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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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October 31, 2005

The Return of AT&T

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Posted by Dana Blankenhorn

Frankenstein.gifHiow is this for a Halloween story?

Like Frankenstein's monster, AT&T is coming back from the dead.

The genesis of this stupidity is probably the old North Carolina National Bank. It acquired dozens of banks, large and small, and became NationsBank. That was a new, powerful brand. Then it acquired the Bank of America, based in San Francisco. After the deal was done it took that name. Now, in downtown Charlotte, there are homages to the old BofA on the cornices of its downtown office campus, along with some of its other kills. The bank thinks it's a nod to history, but I think it's more like the old hunter who puts deer heads on his wall.

In this case, it's SBC chairman Ed Whitacre who has the big ambition. He thinks that, by using the AT&T name, he can inherit the Bell System and, eventually, recreate it. Put back together what was torn asunder, only this time with no regulation, no controls, all powerful.

And in control of your Internet.

In his first move with the power of AT&T, Whitacre wants to start charging sites rent in order to reach his customers. Forget network neutrality. Forget about the nature of the Internet, which is that users route around attempts at control. If you're using SBC (excuse me, AT&T) DSL, Ed Whitacre will decide what sites you can see, what services you can use, what protocols you can support. My guess is he won't start by demanding rents from Google. He may go after smaller sites, like Corante, first, in order to set the precedent. But this is his promise.

This is the way Bellheads think, and it's good to get it out in the open. It's all about control of the customer, total control. Whitacre seems under the impression that today's political status quo will survive forever, that he will be allowed to control his customers as he wants.

He's wrong, of course.

Once Whitacre sets his plan in motion, the villagers are going to storm the castle. They're going to destroy the monster and the man who created it.

I'm really looking forward to that.

Comments (1) + TrackBacks (0) | Category: Business Strategy | Internet | Investment | Politics | Telecommunications | e-commerce


COMMENTS

1. Jesse Kopelman on October 31, 2005 12:51 PM writes...

I agree, as I have in the past. The Bells and Cablecos don't want the internet. They want their customers to reside within an intranet that icompletely within the carrier's control. Some customers want this too, and that is fine, but many do not. Hopely, this will be the monopolists undoing. It amazes me that the corporate apologists out there don't see this.

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