, Cost vs. Value by G4from128k · · Score: 3, Interesting

    The heart of the problem is that the layered approach to networking separates the costly parts (all those fibers, wires, switches, & routers) from the valuable parts (all the applicaitons and content). The internet does such a good job of running any application on any physical network, that nobody is willing to pay extra for transport. I don't care if I get my broadband via DSL, cabole, wireless, or the powerlines. And since transport involves such high sunk costs, once companies overbuild networks, they find they have no choice but to charge less than their debt payments just to make some money.

    What people do value is the applications, software, and the content. Therefore, the only way to make a profit on the transport layer is to own some of the application layer. This is why AOL bought Time Warner, Comcast wants Disney, etc.

    --
    Two wrongs don't make a right, but three lefts do.
  36. Just fucking do it. by Anonymous Coward · · Score: 1, Insightful
    • If I want to make a copy of my cd in case the original gets scratched it's my right to do that and when I bought that CD I damn sure never agreed to a license that said I couldn't.
    THEN FUCKING BACK UP YOUR CDs. I have every single one of mine in 256kbps MP3 form, ripped from the very CD I own, and noone's come after me yet.

    THE ONLY PEOPLE THE RIAA IS (supposedly) GOING AFTER ARE UPLOADERS - IN OTHER WORDS, THOSE WHO SHARE FILES WITH OTHERS. Why do so many people gloss over that issue?
    1. Re:Just fucking do it. by Anonymous Coward · · Score: 0

      Oh yeah, I back up DVDs too, even though there's more in the way, legally speaking, than with CDs, with CSS and the DMCA and all that shit. And I still do it anyway, I have a CD notebook full of ripped movies, while my oris stay nice and clean at home, in a box.

    2. Re:Just fucking do it. by 17028 · · Score: 1

      Doesn't it bother you that they are basically forcing you to break the law if you want to take reasonable precautions?

    3. Re:Just fucking do it. by drinkypoo · · Score: 3, Informative

      CDs are a bad example because they are legal to copy for backup or in order to put them on a different type of media for your use - At least, they are today. DVDs on the other hand, there is no legal way to back them up, due to the DMCA. So it's a valid argument in spite of your counterexample. What you are doing is perfectly legal in the US, but copying a DVD is not. Let's also not forget region coding, which some might say is anticompetitive.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    4. Re:Just fucking do it. by Anonymous Coward · · Score: 0

      oh look at the brave AC with his/her 256kbps MP3's. 320k vbr if you don't mind. thank you please

    5. Re:Just fucking do it. by Anonymous Coward · · Score: 0

      some might say is anticompetitive.

      If by some you mean "anyone who is not in their back pocket" then I agree with you.

    6. Re:Just fucking do it. by Shakrai · · Score: 1
      CDs are a bad example because they are legal to copy for backup or in order to put them on a different type of media for your use

      True -- for now. I was refering to the DMA that comes with DVDs and iTunes mostly. How long before we see CDs (or the new audio DVDs) with the same shit?

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    7. Re:Just fucking do it. by sketerpot · · Score: 1

      Of course not. Nobody takes the law seriously unless they're being sued, in which case it suddenly becomes important. :-)

    8. Re:Just fucking do it. by Anonymous Coward · · Score: 0

      Isn't it great to live in a society where you can either choose to be a criminal, or be fucked in the ass by large corporations (or the third choice of both at once). I love the USA!

    9. Re:Just fucking do it. by Moofie · · Score: 1

      ...except for the fact that a lot of CDs now are broken so that they can't be ripped. What do you do then?

      --
      Why yes, I AM a rocket scientist!
  37. Convergence by Anonymous Coward · · Score: 1, Insightful

    So your phone, cable set-top box, and your PC modem are all just noted on the internet.

    What's the problem?

    The current problem is the telcos problem, one of charging inconsistently for equivalent bandwidth depending on its use.

    Simply charge *everyone* an appropriate rate per megabyte of bandwidth. Problem solved. It doesn't have to be an *expensive* rate, just one appropriate to the costs involved + margins.

    An aside to this scenario means that someone who had to pay extra bandwidth due to some insecurity in their OS may be able to sue the OS manufacturer. :D

  38. In fact,... by WindBourne · · Score: 3, Informative

    Disney should do a "way out west" start-up. Way out West goes into communities and does a modified Block-based greenbox with fiber to the home. Then they allow up to 50 other companies to install Fiber with content to the greenbox (or to use their CO). This minimizes the monopoly and creates a true competition. If Disney takes this approach, they will be able to take away all much ot the territory from Comcast.

