There are many reasons why the connectivity industry that might well have preferred asynchronous transfer mode instead of TCP/IP as the next-generation network protocol, there are lots of obvious reasons why TCP/IP was chosen.
Dimension | TCP/IP | ATM |
Cost | Relatively low | Relatively high |
Scalability | Very high | Not as high |
Openness | Open standard | Proprietary |
Complexity | Relatively simple | More complex |
Suitability for a variety of network technologies | Yes | No |
On the other hand, the choice of TCP/IP also had serious implications for innovation and distribution of profit within the app ecosystem supported by multi-purpose, multimedia networks. By creating a layered, loosely-coupled architecture, permissionless innovation was possible.
In other words, so long as an app or service is compliant with TCP/IP network protocols, no business relationship needs to exist between any internet service provider and any app creator. So app creation is “open” and permissionless, not closed. App and service innovators do not need permission, or direct business relationships, to be used on any public IP network.
In other words, nearly all apps and services become a matter of “direct to consumer,”
Factor | Advantage for Telcos | Advantage for App Creators | Disadvantage for Telcos | Disadvantage for App Creators |
Loose coupling | Increased flexibility and scalability | Increased flexibility and agility | Increased complexity | Increased complexity |
TCP/IP protocols | Ubiquitous and interoperable | Easy to use and develop for | Less control over network performance | Less control over network performance |
Software layers | Easier to upgrade and maintain | Easier to innovate and develop new features | Less control over network performance and security | Less control over network performance and security |
If you want to know why connectivity providers such as telcos worry so much about being "dumb pipes," the loosely-coupled, layered architecture of TCP/IP and modern software is a chief reason.
No developer, app or content provider needs an ISP's permission to sell products directly to en users. Everything is "direct to consumer."
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