The rise of Internet-enabled mobile devices has had some interesting consequences. On the face of it, smart phones and tablets are a boon. They allow people to access email and web sites anywhere, not just when tethered to a desktop. Laptops, with their greater bulk and relatively short battery life, have traditionally been business devices for those who need to work remotely.
Smaller devices changed that. Now that consumers are used to having the Web in their pockets, or throwing a tablet into a small bag, everyone is trying to deliver a high quality mobile Web experience. Reduced screen sizes make many pages difficult to view, which leads to mobile applications (apps) designed specifically for the new form factor. Which then leads to app stores.
App stores have helped turn devices into unique ecosystems. In the desktop computer world this has not been an issue: most people would choose one operating system and stick with it. But if you own an iPhone, you’ll have apps designed specifically for it. You cannot just pick up a Blackberry and immediately start using it the same way. Sure you can find many of the same apps (and pay for them again), but that is a hassle. Now that carriers are starting to sign exclusive deals for content, it might become less and less an issue of what software runs on it than what agreements have been inked with whom.
All these new services will be introduced on spiffy new next-generation high speed networks. Which, incidentally, are being rolled out with absurdly limited usage caps. Which, incidentally, should not exist at all. Back in the mid-90′s there was lots of freaking out when AOL unveiled an unlimited dial up access plan for $19.95 per month. The conventional wisdom was that the infrastructure would not support the increased demand. Guess what? ISPs built out their networks, capacity rose to meet the new demand, and all was well. The same should happen now. If providers are concerned about where the money will come from, they should start with the $200 billion already lavished upon them by taxpayers for just this purpose.
Speaking of AOL, here is how the folks on CNET’s Buzz Out Loud talked about these new mobile environments (starts around 15:15):
Natali Morris: What they want you to think is that your computer is the Internet, not that your computer does anything else than what Google permits your computer to do, so not only do they own the Internet, they own your entire computing digital life.
Molly Wood: Well, because everyone is trying to own the connected experience, it is no longer the Web experience, it is the connected experience. And everybody wants to own that, and have your connection happen through their app.
Benito Gonzalez: It’s great – everybody wants to be AOL in the 90′s.
If you were actually on AOL in the 90′s you probably laughed at that last line, because AOL really did bend over backwards to get its customers to never stray from its sites. When you connected with AOL it launched with an AOL browser and showed you the AOL home page, which contained links to sports, entertainment, gossip, etc. – all on AOL. Many people thought AOL was the Internet because they never went anywhere else. That is what is happening again with these increasingly self-contained systems.
Consider this in conjunction with two other items. First, the increasing push for “cloud computing,” which is just a buzz phrase for remote storage. Instead of having a local hard drive, a provider like Google or Amazon makes their space available to you. All your files are on their servers; as long as your mobile device has an app for it, you can get to them. Tablet, netbook, cell phones – multiple devices all able to see the same stuff. Sounds much more convenient than having it all on a PC and copying it everywhere right? And they’ll take care of the backups, upgrades and other administrative chores too. What could be simpler?
Then think about the FCC’s soon-to-be released standards that will largely exempt wireless carriers from net neutrality rules. In practice it will socialize users to expect a more restricted experience with these devices (even more so than the reduced processing power and screen size already do). Companies will be free to throttle or entirely block sites and users accustomed to a more limited Internet will accept it (perhaps without even knowing it is happening).
Now let’s say all your data is on the cloud. It is very versatile and convenient, provided you remain on good terms with your provider. But as time goes on and more data gets on the cloud, you become more dependent on it. You can walk away from a service that has only a handful of files hosted. What if you put all of your data there? All your photos, music and so on? How long would it take to download all that if you had to without much warning? Would doing so bust your usage cap? How about private data like electronic tax returns? Will you keep a smaller, separate local drive for that or trust the provider to safeguard it? Keep them out of the cloud and you have two drives to keep track of. What happens if there is a dispute and the provider decides you have violated its terms of service? Will you be given the chance to retrieve your files? If so where will you put them?
There are worries beyond customer/business ones. What if you become troublesome to the powers that be? We already know the government will lean hard on hosting companies to pull the plug, and companies will comply. What guarantee is there that your files will not start getting mirrored by, say, the NSA? Recent developments notwithstanding, there is no reason to expect it couldn’t happen, and quickly. One of the reasons the FISA Amendments Act was so damaging was because it formalized a procedure by which the Constitution may be completely circumvented. It goes like this:
Government goes to the companies (and you better fucking play ball, mister) and says it wants absolutely everything, no warrants required. The companies hand it over. If it goes to court Congress will pass a law granting retroactive immunity before even discovery can begin. Case closed, problem solved. That is exactly how it played out in 2008. We have seen this play before. We know how it ends.
That is what is beginning now. Companies are offering an attractive, convenient and high speed (albeit capped and throttled) experience. Government sets rules privileging the handful of big providers, and an increasingly docile user base slowly funnels into one of those silos. Federal officials can then, if need be, work with these partners (Orwellian language intended) to get whatever it thinks it has to have – no legal hassles required. It is a very efficient way to manage an otherwise unwieldy population.
Many people are already thinking through the implications of all this. In an email exchange a couple weeks ago with CA Berkeley WV from wvablue.com and CPCEconomy, she wrote from her smart phone (republished with her permission):
I have this gadget here, but we still have copper wires to a rotary dial in the kitchen and the intertoobs in the front room comes from that same copper wire. Not ready to lay it all on the wireless altar.
Similarly, in the wake of the government seizure of dozens of domain names a couple weeks ago, a movement has started for a peer-to-peer Domain Name Service (P2P DNS) system. Instead of relying on domain services that bow to official pressure, activists are working on distributing their own list of names and addresses so that, for instance, WikiLeaks will resolve to 213.251.145.96 on your computer irrespective of what the US (or by proxy your ISP) might want. This of course would be vulnerable to sabotage as well as splintering of the “Judean People’s Front/People’s Front of Judea” variety, but it offers a way to be independent of the plutonomy.
We are seeing the development of an increasingly bright line in how users access the Internet. For most people, who don’t know or can’t be bothered, there will be an array of relatively cheap and fast wireless options that will allow them to stream media, store favorite music or picture files on remote drives, and generally live their digital lives happily in a gilded cage. (This all assumes no one takes an interest in the DRM status of their MP3 files or becomes concerned that their pictures might show things that touch on national security.) For those who do not want to live there – permanently, anyway – there will be another one: Wired, slower, locally stored and self-administered – that will provide access to that portion of the network that has not yet been smothered out of existence.
No Associated Press content was harmed in the writing of this post
Cross posted from Pruning Shears.




39 Comments

Thanks for you post.
May I suggest that let’s all be people and not “consumers.” The reason why I am saying this is that “consumer” is really just another word for “thing,” “chattel,” “slave” or “commodity.” In actuality it is dehumanizing and implies we have no inalienable human and civil rights and interrelationship. So my suggestion is let’s fix that and reclaim our connectedness as human beings which we affirm supersedes some artificial so-called “free” “market” “relationship.”
Food for thought: “ICELAND: Future of Hope” (link: http://www.futureofhope.co.uk )
Next, check this out:
‘A United Nations task force formed last week said it was considering the creation of a new inter-governmental working group to help further international cooperation on policies to police the Internet.
The discussion was undertaken to “enhance” and extend the work of the Internet Governance Forum (IGF), a UN-sponsored organization that makes recommendations on how governments should deal with the Internet. The IGF’s mandate is due to expire soon [..]‘ (excerpt from “UN considers panel of governments to set policies for policing the Internet,” link: http://www.rawstory.com/rs/2010/12/plans-panel-governments-set-policies-policing-internet )
If one takes the first sentence and substitutes “newspaper” for “Internet,” I think it would make it even clearer as to why folks should be questioning the IGF and its “policies to police the Internet.” Here I’d say “thanks but no thanks!”
