Achieving Connectivity from the Edge Bob Frankston
Changing the Horse you Rode in on
Dagnabit:  15 minute vs. “reality” <ul><li>So many stakeholders in the status quo! </li></ul><ul><li>Silos are barriers to...
Preparing to understand <ul><li>What is the value of a bit such as this one “1”? </li></ul><ul><li>What is the capacity of...
It’s so darn easy to network ☺☻☺☻ ! <ul><li>Home Networks </li></ul><ul><ul><li>They are not networks – just copper and ra...
<ul><li>Interconnecting neighborhoods is trivial and V1’s been done </li></ul><ul><ul><li>We already do it the hard way – ...
Government vs.  Us erment <ul><li>We must stakeholders, not indentured tenants. </li></ul><ul><li>Positive Sum Ownership (...
Key Idea 1: Networking not networks <ul><li>Networking is something we do –  Andy Lippmann (MIT) </li></ul><ul><ul><li>We ...
Key Idea 2: The Opportunity Dynamic <ul><li>The Internet is about discovering what is possible </li></ul><ul><ul><li>If yo...
Telecom is a Failed idea <ul><li>Based on </li></ul><ul><ul><li>The accidental properties of analog signaling </li></ul></...
Telecom is not sustainable <ul><li>http://www.frankston.com/?name=AssuringScarcity </li></ul><ul><li>Routing is hard becau...
Telecom   Connectivity <ul><li>Telecom as a Service  is   the problem </li></ul><ul><ul><li>If you fund the infrastructur...
The FCC can play a positive role <ul><li>Remove legacy barriers to local ownership </li></ul><ul><ul><li>Recognize that we...
We have met the enemy … <ul><li>And it is us – Pogo </li></ul><ul><li>Example: If you have copper you have DSL 24×7 </li><...
The Biggest Problem <ul><li>We have a perfect usable Internet yet </li></ul><ul><ul><li>We think it’s about YouTube </li><...
Let’s stop being stupid! <ul><li>Telecom is not viable so why try so hard to preserve it </li></ul><ul><li>The infrastruct...
And on with the show <ul><li>Apologies for the interruption. </li></ul><ul><li>You may now resume monetizing Ptolemy's tel...
An   eComm 2008   presentation –   http://eCommMedia.com   for more
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Bob Frankston's presentation at eComm 2008

  1. 1. Achieving Connectivity from the Edge Bob Frankston
  2. 2. Changing the Horse you Rode in on
  3. 3. Dagnabit: 15 minute vs. “reality” <ul><li>So many stakeholders in the status quo! </li></ul><ul><li>Silos are barriers to entry, you need it to be difficult! </li></ul><ul><li>Real opportunity comes from decoupling </li></ul><ul><li>You need to understand the technology to transcend it </li></ul><ul><li>The Post Office has mastered routing, why can’t we? </li></ul><ul><li>Yet we think the Internet is just another TV channel </li></ul>
  4. 4. Preparing to understand <ul><li>What is the value of a bit such as this one “1”? </li></ul><ul><li>What is the capacity of this piece of wire? </li></ul><ul><li>If you can answer these questions you don’t get it! </li></ul><ul><ul><li>The value is in using the network, not the network itself. </li></ul></ul><ul><ul><li>Once you’ve defined a service you’ve locked in your assumptions. </li></ul></ul><ul><ul><li>Moore’s law: based on decoupling marketplaces </li></ul></ul><ul><ul><li>If we didn’t know better … </li></ul></ul><ul><li>But we do – the Internet is a very effective demo! </li></ul>
  5. 5. It’s so darn easy to network ☺☻☺☻ ! <ul><li>Home Networks </li></ul><ul><ul><li>They are not networks – just copper and radios (rarely fiber) </li></ul></ul><ul><ul><li>The devices use physical transports to facilitate networking </li></ul></ul><ul><ul><li>As a result: </li></ul></ul><ul><ul><ul><li>The speed has gone from 2kbps  1Gbps, Gbps switch $50! </li></ul></ul></ul><ul><ul><ul><li>It costs very little to install and essentially nothing to operate </li></ul></ul></ul><ul><ul><li>Caveat </li></ul></ul><ul><ul><ul><li>It should be far easier and will be ! </li></ul></ul></ul><ul><ul><li>In 1995 home networking was never going happen. </li></ul></ul><ul><ul><ul><li>We are supposed to be getting it via the STB n-tuple plays </li></ul></ul></ul><ul><ul><li>I made sure home networks were not a profit center. </li></ul></ul>
