NEW YORK ( TheStreet) -- Carriers hate bits. Carriers prefer services.
A decade ago, in his "Rise of the Stupid Network,"
Network owners should focus on moving as many bits as possible, he wrote, and leave translating their meaning to the edge, to user devices and Web site software.
Carriers hate the stupid network. They see the stupid network as limiting their cut from traffic. They want voice to be voice, fax to be fax, TV bits to be defined as TV channels. They prefer carrier-mediated scarcity to abundance. They want what they had before the Web was spun, the power to define, control and profit from every bit sent.The stupid network still defines today's core Internet, which is a shared infrastructure. I pay for bits you move, you pay for bits I move, and we all have an incentive to move more bits. It's a business model built for abundance. But it breaks down in the last mile. Take wireless networks. They have to buy spectrum, build out entire networks, then sell the result. Money from bits doesn't generate a positive return on this capital, especially as radios keep getting better, requiring frequent updates. This has led to consolidation among carriers. T-Mobile was nearly bought by AT&T (T) last year until the Federal Communications Commission said no. Now, T-Mobile is buying Metro PCS (PC) in a deal that gives parent Deutsche Telekom (DT) 74% of a new, publicly-traded entity,
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV