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some interestiing thoughts (please do not re-distribute to com-priv etc) .
From: David Farber <farber () central cis upenn edu>
Date: Thu, 30 Sep 1993 11:58:11 -0400
I awoke Saturday am on the 25 Sept and checked my email. There was a note from a friend asking me to call. The person asked several questions and posed a problem. "If you were the Data Czar, what would be the top 5 future policy and regulatory problems would want start to solve now" (slightly paraphrased I suspect). After thinking for 1/2 hour, he was in a rush, I came up with the following thoughts. (by the way I left clipper out of this since we both knew how we felt on that one and I left intellectual property out since I believe we are not yet ready for regulations and laws). Problem 1 -- assuring modularity and interoperability of the broadband operating system, including settops, video servers, and, generally speaking, all API's Microsoft proposes the creation of a possibly default standard which will restrict and limit access to most likely one layer and one model. Suggested fix -- convene an industry wide "standards" body of the potential players (like HDTV) and fight it out before the defacto standard is in place. Problem 2 Spectrum management. The allocation of major blocks of spectrum will limit the ability to efficiently and rationally utilize the space. It will create, as it has in the past, economic incentives to waste spectrum space and create artificial shortages. Converting the current entitlements to a more rational and more modern structure, while hard, will potentially enable the wireless data use to blossom. Problem 3. Third party access to networking infrastructure. Already we see data carriers refusing to grant access to third party networking companies because they will complete with the carrier in specific markets. That leaves the third party potential network suppliers with only extremely expensive routes to servicing their customers. What is needed to evolve a new concept in common carriage that would minimize regulation yet disallow anti-competitive behavior on the part of existing carriers. This is clearly an issue with the cable companies as they enter data services and with the current packet carriers. A broad re-examination is called for. Problem 4 == Electronic Commerce and money. The financial viability of future networking will depend on the ability of people to buy goods and services over the network. While "credit card" mechanisms are there, the creation of electronic money may be a better or at least alternative route. Right now the laws and policy on the creation and use of such money is confused. The modification of banking laws etc. to allow the controlled creation of such money and to examine it's implication on the nation, it's taxes etc. is a prime non technical task. Problem 5. Privacy Not much more has to be said except the lack of believable privacy and the lack of adequate laws on the use of transactions and information obtained via network usage and monitoring will, I believe, restrict the use of the network to "games" and make it less useful for commerce and business. Many of the laws do not obviously map to network commerce or do not cover new problems that the network creates -- like the analysis on transactions or netnews reading behavior. Problem 6. Entitlements to network use. This is not a regulatory issues but a political hot potato. More and more there are voices calling for network access for minorities, dis-advantaged, inner city, etc. as a right. While each if not all of these are defensible, the cost to be carried by either the government or the public through rates is potentially high. A rational examination of the costs/benefits would be well worthwhile before it becomes a major headache. Actually I doubt that such a rational examination can be made due to the enormous sensitivities of the parties but.. Idea 1. While I was thinking of the above, I had an evil thought. How does on fund the infrastructure in a reasonable way. The idea of a VAT tax imposed on network services and goods seems like a way of creating a cash flow that could be used to pay for research, entitlements etc. Just an idea. Dave Farber
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