Media man

Media man

: FCC Chairman Michael Powell sits down with the San Jose Mercury News and out come some pearls of wisdom.

He illustrates the real shift in media and telecommunications:

The most powerful paradigm shift is the fact that applications are not woven into the platforms. . . .

Now to be a phone company, you don’t have to weave tightly the voice service into the infrastructure. You can ride it on top of the infrastructure. So if you’re a Vonage, you own no infrastructure. You own no trucks. You roll to no one’s house. They turn voice into a application and shoot it across one of these platforms. And, suddenly, you’re in your business.

And that’s why if you’re the music industry, you’re scared. And if you’re the television studio, movie industry, you’re scared. And if you’re an incumbent infrastructure carrier, you’d better be scared. Because this application separation is the most important paradigm shift in the history of communications, and will change things forever. . . . I have no problem if a big and venerable company no longer exists tomorrow, as long as that value is transferred somewhere else in the economy.

That idea of the application (or content) being separate from the platform is the architecture of the age.

It’s what HTML, XML, and RSS are all about: content is separate from display and thus displayed anywhere.

Not to be tiresome and link everything to the local angle of blogs, but they, too, fit this model: Blogs ride on top of the infrastructure of others, without reporting structures or pressmen or trucks.

Politics now fit the model, too: Howard Dean used open-source tools to create a new, distributed campaign infrastruture apart from the DNC’s infrastructure.

Hell, it’s true even of terrorism: Bin Laden didn’t need to run a country to reap change; he rides atop our infastructure.

On media ownership, Powell says:

There is no question that there are an order of magnitude more media choices than at any time in our nation’s history.

I don’t know when this golden age was that everyone is benchmarking from. TV started by being dominated by three networks and three networks only, and it has done nothing but dilute since then. . . . Where was it more concentrated?

And we’ve had the invention of cable television, satellite television, the Internet. So you may disagree where to draw the line, but to argue for a line on the idea that the market is 10 times more concentrated than sometime . . . then you’re just willing to have a debate not rooted in factual reality.

Exactly. [via IWantMedia]

7 responses to “Media man”

  1. daniel stoddart Avatar

    I think it would be more accurate to say that Bin Laden rode on top of the Arab world’s recent embrace of telecommunications infrastructure. But your point is well taken.

  2. Erick Erickson Avatar

    The comment from Michael Powell that he has no problem if a big company no longer exists as long as value is exchanged is reassuring. He seems to “get” the free market and is not worried about protecting big companies in the face of a small startup company’s entrepreneurship.

  3. EB Avatar

    I know even asking this question will only magnify my ignorance on the topic, but what IF the people who *do* own the infrastructure did not repair the lines or upgrade them, but let it erode through entropy (or malice.) Then what happens to all the free-riders who are on top of this infrastructure and contribute nothing or only a small amount? The heavy work of creating the infrastructure was undertaken by companies who over time wanted to reap a benefit from that investment…. isn’t that philosphy or business model viable anymore? Apparently not.
    I know, I “don’t get it.”

  4. Scott Partee Avatar

    that is exactly my question, EB. Would the lines have to be placed under government control? Seriously, the Baby Bells, who own all the infrastructure, are making some money now, but they are not able to operate as truly free market businesses and, when they do, they do stupid stuff like investing billions in south american celular licenses while failing to fulfill the network requirements and laying off employees, but i digress as someone who has been laid off by a big telecom might…

  5. John Thacker Avatar
    John Thacker

    Well, the infrastructure companies can always be in the business of selling bandwidth. Perhaps they would end up being regulated as utilities are today. It’s still remarkably transformative, the separation of applications from bandwidth. Compare it to the separation of long distance telephone service from telephone infrastructure; the result was a massive lowering of long distance costs and prices, and the flowering of competition in that area. This has the potential to be at least as revolutionary. It’s hard to predict what the exact results would be, but it’s likely that infrastructure becomes a utility while the content and applications see more competition.
    Just like long distance, consider situations where other infrastructures like the cable lines or power lines are regulated utilities, but the power supplied or cable service bought are from other companies which compete with each other.

  6. John Thacker Avatar
    John Thacker

    What’s even more interesting, as Mr. Powell notes, is that with digital technology, we can push nearly any kind of data down nearly any kind of pipe. So that means that, especially with wireless technlogies, there can be competition even on the infrastructure side. The infrastructure companies don’t even have to be involved in the content or application side at all.
    Yes, it’s likely to wreck some plans. But there’s no reason to expect it to be unsustainable.

  7. EB Avatar

    Ok, I bought Lucent and it’s now $2.00 (or so) that is why I am bitter about telecom!!!!
    :^)
    There, full disclosure. I feel better now.