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The NetSuds™ Report ©

The July 1, 2003 Issue:

Re-sending of this newsletter to any number of colleagues is encouraged provided you also cc: report@netsuds.com.  In return, we will invite recipients to subscribe.  Any other unauthorized re-distribution is a violation of copyright law.

Subscribe to this report by subscribing to the NetSuds Report at http://www.netsuds.net/mail.htm. You can get the web version of this report at http://www.netsuds.com/report/2003/july.htm


Definition:  "com and .com" = Telecom, Datacom, IT or Internet


In this Issue:

        1.0  Heard on the Net
        2.0  Jobs in the "com and .com" Market
        3.0  Calendar of Events
        4.0  Tidbits
               4.1    NetSuds on Tour
               4.2   
Email Advertising
               4.3    Here's A Conference You'll Want To Miss
               4.4    MN Non-Profits Eligible for No-Cost Computer Training
               4.5    Domain Names For Sale
               4.6    VONage Teams With Cable Companies
               4.7   
NetSuds CEO Roundtable - Next Roundtables starting in January 2004
               4.8    Fight Spam - SPAM Bully
               4.9    Search Engine Optimization
               4.10 
Blaine Intl. Soccer Tourney Goes With VoIP
               4.11  National Do Not Call
               4.12  Mobile Warrior Stuff
        5.0  The Many Paradoxes of Broadband
        6.0  Internet Traffic Growth: Sources and Implications
        7.0  The Minnesota Innovation Center - If You Build It ...
        8.0  The FCC, Weblogs and Inequality
        9.0  Guest Writers for this Report


1.0 Heard on the Net

1.1 People on the Move:

Please email:  people@netsuds.com to report a change in your job status if you are moving from or to a company in the "com or .com" space.  Include your new work contact information, not just your personal contact information.  We do not accept press release changes from third parties.  We must hear directly from the person who is 'on the move'.   You can include a 80 x 100 pixel (width x height) photo in JPG or GIF format.

MedicalSudser Rick Neafus has left May Clinical Trial Services and is now the VP of Decision Support and Research at Prime Therapeutics.  You may contact Rick at either 651-286-4319 or RNEAFUS@PRIMETHERAPEUTICS.COM

NetSudser Michael Duran has accepted the position of Managing Director, Head of Technology, Media and Telecommunications Research, Gerson Lehrman Group, 11 East 44th Street, New York, NY 10017.  Mike may be reached either 212.984.3661 or mduran@glgroup.com.  Mike also runs Network Suds in New York.

NetSudser Angie Dahl has left Administaff and joined Right Management Consultants as VP of Client Services. Angie says "Right is the world's leading career transition and organizational consulting firm."  You may contact Angie at either 952-857-2224 or angie.dahl@right.com.

NetSudser Scott Platt has joined Tecknowledge Management as VP of Business Development.  You may contact Scott at either 612-252-9755 or splatt@teckman.com.

NetSudser Michael Wray has left Unimax and joined Mariner Software as President.  Mariner Software plays in the Macintosh market.  You may contact Michael at either mwray@marinersoftware.com or 612.529.3770.
 

Chris Kehew has joined Dexma - www.dexma.com - as Director of Account Management.   Chris joins Dexma from Minnesota-based Paragon Reinsurance Risk Management Services.  You many contact Chris at 952.229.1336 or ckehew@dexma.com

1.2 Companies on the Move:

Please email:  start-ups@netsuds.com to report (1) the formation of a new start-up, (2) momentum change at an existing start-up, (3) addition of key hires, or (4) a funding event at a start-up.  We do not accept press release changes from third parties.  We must hear directly from an executive at the company which is 'on the move'.

Phenomenal Networks announced on June 3, 2003, that it has achieved the IP Telephony Technology Specialization from Cisco Systems, Inc. This specialization recognizes Phenomenal Networks for having the training and knowledge to plan, design, implement and operate Cisco IP telephony solutions.

Bermai, a company headquartered in Palo Alto, CA but with University of Minnesota roots and a development team in the Twin Cities, has closed on a new $12,000,000 round of financing from its current investors and some new investors.  Bermai is a developer of 802.11x chipsets.  See http://www.bermai.com/news/062603_bfinance.html for the press release.

