Internet industry development model

1. Cable TV operators gain incentives from local monopolies to build the last mile network that leads to each household. The cost of the last mile is usually very high;

2. Operators use this monopoly of the last mile to decide which channel can be placed in this network;

3. Operators usually ask for a large number of free equity stakes from various channels, so that they agree to put their channels on the Internet;

4. Even if the digital technology of cable TV is developed, the number of channels in each cable TV system will not exceed 1,000.

The Internet industry is building the entire industry globally based on the following model:

1. The Internet is built on the existing telecommunication infrastructure. The earliest is to use the dial-up modem to move data from above the telephone line;

2. Do not encourage the establishment of monopolies in order to build the Internet; various entrepreneurs enter this field, and venture capital and capital markets provide them with funds;

3. Anybody can put a server in a global network and provide services for anyone. There are no janitors in this industry;

4. No company needs to hand over equity to enter the global Internet network;

5. According to statistics, the number of active domain names in the world is between 750 million and 1 billion.

The two models are different, but they will converge in some way. Due to the need to move data from dial-up to bandwidth, the companies that originally made the last mile for telecoms and cable television have taken over the Internet port (last mile) market, and now there are already dual oligopoly situations in most markets. . Internet port service providers are likely to evolve from Internet models to cable television models.

This is why Ted Cruz's statement is wrong, he said: "The whole network neutrality is just a struggle between giants."

In fact, this is a battle between 1 billion active domain names and the giants that have mastered the Internet port market. There are about 6 or 7 giant cable and wireless operators in the United States. This is the fight between David and Gloria, and David has no ability comparable to Gloria. This is why the idea of ​​"net neutrality" is very conservative. Let us maintain the Internet industry in the Internet model instead of turning it into a cable TV model! As long as I have the opportunity, I will confirm this idea to Ted Cruz and his conservative colleagues.