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Mother Earth Mother BoardThis is a tidy enough arrangement as those telecoms traditionally "own" all of the customers within their borders and can charge them whatever it takes to pay for all of those cables. Cables built this way are now called "club cables." Given America's postwar dominance of the world economy and AT&T's dominance of the communications system, it becomes much easier to understand the huge bandwidth imbalance that the analysts at KMI noticed. Actually, it would be surprising if this imbalance didn't exist. If the cable industry worked on anything like a free-market basis, this howling chasm in bandwidth between Europe and Asia would be an obvious opportunity for entrepreneurs. Since the system was, in fact, controlled by government monopolies, and since the biggest of those monopolies had no particular interest in building a cable that entirely bypassed its territory, nothing was likely to happen. But then something did happen. KMI, whose entire business is founded on knowing and understanding the market, was ideally positioned, not just to be aware of this situation, but also to crunch the numbers and figure out whether it constituted a workable business opportunity ...» |
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