XO Communications is hiring as they expand in the Twin Cities.


2.0 Jobs in the "com and .com" Market

Please email:  jobs@netsuds.com to report job openings in the "com and .com" Market.  In the body of the message, give the name of the company and a URL link to the job postings.

**        HighJump Software - http://www.highjump.com/careers/opportunities.asp
**       
St. Croix Medical, Inc. - http://www.stcroixmedical.com/_private/cgi-bin/positions_list.htx
**        Sinex Aviation Technologies - http://www.sinex.com/about/openings.htm

***       Markneting - http://www.markneting.com/website_design_job.htm

Hi Matt -

Thanks for posting our job opening in the Netsuds monthly.  The number of "good" people we had respond to our position is a direct reflection of the exposure received thru Netsuds.  I do not have a quantitative measurement but having posted the same job just 45 days earlier thru the 'normal' means provides a pretty accurate comparison.  The only thing we did differently was use the Netsuds site.

We have filled the position so the posting can be removed.  Thanks again -

Bradd Strelow
Director of Technology and Innovation
Dakota County Technical College



3.0  Schedule of Events

You can also try our new online calendar by clicking here for NetSuds and here for MedicalSuds.

The web calendars for NetSuds and MedicalSuds continue to grow in popularity as more and more people use them for the definitive place to find high-tech events in the Twin Cities.  The calendars are free to use for both tracking events and for posting your own events.  To post events, login as "guest" with a password of "guest".  The Calendars are accessed at

NetSuds - http://www.netsuds.net/cgi-bin/calweb/calweb.pl?cal=default
MedicalSuds - http://www.netsuds.net/cgi-bin/calweb/calweb.pl?cal=MedicalSuds

Non-Minnesota companies conducting events in Minnesota will not be allowed to post events for free.  Events posted to either of these calendars are not immediately available for viewing.  All events will be marked "pending" and will be reviewed for content prior to public viewing.

7/31 - MedicalSuds Entrepreneurs Breakfast - St. Louis Park
          http://www.medicalsuds.com/eb/2003/july/
          Sponsored by Koepke & Daniels, P.A.

8/1 -  NetSuds Entrepreneurs Breakfast - Minnetonka
        
http://www.netsuds.com/eb/2003/august/

8/19   NetSuds Persuasive Presentation Skills Workshop - St. Louis Park
          http://www.netsuds.com/workshop/persuasive/

9/23   NetSuds Speak Like A Pro Workshop - St. Louis Park
 9/30  http://www.netsuds.com/workshop/slap/

 

4.0   Tidbits

4.1 NetSuds on Tour

NetSuds loves on-site tours!  Email me if you want to show off your company.  I can be reached at matt@netsuds.com.  No tours this month.

4.2  Email Advertising

The Business Journal reported that their daily email news reaches 5000 Twin Cities executives.  The MHTA claims a little over 2000 people on their email list.  Not bad but still a great deal less than the NetSuds and MedicalSuds email lists which reach 7200+ (yes, the lists are growing).  The NetSuds email lists are double-opt-in and concentrated on professionals in the communications, IT and Internet markets.  The MedicalSuds email lists are double-opt-in and concentrated on professionals in the medtech, biotech and life sciences markets.  So, rather than spend your advertising dollars on any other email lists in the Twin Cities, consider the NetSuds and MedicalSuds lists.  Contact matt@netsuds.com or 612.279.2154.  For current ad rates, visit www.netsuds.com/adrates.htm.

4.3  Here's A Conference You'll Want To Miss

http://j-walk.com/blog/docs/conference.htm

4.4   MN Non-Profits Eligible for No-Cost Computer Training

 

On June 9, the Management Assistance Program for Non-Profits (MAP), the Science Museum of Minnesota, and the Verizon Foundation announced a new partnership to ensure that Minnesota nonprofit organizations are computer-savvy, regardless of ability to pay for training.

 

As Verizon Foundation ePartners, MAP and the Science Museum's Computer Education Center (CEC) can provide eligible nonprofit organizations in Minnesota computer training valued at as much as $800 per year. Non-profits interested in receiving this training must apply to the Verizon Foundation Web site at www.verizon.com/foundation. MAP will provide administrative services, including assisting with grant applications and class registrations. The Science Museum’s CEC will provide the computer training at its St. Paul and Edina facilities.