    Remember, Comcast has monopoly licenses that come up for renewal almost monthly.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  39. Information Highway by gr8_phk · · Score: 3, Interesting
    As much as I appreciate Al Gore for inventing the internet, I have to commend him for the "Information Highway" analogy. No huge corporations make money from the national highway system, it's simply infrastructure that enables people and goods to get from A to B. There is little to regulate who or what travels over the roads, or what types of business you can operate that use roads. This is almost identical to the structure of the internet. Now there are companies that maintain roads and build new ones, and in the technology sector we have companies who make routers and lay cable. There is no highway analogy for the likes of the cable companies. Most of the players who didn't understand this simple analogy have already failed. The remaining ones are starting to understand and not liking it. If they put a road into a large undeveloped area, how many people jump in to make a profit from the road itself? How many try to charge people for various ways to utilize that road?

    "The horse is dead, either f*ck it or walk away, but stop beating it."

  40. Greasing the wheel slows the edge by Anonymous Coward · · Score: 0

    In India... This has come about because the telephone companies can bribe the Govt

    India has no monopoly on corrupt politicians (hey, can we outsource ours to you too?). Look at the 2002/3 Ag Bill and its rural broadband provisions. Hyped by Sen. Harkin and others as a way to finally bring high-capacity service out of the city, it ended up being yet another givaway to the same incumbant local monopoly carriers that have refused to deliver broadband for the past 10+ years.

    How did this happen? When the rules got written, the usual ILEC lobby influence got them structured to essentially require that you're a monopoly local phone company to qualify for the government bucks. Many around here have been taking the money, but other than nice vacation homes in Vail for company execs, there's no broadband happening.

    The recent Verisign ploy reported in /. about their search service is another example of this, and in an interesting way, it may represent an attempt at owning content. (Word on the street is that Verisign's money is talking in Congress again - notice they're smart enough to move this forward in an election year?) Per the original post's comment:

    Instead they must own the content themselves if they are to retain any advantage.

    This has been a subject at the lower levels of telecom of some contention for several years. Genuity, when it was acquired by new owners, dropped peering with Exodus (large hosting company), demanding Exodus pay Genuity for transit to its masses of dialup customers. Genuity's perspective was that as it owned the eyeballs, Exodus should pay Genuity for all those valuable eyeballs to see their hosting customers content (apologies for horrible oversimplifications!).

    Exodus saw it the other way around - Genuity's customers had less of interest to see on the Internet (and subsequently an inferior product compared to other ISPs like AT&T Worldnet, etc.) when Genuity didn't have the "Exodus" channel.

    Minor battles over content vs. eyeballs have been fought, most to a stalemate. Verisign's *.com ploy, however, appears to raise the stakes. A consolidated ISP response, rerouting the *.* traffic elsewhere (e.g. independent search engines - I'd be happy to redirect my network's eyeballs to google.com or another site in exchange for compensation, instead of letting Verisign seizing the business).

    However, if this content vs. eyeball battle starts to heat up, it could lead to some fragmentation. We already have an increasing amount of content providers requiring registration and payment (which I would believe is an appropriate way to address content value - let the consumer decide).

    Determined by fiat at the network level via Verisign wildcard misdirection or service provider content blocking, it's likely to balkenize the network further.

  41. The Slashdot view on "inertia" by alispguru · · Score: 1

    Profitable industries and large conglomerates suffer from insane amounts of inertia.

    The above is one Slashdot view on inertia in modern business, judging from its moderation value.

    The other view, of course is that when it comes to outsourcing of tech jobs, inertia is good.

    NOTE: I am commenting on the views of Slashdot as a whole, as reflected by its moderators. The parent poster may or may not believe this second view.
    --

    To a Lisp hacker, XML is S-expressions in drag.
  42. another disruptive technology by b17bmbr · · Score: 1

    big deal. another disruptive technology. just like linux/OSS is changing the IT world, so to is this. big deal. that is the nature of market economies. one sector grows and matures and displaces another sector, only to have the exact smae thing happen to them. you want to live in a controlled economy. i certainly don't.

    --
    My problem? I was perfectly gruntled, until some numbnuts came by and dissed me.
  43. I Hate American Economic Theory... by DLWormwood · · Score: 2, Insightful
    The problem is that the scarcity is going away

    Reading this kind of thing always depresses me. Because of the Cold War and fear of Communism, we Americans have degenerated into a mindset where prosperity and plenty is considered a "problem." Economics is said to be the study of scarcity and how humans deal with it.

    I hope someday that humanity realizes the folly of such thinking and seeks to make a society or technology that can transcend economics, not stay in thrall to it.

