Huber: Telecom undone-a cautionary tale

Mr. FoRK fork_list@hotmail.com
Tue, 21 Jan 2003 15:56:46 -0800


----- Original Message -----
From: "R. A. Hettinga" <rah@shipwright.com>


> Everybody who makes their living on the net or in finance should read
this.
>
> Below, Peter Huber shows how an entire industry -- and now the entire
world
> economy --  learned that you don't calculate prices, you discover them.
>
> http://www.manhattan-institute.org/html/_comm-telecom.htm
>

Very interesting - even with having to ignore the 'Godless Democrats' jabs.

There was a piece by Clay Shirky a while ago that was also a good read for
me - but both of these pieces leave me with one big question. If the telcos
that own and operate the infrastructure that carries our bits are going
down, what happens to the infrastructure and our bits? Does someone else
snap it up and charge higher rates? Does a competing system come into
existence (but it's have to be the long distance carrier of bits)?
Also, if the incumbents were required to sell capacity on the cheap, why
didn't the new competitors survive and thrive?
If the new competitors are dropping like flies, doesn't that mean incumbent
telcos can continue to charge consumers and not be out-priced by the
artificially competitive companies?