Monday, July 28, 2014

The Productization of the Internet

The Internet should be like electricity when it comes to consumption of its services:  simple, safe, reliable, ubiquitous, inexpensive and standardized.  After all,  the Internet, like electricity, is a commodity and should be treated as such by service providers, the government and consumers.  This is the logical progression for this technology, given its role and prevalence in our society and economy.

Let me first tackle the premise that the Internet is a commodity.  Once upon a time, the Internet, like electricity, belonged to the realm of science.  The observance, manipulation and utilization of it was limited to scientific researchers who were studying its capabilities and potential.  But unlike electricity, which is a naturally occurring phenomena, the Internet was man-made.  Scientists had to consider the properties of electricity and devise potential uses for those properties.  In contrast, from the very beginning, the Internet was conceived as a tool, the purpose of which was to facilitate dialogue and information sharing.  Yet, despite the come from behind position of having to find uses for electricity, it has become generally acknowledged as a commodity, where the Internet has not.  But, why not?

What does it take for something to become a commodity?  An essential requirement is productization.   The Internet, just as electricity, has been made into a product.  A further qualification of the Internet as a commodity according to Merriam-Webster is that it is bought and sold, but more importantly that its “wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price”.   Indeed the price of Internet services has dramatically declined over the past two decades while the general availability of services has increased just as dramatically.  Increasingly retail businesses including hotels, restaurants, airlines, railways and public transit vehicles, provide Internet access free of charge to customers on their premises.  In addition, the ongoing wars between the major Internet service providers as they compete for consumers of residential service continues to exert downward pressure on prices.

There now exists the expectation that accessibility to the Internet is ubiquitous; that regardless of where we are or what we are doing, we can connect to the Internet.  In fact pervasive use of computing devices to access services via the Internet has  driven a modern paradigm that assumes such capability as a fundamental operating principle.   This model has be instantiated by government, businesses and institutions through the implementation of processes that rely upon the general accessibility of Internet services by all.  In other words, the assumption is that the Internet is a commodity. 

But, an assumption of accessibility without the acknowledgement of the Internet as a commodity has left our society in a strange limbo where Internet service providers continue to compete for the dollars of those who can afford to pay for the service, and consumers who are expected to have access to the Internet but cannot afford it become disenfranchised; excluded from the new reality.  If in our new paradigm the Internet is a commodity, then we must acknowledge it and treat it as such.  Everyone must be guaranteed access to the Internet.

Another feature of a commodity is quality of service.  Back to our electricity metaphor, consumers do not experience differences in quality of service.  Everyone who has electricity has power for all devices on their property on demand.  The wealthy do not get a better quality of electrical power than the poor.  Businesses do not compete based on whether or not they have electricity or the quality of electricity in the physical plants.  There is a single quality standard that everyone receives.  Returning to our discussion of the Internet, there should be no distinction such as “Fast Internet”.  Everyone should receive the same standard of service and it should be the fastest that the providers can produce. 

In order to guarantee universal accessibility and standard quality of service, government must take the responsibility to address delivery of Internet services as it does other commodities.  It must ensure accessibility, quality and affordability for all consumers.