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section heading icon
    infrastructure

This page is under construction.

section heading icon     the industry

At the national and international level the connectivity industry continues to be unstable. Globally the infrastructure has more kept pace with demand on most routes and in particular regions 'over-building' of capacity (or merely poor planning) has resulted in some operators significantly scaling back plans to provide national/local fast access. 

At the international level consolidation of major internet service providers and telecommunications operators continues. Locally the picture is more varied: the drastic consolidation forecast by some pundits in Australia, the US and EU has yet to occur. World internet traffic is dominated by around 280 international ISPs, with the ten largest owning or leasing 70% of global internet bandwidth (ie the transborder telecommunications links and routers). These include AT&T, WorldCom, PSINet, Sprint and Cable & Wireless; they're predominantly from the US, with a few from the UK, France and Germany.

Regional transborder operators such as Pacific Century CyberWorks and Telstra are increasingly competing with the global giants and with ISPs that have a national or local focus. Australia has around 800 ISPs: the three largest account for around 60% of traffic but as is often noted, don't necessarily provide the best service or best pricing to business and domestic consumers. Given relatively low entry costs small ISPs continue to appear. Most disappear as a result of revenue/service problems and acquisition by competitors.

Academic research networks such as Australia's AARNet and GÉANT often act as national/international connectivity providers alongside commercial ISPs. While there have been some loosening of regulatory restraints (eg removal at the end of 2000 of restrictions on AARNet under Australian telecommunications legislation) most specialise in research traffic, particular as part of Internet2 development.

section heading icon     Competition and access

Competition In Telecommunications (Cambridge, MIT Press 00) by Jean-Jacques Laffont & Jean Tirole and Universal Service: Interconnection, Competition & Monopoly in the Making of the American Telephone System (Cambridge, MIT Press 96) by Milton Mueller examine universal service regimes.

There are more varied perspectives in Opening Networks to Competition: The Regulation & Pricing of Access (Kluwer 96) edited by David Gabel & David Weiman, in Networks, Infrastructure & the New Task for Regulation (Ann Arbor, Uni of Michigan 96) edited by Werner Sichel and Deregulatory Takings & the Regulatory Contract: The Competitive Transformation of Network Industries in the US (Cambridge, Cambridge Uni Press 98) by Gregory Sidak & Daniel Spulber.
 
The incisive paper The End of End-to-End: Preserving the Architecture of the Internet in the Broadband Era by Mark Lemley & Hal Varian explores concerns with 'bundling' and other restrictions by major carriers. The 'digital divide' page in our metrics guide considers other studies.

We'll be adding other pointers shortly.


  
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