more on SBC hints at charge to Web publishers By Frank Barnako, MarketWatch

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dana Blankenhorn <danablankenhorn () mindspring com>
Date: November 1, 2005 5:15:55 PM EST
To: dave () farber net
Subject: Re: [IP] SBC hints at charge to Web publishers By Frank  
Barnako, MarketWatch
Reply-To: Dana Blankenhorn <dana () a-clue com>

http://www.corante.com/mooreslore/archives/2005/11/01/ 
net_neutrality_will_triumph.pNet Neutrality Will Triumph

Posted by Dana Blankenhorn
A lot of people are (rightfully) upset over SBC CEO Ed Whitacre's  
recent statements dismissing the concept of network neutrality.

Given that SBC will take the AT&T name once its merger with that  
company is complete it has many fearfully humming the theme from  
"Empire Strikes Back," seeing the Death Star in the sky again,  
preparing to see the Internet lights turned off all over the world.  
(The song is now a favorite of every Enormous State University band,  
usually played in the Third Quarter as Little Sisters of the Poor are  
crushed.)

Frankly, Mr. Whitacre is an idiot. There are many reasons why net  
neutrality, and not paid content access, will triumph in the U.S.:


Google is one of the largest owners of dark fiber in the world.  
That's what their San Francisco WiFi bid is really all about. They  
need to fill that fiber, and WiFi can easily render wired phones (and  
lines) obsolete.
Sprint has some interesting deals going with cable companies that  
create a "triple play" with cable networks combining phone, mobile,  
and television service. Network neutrality in that offering could  
cause millions to switch off their phones.
Level 3 can easily link their fiber backhaul capacity to new  
providers via WiFi and WiMax, delivering another alternative for  
consumers.
People aren't stupid. Consumers understand what the concept of  
network neutrality means. If it's threatened they will demand it from  
regulators and Congress.
The U.S. is an increasingly small portion of the Internet. Continued  
slow growth will make the U.S. an economic backwater, and people know  
that.

The fact is that Whitacre is a Bellhead, playing an old game of  
monopoly based on media power. The Internet routes around such games.  
And the Internet is the market, not the dial tone.

My guess is Whitacre will be quietly told these facts after the  
consummation of the merger, either by his own people or those he  
tries to stick-up for access to his customers. If he doesn't get the  
message, an ad campaign from Google, Sprint, or some consortia of  
companies (perhaps with Bill Gates as its TV spokesman) will do the  
trick.

He can back away slowly, or he can back away in utter humiliation.  
But the idea he won't back away is Clueless.


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