Aggregation and Competition

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Our dreams may be based on false premises.  The 2 quoted items below 
are from week 4's material.

"How can schools and libraries share services with each other and 
with other community groups? ... how schools and libraries can 
aggregate services for increased efficiency and effectiveness...."

It is not clear to me that increased efficiency and effectiveness 
follow from aggregation.  That was true for capital-intense 
industrial companies.  I'm not at all convinced it applies to 
information networks.  Big iron yielded to minicomputers; are 
yielding to micro-computers.  Simultaneously, large copper cables  are
yielding to fiber systems, which are yielding to still smaller,  more
closely-coupled multi-type webs.  Isn't the ultimate one-client/server
to all others more desirable, and maybe cheaper  than aggregated
services for consumers of very different  motivation?  Cheap
information transfer and powerful network search "spiders" seem to
promise that.  I'm inclined to doubt the  synergy between community
library and school education  functionaries.  Won't they dilute each
others' purpose?


"How can these activities be structured so as to foster competition
among telecommunications providers? ...The promise of the
Telecommunications Act is a less monopolistic environment, and in 
such an environment community groups and local and state governments
should have a stronger voice than in the past. ..."

Government had its way with monopoly and seems to have decided that 
competition is better;  but won't give up its power to control.  So it
promises a less monopolistic environment.  Here, the power-to-control 
remains in place but is transferred to state and local governments. 
That seems to lead to balkanization and inefficiency between small 
regulated environments, unless the private providers become so big as 
to influence all regulators to a uniform model.  That could lead to 
bigger monopoly.


-- 
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K.F.Hammer Associates                           Ken Hammer
management consultations          St. Johnsbury, VT  05819
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**  Is fire supposed to shoot out of it like that?

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