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stopped doing so, investing their profits into network upgrades instead, their stock value would crash. Bells only increase their capital spending by 10 to 15% a year. The Bells, which control 88% of the 185 million local lines in the US, also offered broadband, but were more interested in selling T1 lines to corporate clients at $1200 a month than offering DSL to consumers at $50 a month, according to Rose. The article further suggests that the first commandment to any executive in the Bells is to avoid risk, since risk taking could lead to mistakes and mistakes could thwart a climb up the corporate ladder to Carpetland (the head office in the rolling hills of New Jersey s hunt country was so deeply carpeted, that it muffled any discordant sound. Rose s article said that you could take a nap in there and nobody would ever disturb you). In such a wellcushioned and protected environment, is it any wonder that the build-out of the broadband network is not proceeding with anything approaching enthusiasm or vigor The hide-bound culture of the ILECs is the primary obstacle to the success of streaming media. Similar horror stories can be told regarding the rollout of broadband in the UK. The incumbent network, British Telecom, now a privatized utility, was also compelled to open up its local exchanges to competitive service providers. However, so few providers have succeeded in installing broadband equipment into the decrepit old exchanges that serve the local loops that the government has been forced to take note. It has been reported anecdotally that when the network was surveyed for DSL upgrade, British Telecom rediscovered long-forgotten exchanges and found that many of these were unsuitable for DSL upgrade simply because the fabric of the exchange building was no longer sound and would require rebuilding to allow outside companies to place their equipment in those exchanges with safety. In other words, the allegation is that the cost of the building work prohibited the opening up of the local loop to competition in several areas. I live in the county of the UK that has the highest concentration of millionaires per capita anywhere in the country, yet sitting here in leafy stockbroker-belt Surrey, I am unable to get DSL connection. My local exchange, Clandon, is not suitable for upgrade, according to British Telecom. They can offer me no date for when this might not be so. Indeed, even my existing and expensive ISDN connection is unreliable and problematic. Cable television is nonexistent, since our residential housing estate is deemed too rural to be viable. I am in a broadband blackout zone. We have noted elsewhere in this book that the whole product of streaming media, including literally everything you need to receive streaming media, is not complete. It appeals only to the early adopters
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who are prepared to engage in the integration work necessary to get a media stream to play at home. It does not appeal to the mass majority of consumers. Until the consumers can connect simply, streaming media will struggle to make money. Figure 4.1 shows the adoption of types of broadband access. It is clear that while there are many ways to receive a broadband connection, adoption is at an early stage.
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Figure 4.1 Adoption of types of broadband access.
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In business LAN/intranet environments, bandwidth provision is not as much of a factor. There is an audience for streaming media, the bandwidth is usually available, and connectivity has been provided by virtue of the fact that the IT department has connected each PC to the LAN. Legal issues surrounding the ownership of the content are not as significant. So why don t corporations routinely stream The answers are that the addition of streaming places added demands on the IT staff, most of whom struggle to keep the e-mail system running. Also, content production is difficult and expensive. Content that is made very cheaply is not compelling, even to a captive audience of employees required to watch it. Also, the quality of streaming playback is not guaranteed, even on corporate LANs, without the addition of quality-of-service assurance techniques. In short, corporations still wind up with significant integration issues to make streaming media
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