 

Available classes include basic desktop operating systems, Microsoft Office applications, desktop publishing, web development, desktop database, and system administration.  The grant program is targeted to nonprofits statewide with operating budgets of $150,000 or less, but no nonprofit organizations are excluded from applying.

Nonprofit organizations can apply for the grants beginning on June 11, 2003.  For a complete list of classes or to apply, contact MAP at www.mapfornonprofits.org or call 651-647-1216, or visit Verizon Foundation online at http://foundation.verizon.com/06003a.shtml.

4.5  Domain Names For Sale

Contact Jeff Pester @ either jp@urbanradar.com or 612.377.0370 for details on purchasing either datacage.com or intellasense.com. 

4.6  VONage Teams With Cable Companies

The major cable companies have been spinning their wheels for years and years on a DOCSIS cable telephony standard while a little company called VONage simply took the bull by the horns and made VoIPoCable work.  Here's the latest on the marriage of VONage to broadband.

From the CommVerge inSITE e-zone "News and analysis for convergence product teams, June 18, 2003" http://www.commvergemag.com

Voice-over-broadband provider Vonage last week announced two private-label deals under which cable companies will resell Vonage's telephone service to their subscribers.  Full article: http://email.commvergemag.com/cgi-bin2/DM/y/eNcX0EjX4n0DaQ0Byfj0Ac

4.7  NetSuds CEO Roundtable - Next Roundtables starting in January 2004

NetSuds is opening up another group of CEO Roundtables in January 2004.  The first meetings of the 3 CEO Roundtables occurred January 21, 22 and 23.  Those three introductory sessions culminated in to one ongoing monthly session of participating CEOs.  If you are tech or medtech CEO and want to join us, (the first session is free), contact matt.noah@netsuds.comA synopsis of the CEO Roundtable can be found at www.netsuds.com/ceo/  It is repeated here as well.

NetSuds CEO Roundtable

Membership  Only CEOs of tech and medtech companies are allowed to join the NetSuds CEO Roundtable.  If you are a VP, CxO or President, you are not welcome unless you also hold the CEO title.  Perhaps we will start a CFO, CTO or COO Roundtable but until then, we are only interested in the top dog, the CEO.  If you are interested in becoming a member, contact matt.noah@netsuds.com.  Membership is not automatic.  There must be an available spot open in the roundtable.  You must have employees.  Your company must be incorporated.  Your company must be a tech (communications, IT, software, Internet) or medtech (medtech, biotech, life sciences) company.  You must pay a yearly fee of $1000 in advance.  You may not send substitutes to the Roundtable. 

Roles  Unlike the days of knights, kings and Camelot, there is no king of the NetSuds CEO Roundtable; only a facilitator; Matt Noah, CEO of NetSuds.com, Inc.  Knights are replaced by CEOs and the table won't be quite round.

Schedule  The Roundtable will meet 10 times per calendar year.  Our initial roundtable is meeting the last Tuesday of every month.  Each meeting lasts between 1.25 and 1.50 hours starting at 7 am.  A facility convenient to the majority of Roundtable members is used.  A continental breakfast is served.

Our next introductory session (free) has been scheduled for January 2004.  Attendance will be limited to just CEOs.  Contact matt@netsuds.com if you want an invitation.

Purpose  CEOs need resources to assist them in executing their duties and leading their companies.  Boards of Directors and upper management are not always the best or most independent resources upon which to draw.  The CEO Roundtable exists to provide CEOs with an independent resource of wisdom and shared experience.  Your key 'take-aways' from the Roundtable will be accelerated learning - so as to avoid common and uncommon pitfalls -, an expanded network of advisors and colleagues and tools to enhance the productivity and value of your enterprise.

Content  First, networking among the CEO members of a Roundtable is the best and richest content.  Second, the Roundtable facilitator will schedule subject matter experts of interest to the CEOs.  Examples include intellectual property, branding, sales, engineering, marketing, finance, compensation, human resources, M&A, etc. 

Format  Meetings will consist primarily of 2 elements.  First, "content" will be presented and discussed.  Second, "discussion" of common problems and solutions will take place.  The facilitator will lead both elements or assign elements to certain CEOs.

