Friday, 18 January 2013

Brightening the gloom…

The current financial press is of course full of recessionary woes, this week’s news about the likely demise of Blockbuster just the latest in a series of blows to the UK High Street.  Sooner or later, this chill to the retail sector is bound to have an effect on upstream investment, not least in the telecoms sector.  This may be the explanation behind the recent story in 'Wired' magazine that Verizon and AT&T have apparently suspended their investment in deployment of new fibre networks.  Interestingly, the same source contrasts these moves with the continued network expansion by Google:

“..Google saves money on its deployments in various ways, such as piggybacking on existing power line infrastructure and building its own network gear.  [Also] by encouraging people who want home service to get their neighbors to sign-up in advance, lowering the risk of deploying to a particular neighbourhood…”
 
It’s good to hear that these cost-saving ideas, well rehearsed on this side of the Atlantic, have been successfully put into practice. On the revenue side, financial prospects would no doubt be further enhanced if ISPs were free to offer tiered levels of internet service, the sort of customer segmentation widely seen in other retail markets.  Hitherto, many have assumed that regulators would not permit this sort of pricing freedom, judging it to be contrary to the celebrated principles of 'net neutrality'.  There was therefore considerable surprise this week when Neelie Kroes, no less, appeared to challenge that assumption.  Writing in the French newspaper, Libération, she is reported as saying that telecoms providers should be able to sell access to the internet at varying speeds and with differing download limits. Because this appeared to represent a change in the Digital Commissioner’s stance, her official spokesman later clarified these statements:
 
"Neelie Kroes supports people having real choice over their internet subscription. That absolutely includes a right to choose full internet service, but if an operator wants to sell you a basic package for a lower cost, and you want to choose that because it suits your needs or if you have a limited budget, then what is the problem with that?” 

So, a glimmer of light…

 

No comments:

Post a Comment