Monday, September 29, 2003
AT&T's 'Multiple Personality Disorder' gets worse
In Scott Bradner's recent Network World column, he asks, "Can AT&T Learn to be Stupid?" Bradner points out that on the one hand AT&T will spend US$3 billion over the next few years to build an all-Internet core network. Meanwhile, at the same time, it is building "Vonage-like" Internet voice communications apps that will run over *anybody's* network.
Hmmm. Let's see. If these Internet communications apps will run over anybody's network, why is it so all-fired, three-billion-dollars important for AT&T to have an upgraded network?
For comparison, an arm of Singapore Telecom is buying 61% of Global Crossing's shiny new global fiber network for a mere $250 million. I recently spoke to a Global Crossing employee who sand that after you read all the fine print, Global Crossing's network is valued today at about US$600 million. You can run all the Internet communications apps you want on it. In contrast, AT&T's current network is neither new nor global.
The question is not, "Can AT&T learn to be Stupid?" The question is whether AT&T will decide to be a network connectivity and transport provider or a network applications provider after a lifetime when these two functions were inextricably intertwined. The Internet has rent these two functions apart. The imperative has been clear for seven years. If you want to provide network connectivity and transport, you've gotta carry everybody's apps. And if you want to provide communications apps, they've gotta work on everybody's network. If you do both, each of these distinct businesses will be seen as competition by the customers of the other one. That's the dilemma AT&T faces.
Hmmm. Let's see. If these Internet communications apps will run over anybody's network, why is it so all-fired, three-billion-dollars important for AT&T to have an upgraded network?
For comparison, an arm of Singapore Telecom is buying 61% of Global Crossing's shiny new global fiber network for a mere $250 million. I recently spoke to a Global Crossing employee who sand that after you read all the fine print, Global Crossing's network is valued today at about US$600 million. You can run all the Internet communications apps you want on it. In contrast, AT&T's current network is neither new nor global.
The question is not, "Can AT&T learn to be Stupid?" The question is whether AT&T will decide to be a network connectivity and transport provider or a network applications provider after a lifetime when these two functions were inextricably intertwined. The Internet has rent these two functions apart. The imperative has been clear for seven years. If you want to provide network connectivity and transport, you've gotta carry everybody's apps. And if you want to provide communications apps, they've gotta work on everybody's network. If you do both, each of these distinct businesses will be seen as competition by the customers of the other one. That's the dilemma AT&T faces.
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