I echo thanks for this article. As an early BB and Internet user I have had many of the concerns you you present since George Gilder and others began promoting corporate on site apps and storage of files. With the spying by government and corporations that would dismantle any privacy now so robust I have been thinking of alternatives political activists must develop.
I am overjoyed to see that this is being thought of by others. I personally still rely primarily on an old tower computer with multiple hard drives for storage. No clouds for me.
I do own a cell phone on which I make voice phone calls. Handy gadget for that.
Great post, thanks. I’m not terribly tech-savvy and you described these issues in a way I could grasp.
The internet will be a challenging front in the conflict to come. Keep us informed and aware of what we can do in this arena.
Many thanks. What can I do to help?
Thanks very much – I’m glad you enjoyed it!
Well, it’s not a matter of helping as much as knowing the implications of this stuff as it develops. If you decide you’re OK with having certain types of data exposed, then go ahead and do it. I’ll probably want to upload my MP3 files to the cloud at some point because it would be nice to be able to listen to my music collection anywhere.
But know what you’re getting into, and no matter what you decide make sure you back up your data! You can get a 350 GB external (USB) hard drive for around $75, and that should be more than enough to keep all your pictures, music, video, documents, etc. Copy everything over to it once a month or so, and once a year or so copy it over after you copy it back to make sure it’s working.
That’s more than most people do, by the way. But the big picture is, make sure you know the ways in which your connected experience is being limited on these new devices, and how easy it is for the government to get that stuff should it ever take an interest.
Superbly thoughtful, and important post, danps, “timely” comes to mind, as well.
Much appreciation.
Recommended … most seriously
DW
This is a great post.
Thanks DW! Glad you enjoyed it!
Thanks for stopping by Jane. It’s great to get some kind words from the boss!
“Now that consumers are used to having the Web in their pockets, or throwing a tablet into a small bag, everyone is trying to deliver a high quality mobile Web experience.”
You mean just the ones who can afford such devices and the monthly costs associated with it, right? For a majority of Americans, this universe’s “cap” is set at zero. Excellent post otherwise, but I really hate when techies imply that simply everyone is participating in this tech revolution.
It’s good to get this out there – thanks for this post. As you say, cloud services may be useful for multi-device access, but keep your own copy!
:) I’m currently rocking 3 terabytes of data, with 2 TB for backing up.
I agree totally about “clouds”. They’ve been pushing this idea of storing all your data out on the Net (under other names) for decades, but it amounts to a total surrender of privacy. The death of the desktop PC has also been predicted for decades, and so far the predictions have failed – apparently because users liked the idea of having their data under their own control. But the competition from phone and pad devices is stronger than ever before.
I agree, this is really helpful in describing these issues.
As far as what can be done, what would be great would be to promote awareness, not only of the problems, but of alternatives and things that people can do.
For instance, an organization with a solid reputation like EFF could start a rating service for web-based storage providers – from five spines (when the CIA calls, they laugh and hang up) to one spine (they forward your files on to Justice without even being asked). There are options outside the US that people could use but probably just don’t know about.
It’d also be great to have some kind of very simple and easy-to-use home storage – like wireless network storage that lets you just drop in this week’s hard drive and press a button to back everything up locally. If that already exists, then we could point people at it. If it doesn’t, we could demonstrate a market for it, and/or help start a project with Kickstarter or the like.
Sort of OT
I love technology, I want it to work for me, not the other way around. Recently I have experienced several of what I call i-phone idiots. People that can’t hold a conversation without constantly pecking on an i-phone, sending and receiving messages and texts, if this is the future, no thanks.
I have an iPhone. The behavior you describe is rude, period. It’s the same rudeness as people who bring their laptops to a meeting and spend the meeting sending emails and other stuff instead of participating in the meeting. (Of course, some meetings beg for that…)
But it’s rude.
