tag:blogger.com,1999:blog-8518538516094111151.post7725076005273789785..comments2024-02-09T04:57:18.262-05:00Comments on TeleFrieden: Rethinking Efficiency in Size and Vertical IntegrationRob Friedenhttp://www.blogger.com/profile/07906014390240946093noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8518538516094111151.post-27158290974943698932016-03-05T19:31:08.938-05:002016-03-05T19:31:08.938-05:00At a micro or industry level people should begin t...At a micro or industry level people should begin to realize that edge access ISPs have too much stranded capex/opex in their vertically integrated business models that only have partial and incomplete demand perspective/reach. I am puzzled why more don't understand this by simply looking at sessions (originating and terminating on the network) and the nature of demand.<br /><br />At a macro level, we need more analysis on the theory of networks. Only then would we understand the necessity of settlements between actors (networks) serving as price signals for incentives and disincentives. In addition to coordinating end-to-end investment (like rapid IPv6 adoption and not 20+ years to achieve 15% penetration) settlements appropriately set would share ecosystem value. Of course everyone by now knows that value disproportionately accrues to the center and top of networks (or inter-network ecosystems) while costs are disproportionately born by the bottom and the edge.<br /><br />Taking both together and understanding that all institutions are being disrupted by digital forces leads us to question the notion of vertical integration in general for any company as well as the importance of "network effect" on the internal workings of the corporation. In fact, instead of viewing employees as fungible assets, they should be viewed as important ecosystem elements to which value should be conveyed (and not just to shareholders).InfoStackhttps://www.blogger.com/profile/07551031808515532198noreply@blogger.com