The Giant Awakes?
Rico Trevisan
21

The biggest difference between regulatory reform in the US and elsewhere, was that the US undertook vertical or logical separation between the core and the edge. Because of resulting price movements in the WAN and MAN, the commercial foundations for scaling the internet were in place in the 1990s.

A horizontal separation only works when it is physically complete (not logical) and interactor settlements exist both north-south (between app and infrastructure) and east-west (between actors) in the informational stack.

Settlement free models (net neutrality) actually have an opposite (unintended) outcome. They result in silo-ization and balkanization and stassis. Network effects always means value gravitates to the core (at a geometric rate) and costs are more or less evenly and linearly borne at the edge and bottom. The latter is problematic due to moore’s law and the fact that software/hardware is in a constant state of depreciation everywhere in the informational stack.

Therefore we have to fundamentally rethink policy and approaches to interactor settlements and interconnection between players across all horizontal layers and vertical boundaries.

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