I’m afraid P2P DNS will be hopelessly vulnerable to plain old crime as well as to politically motivated sabotage, and the vulnerability to crime will be its downfall. DNS spoofing is already a common cybercrime tactic, and P2P DNS sounds like a godsend to cybercriminals. Which is truly sad, because non-P2P DNS is a godsend to censors.
I’m surprised you didn’t mention Facebook. People go into there and never come out, just like with the early AOL. The Zuckster wants traffic circulating around the domain to goose advertising rates, and all the Facebookers oblige. One of the reasons I got out was that the damn place is like a cult.
But what a great article. Almost no one out there will think about this, but what a great article. Seriously. The people who DO think about it probably ought to think about those wires, as well as the physical networks of Flash drive distribution I’ve been reading about. The amount of data you can put on a keychain or hide under a rock is astonishing. A network of kids on bikes could run a city. People need to get creative here and make the shadow real.
I’ve never surfed the web on a phone. Frankly for just about anybody except a journalist, it seems idiotic from a cost benefit analysis. It is inconceivable that the time you save checking out movie listings or quick checking the population of Cote d’Ivoire is worth all the trouble setting the damned thing up, learning how to use it, and maintaining it. Are people really that stupid that they think these things can improve the quality of their lives? Dumb as most people are, I don’t think that they are that dumb. Google “news” has to endlessly push these bullshit gadgets in their “technology” section lest public attention shift away from acquiring these gadgets.
We recently recently got rid of our cell phones. We are both much happier without them. No endlessly dropped calls, calling people back. No having real human interaction interrupted by calls answered or not. No recharging. No frustrations dealing with cell phone companies and their manipulative plans. Thousands of dollars a year that can be spent on sushi! Haha. Good riddance.
I most definitely agree with your concerns about “cloud computing” however I have strong issues regarding your wireless and walled content analyses.
While the situation with pricing and usage of wireless bandwidth is similar to that of the dial-up services era exemplified by AOL, Compuserve, The Source and others, it is not the same in at least one very important respect.
Unlike wired service with wireless service you can’t just lay more fiber to increase the available bandwidth. There are natural constraints on how much suitable radio spectrum/frequency is available to provide wireless service. Consequently, world wide, the air waves are considered a limited public resource and are rationed accordingly.
So of course there carrier based restrictions on bandwidth use. Wireless bandwidth is not cheap for the carriers and there is only a finite amount available to them. Their goal will be to offer only as much bandwidth to their customers as makes the service useful but not so much that they run out.
Wireless service is also subject to many forms of both natural and man made interference that wired service is not making it far less reliable. After decades of building out cell phone service it is still neither ubiquitous nor uniformly reliable. “Can you hear me now?”, “How many bars do you have?”, “Damn, I lost the signal”… Do you have any reason(s) to believe that the story will be any different for high-speed wireless service?
In general, the thought that wireless customers will have faster bandwidth than wired customers and that the wired customers will be left with what remains outside of the walled content doesn’t hold up under scrutiny.
Wired customers already enjoy a significant speed advantage over wireless customers and that advantage is set to grow. Verizon has shown their existing FIOS infrastructure is capable of supporting 1,000 Mbit connections. Google has a competition where they are going to actually wire up a whole city for 1,000 Mbit access and such connections are already broadly available in several other countries.
How will wireless compete with 1,000 Mbit connectivity on any sort of broadly available and reliable basis?
Having said that, there is a market where wireless connectivity may very well outperform the available wired options and that would be for rural/small town areas where the population density is too small to attract wired service providers or for existing providers to be able to afford to upgrade their service. Comparatively speaking though, that is a very small market. And very frustrating for people living in those areas.
Walled content. The Internet has not been very kind to companies that try to wall their content off as a means of extracting additional money. The music companies have been unable to do it. Newspapers keep trying to but without much success. Ruport Murdoch’s most recent attempts resulted in a 90% drop in online readership for those sites where he implemented a paywall. Video is broadly and cheaply available with the production studios exploring every avenue for distributing their content to maximize their profit.