Confidentiality  Roundtable meetings are completely confidential.  Nothing said in a roundtable discussion, short of illegal activity, leaves the meeting.  This allows each CEO to feel comfortable discussing issues and subjects he may not feel comfortable speaking about with others.

4.8  Fight Spam - SPAM Bully

I have tried a half dozen email spam blockers and filters in the last few months.  I gave up at first and then started searching again in earnest in mid-June.  For a SOHO application, I ended up choosing Spam Bully - www.spambully.com.  I am picky.  I didn't want a web-based solution that required me to visit a website to monitor and hand-pick segregated emails.  Those methods are generally effective but non-elegant solutions.  Yes, they do limit the bandwidth-sucking process of downloading emails for processing.  But it requires a 2-step process.  I also didn't want a solution which required me to modify each of the 8-10 email account settings I run.  Those solutions are very non-elegant!  Then there are the challenge-based systems like Mail Matador.  I really was leaning that way until the trial version of Mail Matador bombed with my Outlook client.  It was elegant ... but it didn't work!  Actually, I had a couple of spam blockers bomb.

I was near the end of my rope when I found Spam Bully.  It installed nicely and had a free trial version (a nice enticement!).  I was nearly ready to kill the installation, however.  It warned me that it could take from a few minutes to a few hours to 'learn' my mailbox.  After 20 minutes of 'learning' I went to lunch, hoping for completion upon my return in an hour.  Well, it took nearly 2 hours to 'learn' but the results have been impressive to date.  It has an Outlook-specific version and I upgraded to the 'pay version' within 48 hours.

One of the features I truly love with Spam Bully is the ability to "bounce" emails back.  Even though the spammer found me at a good address, I can click a button and send him an email back which appears to indicate that the address was of the 'user not found' variety.  Hopefully, that will automatically remove me from his email list.  My spam is decreasing and I'm losing less time messing with it.  And that's a good thing for the $29.95 I spent.

4.9  Search Engine Optimization

NetSudser Mike Peterson, CEO of ShopCloseBuy, mike@shopclosebuy.com, passes this link on a local company which has helped him do search engine optimization.  As Mike said, "The firm is Top Rank and the guy who makes it happen is Lee Odden.  I think they're great and I have friends at other companies who use them and would also recommend then to anyone.  www.top--rank.com

4.10  Blaine Intl. Soccer Tourney Goes With VoIP

This little news item comes from NetSudser Alan Ainsworth of Phenomenal Networks, awa@phenomenalnetworks.com, 952.893.2030.

Soccer players participating in Schwan’s USA CUP from around the world will be able to call their families for free during the youth tournament to be held in Blaine, Minnesota during July 14-19, 2003.  Phenomenal Networks, a Minnesota-based, Premier Cisco Partner, is installing a complete Cisco based, IP telephony system on-site at the tournament. Using the system, players from 18 countries will be able to phone each day and let their families know how things are going, talk about the games, goals scored or saved and generally keep in touch.  The system will be installed in the activities hall and will be open from 10.00am to 7.00pm each of the six days of the tournament. Phenomenal has customized the system using Java XML so that each phone can be used for many data functions as well as for regular voice calls.

4.11  National Do Not Call

www.donotcall.gov is now live .... when will we get www.donotspam.gov ?
 



5.0  The Many Paradoxes of Broadband

The following article (abstract included here, click link to full article in PDF format) comes from NetSuds and UofM Professor Andrew Odlyzko, odlyzko@dtc.umn.edu http://www.dtc.umn.edu/~odlyzko/doc/broadband.paradox.pdf

Abstract: There is much dismay and even despair over the slow pace at which broadband is advancing in the United States. This slow pace is often claimed to be fatally retarding the recovery of the entire IT industry. As a result there are increasing calls for government action, through regulation or even through outright subsidies.

A careful examination shows that broadband is full of puzzles and paradoxes, which suggests caution before taking any drastic action.  As one simple example, the basic meaning of broadband is almost universally misunderstood, since by the official definition, we all have broadband courtesy of the postal system. Also, broadband penetration, while generally regarded as disappointingly slow, is actually extremely fast by most standards, faster than cell phone diffusion at a comparable state. Furthermore, many of the policies proposed for advancing broadband are likely to have perverse effects. There are many opportunities for narrowband services that are not being exploited, some of which might speed up broadband adoption.

