Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Applications
    • Applications

    Darwin Was Wrong

    Written by

    Rob Fixmer
    Published April 9, 2001
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      We Americans place a great deal of faith in the theory that open competition in free markets will ensure a sort of Darwinian efficiency; The most innovative, productive companies will grow and prosper, while weaker enterprises will wither and die. For the most part, the truth of this economic model, even in its most brutal manifestations, can be observed in everything from the automobile industry to the illegal drug trade. In general, the fittest survive, and as the weak perish, the economy grows.

      And then there are the regional Bells.

      Despite the best efforts of Congress to open local phone service to competition with the Telecommunications Act of 1996, the Bells have managed to destroy all challengers at every turn by making access to their networks economically unfeasible. Now, these archaic bastions of monopoly are about to bring the growth of online consumer retail to a virtual halt by refusing to invest in the “last-mile” portions of their networks — the lines that run from switching centers to peoples homes and offices.

      Its no mystery why this is happening. Improving their networks is enormously expensive and, with no viable competition, they have no incentive to invest. Better to grow fat on low-hanging fruit like urban business and financial centers — consumers and small businesses be damned.

      Any pressure the Bells might have felt from the Telecommunications Act all but disintegrated earlier this year when Rep. Billy Tauzin was named chairman of the House Energy and Commerce Committee, which controls telecommunications legislation. The Louisiana Republican, whose eight largest campaign contributors include BellSouth, SBC Communications and Verizon Communications in all, he has received $240,000 from Bells since 1995 has promised to dismantle the law and “unshackle” the Bells from “enforced competition.” Whats more, he has stated an eagerness to strip the Federal Communications Commission of much of its regulatory authority over telephone companies.

      Jeffrey Chester, executive director at the Center for Media Education, a public interest group, told Interactive Week in February, “This guy is going to determine what the Internet looks like for most people. The real threat here is that Tauzin, while giving lip service to the public interest, has only one group giving him cold, hard cash.”

      And that group, it is now clear, will not be facing any meaningful competition in the foreseeable future.

      The Bells eagerly point to sizable investments in last-mile DSL as proof of their commitment to the consumer, but thats a straw man. The fact is, DSL is a lousy technology the Bells have cobbled together — half-heartedly — because it runs over old copper wires and thus requires a minimal investment in infrastructure. Unfortunately, it is by far the most unreliable of all telecommunications technologies. Besides, indicators now suggest that the Bells are slowing investment in DSL, even though its still not available in most parts of the country. It turns out that bad technology requires a whole lot of customer support, which happens to be almost as expensive in the long run as running last-mile fiber-optic cable is in the short term.

      The one last hope for any real competition in the bandwidth business was AT&T, which spent billions to build a competing local voice and data system on the back of its television cable network. But that vision, articulated by the companys chairman, C. Michael Armstrong, proved too expensive even for the deep pockets of Ma Bell. Now AT&T shareholders are being asked to approve a breakup of the company that, given the current condition of the stock market, is likely to mean an indefinite delay in — if not the demise of — Armstrongs vision.

      So myriad businesses await the opportunity to compete in markets ranging from financial services to streaming video entertainment to online applications. But its not to be. Many will simply abandon their dreams. Some will die a slow death before this monopoly blood clot can be cleared from our economy.

      Rob Fixmer
      Rob Fixmer
      Editor-In-Chief[email protected] joined Interactive Week from The New York Times, where he was the paper's technology news editor. Rob also was the founding editor of CyberTimes, The New York Times' technology news site on the Web. Under his guidance, the section grew from a one-man operation to an award-winning, full-time venture.His earlier New York Times assignments were as national weekend editor, national backfield editor and national desk copy editor. Before joining The New York Times in 1992, Rob held key editorial positions at the Dallas Times Herald and The Madison (Wisc.) Capital Times.A highly regarded technology journalist, he recently was appointed to the University of Wisconsin School of Journalism's board of visitors. Rob lectures yearly on new media at Columbia University's School of Journalism, and has made presentations at the Massachusetts Institute of Technology's Media Lab and Princeton University's New Technologies Symposium.In addition to overseeing all of Interactive Week's print and online coverage of interactive business and technology, his responsibilities include development of new sections and design elements to ensure that Interactive Week's coverage and presentation are at the forefront of a fast-paced and fast-changing industry.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.