-----Original Message----- From: Enzo Michelangeli <em at who.net> To: lbo-talk at lists.panix.com <lbo-talk at lists.panix.com>
> The main reason why
>Internet access provision is such a competitive, low-margin business is
>that, unlike other forms of telecommunications, it's not been regulated
>from
>the beginning. Now the virus is spreading to the voice communications,
>thanks to voice-over-packet technologies, and the big boys are scared to
>death.
Enzo.
This is frankly the biggest, most dangerous myth promoted about the Internet- and a dangerous one since it ignores the fact that the Internet industry was created, regulated and massively subsidized by the government.
The key to the growth of the Internet is that ISPs were given nearly free access to the local phone networks. The Baby Bells build the phone networks and ISPs get essentially a free ride in reaching customers, due to regulation that has been rigorously and consciously enforced the federal regulators to help build the Internet. Not only is a call to an Internet Service Provider just as cheap as any other local phone call, typical users of the Internet are online far, far longer than the typical phone call- so Internet users, disproportionately upper income, get subsidized by the general customers of local phone service for those calls.
In a normal, unregulated market, the Baby Bells would be charging ISPs tremendously higher rates for access. So ISPs have spent a lot of time lobbying the FCC to keep the regulations in place.
Whether we are talking about UNIX, most computer languages, most Open Source software, or the Internet, they are all products of government spending and government regulation. Remember, most of Linux was created by programmers on the government dole, including Linus himself who was generously supported at his Finland university.
What the Left should recognize and trumpet loudly is the success of the Internet as a product of government planning, government spending, and government regulation.
--Nathan Newman