There are interesting dynamics to the financial and technological scenes that suggest broadband access may arrive sooner than generally expected.  It may also arrive through unexpected channels. On the other hand, fiber-to-the-home, widely regarded as the Holy Grail of residential broadband, might never become widespread. In any case, there is likely to be considerable turmoil in the telecom industry over the next few years.  Robust growth in demand is likely to be combined with a restructuring of the industry. 


6.0  Internet Traffic Growth: Sources and Implications

The following article (abstract included here, click link to full article in PDF format) comes from NetSuds and UofM Professor Andrew Odlyzko, odlyzko@dtc.umn.edu http://www.dtc.umn.edu/~odlyzko/doc/itcom.internet.growth.pdf

Abstract: The high tech bubble was inflated by myths of astronomical Internet traffic growth rates. Yet although these myths were false, Internet traffic was increasing very rapidly, close to doubling each year since 1997. Moreover, it continues growing close to this rate.  This rapid growth reflects a poorly understood combination of many feedback loops operating on different time scales. Evidence about past and current growth rates and their sources is presented, together with speculations about the future. The expected rapid but not astronomical growth of Internet traffic is likely to have important implications for networking technologies that are deployed and for industry structure.  Backbone transport is likely to remain a commodity and be provided as a single high quality service. It is probable that backbone revenues will stay low, as the complexity, cost, and revenue and profit opportunities continue to migrate towards the edges of the network.


7.0  The Minnesota Innovation Center - If You Build It ... 

Long a leader in medical devices and technology, Minnesota is home to industry leaders including Medtronic, 3M, Mayo Clinic, St. Jude Medical and Cargill.  Products developed here have health benefits which impact the world.  Now, collaboration in medical technology and life sciences gets a big assist with the development of a new research and technology park – the Minnesota Innovation Center. 

Recently announced at the Governor’s Bioscience Summit held on May 12, the Minnesota Innovation Center is a research and development facility that provides premier laboratory, manufacturing and office space to firms in medical, life sciences and information technology industries.  The park will be built in multiple phases, eventually comprising 16 structures that house 1.6 million square feet of professional work space on 65 acres of land.

The Minnesota Innovation Center seeks to build and nurture relationships with academic institutions, Fortune 500 companies, government offices and agencies, as well as small, emerging entrepreneurial companies.  The park is conveniently located mid-point between both downtowns of Minneapolis and St. Paul, just one block northeast of the University of Minnesota’s Minneapolis campus

Featuring a campus-like setting, the park will include facilities for research and development, light manufacturing, professional offices and corporate business headquarters.  Buildings will have state-of-the-art infrastructure for communications, power and utilities.  The site is located in a federally designated Empowerment Zone, which affords companies a wide range of incentives for their involvement in the community.

The Minnesota Innovation Center enjoys close proximity to the University of Minnesota – the third-ranked public research university in the nation, and the recipient of approximately $500 million in grants annually.  Each year, hundreds of invention disclosures and promising technologies are licensed by the University to companies around the nation.  The park is designed to be a vital link to the campus system, providing opportunities for tenants to obtain a highly skilled workforce.

Minnesota Innovation Center shares its vision and inspiration with a worldwide membership in the Association of University Research Parks.  This 150-member organization seeks to create meaningful relationships between higher education and industry.

The project has been endorsed by Minnesota’s political and corporate leaders as the state works to expand its presence in the biotechnology industries. 

“One of our state’s priorities is to position Minnesota as a national and world leader in the medical technology and biotechnology industries,” stated Governor Pawlenty.  “The Minnesota Innovation Center will create a collaborative environment of laboratory and manufacturing space and demonstrates the state’s determination to become the premier location for these industries.” 

The Minnesota Innovation Center, LLC is an affiliate of The Wall Companies.

Additional information about the project is available at www.minnesotainnovationcenter.com



8.0   The FCC, Weblogs and Inequality

The following article comes from Clay Shirky (Also at http://www.shirky.com/writings/fcc_inequality.html)

Introduction

Quick one today. Though I've been watching the FCC's rule making on media concentration, I don't have a position that fits easily into the debate I've seen to date, a debate muddied by a lack of clarity in the various positions. A good part of this muddiness comes from a false belief in the possibility of having a media landscape which is characterized by diversity, freedom, and equality.

