"Permission to innovate"
At yesterday's "iPhone hearing" before Congress, witnesses talked about the failures in today's wireless market and the need to force carriers to open up their networks to all devices and all applications (that operate properly on the network).
Jason Devitt, founder of Skydeck and previously of Vindigo, testified, "I'm a small business owner. I don't like regulators... In the context of wireless spectrum I do not have a choice between no regulations and regulations. We have a choice between badly written regulations and regulations that work."
Why are regulations necessary? Because the market isn't working today. Innovators like Devitt have to ask permission to innovate. Devitt explains:
Read more...
Thomas Carter [who invented the Carterfone] was not a judge who broke apart a monopoly by fiat. Thomas Carter was an entrepreneur who wanted to bring an interesting product to market and was furious—madd as hell—to discover that he required permission to innovate.
I am an entrepreneur and I am mad as hell that I require permission to innovate in the wireless market. I don't have to go to the great companies that build our public highways and ask them for their views on what kind of cars I can put on those roads. I don't have to ask Con Ed for permission when I want to put a refrigerateor on the electricity network. I don't have to ask Verizon, thanks be to Thomas Carter, for permission to attach a computer to their network or to launch a Web site.
But for some reason I have never been able to understand, I have to ask permission of Verizon Wireless to attach a computer—or the computers that they now call phones—to their wireless networks and I have to ask their permission to run applications and services on those phones. Worse, I have to ask the permission of my comptetitors because they are competing with me to provide services to consumers.
And competition isn't solving this problem. "Despite the fact that, as the CTIA and the FCC keep telling us, the wireless sector is the most competitive telecommunications sector in this country ... nevertheless there are hundreds of interseting applications and services that are not getting in front of consumers because of the current structure of the market, and that's a problem that we can only address through regulation."
Watch Devitt's entire testimony:

0 Comments:
Post a Comment
<< Home