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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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Moore’s Law defines the history of technology. It held that the number of circuits etched on a given piece of silicon could double every 18 months as far as its author, Intel co-founder Gordon Moore, could see. Moore’s Law has spawned constant revolutions since then, not just in computing but in communications, in science, in a host of areas. Moore’s Law applies to radios, and to optical fiber, but there are some areas where it doesn’t apply. In this blog we’ll take a daily look at new implications of Moore’s Law in real time, as it rolls forward to create our future.
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August 07, 2005

The WiMax Imperative

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Posted by Dana Blankenhorn

kevin martin.jpgCoke and Pepsi do not represent competition. It's a shared monopoly, the Drinks Trust.

The same is true for Wal-Mart and Target, Home Depot and Lowe's, and, to cut to the chase, your phone and cable companies.

By endorsing duopoly calling "competition" what is in fact a Trust, new FCC chair Kevin Martin has shown us clearly where the Bushies stand. Those who believe in competitive markets that can compete in the world need to digest this.

china.map.gifAnd Martin's model for the Internet policy? China.

So, do you want to be an ISP?

There is only one way to do it now. You have to be a WISP. You have to connect WiFi to WiMax, and reach competitive fiber.

Otherwise you're officially dead.

The FCC ruled, over Friday and Saturday, that Bell companies no longer have to wholesale their lines to competitive ISPs. They don't even have to charge competitive prices for backhaul to the Internet. They essentially repealed the 1996 Telecommunications Act.

Those phonr lines that were built with government-controlled monopoly powers over decades? They're now the sole property of four corporate entities. And they can do with this monopoly power whatever they want.

What are the phone giants doing in response?

Well, BellSouth is installing WiMax. http://www.unstrung.com/document.asp?doc_id=78527&WT.svl=wire1_8 They're not adding fiber, they're extending their monopoly into the wireless space, in Athens, Georgia.

So if you do go wireless know what you're up against.

You must find competitive fiber nodes, and you must make your marketing into a political call against the local incumbents. There's a big market that will respond to such a call.

I will, for one.

The first WISP with competitive fiber to get into my Atlanta neighborhood gets the business, I can tell you that.

Comments (1) + TrackBacks (0) | Category: Internet | Politics | Telecommunications | law


COMMENTS

1. Timothy Ivory on August 10, 2005 01:04 PM writes...

Kudos to your analysis...only thing maybe china might be a little more open than usa...i have had meetings with china telecom in a small town three hours north of guangzhou...they actually did not seem all that against me setting up wimax or wifi in their territory...but if i wanted to connect to a fixed line they would charge me 400 dollars US for dial up access...
so i am trying to find inexpensive alternatives to take wireless into what was once a military base and now a bamboo design village...

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