This essay is my attempt to clarify what I see as the required tradeoffs among those three characteristics, and therefore to clarify the coherent positions.

It is, I recognize, a charmingly naive attempt, since the debate is mostly populated by people whose stated positions are based on tactical calculations rather than first principles, but a girl can dream...

Anyway, here's the essay.  -clay

Essay - The FCC, Weblogs, and Inequality

Yesterday, the FCC adjusted the restrictions on media ownership, allowing newspapers to own TV stations, and raising the ownership limitations on broadcast TV networks by 10%, to 45% from 35%. It's not clear whether the effects of the ruling will be catastrophic or relatively unimportant, and there are smart people on both sides of that question. It is also unclear what effect the internet had on the FCC's ruling, or what role it will play now.

What is clear, however, is a lesson from the weblog world: inequality is a natural component of media. For people arguing about an ideal media landscape, the tradeoffs are clear: Diverse. Free. Equal. Pick two.

- The Developing Debate

The debate about media and audience size used to be focussed on the low total number of outlets, mainly because there were only three national television networks. Now that more than 80% of the country gets their television from cable and satellite, the concern is concentration. In this view, there may be diverse voices available on the hundred or more TV channels the average viewer gets, but the value of that diversity is undone by the fact that large media firms enjoy the lion's share of the audience's cumulative attention.

A core assumption in this debate is that if media were free of manipulation, the audience would be more equally distributed, so the concentration of a large number of viewers by a small number of outlets is itself evidence of impermissible control. In this view, government intervention is required simply to restore the balance we would expect in an unmanipulated system.

For most of the 20th century, we had no way of testing this proposition. The media we had were so heavily regulated and the outlets so scarce that we had no other scenarios to examine, and the growth of cable in the last 20 years involved local monopoly of the wire into the home, so it didn't provide a clean test of an alternative.

- Weblogs As Media Experiment

In the last few years, however, we have had a clean test, and it's weblogs. Weblogs are the freest media the world has ever known. Within the universe of internet users, the costs of setting up a weblog are minor, and perhaps more importantly, require no financial investment, only time, thus greatly weakening the "freedom of the press for those who can afford one" effect. Furthermore, there is no Weblog Central -- you do not need to incorporate your weblog, you do not need to register your weblog, you do not need to clear your posts with anyone. Weblogs are the best attempt we've seen to date of making freedom of speech and freedom of the press the same freedom, in Mike Godwin's famous phrase.

And in this free, decentralized, diverse, and popular medium we find astonishing inequality, inequality so extreme it makes the distribution of television ratings look flat. In fact, a review of any of the weblog tracking initiatives such as http://technorati.com or the blogging ecosystem project at http://myelin.co.nz/ecosystem/ shows thousand-fold imbalances between the most popular and average weblogs. These inequalities often fall into what's known as a power law distribution, a curve where a tiny number of sites account for a majority of the in-bound links, while the vast majority of sites have a very small number of such links. (Although the correlation with links and traffic is not perfect, it is a strong proxy for audience size.)

The reasons for this are complex (I addressed some of them in "Power Laws, Weblogs, and Inequality" at http://shirky.com/writings/powerlaw_weblog.html), but from the point of view of analyzing the FCC ruling, the lesson of weblog popularity is clear: inequality can arise in systems where users are free to make choices among a large set of options, even in the absence of central control or manipulation. Inequality is not a priori evidence of manipulation, in other words; it can also be a side effect of large systems governed by popular choice.

In the aftermath of the FCC ruling, and given what we have learned from the development of weblogs, the debate on media concentration can now be sharpened to a single question: if inequality is a fact of life, even in diverse and free systems, what should our reaction be?

- 'Pick Two' Yeilds Three Positions

There are three coherent positions in this debate: The first is advocacy of free and equal media, which requires strong upper limits on overall diversity. This was roughly the situation of the US broadcast television industry from 1950-1980. Any viewer was free to watch shows from any network, but having only three national networks kept any one of them from becoming dominant. (Funnily enough, Gunsmoke, the most popular television show in history, enjoyed a 45% audience share, the same upper limit now proposed by the FCC for overall audience size.)

