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Debates rage over issues of television content, with the V-chip (Violence Chip) apparently having been settled on as the solution. Assuming that all TV and VOD content is rated and assuming that the software/firmware is developed, it is possible that parents automatically could reject the access of minor children to certain scenes, programs, or even entire channels. That assumes, of course, that the same parents who can’t program the VCR (or even reset the VCR clock) can figure out how to program the V-chip! Similarly, software filters are commercially available for the Internet. Such filters block access to Web sites of unseemly content. The filters are regularly updated through a server maintained by the software provider.

Taxation

Municipal and county governments long and heavily have relied on taxation of traditional utility companies to balance their budgets. By way of example, the League of California Cities states that utility taxes accounted for $996 million in 1993, up from $687 million in 1988. The shift to wireless communications has left the cities in something of a lurch.

Cellular telephony and satellite TV have required that the tax codes be rewritten. They also have made the job of calculating and collecting revenues much more difficult. The Internet poses a similar problem and PCS adds yet another dimension. Convergence of voice, data, and entertainment networks adds to the confusion and speaks to an issue that must be resolved.

Assignment and Portability of Logical Addresses

Logical addresses come in the form of telephone numbers, IP addresses, and so on. With the exception of 800/888, In-WATS numbers (in the United States), none of these addresses currently are portable, from carrier-to-carrier, or service provider-to-service provider. By way of example, U.S. AAVs/CAPs provide local telecommunications service in some areas. However, they must do so on the basis of DID numbers that they lease from the LEC. As a result, users are forced to change telephone numbers, placing these competitors at a disadvantage. This disparity results from the fact that the North American Numbering Plan (NANP) is administered by Bellcore, the R&D arm of the RBOCs. Within each area code, or NPA (Numbering Plan Area), the predominant LEC (read RBOC) is responsible for number assignment. It doesn’t take the Chairman of Bell Labs to figure out who this arrangement benefits.

Similarly, one becomes tied to an information service provider. For example, ContextCrp@aol.com by no means is portable to CompuServe, Prodigy, GEnie, The Well, or any other service provider. The Context Corporation effectively was wed to America Online until it set up its own domain, contextcrp.com. As some of us are well aware, divorces are far more difficult and expensive than are weddings. Organizations with true domain names (e.g., contextcrp.com), do enjoy full portability, of course.

PCS/PCN takes the issue of address assignment and portability to the extreme. PCS, in full theoretical form, allows one logical address to follow one for life and across the full range of applications, including telephony, cellular telephony, paging, facsimile, email, and video mail. Address portability is critical in this environment, and especially so in a converged network environment.

Interconnectivity

Interconnectivity is critical in telecommunications networks and the Internet. Some data networks provide for interconnectivity on the basis of privilege and other factors; examples include the Internet, X.25, and Frame Relay networks. Other data networks are not necessarily intended to support high levels of interconnectivity. Regardless of the provider, the converged network must support full interconnectivity, at least for voice, videoconferencing and certain types of data, and on an equal access basis [15-29].

One Potato, Two Potato, Three Potatoe, Four…

Potato(e) can be spelled more than one way, as Vice-President Dan Quayle illustrated several years ago. There also is more than one way to build an I-Way. There is a very serious question as to just how many wires (hard wires and wireless wires) should be extended to provide access to the I-Way. Even if the applications were proven to have broad market appeal at compensatory price levels, there is only so much to go around. One must wonder how much redundant infrastructure is reasonable, and at what cost. Perhaps the electric utilities have the right idea—build one information grid and provide access to a wide variety of service providers. Of course, this idea is not new. Utilities traditionally have provided a single grid for telecommunications, data communications, CATV, electric power, gas, water, and sewer services. The fundamental economic concept of a natural monopoly still has merit.

Rochester Telephone (Rochester, New York), well-known as an innovator, several years ago hit upon a variation of the same theme. The New York PUC approved the separation of the company into R-Net (grid provider) and R-Comm (service provider). R-Net acts as an information grid wholesaler, providing access to service providers, including R-Comm. On January 1, 1995, the people of Rochester became the first U.S. citizens to have a choice of local telephone service providers since 1919 [15-30].

In all likelihood, a natural duopoly or triopoly will prevail in many areas. Telecommunications and CATV networks already exist, they need only to be upgraded. While the level of capital investment is not trivial in either case, it is quite likely that two grid providers can survive quite comfortably and profitably. If one adds wireless carriers to the equation, perhaps that number expands to three, particularly in a PCS scenario. Four wired potatoes likely is not within the realm of reason and three is problematic. Wireless potatoes are additional.

Content is the Key

As standards develop (or not), technologies evolve, applications find favor, and networks are laid, it will become increasingly clear that I-Way providers must find a means of differentiation. Service quality, reliability, responsiveness and other factors, certainly will help to differentiate one provider over another. However, that differentiation must extend beyond price, promotion, and place. Product, the fourth P of the classic marketing definition, is critical.

Content is the key. Content includes music, movies, games, educational programming, and a host of other things that entice business and personal users to access the I-Way. Clearly, the industry has realized the importance of content, as numerous mergers, acquisitions, and strategic alliances will attest.


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