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To be continued: Future of Cloud (II)
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DMR: Because the commercialization aspect is obviously missing. In the end the question is always who’s going to pay for it. 

Brian: We have to get to a point where the bundle pricing and all you can eat pricing disappears. You need to do tier pricing, per application pricing. So you link the application to a resource. So if I want to watch Hulu video on my cell phone, it’s going to cost me a lot more than if I was going to do SMS. But we’re not at that point today. And I think the FCC is actually a little bit too in favor of the web companies and not enough in favor or being able to differentiate on pricing, network infrastructure, etc. And what it’ll do is it’ll drive broadband infrastructure to a halt.

DMR: So what you’re basically saying is right now people are either completely for open networks, which might kindle innovation …

Brian: … innovation at the application layer. You get no new bandwidth …

DMR: … and the other option you have is to establish cost measurements. 

Brian: The only other option is for the government to basically take over the infrastructure. That’s where it’s headed. Because if they want open Internet and they expect people to pay for it – nobody’s going to pay for it if there is there is no extra value. So the government is going to have to basically sponsor a bandwidth build out, which is what’s happening in the world. I mean, if you look at the rural program, that’s what it is. They’re siphoning from the metros in order to give to rural.

DMR: So the question I asked before about the 15 years: many telecoms are now looking at fiber rollout or wireless network investments, like LTE or WiMax. A lot of these business cases are looking at a rather long timeframe. It’s very difficult for operators to understand the impact of current developments. Because it may be that in the minute they rolled out fiber the regulator is going to say “great that it’s there, now you have to open this for everyone”.

Brian: That’s exactly why the technologies I’m seeing being adopted inside operators today are very network optimization centric. They are not CAPEX related. If it’s a technology that enables me to squeeze more, utilize more, I see those getting adopted much faster.

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