The Nature Of Networks

Ehreth, Dave
March 2005
Business Communications Review;Mar2005, Vol. 35 Issue 3, p19
Trade Publication
This article focuses on the service markets. Service markets, however, are natural breeding grounds for competition. The fatal flaw of the Telecom Act was that it made ownership of a network the table stakes for offering services. The new VOIP providers are the vanguard of a new class of "networkless" providers who promise nothing less than a shattering of the legacy telephone business model. As long as broadband service offers a gateway to the Internet, the possibility of insurgents invading previously closed markets is not only possible, it is inevitable. A new business model, driven by competition and unleashed by the ubiquity of broadband, is emerging with the potential to undo the harm that the Telecom Act brought. VOIP companies stand out because their services compete directly with the carriers whose wires are being used. As incumbents develop more extensive video capabilities over their broadband consumer network, competition will heat up for this type of service as well


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