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Thursday, 26 February 2009 19:04 |
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Bill Kennard in 1999 was worried that ISPs might die in the U.S., privately acknowledging to me the prices he allowed the Bells to set made it almost impossible for them. His hope was that by requiring the Bells to offer DSL through a separate subsidiary, they would be forced to end the margin squeeze or be exposed to massive losses in those subsidiaries. Under the name "structural separation," Britain made this partially work. The split of BT in wholesale and retail brought UK prices much closer to the level in competitive markets, to the point where the regulation of the BT wholesale pricing has become the main variable in UK broadband prices. That might have worked; Verizon's DSL subsidiary was losing a fortune, although they never let me have any figures. Mike Powell ended the system before we could find out whether it would work, but didn't have the foresight to realize that meant he needed to be a much stronger regulator or landline competition would degenerate. As it has.
Alan Meckler has now shuttered ISPCON and regular updates to the online site, ISP Planet. I worked with these folks when I did two Web Video Summit conferences. Jon Price and team are exceptional conference organizers who did a remarkable job keeping the event going this long as the industry declined. Alex Goldman of ISP Planet is a good reporter and a good friend. Internetnews.com had the good sense to find a position for him.
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Last Updated on Monday, 16 March 2009 04:24 |