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What the US row over the regulation of broadband provision can tell us about the privatisation of public services and why we must maintain the basic right to the same level of ‘public’ services for all…

November 11, 2014 Leave a comment

images-10We have so much news available to us now that it has become very easy to miss the stories which may fail to catch the public eye.

Away from the headlines today, some of our news sources have been covering the growing row between US President Barrack Obama and the Industry Leaders controlling the supply of Broadband Services in the United States.

Obama appears to be pushing for a system of regulation which will ensure the same level of supply across the Net to all customers, whilst the Industry itself is apparently looking for its own kind of controls which will allow differing levels of supply – and ultimately a ‘fast lane’ or optimum service for those to be made available for those who will pay for it.

On the face of it, this could immediately sound like something and nothing. We do after all have a whole range of choices when we buy or arrange our own internet packages and right now, it now seems pretty normal to pay for every little thing that we have.

However, whilst the speed of the roll-out of superfast broadband leaves many of us knowing only too well that different levels of service currently exist and seem to leave us with little choice, this is in itself just an evolutionary or developmental stage of provision. It is much like the experience of the switch from analogue to digital has been for those of us who used the Web from the beginning, and can still remember the rattle and hum of the tones as we hogged the phone line and dialed-in.

We may not like it and in an age where we have been conditioned to expect everything at the touch of a button, slow internet is beyond frustrating. But right now, we are accepting of it, as we are culturally acclimatised to accept that there is a direction of travel at work, which will only see services improve. (Yes, 4G apparently will at some point exist, even if you have already been paying for it for many months…).

But what would it mean to you if the next generations of technology were simply kept from you, when you knew that they existed and other people or businesses had ready access to them?

Your immediate thought might be that you are pretty happy with your iphone 6, or perhaps a Galaxy Smartphone, and that will do you just fine. But technology is moving apace, and if you were to work on the basis of Moore’s Law, which indicates that the speed and capacity of technology doubles approximately every 18 months to 2 years – which affects functionality as well as speed, you can soon begin to imagine what you might be missing out on by the time you are thinking about the phone you will be able to buy AND operate fully in the year 2020. Apply this to the services you receive through broadband too, and there is perhaps no need to say anymore.

The speed of communication through information technology mediums has been and remains a game changer which has impacts upon us all, usually in ways that leave us feeling completely untouched.

However, it is this very speed, and the capacity to move significant amounts of data from one location to another – perhaps even across the world, in timescales that as humans we at present still remain cognizant of, which have for example equipped money markets and traders to create industries within industries which literally create money from nothing as stocks and shares change hands with the potential to do so again and again over the course of a minute, whilst speculators also ‘bet’ on the transactions and the way their vales will go over the same period of time.

Speed – and therefore time, is increasingly becoming worth money where communication is concerned.

Whilst this may not be a thought that drags many of us away from our phones and iplayer-streamed episodes of The Big Bang Theory today, it will surely stand to reason that those who supply much faster internet services will see the opportunity in being able to charge a considerable premium for the product they supply tomorrow; whilst those who have the most to gain from the almost guaranteed technological leaps that are coming, will already possess and indeed have the most to gain financially from paying what will to them be trivial sums.

Not a problem for many of us today. But if the supply of service did really become as diverse as it could, there is no reason to believe that like in many other areas of contemporary life, cost will not quickly price large numbers of people out of the latest technology marketplace, with repercussions that could easily lead to the imposition of a whole tier of barriers to entry to services, apps and anything else which has then become entwined with the internet age.

Look at the behavior of the Industry in the States, and it will suddenly become very clear why our own providers could be so resistant to Government led regulation, and the imposition of a level playing field which will never have the potential for the same levels of profitability as that of the alternative.

Regulation that ensures a basic level of service for all and which is not itself qualified by a premium is essential. It can only be offered by an impartial third-party organisation – ideally good government – which has no financial interest in the services provided.

Government is today painted as the bad guy for any industry that provides either a public-wide service, or one which can ultimately have that same effect on the population and is not currently regulated – or guided with a robust ethical code that prioritises access and consideration of the consequences of profit-making actions upon us all.