Though this position is logically coherent, the unprecedented explosion of media choice makes it untenable in practice. Strong limits on the number of media outlets accessible by any given member of the public now only exist in broadcast radio and newspapers, not coincidently the two media least affected by new technologies of distribution.

The second coherent position is advocacy of diverse and equal media, which requires constraints on freedom. This view is the media equivalent of redistributive taxation, where an imbalance in audience size is seen as being so corrosive of democratic values that steps must be taken to limit the upper reach of popular media outlets, and to subsidize in some way less popular ones. In practice, this position is advocacy of diverse and less unequal media. This is the position taken by the FCC, who yesterday altered regulations rather than removing them. (There can obviously be strong disagreement within this group about the kind and degree of regulations.)

People who hold this view believe that regulation is preferable to inequality, and will advocate governmental intervention in any market where the scarcity in the number of channels constrains number of outlets the locals have access to (again, radio and newspapers are the media with the most extreme current constraints.)

More problematic for people who hold this view are unequal but unconstrained media such as weblogs. As weblogs grow in importance, we can expect at least some members of the "diverse and equal" camp to advocate regulation of weblogs, on the grounds that the imbalance between Glenn Reynolds of InstaPundit.com and J. Random Blogger is no different than the imbalance between Clear Channel and WFMU. This fight will pit those who advocate government intervention only where there is scarcity (whether regulatory or real) vs. those who advocate regulation wherever there is inequality, even if it arises naturally and in an unconstrained system.

The third coherent position is advocacy of diverse and free media, which requires abandonment of equality as a goal. For this camp, the removal of regulation is desirable in and of itself, whatever the outcome. Given the evidence that diverse and free systems migrate to unequal distributions, the fact of inequality is a necessarily acceptable outcome to this group. However, in truly diverse systems, with millions of choices rather than hundreds, the imbalance between popular and average media outlets is tempered by the imbalance between the most popular outlets and the size of the system as a whole. As popular as Glenn Reynolds may be, InstaPundit is no Gunsmoke. No matter how large the weblog world grows, no one weblog is going to reach 45% of the audience. In large diverse systems, freedom increases the inequality between outlets, but the overall size and growth weakens the effects of concentration.

This view is the least tested in practice. While the "diverse and equal" camp is advocating regulation and therefore an articulation of the status quo, people who believe that our goals should be diversity and freedom and damn the consequences haven't had much effect on the traditional media landscape to date, so we have very little evidence on the practical effect of their proposals. The most obvious goal for this group is radical expansion of media choice in all dimensions, and a subsequent dropping of all mandated restrictions. For this view to come to pass, restrictions on internet broadcast of radio and TV should be dropped, web radio stations must live in the same copyright regime broadcast stations do, much more unlicensed spectrum must be made available, and so on.

And this the big risk. Though the FCC's ruling is portrayed as deregulation, it is nothing of the sort. It is simply different regulation, and it adjusts percentages within a system of scarcity, rather than undoing the scarcity itself. It remains to be seen if the people supporting the FCC's current action are willing to go all the way to the weblogization of everything, but this is what will be required to get to the benefits of the free and diverse scenario. In the absence of regulation, the only defense against monopolization is to create a world where, no matter how many media outlets a single company can buy, more can appear tomorrow. The alternative -- reduction of regulation without radical expansion -- is potentially the worst of both worlds.

The one incoherent view is the belief that a free and diverse media will naturally tend towards equality. The development of weblogs in their first five years demonstrates that is not always true, and gives us reason to suspect it many never be true. Equality can only be guaranteed by limiting either diversity or freedom.

The best thing that could come from the lesson of weblog popularity would be an abandoning of the idea that there will ever be an unconstrained but egalitarian media utopia, a realization ideally followed by a more pragmatic discussion between the "diverse and free" and "diverse and equal" camps.

End

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NEC @ Shirky.com, a mailing list about Networks, Economics, and Culture.  Published periodically / # 2.7 / June 3, 2003.  Licensed under the Creative Commons Attribution License.  Subscribe at http://shirky.com/nec.html
 


9.0  Guest Writers for This Report

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