AOL’s acquisition of Time Warner has been the only really serious attempt to maintain a significant body of walled content by coupling the content to the distribution platform and it was a colossal failure.
Some people might think that Steve Jobs/Apple may succeed in walling off content where others have failed. But Apple has been down this path before in their competition with the WinTel/PC platform. Ultimately their closed approach failed them there. Now we see a repeat attempt with the iPhone and iPad and here again they have robust competition with Google’s Android platform eating their iPhone lunch and iPad competition not very far behind.
Content producers have an imperative to maximize their profits. They can’t maximize them if they cut off distribution to significant portions of the market. If and when we see some truly effective DRM, then we might have to worry about walled content but wireless vs wired access will not be a basis for walling the content off.
The real battle that is being exposed by this wired vs wireless debate is that the WinTel/PC platform is under threat by the ARM/Android/iOS platform as cell phones and computers are finally being converged into smartphones.
Good post, danps. I can see this going further as the Obama government pushes for relaxation on cybersecurity to allow the government to snoop more easily. Of course, lowering the guard could cause more points of failure making the entire network enterprise basically useless. Would the Obama government even test the waters in this area? The military is keen on getting into offensive cyberwarfare, apparently clueless about unintended consequences. Will they carries these agendas forward. I believe they are just stupid enough to. What’s so amusing about all this is the fact that the federal government at large barely understood what websites and so forth were when the Internet was officially launched as a commercial enterprise by an act of Congress during the Clinton administration.
I have never owned a laptop. I don’t know how to text cause I work at home and use a land line. I have a cell phone for emergencies. The funny thing is I design sites for a living (sort of, these days). Have been hearing about the cloud forever. How hard is it to back up your goods onto an external hard drive? Wouldn’t that amount to the same energy spent as dropping it into a cloud setup? Not near as cool though, I suspect. And an external hard drive is not expensive. I think mine was $75 and is 465gb. You can probably do better than this now. Mine is a year old.
This I like very much:
“Instead of relying on domain services that bow to official pressure, activists are working on distributing their own list of names and addresses so that, for instance, WikiLeaks will resolve to 213.251.145.96 on your computer irrespective of what the US (or by proxy your ISP) might want.”
1Gb (1000Mb) is ho-hum bandwidth capabilities these days, tectonically speaking. People are already working with 40G and higher as a realizable goal.
Back in 1998, I was building test jigs for ethernet devices with a narrow form factor that ran between 1 and 2 Gb. These were to plug into a computer to provide the translation from light to electrical, from fiber to copper with no intervening copper cables.
I personally do not want my computer life run by anyone, so things like iPod/Pad are on my back burner. I really don’t need or want that “convenience”. I have to operate in places that still don’t have cell phone coverage, and Internet through the graces of some local provider. I run the computer, it doesn’t run me.
The trade-off is reliability, and for that, hard drives need to be operated in arrays like RAID or JBOD. That gets expensive as just the controller can cost a fair penny.
I’m having to evaluate all this and am considering a mini-server to hold all my data in some sort of reasonably searchable, safe manner. Ideally, I would only have 2 drives on my computer, but even that seems too little. But the 4 (+3 externals) drives, is getting cumbersome, and I don’t have RAID!
Starbuck,
Tell me some more about what your requirements are. I have an Adaptec 31205 RAID controller that I’d be happy to find a good home for. Original cost was $500 but only looking to cover shipping and a nominal fee for my time.
-Netmaker
Technically speaking, yes 1Gb is ho-hum bandwidth and I’m aware of 40GbE and 100GbE.
Now, is anybody positioning 40 or 100 GbE for the consumer market :) For now and the next several years (or more) 1Gb will be the highest broadly available connection speed for wired network access.
If you use Mac OS 10, you can have Time Machine automatically backup your data to an external hard drive.
