Could municipal copper be the future?
Jeff Jarvis says that scale doesn’t scale. Fred Wilson follows up by talking about the new scale. While I agree that new markets can be born out of aggregation, I disagree with the concept of scale not scaling. The problem is one of, well, scale. Let’s say that I want to make a movie that will rival Star Wars in terms of special effects and will have a plot that will take the story all over the world. So I can look at the aggregated model to make that movie. I’ll put the word out on my site and, hopefully, people will contribute money and/or services. Granted, this process will take time as I’m not a movie insider and have no proven track record in terms of making movies. So, I now have to limit my ambition and make a short demo. I do that and it’s good enough to convince some people but not good enough to convince enough people to raise the funds. Let’s assume, for argument’s sake that I manage to aggregate 10,000 people and they are all willing to chip in $100 towards making the giant movie. That’s really great, I now have a fund of…Read More
Another area where the modular approach is starting to have an impact is in the telephone service arena. Traditionally, telephone service was offered on a land line and was divided into local service, long distance, and extra features like caller ID, call forwarding, etc… The model was predicated on the concept of one device (the phone) receiving a package of services. The mobile phone business started having an impact by untying the phone lines from the wall, making the concept of localization a relatively moot point. Once localization was broken, the differentiation between local and long distance disappeared which left a division only between connectivity and extra features. Since most of the signals going over the air became digital, the cost of delivering extra services dropped to almost nothing, destroying the competitive value of such offerings. While mobile phone service made headway against traditional land lines, a new set of telephone offerings appeared on the Internet: Voice over IP. With VoIP, telephone just becomes a software issue, unbundling telephone from the concept of a telephone network and dropping the connectivity issue altogether. While mobile phones were tied to a particular phone network, VoIP phones are not tied to any network:…Read More