Entropy Gradient Reversals - The Rise of the Stupid Network. The Dawn of the Stupid Network. The Dawn of the Stupid Network By David S. Isenberg Originally published as the cover story of ACM Networker 2.1, February/March 1998, pp. 24-31. Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. To copy otherwise, to republish, to post on servers or to redistribute to lists requires prior specific permission and/or a fee.
Copyright ACM1072-5220/98/0200 $5.00 In recent history, the basis of telephone company value has been the sharing of scarce resources -- wires, switches, etc. - to create premium-priced services. Telephone companies (telcos) have always pushed technology improvements that promote the smooth continuation of their basic business. "Keep it simple, stupid," or KISS, is an engineering virtue. So what exactly is a Stupid Network? Abundant Infrastructure. The Cyber Hub. Beyond Liberalization II: The Impending Doom of Common Carriage. Beyond Liberalization II: The Impending Doom of Common Carriage This is the second in a series of three articles to appear in Telecommunications Policy. The previous one was Beyond Liberalization: From the Network of Networks to the System of Systems. Forthcoming is Beyond Liberalization: Reforming Universal Service. Eli M. Director Columbia Institute for Tele-Information Columbia University 809 Uris Hall New York, NY 10027 Tel: 212-854-4222 Fax: 212-932-7816 e-mail: enoam@research.gsb.columbia.edu March 15, 1994 I.
This article argues that the institution of common carriage, historically the foundation of the way telecommunications are delivered, will not survive. This conclusion is reached with considerable reluctance. Ironically, it is not the failure of common carriage but rather its very success that undermines the institution. Yet these policy proceedings are conducted in a partial-equilibrium setting. The plan of this article is as follows. II. When does common carriage arise? III. Beyond Liberalization. Beyond Liberalization: From the Network of Networks to the System of Systems by Eli M. Noam Professor of Finance and Economics and Director, Columbia Institute of Tele-Information I. Suppose the telecommunications infrastructure keeps evolving towards institutional diversification and technological upgrade.
The conventional scenario for the evolution of telecommunications, offered by traditional state monopoly carriers around the world as their vision of the future, was the integrated single superpipe, merging all communications infrastructure into a single conduit controlled by themselves and interconnected internationally with similar territorially exclusive superpipes. The emergence of new networks is not simply a matter of technology or politics, but of the dynamics of group formation. This view of success undermining its own foundations is basically Schumpeterian. II. Yet liberalization of physical entry is not the end of the story, only its beginning. 1. 2. 3. III. 1. 2. 3. IV. 1. "Network Neutrality": the meme, its cost, its future. The Telecommunications Act of 1996 and its Impact. Economics of Networks by Nicholas Economides** September 1998 Abstract This paper analyzes the effects on the implementation of the Telecommunications Act of 1996 ("Act") on US telecommunications markets and is based on my forthcoming book with the same title.
The Act is a milestone in the history of telecommunications in the United States. Forthcoming, Japan and the World Economy Key Words: telecommunications, regulation, competition JEL Classification: L1, D4 * Presented at the Annual Telecommunications Policy Conference, Tokyo, Japan, December 4, 1997. ** Stern School of Business, New York, NY 10012. 1. The telecommunications sector has witnessed dramatic reductions in costs in (i) transmission, using fiberoptic technology; (ii) switching and information processing because of reductions of costs of integrated circuits and computers. Cost reductions usually allow for entry of more competitors and intensification of competition. In parallel, wireless telephony grew to great success. 2. 3. Eli M. Noam- Beyond Liberalization III: Reforming Universal Service. Beyond Liberalization III: Reforming Universal Service Eli M. Noam1 I. Introduction This article proposes a new way to fund universal service.
The proposal operates on the premise of competitive neutrality -- equal rights and equal burdens to all carriers in the network system. Whether the carriers are traditional or new, they would all contribute financially to the level of universal service support decided upon by society through the political and regulatory system, and they would have full freedom to enter, compete, and set prices. The proposed system is not a transfer mechanism per se but a general ledger mechanism to assure a fairness of burden. The context for this proposal is the greater urgency to reform universal service financing. What is universal service? Of course, the greater efficiency of competition, new technology, and a narrower targeting of benefits may reduce the magnitude of the necessary funds.
We will begin a theoretical discussion of universal service. II. 1. 2. Network Neutrality FAQ. Network Neutrality FAQ Trying to figure out the network neutrality debate via the web is kind of hard. The wikipedia entry is too prone to fights and some of the other web sites are deliberately misleading. This web site is offered in the hope that it might help introduce matters and points of controversy in network neutrality. More details are found in the papers on the left. Definition Network neutrality is best defined as a network design principle. (Note that this doesn't suggest every network has to be neutral to be useful. A useful way to understand this principle is to look at other networks, like the electric grid, which are implicitly built on a neutrality theory.
The theory behind the network neutrality principle, which the internet sometimes gets close to, is that a neutral network should be expected to deliver the most to a nation and the world economically, by serving as an innovation platform, and socially, by facilitating the widest variety of interactions between people.