  6. 6. <ul><li>Interconnecting neighborhoods is trivial and V1’s been done </li></ul><ul><ul><li>We already do it the hard way – home run connectivity </li></ul></ul><ul><ul><li>Without path dependence all access points add to coverage </li></ul></ul><ul><li>Distance is easy </li></ul><ul><ul><li>My House to Boston “peering” point (AKA I-90 entrance) </li></ul></ul><ul><ul><li>Thence Seattle (AKA I-90 exit) </li></ul></ul><ul><ul><li>That’s it folks. Done. More provisioning than routing. </li></ul></ul><ul><li>And cheap </li></ul><ul><ul><li>We already have the copper, fiber and radios! 300× in Newton! </li></ul></ul><ul><li>The Post Office has been routing for thousands of years! </li></ul><ul><ul><li>They don’t confuse naming with addressing! </li></ul></ul>And it scales “I-90” routing
  7. 7. Government vs. Us erment <ul><li>We must stakeholders, not indentured tenants. </li></ul><ul><li>Positive Sum Ownership (of the Bit Commons) </li></ul><ul><ul><li>Nonexclusive! </li></ul></ul><ul><ul><li>Contribute and get even more in return (network effect) </li></ul></ul><ul><li>Ownership at scale </li></ul><ul><ul><li>Your home network is yours </li></ul></ul><ul><ul><li>Your community network is done by the community </li></ul></ul><ul><ul><li>Spanning connectivity may be national or global </li></ul></ul><ul><li>Simplicity at scale </li></ul><ul><ul><li>At the edge: Complex policy decisions about relationships </li></ul></ul><ul><ul><li>Avoid policy for spanning connection: Just provision </li></ul></ul>
  8. 8. Key Idea 1: Networking not networks <ul><li>Networking is something we do – Andy Lippmann (MIT) </li></ul><ul><ul><li>We can use any means available </li></ul></ul><ul><ul><li>We can innovate in any way </li></ul></ul><ul><li>The power of decoupling – assume relationships and paths </li></ul><ul><li>Telecom is now about little except creating billable events </li></ul><ul><ul><li>Redundant broadband for containing bits </li></ul></ul><ul><ul><li>Phone companies do not create phone calls </li></ul></ul><ul><ul><li>Cable: 2Mbps HDTV over IP is better than over “cable”! </li></ul></ul><ul><ul><li>Makes promise it cannot keep – it doesn’t control the network! </li></ul></ul><ul><li>Devices can do telephony but they aren’t telephones! </li></ul>
  9. 9. Key Idea 2: The Opportunity Dynamic <ul><li>The Internet is about discovering what is possible </li></ul><ul><ul><li>If you don’t rely on promises, you can’t be charged for them </li></ul></ul><ul><ul><li>Demand creates supply </li></ul></ul><ul><ul><ul><li>If we aren’t constrained by the past perfect </li></ul></ul></ul><ul><ul><ul><li>Digital is a great facilitator </li></ul></ul></ul><ul><li>Telecom is about delivering only what we already have </li></ul><ul><ul><li>Every bit has an pre-assigned value without context </li></ul></ul><ul><ul><li>Depends on the myth that bits and ideas are scarce! </li></ul></ul><ul><ul><li>We already know better! </li></ul></ul>
  10. 10. Telecom is a Failed idea <ul><li>Based on </li></ul><ul><ul><li>The accidental properties of analog signaling </li></ul></ul><ul><ul><li>The notions that monopolies are smarter than markets </li></ul></ul><ul><li>We keep it alive </li></ul><ul><ul><li>The FCC’s Regulatorium fights reality </li></ul></ul><ul><ul><li>People still think phone calls come from a phone company </li></ul></ul><ul><ul><li>A myriad of stakeholders including many at this conference </li></ul></ul><ul><li>Mostly ignorance </li></ul><ul><ul><li>The idea that we can’t drive or do our own networking </li></ul></ul><ul><ul><li>A failure to understand the Internet beyond YouTube </li></ul></ul><ul><ul><li>Malthusian zero sum economics </li></ul></ul>
  11. 11. Telecom is not sustainable <ul><li>http://www.frankston.com/?name=AssuringScarcity </li></ul><ul><li>Routing is hard because it is about managing scarcity! </li></ul><ul><li>The bit commons has effectively unlimited abundance </li></ul><ul><ul><li>The Internet is not a consumable, we create capacity </li></ul></ul><ul><ul><li>Network effect means commons is far greater than slivers </li></ul></ul><ul><li>Abundance means you can’t tax services to fund transport </li></ul><ul><ul><li>Incremental cost of email, VoIP etc is effectively zero. </li></ul></ul><ul><li>End-to-End constraint means you can’t charge for better </li></ul><ul><ul><li>Provider doesn’t control the path </li></ul></ul><ul><li>It’s a canal across an ocean of bits – not a viable business! </li></ul>