    --
    Those who complain about affect & effect on /. should be disemvoweled
    1. Re:I Hate American Economic Theory... by ciphertext · · Score: 2, Insightful

      Don't confuse "theory" with "policy". Economics is a science, not a policy. There are only American Economic Policies, not necessarily American Economic Theories. It is possible to use economics to explain why America expends and allocates its resources in the manner dictated by its policies. There will always be a scarcity (real or perceived) in a world of finite resources. Technology only helps in improving the efficiencies in use and expenditure of the resources, thus prolonging their existence. Technology cannot ever extend a resource's life indefinitely. Policy and markets together (in the U.S), determine to a greater degree how much of a resource we use, technology enables us to use those resources more effectively.

      --
      To know is to have knowledge....to understand is to be enlightened.
  44. Comcast buying Disney makes sense by Brian+Stretch · · Score: 1

    from Comcast's perspective because IIRC Disney also owns ESPN. ESPN and the Disney Channel are the two most expensive basic cable channel groups, responsible for much of the annual cost increase in cable rates. If Comcast owns Disney then the "cost" of Disney's channels is suddenly a much smaller problem.

    I "solved" this problem by going with the $10/mo economy cable TV plan, which has broadcast networks and not much else. Heck, and even that's only because I have a Comcast cable modem. Up yours, Mickey Mouse!

  45. fyi by bogie · · Score: 1

    There is something you should know. Henry Ford did NOT invent the assembly line. He simply took advantage of it to streamline his car bulding process. If fact Ransome Eli Olds invented it, used it to produce cards and Ford only improved on it. But since Ford was so popular that myth still lives on today.

    http://www.aeragon.com/02/02-04.html

    --
    If you wanna get rich, you know that payback is a bitch
  46. You're not very creative by roystgnr · · Score: 3, Interesting

    You raise an interesting point: the only way an entrenched technology can fight innovation is if its supporters can get a government to intervene on its behalf.

    The easiest way for an entrenched company to fight innovation is to do nothing: if your products require a large investment in capital then you probably won't have to fight innovation from anyone but other large companies, and if your products also require a large R&D budget then you probably won't have to fight innovation from anyone but other large companies in your field.

    The second easiest way is to discourage competing innovations by demonstrating them to be a losing proposition for your competitors. If a significant competing project comes out of a smaller company, you sell your version at a loss, thus forcing your competitor to sell theirs at a loss, until they leave the market or are forced out of business. This will cause you to lose money in the short term on one product at a time, but will save you money in the long term as other companies realize they can't make money competing with you and decide to stay out of "your" markets in the first place.

    Note that the second method is nearly impossible if you aren't already a monopoly in some markets and is technically illegal if you are; fortunately any legal costs and fines that result are unlikely to be substantial, and just act to slightly increase the cost of "dumping".

  47. Data pipe is king by Anonymous Coward · · Score: 0

    > Instead they must own the content themselves if they are to retain any advantage.

    Nope. The ownership of any data pipe -- and particularly that "last mile" cable into everyone's house -- is a tremendous natural advantage just by itself. If they can't figure out how to turn that advantage into profit, then they need to step aside and give the business opportunity to people who can.

    On the contrary, it's the content that's the cheap commodity here, and content is almost on the verge of becoming a free natural resource like water.

    At most, I could expect to have 4 data pipes into my house (cable, DSL, powerline, and wireless). But my choices for content are limitless -- including my ability to use P2P to get almost any music or software I want for free. And as bandwidth improves, free P2P will also expand into VoIP and on-demand video.

    The only company guaranteed of getting money from me will be my data-pipe provider. For everything else, I will have free alternatives.

  48. It's different at the edge by Ungrounded+Lightning · · Score: 1

    The Internet is designed such that any single network node can be obliterated and the network will continue to function by rerouting itself around the problem. Whole networks can be destroyed or otherwise cut off from the main network and the main network will still continue to function (as well, the cut off network will continue to function within itself).

    And the core still works that way. But it's different at the edge.

    You buy a connection to an ISP. Unless you're a commercial customer paying the big bucks for a redundant feed you get one wire to one box. If something goes wrong with that wire or that box, you're cut off. If something goes wrong with that ISP you're cut off. If that ISP decides not to route the packet stream associated with some service it wishes to deny you, you're cut off (at least from the STANDARD way of using or providing that service).

    If you have a second feed from a different internet provider the two feeds will have different IP addresses, and the routing information that lets the rest of the net know they're both you won't be propagated. No automatic failover for you.

    Meanwhile your feed first tunnels to a subscriber management box, which exists to automatically configure and meter your connection. They were originally deployed to simplify and speed up configuring your connection. But to do that job they had to be the automated packet traffic cop. They amount to a reverse-firewall, protecting the network against your use or more service than you paid for, use of services that the ISP doesn't want to provide, and monitoring what uses you DO make of your connection.

