The Three Laws of the Cyber-Economy, by Michel Bauwens
Law 2: The Price of Communication Will Tend Towards Zero
The Internet essentially means global communication at local cost.
There are quite a few reasons for this. It is a combined result of the
Though today's Internet telephony
is still rather limited, we're only a short time away from the
PC-to-telephone technology which will have a major impact on long
distance pricing schemes. Arthur Clarke's prediction in 2001,
that long distance would become free on December 31, 1999, suddenly is more
science than fiction. In fact, a recent confidential report of
AT&T'S strategic planners recently reported by David Bennembaum in
MEME agreed that long distance is dead.
- the early research subsidies;
- the free market
environment in which the Internet operated (it was not subject to
- the distributed nature of the many networks
comprising the Internet also distributes the costs;
- the Net's parasitic
nature in terms of needed hardware and telecommunications
infrastructure: as a protocol the Internet can use all existing
legacy systems; and
- the Internet's nature as a dumb network not requiring
heavy investment in centralized switching because its intelligence is in
relatively cheap computer technology.
This almost-free communication will also change the economies of
scale in business. While in the past only multinational corporations
could afford virtual private networks and a global marketing
and medium enterprises can now afford the same advantages.
The third law of cyberonomics deals with
the price of transactions.