One might argue that IP telephony adds lots of value, and creates new higher-value businesses based on new unified communications features. One might also observe that IP telephony and VoIP cannibalize the service provider's basic voice business. That's the paradox: the web, the Internet and IP-based services both create new revenue potential and destroy existing value.
Tuesday, May 17, 2011
Paradoxical Web Econonics
The social web’s economics are paradoxical: The more it blossoms, the more it destroys value. Those of you in the telecom or Internet Service Provider industry might well agree. So might many in the bookstore, music or video industries, not to mention other retail businesses.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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