Stardust Global Ventures

I caught this piece posted yesterday by my pal Andy, and wanted to sleep on it before I posted a reaction. Andy and I are good friends, but the referenced article, and this whole way of thinking is bunk and poppycock. More after the snippet.

Bandwidth Is Not Limitless

Let’s face it, the iPhone has created something that has become a problem.

Scarcity of bandwidth.

While we all like to think that bandwidth is like air, it’s not and those of us who live online are starting to suffocate from time to time, without enough bandwidth.

Part of the issue is that the so called “unlimited” data plan of the iPhone has stressed the AT&T network which needs a $7 billion dollar upgrade (which it likely will get this year) but the problem goes farther. Even WiFi networks are being stressed as users at events and meetings log on with multiple devices (iPhone, Mac, other WiFi device/computers/netbooks, etc.)

[Read Andy’s full post

So why do I think this is bunk? History.

I’ve worked in technology and computing industries for thirty years. When we assume scarcity, scarcity remains. It doesn’t matter whether it’s memory chips, disks drives or bandwidth. Treating resources as though they are scare ensures that they will remain scarce. That means the power over the resources remains in the hands of the carriers in this case. Bad move.

Think about the evolution of the hard drive. One of our scarcest resources was hard drive space. Yet Microsoft removed that barrier by simply releasing a Windows operating system that was, and remains a disk hog. What changed was we quit treating RAM and disk capacity as scarce resources.

This approach has carried through so many different areas of the economy beyond computing that it’s widely supported by more economist that can dance on the head of a penny.

I think the right approach is not to whine or complain, but reverse gears. We shouldn’t reduce our usage so we adpt our behaviors to the carriers ability to deliver. Far better to deluge the carrier network with traffic. Overwhelm them by assuming completely ubiquity and unlimited bandwidth.

If we treat carrier wireless broadband as a limitless resource, they will adjust to deliver, and quickly. And prices will drop quickly too. If we really want to commoditize wireless broadband and achieve ubiquitous service coverage, the surest path to achieve that is to simply force the carriers to keep up by stretching their carrying capacity every day.

Accepting scarcity begets scarcity. Assuming glut, and action accordingly creates a glut of cheap resources.

ADDITION: Right after I posted this, I caught Why Won’t AT&T Admit to Its Wireless Network Problems? by another friend, Om Malik. I’d say Om’s piece reinforces my point. AT&T took a black eye and responding with lightning speed for a carrier.

Technorati Tags: scarcity, glut, wireless broadband