This applies to the inappropriately named utility companies; companies such as the telecom providers, and also to the companies within the financial and banking sectors, where perhaps the most clear example of what happens when the fee-earners are left to regulate themselves was demonstrated by the financial crash of 2008.

The relevance of the US example should not be lost on us, just as the importance and argument that now definitely exists for greater Government intervention to regulate what are and remain public services.

The core reasoning of keeping essential services in the public domain was lost to decision makers of that time, through prolonged periods of low productivity and the high cost of running industry sized monoliths which were inherently resistant to change.

Regrettably, the long-term gift of what are effectively now monopolies to the money markets was not considered in terms of the requirements of ethical or regulatory practice, and the escalating costs of heating and electricity are just a symptom of what happens when a service is provided to a captive market by companies that are allowed to focus on nothing but the bottom line.

Sooner or later, Government will have to address these issues which face and surround all of the public services which are now in public hands.

Ed Millliband has to date probably been the most outspoken of the Political leaders in acknowledging the need to tackle the impact of unbridled energy price rises. But as with almost everything else, inflicting price changes, freezes or any kind of formula without regard to the real implications of doing so is akin to madness – and certainly so if the Industries themselves are not given adequate opportunity to reform before doing so.

Existing problems will be very complex to address. But for services such as the NHS it is not too late for politicians to do the big thing and tackle the problems that exist with meaningful reform. With Internet Services, it is in no way too late to ensure that the market continues to serve the best interests of everyone, and not just the few who will otherwise stand to make the most money from manipulating its harnessed profitability to their best advantage.

There is much for Government to do. But before anything there must be a change of mindset to one that genuinely considers the impact of polices on other polices and ultimately upon the consequences for us all.

The Internet will only come close to achieving all that it can for good if access to it is essentially the same for all.

Government will need to address this, just as it will soon have to accept that the parallel world which the Net has created will require its very own set of rules.

The distance which the Internet has created between us is already removing the humanity from relationships. We now need to ensure that our ability to pay is not the system of qualification for improving our lives that we should now be able to take for more than granted.

image: thevoltreport.com

Is the distance created by modern communication and business methods removing basic humanity from our relationships and has the time come for a whole new set of rules?

August 1, 2012 1 comment

So what motivates you at work or within your business? Is it doing the very best job that you can; or is it simply to earn the greatest amount as quickly as possible and perhaps keep yourself in that lucrative job that you already have, maybe progressing you to an even better paying or profiled position?

Whilst admitting that it leaves a bad taste in the mouth just as soon as the realisation dawns that other people may have noticed; for a growing number today it will be the latter and for very practical reasons that they may never really have even considered at that. Perhaps strange then that it’s a feeling of guilt which often accompanies that understanding when it arrives, as few will ever argue that we would all like to earn more or have a better lifestyle if given the option to do so.

The reality is of course that people feel bad about making money when questioned, if they hadn’t realised that it has become the purest motivation or aim in what they do, rather than being the very healthy side-effect of a career undertaking or vocation, and then doing it damn well.

With a growing concern about the ethics employed within business, not least of all illustrated by the Libor scandal, one must ask if a loss of conscience is one of the very negative aspects that the distance created by increasingly elaborate supply chains and the rise of the Internet have created?

Many of us have simply adapted and in many cases thrived from the changes and opportunities brought into being by the rise of the Communication Age.  So workers within Internet and information technology reliant businesses are perhaps excusably less aware of the fallout hitting customers they may never even see from decision making which is without a tangible fear or concern for the ‘human factor’. One also wonders if they are therefore insulated from the future catastrophes they now have the power to create in what may seem little more than parallel lives, which to the more aware would only ever be dressed as distant elephants that look less than the size of a gnat on their horizon.

To perhaps emphasise the downside of distance more effectively, I will take a step back to an industry that we all love to hate. A profession that has always had the benefit of distance between business and customer once they have been commissioned; but a distance which is also created by time and process rather than by the remote contact of a broadband cable.

Within the property market, many are quick to become cynical of the inflation-setting-overpricing of houses and wonder how they find themselves unable to afford even a modest home.