  12. 12. Telecom  Connectivity <ul><li>Telecom as a Service is the problem </li></ul><ul><ul><li>If you fund the infrastructure out of service revenue </li></ul></ul><ul><ul><ul><li>Abundance is a threat – More “Internet” less revenue </li></ul></ul></ul><ul><ul><ul><li>You have to monetize the network, not the use of the </li></ul></ul></ul><ul><ul><li>Telecom defines and limits our ability to communicate! </li></ul></ul><ul><li>It’s not about fiber, it’s about market structure </li></ul><ul><ul><ul><li>The service model is inherently dysfunctional. </li></ul></ul></ul><ul><ul><ul><li>Muni-bells are bells – it’s not about FTTH, it’s about opportunity! </li></ul></ul></ul><ul><ul><ul><li>Infrastructure funding aligns incentives and gives us abundance </li></ul></ul></ul><ul><ul><ul><li>Why are we fixated on speed and not connectivity? </li></ul></ul></ul>
  13. 13. The FCC can play a positive role <ul><li>Remove legacy barriers to local ownership </li></ul><ul><ul><li>Recognize that we don’t need to support carriers </li></ul></ul><ul><ul><li>Benign neglect – don’t extend the Regulatorium </li></ul></ul><ul><ul><li>Remove business restrictions such as “cable content” rules </li></ul></ul><ul><ul><li>Understand connectivity and fund research </li></ul></ul><ul><ul><li>Don’t accept “Stole it fair and square” </li></ul></ul><ul><ul><li>Don’t give us “ broadband ”, give us Internet Opportunity . </li></ul></ul><ul><li>And benign Neglect: Most problems will solve themselves </li></ul><ul><ul><li>“ Spectrum” will not have value if we have connectivity </li></ul></ul><ul><ul><li>Complex routing and telco control is self-defeating </li></ul></ul><ul><ul><li>Monetizing bits is a failed idea </li></ul></ul>
  14. 14. We have met the enemy … <ul><li>And it is us – Pogo </li></ul><ul><li>Example: If you have copper you have DSL 24×7 </li></ul><ul><ul><li>And 100% wireless coverage to boot </li></ul></ul><ul><ul><li>It’s not about speed – it’s about our lives & our ec </li></ul></ul><ul><li>But instead we beg for more broadband </li></ul><ul><ul><li>We mean “More of that there Internet Channel” </li></ul></ul><ul><ul><li>Carriers hear – more delivery pipes with a 1% tithe </li></ul></ul><ul><ul><li>Or they think they can monetize bits a la Genuity. </li></ul></ul><ul><ul><li>And we get more Bells & Muni-Bells </li></ul></ul><ul><li>It’s not about just watching TV </li></ul><ul><ul><li>It’s about mundane use of connectivity for our day to day lives! </li></ul></ul>
  15. 15. The Biggest Problem <ul><li>We have a perfect usable Internet yet </li></ul><ul><ul><li>We think it’s about YouTube </li></ul></ul><ul><ul><li>Cities have multiple special infrastructures and private fiber </li></ul></ul><ul><ul><li>They pay for phone calls and all sorts of special services </li></ul></ul><ul><ul><li>They have toy cable TV stations and rather than video servers </li></ul></ul><ul><ul><li>They don’t expect to use the abundant gigabit connectivity </li></ul></ul><ul><ul><li>And we are disconnected everywhere but in our own homes!! </li></ul></ul><ul><li>Something is very very wrong. </li></ul><ul><ul><li>We have a perfectly good Internet but we ignore it! </li></ul></ul><ul><ul><li>We’ve paid for it and yet think we have to pay again and again </li></ul></ul><ul><ul><li>We think freedom is a faster broad band. </li></ul></ul>
  16. 16. Let’s stop being stupid! <ul><li>Telecom is not viable so why try so hard to preserve it </li></ul><ul><li>The infrastructure (V1) exists but is unused! Cost is <<$0 </li></ul><ul><ul><li>It’s not just a TV channel, it’s infrastructure ! </li></ul></ul><ul><li>So let’s make a deal </li></ul><ul><ul><li>We get infrastructure and can align incentives </li></ul></ul><ul><ul><li>The shareholders escape with their hides and some money </li></ul></ul><ul><ul><li>Like Divestiture 1 but done right. </li></ul></ul><ul><ul><li>Like Divestiture 1 – changes happens when it must </li></ul></ul><ul><li>Or we can deny ourselves trillion dollars in value </li></ul><ul><li>But it’s also about our lives and safety (9/11 and 911) </li></ul>
  17. 17. And on with the show <ul><li>Apologies for the interruption. </li></ul><ul><li>You may now resume monetizing Ptolemy's telecom. </li></ul><ul><li>Back to the past already in progress … </li></ul>
  18. 18. An eComm 2008 presentation – http://eCommMedia.com for more

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