Timely Richard Stallman: http://techcrunch.com/2010/12/14/stallman-cloud-computing-careless-computing/
Good point – thanks for the reality check.
See here for a post that covers lots of this territory and mentions Facebook too.
I hadn’t thought about the social network angle when I wrote this, and it’s definitely worth some commentary. I might have held off anyway, though I already felt like I’d gone pretty long with this post as it was. Going much farther might have started getting into manifesto territory.
OK, lots to respond to. I agree on the difference that wireless runs on spectrum, which is limited. That isn’t the case right now though – there’s plenty of capacity yet we’re still seeing really restrictive caps. It isn’t about bumping into an actual limitation right now, so I’m skeptical about claims that we’re running out of capacity.
As for wired infrastructure, I’ll just point out the $200 billion failure of providers to get high speed built out. Verizon’s FIOS rollout has been limited (to put it mildly) and there have been horror stories about it. Funny enough, Natali Morris (quoted in post) is one of those. She had it and dropped it very quickly, and detailed her brief, unhappy time with it on Buzz Out Loud a couple years back. Maybe you could email her and see if she’d care to fill in the story a little more. Oh, and Google just delayed its announcement on wiring a town. Bottom line is, we’ve been promised widespread broadband for a long time now, and it’s forever just around the corner. Reminds me of the joke years ago that went, soccer is the sport of the future in America – and always will be.
As for walled content, you’re right that it’s been a failure so far, and with any luck it will continue to be so. But that shouldn’t exempt those trying to do it from scrutiny.
See my link at “there is no reason to expect it couldn’t happen” :)
“A network of kids on bikes could run a city.” Yes – maybe we’ll all be saved by the Sneaker Net. (Half kidding.)
Great minds think alike :)
Re your comment about the death of the desktop computer: When the time comes that I can’t store my data on local harddrive(s), I will stop storing any data electronically. Warning bells have always gone off in my head at the suggestion that I surrender control of my data to anyone, to be held hostage at their will and whim. *All your data are belong to us*
Yes, I think there are an amazing number of people who think participating in the latest and greatest trend enriches their lives immeasurably. It’s group-think or herd instinct or something.
The sad thing about all this is that the Internet is a P2P network by design. There is almost no need for centralization (Google-style indexing being a rare exception). There is no reason you couldn’t access your data from anywhere, without a cloud, if ISP provided dynamic DNS as a service. Then all you’d need is storage at home, which you could access from anywhere in the world with any gadget. This is not technically hard to do. Social networking likewise really doesn’t require centralization. All you’d need is access to your friend’s servers. (Opera Unite works this way, with the Unite service doing what dynamic DNS would provide, and your and your friend’s servers doing the rest.)
Obviously the media dinosaurs and the government don’t want this. How could they make money from their outmoded entertainment business models? How would outfits like Facebook and cloud providers make their money, if they can’t steal your data? And of course the government would have a much harder time obtaining your data if it is in people’s homes. They would (gasp) require a warrant!
But most of all, this P2P alternative net would require people to understand and treat infrastructure not as the private possession of some corporation, but a public common. And pay for it. (Think of the Interstate system.) Of course we will need to change the political climate in this country, which treats Capitalism as a synonym for Freedom, before we can fully realize this vision. I doubt it will ever happen on a large scale. (See The Master Switch: The Rise and Fall of Information Empires, by Tim Wu for an exploration of this subject.)
Cloud storage (I won’t address other forms of ‘cloud computing’, since their benefits – if any – tend to be limited to special cases) has plusses and minuses.
On the plus side:
1. Someone else is (at least if they’re competent, which of course requires due diligence to ensure) taking care of your data – adding storage space as required, backing it up, replicating it, moving it to new storage if the old storage fails, all invisibly: it’s just there, whenever you want it.
