Comment on Points on a new Internet

HelloAlexCL Sun, Nov 1, 2009
Great changes will occur - at an accelerated rate - as the internet's infrastructure improves. The internet I knew growing up, accessed through the phone line, is very different from the much more capable internet we use today. Manuel De Landa suggests some unorthodox, counterintuitive methods that would alter the internet dramatically by mean of augmentation - of bandwidth, of accessibility, of pervasiveness.

Of the writers who have analysed the effects on internet economics of a change from scarce to plentyful bandwidth, no one has received more attention than George Gilder. When bandwidth is expensive much of the infrastructure investment is on the switches that control the movement of analog or digital information through the conduits. A system of optical fiber liberated from switches, a "fibersphere" as Gilder calls it, together with the use of the atmosphere at high-frequencies, could result in a world where bandwidth is so plentyful as to be virtually free. Gilder's right wing biases assume that any interventions by the government should be attacked, even if they serve to break up monopolies thereby contributing to technological development - as was the case of the break-up of AT&T in 1984. Gilder agrees that there are such thing as monopolies, like those of the Robber Barons of the nineteenth century, but the enormous profits that these monopolists generate are seen as transitory, and therefore the menace they represent is dismissed as largely imaginary. Although Microsoft is today playing a similar role as the Robber Barons, according to Gilder its potential menace (and any government action against it) should be dismissed. So what if Bill Gates has acquired a virtual monopoly on operating systems, a position of power that allows him to control the evolution of much of the software that runs on those operating systems? No problem, says Gilder, in a world of bandwidth plenty, the paradigm of operating systems will change to one of distributed software in the internet, and this by itself will end Microsoft s domination. This assumes that Microsoft cannot simply buy and internalize any company it needs in order to ensure its powerful presence in a networked economy. The core of Gilder's ideological maneuver is to lump together small producers and oligopolies in one category, and to call that the market, and to focus exclusively on government regulation as the only real enemy, dismissing monopolies as chimerical. The fastest way to cheap bandwidth is to allow the optical fiber infrastructure of the telephone companies to be combined with the final connections to homes owned by cable companies, even if this creates huge monopoly profits. (After all, according to Gilder, this would be transitory.) So the government who opposes this merger between the telcos and the cable giants is the enemy of the people because its anti-trust regulations are preventing us from enjoying the benefits of a world with cheap bandwidth.

The best way to get cheap bandwidth is for the government to force telephone companies to rent fiber-optic space to independent small producers. This means that the government is going to have to be persuaded that a big monopoly made up of a fusion of telephone and cable giants would be more powerful than the government itself. The only way to dissipate this danger is precisely by letting the small producers of content rent their own fiber optic space. The telephone companies might own it, but they would not control its use. Cheap bandwidth would be available without the danger of one monolithic company owning the guts of the internet. If the cables and the connections are kept symmetric, so that criticism can leave the terminal as propaganda comes in, then we have a fighting chance. This is not a utopia, but it's what would make the game still interesting.