Some would blame the gargantuan super-tanker that was ‘right-to-buy’ as set in motion by Margaret Thatcher, but can quickly forget how it was that very act in the first place which encouraged massive property ownership within parts of society where people would never have dared even dream of being homeowners before her tenure, and perhaps led to those very same people being able to aspire to making such dreams their reality to begin with.

Others would look perhaps more accurately to the realms of Estate Agents who have ruthlessly pushed prices up and up, month-after-month and year-after-year in order to secure greater and greater percentage based sales fees.

Estate Agents actually do a job that they could choose to do very well on sensible margins – even in a good market. But repeat custom is to them a very long game and if someone else is saying they can sell a house for more, it doesn’t take much excuse to follow or to lose out because the risks to them seem very distant indeed.

After all, very few owners will willingly lose many thousands of pounds on a sale just because one agent tells them what its actually worth, when another says different. The agent who ‘does what it says on the can’ will have ‘priced to sell’ and done what they were commissioned to do, whereas the second agent plays the long game, watching the market rise to the price they suggested, thereby getting the fee they want but paying little note of the pain that their customer experiences in the meantime. No wonder then, that so many Estate Agency businesses have stopped trading or been forced to make substantial cutbacks during the economic crisis.

The long-term effects of such business practices are potentially incalculable and one can only speculate on just how overpriced our homes now actually are, and how far back in time standards of living and subsequent social mobility could actually be pushed as a result of the out-pricing of starter homes for young people; a situation created purely on the basis of making higher and higher margins for just a few without any apparent risk to the many from doing so.

So with the rise of the Internet and information technology, many more businesses now find themselves enjoying a distance between themselves and  customers which is to such a degree that the abuse of such apparently lucrative opportunities could create all manner of future problems, which may only ever become apparent much further down the line.

For instance, a once heavily hands-on recruitment industry which only a few years ago interacted with perhaps every candidate who made the effort to post them a CV, has been replaced by one which has discovered a seemingly bombproof level of security from risk of losing fees by targeting ‘perfect fit’ or tick box candidates, simply by focusing on electronic advertising and administration techniques. 800 applications through an Internet Job Board sounds a lot to handle; but not if you have set up a machine to identify perhaps a minimum of 8 ‘keywords’ or phrases from 10 in those CV’s before the hand of a human with any kind of feeling will go anywhere near them.

Nobody talks about the longer-term threat to hiring businesses of all shapes and sizes that comes from recruiting candidates from what by default effectively becomes a closed field of applicants who only know and understand a specific discipline within business, illustrated by the use of a series of words. Words which may themselves actually just be buzzwords or the esoteric ensemble of a recent graduate.

And why in purest profitability terms should recruiters care when today’s bottom line is secure and they achieved it with the benefit of never having to even speak to perhaps 3 times as many candidates as they actually did. Candidates who may have provided the recruiter’s customer with benefits and untold added value which they never had the chance to see but paid for nonetheless.  A situation leaving perhaps the best candidates finding themselves removed from the running by a software package that reduced the time involved for the recruiter to all but a mere fraction of what they would have ‘wasted’ otherwise.

It is quite concerning that labour and cost saving technology for one business can itself create the opposite effect not just for one, but potentially many others. But then if you also look at the dark-art-creativity of the financial sector and money-making ideas such as cereal futures and funds that own shares in supermarkets and dairy processors, you can quickly begin to see just how the mechanics of distance and its ability to negatively affect the lives of many people actually are. After all, what is 1p on the price of a pint of milk every couple of days when you had a £1 Million bonus last year?

On the one hand, technical advances and the heralding of an information-based communication age encouraging openness and sharing is driving a potentially buyer-led age where businesses have no option but to sell on the basis of making ‘just enough’ profit and delivering quality on time every time.

On the other, the opening of doors to many more  ‘golden-egg’ opportunities which are great for those picking up the product as it is found, but like the ever expanding and deepening ripples from a tiny stone tossed into a still pond, can cause mayhem and disaster in places that they had never even considered.

So the question needs to be asked; Is the distance created by modern communication and business methods removing basic humanity from our relationships and has the time come for a whole new set of rules?

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