Wednesday, April 2, 2008

Most Jarring Moment at CTIA

There often is some point, in an opening keynote at CTIA, when a keynoter tosses out an applause line, typically having to do with Google, Skype or open networks in general. And amidst the applause, one always is reminded that innovations almost always have been "forced" upon the industry--the salient exception being digital switching--which allowed service providers to lower their costs while adding features.

That's not to pick on wireless providers. The same thing happens at cable industry keynotes and elsewhere. Every organization and every person must have a business model, it goes without saying. And it asks too much of participants to expect robust embrace of trends that harm their own revenue models.

But that is what markets are about, and why they are a good thing. And lest we forget: markets only work when they permit harm to befall contestants when better alternatives arise. Take away failure and there is no way to drive success. "Creative destruction," economists call it.

Still, it is asking too much to expect people to welcome harm. Hence the applause.

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