lead by getting out of the way

Andy Kessler makes some good points in this article on why Net Neutrality is a bad idea. The main one is that we need less regulation, not more. The duopoly’s main source of power comes from regulation. It’s always a bad idea whenever a smaller force attacks a larger one’s main power base.

We need to outthink the telcos and cablecos. Their costs have climbed to an unsustainable level and continue to do so. So I say, attack their revenue stream and bottom line. This is what I’m doing with Able Networks.

We have to be clear about what we want. Do we want to conquer (and replace) the duopoly or simply defeat them? Trying to conquer them forces us to play the game as it is now, and ultimately isn’t going to give us anything different. Look at all the local wireless startups that are nothing more than telco wannabes.

In the long run, defeating the duopoly is better for everybody because it leaves them mostly in place. All we want them to do is to see there is a better way, a way they can dramatically reduce their costs right now, grow sustainable top line revenues without paying exorbitant costs (really, penalties) for delivering a service over a competitor’s facilities. And, the consumer would get lower prices (a lot lower than we have now – 10MB symmetrical for $40 a month anyone?) and connectivity in more places and more devices than ever before.

By itself, Net Neutrality is not going to accomplish this. In the current reality, ISPs won’t ever achieve structural separation (a decade-long battle that’s resulted in less competition, more duopoly entrenchment) with their costly legislative and regulatory advocacy efforts. Both of these attack the duopoly at its strongest point.

The duopoly is weak in two main areas, marketing/customer service and the prices they charge. Regulation, closed facilities/structures and the primacy of the profit-maximization mindset are the single biggest reason why the Internet economy hasn’t really taken root in very many places.

In my view, a third front is the game changer.

Overheard at a major Canadian book store in Ottawa yesterday-

Customer: “Can I use your kiosk to access the wish list I created on your website?”

Employee: “No, they’re just for ordering. Sorry.”

This company has gone to great expense to build a website and brand. This site lets customers like you and I to create wish lists of items (in this case books and CDs).

This just doesn’t make sense to me. Does this company see the web as something different from its bricks and mortar stores? I suspect they do.

However to me, the Customer, it’s all part of the same buying experience. Why can’t I access my wish list from any store? For that matter, why can’t the employees also be given access to that info so that when I come into a particular store they can greet with more than the standard “Hello, can I help you find something?”

Of course you can! It just takes a different perspective, seeing things from the Customer’s point of view of the buying experience.