2. You can (at least in theory) get to your data from anywhere, any time, from any one of your computing appliances.
On the minus side:
3. Your bandwidth to it is far more limited than if you had it stored on your computer. High-speed broadband only alleviates this for specific access patterns, it does not eliminate it. For example, if you want to copy some data or brute-force scan it searching for something, rather than, say, just watch a movie, the copy or scan operation will execute far more slowly than if performed on local disks (unless the copy or scan operation itself executes at the cloud location – one of the special-case additions to ‘cloud computing’ that I mentioned above).
4. Your access path to it can be interrupted. Even if your cloud storage provider mirrors it at multiple geographical locations (as a good provider should) to guard against connection outages at their end, you can still experience connection outages at your end. And (as happened with Amazon’s hosting of Wikileaks) the provider could simply decide to cease providing access.
5. Your provider (and anyone they choose to cooperate with) can see what you’ve stored with them.
6. Despite the cost-effectiveness inherent in maintaining petabytes of data, the overall cost will likely always exceed the cost of storing it on local disks.
Fortunately, the minuses have full or at least partial solutions. If you include your own labor cost of maintaining your data reliably at home, cloud storage may look a lot more attractive. As far as bandwidth goes, if you maintain one copy of your data at home and use the cloud primarily for backup and to allow wider access, most bandwidth-guzzling operations can be performed on the local copy (though now you’ve sacrificed some of the cost-effectiveness of letting your cloud provider do all the storage-management work). The same is true for access: as long as you’ve got one copy at home, connection outages can’t cut off all access. And if you use strong encryption on all your remotely-stored data all your provider or anyone else can see is gobbledegook (though your own access to the remote data will be limited to platforms which can handle itsencryption/decryption): it would certainly be possible to create an open-source storage driver that would securely, transparently, and robustly mirror your local data to the cloud if one doesn’t already exist.
drweevil’s P2P approach above is also attractive, but using it for reliable, high-bandwidth storage might be difficult (though Berkeley’s OceanStore project started exploring such solutions about a decade ago and has made a lot of progress since). The main obstacle is that you need MANY more copies of your data in such an environment to be as robust and available as a just a couple of copies (each with its own XOR redundancy) in two separate locations can be with competent management.
Responding to plenty of capacity – perhaps, unlike most people and companies, the wireless providers are actually being responsible here with respect to managing their bandwidth allocation. They KNOW they are not going to get much, if any, more in a given market without spending billions of dollars and going through protracted negotiations or auctions. That is, if the free bandwidth (unallocated or available for sale from another carrier) is even available.
To add further weight to the argument that the carriers are acting responsibly consider that they work on a much longer term amortization schedule with respect to the capital plant required to support their service offerings – as long as 20 years. So that wireless spectrum has to last. If they exhaust the spectrum before they been able to depreciate their equipment costs and people flee the service because it is “crap” then that could be a big financial hit for them.
Thirdly, they are not in-experienced in providing wireless service. They’ve been down this road before and have experienced the consequences of insufficient bandwidth and footprint (cell towers in the right place). Without knowing what the usage patterns people will have they need a way to ensure that there is sufficient capacity without overbuilding their network only to find that it is going unused. So by restricting use through caps and tiered pricing they gain the time to see were they need additional capacity, they gain the capital through the subscriber revenues to pay for providing that capacity and they gain the time necessary to actually build it or acquire it from a third party. That is, presuming the spectrum is even available.
Regarding the wired infrastructure. Agreed that there has been a huge failure on the part of wired service providers to build out their high speed networks. Additionally they’ve been (corruptly in my mind) lobbying state and local governments to stall or make illegal any attempts at competitors or even local governments/HOAs from building high speed networks even when the telcos have no immediate intention of providing their own service in the affected locations.
Regarding Verizon, yes their rollout has been limited. Limited to high population density areas where they can get the revenues necessary to repay the hugely expensive proposition of completely rewiring with fiber. They even sold of significant portions of their service areas to other telcos to be able to pay for building out FIOS. But without having done that their wired service would have been doomed from the combined competition of wireless on the phone side and cable companies offering combined voice, TV and Internet on the high speed wired side. So, despite the horror stories (and I’m sure they exist in significant numbers) Verizon is committed to their FIOS service.