    So you can see why ownership of the internet utilities by major entertainment content-provider conglomerates has implications for internet freedom - especially where it potentially trashes the content-providers' business model.

    The manufacturers of subscriber management promote them as giving the ISPs the opportunity to provide "added-value services" at the edge, on the model of telephone extra-cost options like call forwarding, 3-way calling, etc. But most added-value services can be provided anywhere on the network. The services that can only be added on the edge are limited. Typical examples:

    - Quality of Service (QoS): Policing your packets and allowing through only as many marked for high-reliability, low-latency, low-jitter transport as you've paid a premium price for, so you and others like you don't swamp the common backbone, or overuse the high-quality bandwidth the ISP paid its backbone connection for.)

    - Broadcast content (a limited number of very popular high-bandwidth channels transported once at high QoS over the ISPbone and exploded out to multiple users).

    - Video-on-demand: A high-bandwidth high QoS personal channel from a content provider's server - at an extra fee.

    - Parental control: Limiting and monitoring the internet usage of particular hosts on the home network - with the control implemented beyond the reach of machines the victim can reconfigure.

    - Law-enforcement monitoring and network wiretapping.

    The commercial internet is a very different design from the original concept of a robust network of endpoint peers.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  49. YESS!!! by Anonymous Coward · · Score: 0

    and so.. are you proposing that... this is a problem? housewives are great, and i think they should all be naked.

  50. Unfettered access to the internet by mmphosis · · Score: 1

    I appreciate your comments about "Unfettered access to the internet" I always wondered how this was done.

    Thanks.

  51. Maybe so by complexmath · · Score: 1

    but there's always the possibility of civil disobedience. If a large portion of the people simply ignore the new laws, the cost of enforcing them becomes prohibitive. This is why the MPAA has been so careful in their assault on individual file-traders. They are hoping that by making an example of a select few, they can deter others from trading music. They aren't widening their assault because they couldn't afford the legal burden it would incur. Prohibition is a good example of how even governmental force can be derailed quite effectively by civil disobedience.

  52. Nationalization is another answer by serutan · · Score: 2, Interesting

    Before you wave the no-gubmint flag, consider that one function of government is to finance and run operations that are socially valuable and yet commercially unworkable. There isn't big profit in highways, fire departments and sewage treatment plants. It's hard to deny that we need it. If it becomes impossible to make money running pipes, they could become regulated. Or the government could buy up whole systems and contract out the maintenance at an acceptable profit. If things change, deregulation is always an option down the road (look at telcos).

  53. Nope. by The+Cydonian · · Score: 1
    This has come about because the telephone companies can bribe the Govt, and Govt also does not want VoIP coz it will mean lost revenue to state own telecom mammoth BSNL which has more than 100 Million Subscibers.
    Popular misconception, but no longer true, and not even accurate, even considering the earlier situation. VoIP has been legal in India from April 2003 onwards; thank a certain Mr Arun Shourie for that.

    In any case, the telephone companies (by which I presume you meant the private telecom co's such as Tata Indicom or Reliance) couldn't have bribed the government, simply because the international phone line segment simply wasn't open in the past; Videsh Sanchar Nigam Limited (which, I might point out, literally means, 'Overseas Communication Corporation Limited') still had a monopoly over that segment even after cellular services and metro landline services were privatised years back in 1996. Bharat Sanchar Nigam Limited, BSNL, (or the even bigger, MTNL) has always been limited to intra-national telecom services.

    In either case, VSNL has been privatised, and the government is mostly out of the system except for a fair bit of chaos it left in its wake, mostly to do with the manner in which the licences have been given to particular telecom circles (for instance, Mohali and Chandigarh are two seperate telecom 'circles', despite being a single topographically unified metropolitan area) and technologies (WLL versus mobiles), but there's always the quasi-judicial Telecom Regulatory Authority of India (TRAI) to look into that.

    India most definitely has a corruption problem, but unfortunately, that's not the case here. The reason why things haven't changed until 2003 has mostly been an ancient evil known since Newton, an evil habit known as 'inertia'.

  54. Who woulda thought? by Anonymous Coward · · Score: 0
    "It is a classic case of corrupt govt and greedy industry screwing the consumer"

    In India? Who would have figured?

    By the way, isn't India the only country remaining in the world that supports slavery outright and by birth? (Because, you know, people deserve to experience the karmic consequences of their past actions, after all.) Let's all outsource there.

    You (meaning you, the reader) are a bunch of politically correct exoticistically bedazzadled liberal rational accomidating post racist idiots, contributing, by the was, to human misery. Get the hell out of India.

    Please don't mention India around me... It's really messing with my karma.