The new OPEC: AT&T, Comcast and friends
- July 30, 2008 11:58 AM |
- By Pete Nowak
By Peter Nowak, CBCNews.ca
There's a fascinating op-ed piece in the New York Times today by Columbia law professor Tim Wu on the new telecommunications cartel - OPEC 2.0 he calls it - where companies such as AT&T, Comcast and Vodafone are using their total control over bandwidth to choke access to the precious commodity.
Just as North Americans are only now starting to cope with high gas prices and the inevitable search for alternative fuels, Wu argues that we need to start thinking about alternative bandwidth to avoid a similar situation with phone and cable companies. It's an especially poignant point since the average American family spends more per month on bandwidth, or the capacity to move information around, than it does on gas and oil, he says.
One solution Wu suggests is the freeing up of airwaves - or spectrum - by the government, which has thus far treated them as a scarce commodity. In fact, he argues, at any given time about 90 per cent of the spectrum in the United States sits unused, which means that "Soviet-style rules create waste that is worthy of Brezhnev." If the airwaves were opened up to entrepreneurs, tons of new available bandwidth would pop up through the ensuing competition. The end result: lower prices for things like cellphones and internet access.
Wu's suggestions, however, are sure to run counter to warnings by some health authorities, who say using cellphone microwaves can cause cancer. Increasing wireless usage would logically raise the risk of cancer, by their reasoning.
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Comments (2)
Indeed the argument for releasing the spectrum to developers is attractive. Making it a use it or lose proposition would ensure that large players would not be able to 'sit on' an area and prevent it's usage by others.
Wireless is sucessful in newly developing countries that lack the in place wired infrastructure, and there is no reason why it can't provide similar service in wide open Canadian areas that don't have the population density to make 'wiring' economical. Rates that are higher than the somewhat laughable current ADSL and Cable rates are certainly possible... witness the Iphone-nomena. Improved technology and a bit of planning should provide Phone, Internet and Video services at data rates that beggar the curent offerings... if the companies that form the current technogarchy are dethroned.. or at least provided with some real competition.
Some things may have changed since some of these comments have been written, some haven't.
A couple things I can certainly confirm is that data usage is entirely dependent on the user and what they're doing. Even without downloading movies or music, any on-line gamer will break the Roger's basic 500MB limit in a matter of DAYS simply because of the number and frequency of page reloads.
And as for using the iPhone as a MODEM - its not only possible, its supported by Rogers and every other company I'm aware of - just not with their 500MB basic plans. It doesn't require a 'jailbroken' phone, or any second or third party software. This comment is, in fact, being written using that feature with the iPhone tethered to a desktop.