Slouching Toward Broad

Questions: 1.) Should broadband be left to the markets or should the government intervene? If so, how? If not, why not?2.) Why does Microsoft support Comcast and Cox in their bids for ATT Broadband, in addition to offering to support ATT Broadband? Why did both Intel and Microsoft help RBC disseminate DSL technologies? Answers: 1. Slow internet connection has been a problem for a long time and the emergence of broadband technology seem to solve the problem. However, broadband connectivity is threatened by government intervention through legislation and policies to govern the market. In this regard, the government should not intervene in broadband connectivity and leave it to the markets because government intervention can stifle competition that can reduce the prices of broadband in the market (Burgelman, Vadasz, Meza, pg 404). Moreover, it is important to note that lack of government intervention can also result to negative effects like a monopoly in the market. Nonetheless, there are companies in the market that are in better position to take advantage of new opportunities than others. Thus, it is not necessary for the government to intervene and disrupt the process of supply and demand. Additionally, government intervention can cut incentives of new upstart companies to start broadband connectivity. Moreover, government intervention can diminish the incentive of existing operators to take advantage of new opportunities in the market. The competition over prices that can ensure a stable market can weaken with government intervention thus producing fewer options and advantages to the customers. The effects of government intervention were evident when the Congress passed the Telecommunications Act of 1996 that aimed to level the playing field in the telecommunication industry by providing information to the competitors (Burgelman et al. pg 405). Ideally, providing information to other internet service providers can result in an increase in the number of users that can reduce the transmission speed of the broadband connections. The congestion problem can result in reduced investments in broadband technology and affect the future access options for customers. Nonetheless , the internet access market is dynamic and competitive in that consumers have options in service providers, who provide different technologies at different rates and with different capabilities. Thus, it is not essential for the government to intervene and level the playing field. 2. The action to support Comcast and Cox in their bid for ATT was a result of their interest in supporting broadband connectivity. Moreover, Microsoft generated most of its revenues from selling personal computers. Thus, more broadband penetration can result in more sales because people will replace their old personal computer with new one that possesses high processing speed. At that time, many Americans opted for high-speed access offer by cable companies. Thus, Microsoft opted to support Comcast and Cox to enhance high-speed access through the purchase of new devices. Moreover, Microsoft and Intel supported RBOCs to develop DSL technologies to expand the consumer uptake for high-speed devices to expand the market share by selling more devices (Burgelman et al., pg 406). On the other hand, wireless fidelity (Wi-Fi) technology was gaining speed as it enabled users to access high-speed internet access using standard technologies through a wireless modem. Wi-Fi technology provided competition to DSL high-speed services. Moreover, Wi-Fi provides an option to access the internet through an access point (Hot Spot) without the need of a cable or broadband (Burgelman et al., pg 409). The Wi-Fi element provided competition that could hinder investment in DSL technology and thus the support of Microsoft for Comcast and Cox. References Burgelman A. Robert, Vadasz Les, and Meza Philip. (2004) "Slouching Toward Broad: Revisited in 2005. P 403-414. Book