Several months ago we had FIOS service installed in our house. It went without a hitch. The technician was polite, helpful and knowledgeable. The in-house installation was completed in a few hours with no need of any follow up visits. So, does my experience discount Natali Morris’ experience of a couple of years ago? No. I’m sure that FIOS customers continue to experience both good and bad experiences everyday. It’s the nature of the business (speaking from personal, professional experience).
Regarding Google’s announcement. I’m not sure what the beef is here. They had over 1,100 responses to their competition. They all have to be scrutinized from regulatory, legal, financial and technical perspectives. That’s very time consuming. I don’t doubt that they’re going to go through with it. Certainly they have more than enough money to build out several towns from their petty cash accounts. So it’s been delayed. That again is the nature of the business. The delay itself is very visible because Google is very visible especially when they are trying to raise the bar of what constitutes high speed Internet service in this country.
Fortunately (or not depending on your perspective :) the telcos are not they only companies going big for high speed Internet. All the cable companies offer it and while it is not as attractive as FIOS it certainly beats wireless. Comcast was even wiring my mother’s very rural community at Smith Mtn Lake, Va for it. Ultimately cable companies will go completely Internet based even for their TV service delivery rather than bear the current expense of maintaining multiple platforms.
Ok, so much for the tactical debating. With respect to wireless vs wired it comes down to this. Absent some really huge breakthrough in wireless technology (such as something based on quantum entanglement or neutrinos) wireless will not be able to provide sufficient high speed bandwidth for our needs. Wired infrastructure can. That’s just the strategic reality. It will take decades more to play out but the physics underneath the two technologies (as we know them now) allow for nothing else.
Now, back to the walled garden. The wireless carriers are not the ones attempting to build the walled gardens. Primarily Apple is the flag carrier here and some print media companies are looking to this as their last best hope for survival. The technological foundation that has allowed Apple the opening for attempting this is the combination of wireless high speed bandwidth (high speed relative to previous wireless data speeds) and maturing power efficient ARM processor and display technologies.
Microsoft has been neutralized by their own incompetence and by the rise of the ARM processor as the basis for most modern smartphones. Intel is desperately trying to catch up with ARM but their processors are too inefficient for the smartphone market.
So now there is an opening for Apple to put forth a platform that can compete with Microsoft and where Apple can set it’s own rules without having to worry about the market dominance and precedents of Windows. Apple being Steve Jobs learned nothing from their previous fight with Microsoft/IBM for the PC market and again is trying to create a closed proprietary platform (the walled garden being part of that) where you have to buy everything from Apple.
This time though, instead of battling Microsoft (which only thinks it is in the running) they are battling Google. Google, who using the same hardware as Apple (roughly speaking) but running the open sourced Android operating system did remember the lessons of the Apple/PC war. The operating system is open sourced, their are multiple manufacturers of the hardware and their hardware is offered through multiple carriers unlike the closed source iOS based iPhone offered only by Apple and only through AT&T. Granted that at some point AT&T’s exclusivity will end but the damage has been done. Google with Android has gone from no market share against the iPhone to an extremely competitive position in a short period of time. They’ve established a broader supporting ecosystem and competitive base just as Microsoft/Intel did against Apple in the PC wars. History is repeating itself and I don’t see that Apple is prepared to break the cycle by either licensing their hardware or their operating system. The likely outcome being that they will, as in the PC market, maintain a significant percentage of the market and a loyal customer base but fail to achieve market dominance. The market will be Google’s to lose and Apple’s walled garden while being very pretty will be lost in the forest.
I believe the issue will be how will Google position it’s mobile platform against Microsoft’s desktop dominance in the coming decades.
We are agreed on the necessity of maintaining continued scrutiny of those trying to wall off content.