Wednesday, May 6, 2015

In 1999, I had predicted that "net partiality" (opposite of net neutrality) may come (14-apr-2015) No.1

April 14, 2015

https://www.facebook.com/mehtarahulc/posts/10152718032151922



In 1999, I had predicted that "net partiality" (opposite of net neutrality) may come. Please download https://docs.google.com/…/0BwOTg2Q0_zssMzlhMTU3MjgtMWU…/edit .
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Please see page-67 , chapter-9, onwards. This was written in oct-1999 !!!
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chapter-9. Death of Free Internet and Small Presses
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There are two main channels of communication not under bankers’ control: Internet and small presses.
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This freedom may not last long.
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section-9.1 Cable Companies and Internet
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• Soon cable companies will start Internet access via cables
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• Phone companies and cable companies will merge or form COSSCG = Collectively Owned Supply Side, Closed By Government , (such as ATT/TCI merger). With or without merger, the same holding companies will own Telephone companies as well as Cable companies. In essence, each community will have 2-3 cable/phone companies, but they will be merely different labels as owners are the same.
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• Cable companies will also start hosting Web servers. Same way the cable companies (or their satellites) provide contents (like hHBO, hShowTime) on cable.
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• The web sites which are hosted on the servers owned by cable companies will be accessible at the speed of 1-10 mega bits per seconds while those not on cable companies’ servers will be available at less than 128 kbps. In other words, web-sites hosted at cable companies’ buildings (or the buildings which are connected to the cable companies’ building with high bandwidth lines) will be 10-100 times faster to the end user. Unless a web site is on cable companies’ servers, it will not fetch readers, as the readers will simply get bored of slow access. Cable companies will connect their host machines with one other’s host machines hosts using ultra-high bandwidth. But they will show limited response in connecting their machines with other ISPs’ machines.
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Now interesting phenomenon will happen. Cable companies would take initiatives to expand their roles. Along with hosting servers, they would also start web-page and application development. This has infact already started. hViacom owns a company which develops web applications. This is similar to cable companies like hViacom creating content providing companies like hMTV and hVH1. To streamline the process, web-application development companies and programmers not favorable to Cable Companies will be excluded from putting their applications and contents on cable companies’ servers (just as hMTV competitors have difficult time getting access to cable). Closed oligopoly in TV cable translated into a closed oligopoly of content providers, which has now resulted into complete oligopolization of news and movies.
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If closed oligopoly on cabling privileges continues, it will translate into closed oligopoly of Internet providers and server hosting. Next, will be oligopolization of entire software development industry. In a few
years from now, all software development companies will be owned or governed by cable companies. The industry, in terms of business arrangement will be back to mainframe days where only way a person can be programmer would be by becoming an employee in first 10-15 big companies or by being their satellites. The days of independent internet and independent programmers are numbered.
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section-9.2 Controlling Server Hosting and Web Sites
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I would explain the process by an example. Lets suppose hTimeWarner, hRCN, hATT, hMCI and hViacom are five cable companies which provide 3MB downlink and 128 kb uplink service to every house in anhattan.
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Does it mean that there will be pro-consumer competition?
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Well, each company will be owned by same 25 banks holding companies and will be under deep debt of short term loans. So if any of the CEO come up with a plan that would reduce total profit of bankers, the bankers can shake him by refusing to issue short-term loans. Thus all CEOs will faithfully obey the 25 Bank Holding Companies’ directors’ wishes. Thus as far as consumers are concerned, there will be only one cable company called BankersOneCable company. Anyone who tries to put cable without FCC’s permission in Manhattan alone will end up in prison, even though US constitution prohibits Federal Govt. from regulating intra-state trade. FCC will not issue license as there are already five cable companies in Manhattan. BankersOneCable will have 3Mbs line from its building in Manhattan to each home in Manhattan. Similarly it has 3Mbs line from premises in Princeton to each home in Princeton. But the uplink (link from
home to building of the cable company) in each case And its premises in Princeton and New York are connected with 10,000 Mbs lines. So any web site running on BankersOneCable company’s building in Manhattan or Princeton will be available to users in Manhattan as well as Princeton at very speed. A site not on BankersOneCable will have significantly lower speed. OneCable will try to improve connectivity with sites not on its premises, but that would take some time. May be about 1 year. Or may be 2. Or may be 5. Or may be 10 years ….
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Now suppose there is a company called hAmazonCom. It sells manuals over internet. It has a competitor called hNobles which also sells manuals. They both want to add new feature on their web sites: Putting first 20 pages of a manual so that customer can read it before he places order. The only problem is that 56kbps bandwidth to little bit slow for this feature.
But BankersOneCable has made it possible to implement this feature (thanks to the decades of research done by bankers). So hAmazonCom goes to BankersOneCable with request to put his web-site on BankersOneCable premise. There is only one problem: BankersOneCable puts a condition that BankersOneCable would develop the whole application. It is the same way cable-company today try to allow only the content channels owned by themselves. hAmazonCom can refuse to accept the help, but that might upset owners of BankersOneCable company..
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Can owner of hAmazonCom afford to upset banker-owners of BankersOneCable company? Not when he hears that the owner of hNobles has agreed to accept the offer. In other words, most programmers, like today’s automobile engineers or civil engineers, will have 3-4 choices, owned by same 25 Bank Holding Companies. They will all be working for food and clothes.
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9.3 Solution
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Is there a way programmers can retain their freedom and income?
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Yes.
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Only if they fully open up the physical cable laying industry. A township should be allowed to have as many cable company as it wants and no other government, state or Federal should be allowed to interfere.
If any officer or Judge interferes, fire him. That’s the ONLY way to kill the closed oligopoly of cable companies. If this oligopoly is not
stopped, it would engulf the whole internet just like it engulfed a big fraction of music and entertainment industry.
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section-9.4 Death of Small Press
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Will elite kill the small press? No. They will simply block it from distributing the material by privatizing Postal Service. Postal service may soon (by 2010) become a closed private oligopoly The new private oligopoly will set up a price structure which will be extremely hostile to those who are mailing small number of packages a day. With this most of the independent presses will be cut-off from the people.
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9.5 Conclusions
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The prime reason why bankers would oligopolize web is to ensure that critical facts (like Alan Greenspan is a mere spokes-person and real power is in the hands of owners of Federal Reserve Banks etc. See United States Code, Title-12, Chapter 3) do not become public knowledge. Also, they would not like people to know that bankers create money from thin air and so-forth. As a result, they must clamp down on
the flow of the information. Seigniorage and Free Communication cannot go together. One will kill another, or at least make it.
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